Is Your Unoptimized SAP Estate Driving Seven-
Figure Waste—and Bringing You Closer to a
Compliance Violation?

Partner with Licensing Data Solutions to help you avoid audit surprises, protect budgets, and optimize SAP license usage with precision and confidence —before auditors do it for you

Reach out today to learn how we can help you take control of your SAP licensing—minimizing
audit exposure, reclaiming value, and aligning spend with actual use.

Start Optimizing Your SAP Portfolio Today

 

Reduce Costs

 

Optimize licensing to eliminate unnecessary spending

25-40% Average Savings

Ensure Compliance

 

Avoid costly audit penalties and legal risks

100% Audit Readiness

Maximize ROI

 

Get the most value from your SAP investments

60%+ Enhanced Value

How Licensing Data Solutions Can Help
Your Organization?

We help organizations gain visibility, control costs, and ensure compliance across their SAP environment.

SAP Logo
Assess Icon

Assess

 

Comprehensive visibility into license usage and entitlements

Usage Analysis
License Inventory
Risk Identification
arrow
Complete Visibility
 
Optimize Icon

Optimize

 

Strategic license allocation aligned with business needs

Cost Control
User Reclassification
Resource Planning
arrow
Strategic Cost Control
 
Defend Icon

Defend

 

Complete audit readiness and compliance assurance

Compliance
Audit Defense
License Clarity
arrow
Audit-Ready
Comprehensive Analysis

What's Included in Our SAP License Analysis

 

Our comprehensive analysis covers all aspects of your SAP environment to deliver actionable insights and measurable value

Contracts Icon

Contracts Analysis

clauses specific to user access, levels and restrictions

Software Entitlement Icon

Software entitlement data gathering

User License Icon

User license assignment analysis

Engines Analysis Icon

Engines analysis

HANA Database Icon

HANA Database Analysis

Indirect Access Icon

Indirect Access Analysis

Business Objects Icon

Business Objects Analysis

SuccessFactors Icon

SuccessFactors Analysis

Checkmark
Full Compliance Coverage
Dollar Sign
Cost Optimization Included
Shield
Audit Protection
Your Comprehensive Results

Your Complete Report Deliverables

 

Our service culminates in these comprehensive deliverables designed to provide clear visibility and actionable recommendations

 
document icon
 

Current ‘SAP Effective Licensing Position’

document icon
 

Detailed SAP SLAW Engine Analysis and Optimization Position

document icon
 

Indirect Access DAAP Program ready document: Estimation, Quantification, and Optimization report

document icon
 

SAP LMBI (Business Objects) Compliance and Optimization Report

document icon
 

SuccessFactors Compliance and Optimization Report

document icon
 

Independent recommendations for licensing, process, and contract improvements

document icon
 

Road map for recommended SAP license management strategy

guarantee icon Our Guarantee

All deliverables are provided in editable format with comprehensive explanations and executive summaries

Proven Track Record

Our Numbers Speak for Themselves

 

Proven results that demonstrate our expertise and commitment to excellence in SAP licensing

clients icon
0+
 

Enterprise SAP
Clients

savings icon
$0M
 

Client Savings

experts icon
0+
 

SAP Licensing
Experts

experience icon
0+
 

Years of SAP
Experience

success icon
0%
 

Audit Defense
Success Rate

Key Benefits

The LDS SAP Advantage

 

Expert SAP License Management to Reduce Costs and Eliminate Compliance Risks

Shield Icon

Avoid Costly SAP Licensing Audits

Mismanaged SAP licenses can lead to massive audit penalties and compliance risks. Our experts ensure proactive audit defense with real-time tracking and remediation strategies.

Without LDS                                                                                             With LDS
Warning Icon
High Risk
Warning Icon
Medium
Shield Icon
Protected
Dollar Icon

Reduce SAP Licensing Costs by 15-40%

Our specialized knowledge helps identify shelfware, optimize user classifications, and align your licensing with actual usage patterns for significant cost reductions.

15-40% Reduction
Original Cost
Document Icon

Protect Against Indirect Access Penalties

Third-party systems connecting to SAP can trigger massive compliance violations. We identify and mitigate these hidden risks before they become multi-million-dollar problems.

SAP Core 3rd Party
DB Icon
 
DB Icon
       Warning Icon
     Indirect Access Risk Detected
Migration Icon

Prepare for S/4HANA Migration

Our license conversion expertise ensures your transition to S/4HANA doesn't result in unexpected costs or compliance issues, protecting your long-term SAP investment.

ECC S/4HANA
Plan
Convert
Optimize
Save

Indirect Access / Digital Access Defense

LDS performs detailed system-to-system access analysis to identify indirect and digital usage risks before SAP does. We model SAP's Digital Access Document approach and ensure your entitlements are aligned—preventing seven- or eight-figure audit penalties.

⚠️Risk:

Unlicensed third-party systems (e.g. Salesforce, web portals, IoT devices) accessing SAP data without appropriate user or document licenses.

📊Impact:

SAP considers this chargeable and can retroactively demand licenses.

$Audit Exposure:

Often $1M to $50M, depending on volume and data types.

👤

User Classification Accuracy

We validate every user against actual transaction data to eliminate misclassifications. Whether it's Limited Professional or Employee Self-Service, we ensure your licensing reflects true activity—avoiding mass reclassification by auditors.

⚠️Risk:

Users assigned cheaper licenses (e.g., Employee Self-Service or Limited Professional) but performing higher-level activities (e.g., creating sales orders, managing inventory).

📊Impact:

SAP can reclassify thousands of users to more expensive license types.

$Audit Exposure:

$500K to $10M+, depending on user counts and system complexity.

📊

Shelfware & Over-Assignment Optimization

Through usage analysis and entitlement review, we uncover inactive, duplicate, or unnecessary licenses—often reducing SAP spend by 20–40% without impacting operations.

⚠️Risk:

Enterprises often over-purchase licenses without aligning them to actual usage.

📊Impact:

Millions spent annually on shelfware and inactive users.

$Audit Exposure:

$1M+ per year in wasted license spend.

📄

HANA Runtime Compliance Monitoring

We assess whether your use of SAP HANA complies with runtime restrictions, and flag risks of custom applications violating license terms—mitigating multi-million dollar exposure to Full Use conversion costs.

⚠️Risk:

Using SAP HANA Runtime Edition (restricted use) for custom or non-SAP applications, which requires the more expensive Full Use license.

📊Impact:

License breach penalties, forced conversion to full licenses.

$Audit Exposure:

$2M-$20M, depending on usage volume.

S/4HANA Transition Licensing Strategy

LDS builds a license conversion plan aligned with your future architecture, use cases, and commercial goals—ensuring your migration to S/4HANA doesn't lock in unnecessary costs or audit liabilities.

⚠️Risk:

Using SAP HANA Runtime Edition (restricted use) for custom or non-SAP applications, which requires the more expensive Full Use license.

📊Impact:

License breach penalties, forced conversion to full licenses.

$Audit Exposure:

$2M-$20M, depending on usage volume.

⚙️

Engine & Package Licensing Review

We examine consumption metrics for engines and packages (e.g., CRM, Payroll, WM) to ensure compliance and cost-efficiency—preventing retroactive license claims and optimizing utilization.

⚠️Risk:

SAP engines (modules like CRM, WM, Payroll, etc.) are often licensed separately. Incorrect or underestimated usage can lead to severe under-licensing.

📊Impact:

Retroactive fees, backdated license charges.

$Audit Exposure:

$500K to $15M, especially in large-scale implementations.

📄

Contractual Clarity & License Positioning

We reconcile contract terms with system use and entitlement data to provide a defensible Effective License Position (ELP)—so you're fully prepared for audits, renewals, and negotiations.

 
⚠️ Risk:

Poor documentation, custom terms, or lack of centralized license data leads to misinterpretation of entitlements.

 
📊 Impact:

Inability to defend position during audit; reliant on SAP's interpretation.

 
$Audit Exposure:

Legal disputes, re-negotiation under SAP's terms

🛡️

Audit Readiness & Defense

From license measurement to response strategy, LDS acts as your audit shield. We interpret SAP's requests, defend your position, and minimize exposure—turning potential liabilities into structured outcomes.

 
⚠️ Risk:

Enterprises fail to maintain accurate license measurement processes or license position documentation.

 
📊 Impact:

Audits are time-consuming, disruptive, and prone to costly findings.

 
$Audit Exposure:

Multi-million dollar settlement offers or forced purchases

STRATEGIC FRAMEWORK

Maximize Your SAP Investment with LDS End-to-End SAP License Management Framework

Our strategic framework delivers measurable results through a comprehensive, expert-led process.

 
1

SAP Measurement Planning & Technical Baseline

Phase 1

In this initial phase, we prepare your SAP environment for accurate and defensible measurement by:

▶️

Developing a Custom SAP Measurement Plan

We create a strategic measurement framework tailored to your SAP environment, establishing a baseline across all user licenses, engine consumption, and Digital Access utilization. This comprehensive analysis forms the foundation for accurate license positioning and optimization strategies.

🗃️

Data Collection Readiness

LDS coordinates with your SAP Basis and infrastructure teams to extract relevant license usage data, such as:

  • ✔️ Named user activity and classification
  • ✔️ Engine consumption metrics (e.g., HR, Logistics, Payroll, etc.)
  • ✔️ Indirect/Digital Access transaction volume
  • ✔️ Historical audit outputs for cross-verification
 
2

SAP License Usage Analysis & Reconciliation

Phase 2

This critical phase allows LDS to bring the most value through deep technical and commercial insights, including detailed license analysis, entitlement mapping, and ELP Report Generation for the operating reality of license needs.

👤

User Classification Analysis

LDS applies advanced logic to each user's transaction history to identify true activity, creating a defensible ELP that aligns license profiles with allowed use rights to prevent costly license reclassifications.

⚙️

Engine License Review

Where engine licenses are based on consumption metrics, LDS reviews usage drivers against license entitlements for accuracy, ensuring measurement methods are correct and supportable.

🔗

Digital Access Estimation

LDS maps indirect systems to Digital Access documents, assessing usage data and applying SAP's nine-document model. The resulting document count provides a defensible DADP to facilitate future S/4HANA renewable conversations.

🗺️

Entitlement Mapping & Reconciliation

We align historical entitlements from SAP agreements against current usage—reconciling user licenses, digital access, engines, packages, and engines.

📝

Effective License Position (ELP) Report Generation

LDS generates a comprehensive ELP, including:

  • 1. Current license position & deltas
  • 2. Unused perpetual licenses for savings
  • 3. Opportunities for license conversions & cost-avoidance.
 
3

Optimization, Governance & Audit Defense

Phase 3

In Phase 3, we translate data insights into real business value by optimizing SAP licensing, enforcing governance controls, and preparing organizations for audit resilience. This phase is where cost reductions, compliance assurance, and strategic alignment come together.

📈

License Optimization

We perform a deep dive, user-centric analysis to ensure every SAP license is allocated efficiently and in alignment with SAP’s commercial terms. Our services include:

  • ✔️ User Role and Usage Profiling: By analyzing transaction-level data and role assignments, we identify users who are over-licensed or under-utilized.
  • ✔️ Redundant and Inactive User Cleanup: We flag dormant accounts for deactivation or reassignment, removing hidden cost drivers.
  • ✔️ License Reallocation and Consolidation: We identify opportunities to consolidate contracts and optimize the license mix.
📜

Governance & Policy Alignment

Once we’ve optimized your SAP licenses, LDS helps you put the right rules in place to keep things under control going forward. We work with you to:

  • ✔️ Set clear standards for how different user roles are licensed.
  • ✔️ Put guardrails around access and usage so users don’t accidentally trigger more expensive license types.
  • ✔️ Align your internal SAP usage with contract terms to avoid future compliance issues.
🛡️

Audit Defense & Risk Mitigation

As SAP audits become more frequent and complex, we help you stay in control, not on the defensive. Our Audit Defense Planning includes:

  • ✔️ Audit Readiness Coaching: We prepare internal stakeholders on how to manage audit interactions and respond strategically.
  • ✔️ Legally Defensible License Logic: We develop and document rational, evidence-based license assignments.
  • ✔️ Data Disclosure Guidance: We advise what data is appropriate to share with SAP auditors and what should be withheld.
STRATEGIC MIGRATION PATH

Strategic Transition from On-Premises to SAP RISE

 

Clarity, Control, and Confidence in Every Step of Your SAP Cloud Journey

Transitioning from your existing SAP on-premises setup to RISE with SAP involves more than just moving systems—it's about realigning licenses, infrastructure, and contracts to fit SAP's cloud-based Full Use Equivalent (FUE) model. At Licensing Data Solutions (LDS), we help you navigate this complexity with structured analysis, licensing expertise, and technical planning.

From On-Premises to Cloud: How We Support Your Transition

 
On-Premises Icon

On-Premises

Transition Icon

Transition

SAP RISE Icon

SAP RISE

 
📄 File

Bill of Materials (BOM) Mapping

Your on-prem SAP setup includes a variety of user types, engines, and legacy licenses. LDS helps you make sense of it all:

  • Checkmark Icon
    Mapping to RISE-Eligible Products: We align your existing entitlements with SAP’s RISE-compatible cloud offerings. This helps determine what can be converted or retired, and what needs to be replaced or relicensed.
 
📄 File

Contract Analysis & RISE Eligibility

We review your existing SAP contracts to identify how they impact your move to RISE:

  • Checkmark Icon
    How your maintenance agreements affect overall cloud transition costs
  • Checkmark Icon
    Where contractual terms may need to be updated or renegotiated for cloud compliance
 
☁️ Cloud

Technical Transition Planning

RISE migration isn't just commercial—it's deeply technical. LDS supports your IT team by:

  • Checkmark Icon
    Assessing data migration needs and potential complexities
  • Checkmark Icon
    Mapping existing integrations and interfaces to their cloud counterparts
  • Checkmark Icon
    Developing a migration timeline that minimizes disruption to your business operations
CLOUD TRANSITION INSIGHT

RISE Simulation

 

RISE Simulation Analysis

A strategic advisory service designed to:

Search Icon

Assess your current SAP system landscape

Alert Icon

Identify licensing and compliance risks

Bar Chart Icon

Evaluate cost impact and cloud sizing under RISE model

Upload Icon

Support migration planning to SAP S/4HANA Cloud

 

Full Use Equivalent (FUE) Conversion

1.0
Profile Icon

Professional User

= 1.0 FUE
Full access user

0.5
Functional Icon

Functional User

= 0.5 FUE
Limited access user

0.2
Productivity Icon

Productivity User

= 0.2 FUE
Basic access user

0.1
Employee Icon

Employee User

= 0.1 FUE
Self-service user

0.5:1
Developer Icon

Developer User

= 0.5:1 FUE
1 developer = 2 FUEs

Bar Chart Icon
 

Full Use Equivalent (FUE) Ratio Conversion

SAP RISE subscriptions are priced and sized using the FUE model, a metric that consolidates different license types into a standardized unit of measurement.

  • Icon
    LDS helps you understand and optimize this model by:
  • Icon
    Converting On-Premises Assets to FUE Units: We apply SAP’s predefined role mappings (e.g., Professional = 1.0 FUE, Functional = 0.5 FUE, Productivity = 0.2 FUE) to simulate your FUE requirement based on actual user behavior.
  • Icon
    RISE Suitability Modeling: Our simulation models estimate how many FUEs your organization actually needs — often revealing that fewer licenses are needed than initially proposed.
  • Icon
    User and Role Ratio Analysis: We assess how users consume SAP today — by analyzing transaction volumes, and user roles — to determine the most cost-efficient FUE classification for each user.
Chart Icon
 

Cost Comparison & ROI Analysis

Our comprehensive financial analysis includes:

  • Icon
    Total cost of ownership comparison (on-premises vs. RISE)
  • Icon
    Annual subscription forecasting with growth modeling

 

 

 

 

 

 

 

 

Key Benefits of Our RISE Simulation

Clarity Icon

Strategic Clarity

Make informed decisions with complete visibility into licensing impacts

Badge Icon

Cost Optimization

Identify opportunities to reduce costs through proper FUE allocation

Layout Icon

Migration Confidence

Detailed roadmap for a smooth transition to RISE with minimal disruption

Ready to transform your SAP license

management?

Partner with Licensing Data Solutions to reduce costs, ensure compliance, and maximize your SAP investment with expert guidance every step of the way.

Contact Our SAP Specialists
CUSTOMER STORIES

Don't Take Our Word for It—
Hear from our Customers Who Faced Serious Risk

 

Our clients have saved millions in compliance penalties and optimized their SAP investments.

$12M saved

We were staring down a potential $12 million SAP audit due to unresolved Indirect Access and misclassified users. LDS stepped in and completely transformed our approach. Within 60 days, they delivered a clean license position, mapped usage to entitlements, and helped us renegotiate terms. Their expertise didn't just save us money—it saved our reputation.

★★★★★

Raymond Caldwell

CIO
Global Telecom & Infrastructure Group - Latin America

$4.3M saved

LDS uncovered $4.3 million in hidden risk during our internal SAP review—mostly from engine overuse, user role misalignment, and untracked Digital Access. Their audit simulation and remediation planning helped us avoid a disastrous audit outcome and gave us long-term governance we could actually maintain.

★★★★★

Eleanor Brooks

CFO
National Healthcare System - U.S. Midwest

$6.8M saved

We were weeks away from a global SAP compliance review when LDS got involved. They found major exposure in our HCM and CRM modules—something we had completely missed. Their SAP license forensic process saved us from $6.8 million in backdated license claims and helped us clean up a decade's worth of bad data.

★★★★★

Thomas Granger

CIO
Global Manufacturing Enterprise - Europe & North America

$3.5M saved

Digital Access was a time bomb in our SAP estate. LDS helped us identify document flows triggering indirect usage, assessed the real financial exposure, and aligned us with SAP’s current policies. What could have been a $3.5 million liability turned into a zero-penalty clean-up with a sustainable model going forward.

★★★★★

Vivian Tate

VP of Enterprise Applications
Fortune 500 Insurance Company - U.S.

$2.2M saved

Our SAP estate was sprawling—no central control, no clear roles, and audit risk everywhere. LDS helped us regain control. They consolidated our licensing model, reclassified 5,000+ users, and helped avoid a $2.2M shortfall during contract renewal. Their team doesn’t just identify risk—they eliminate it.

★★★★★

Darius Monroe

CFO
Global Finance & Investment Firm - New York

$1.1M saved

Thanks to LDS, we exited our SAP audit with zero penalties—despite initial findings suggesting $1.1 million in license gaps. Their detailed analysis, usage mapping, and negotiation support made all the difference. We now treat SAP licensing as a strategic asset, not just an IT concern.

★★★★★

Caroline Shea

SVP of Digital Transformation
Consumer Goods Enterprise - U.S.

Success Story

Real-world results from our license optimization services

SUCCESS STORY

 

 

 

 

 

 

 

Financial Services Firm

growth arrow $4.1M

Cost Avoidance Through License Optimization and User Reclassification

License Accuracy Improvement 0%
 
Audit Readiness 0%
 
!

Challenge

A U.S.-based global financial services firm with 25,000+ employees and multiple business entities faced escalating SAP licensing costs and growing exposure to Indirect Access (Digital Access) risks. Fragmented contract management and decentralized user provisioning led to license duplication, underutilization, and unclear compliance posture. The internal SAM team lacked the deep SAP licensing expertise needed to interpret metrics, monitor usage patterns, or prepare for potential audits.

S

Solution

Licensing Data Solutions (LDS) was brought in to assess and optimize the company’s SAP estate. Our SAP specialists conducted a full entitlement reconciliation across 60+ SAP systems and performed in-depth user and engine usage analysis.

Key activities included:

  • SAP license entitlement and contract normalization
  • User-level analysis across SAP ECC, S/4HANA, and cloud connectors
  • Identification and remediation of Digital Access risks
  • Optimization of Named User classifications and removal of dormant users
  • Creation of an SAP audit defense package and compliance tracking model
R

Results

✅ $4.1 million in cost avoidance

Through elimination of duplicate users, adjustment of license types, and reducing unnecessary engine licenses.

✅ 100% SAP audit readiness

With a complete audit defense package and clean compliance documentation.

✅ 68% improvement in license accuracy

By reclassifying user types and aligning roles to actual usage.

✅ Digital Access risk mitigated

With clear mappings and justification across third-party integrations.

✅ Consolidated SAP license governance

Spanning 12 subsidiaries and multiple SAP contracts under one unified framework.

Download Full Case Study →

Frequently Asked Questions

 

Thumbs Gallery

Licensing Data Solutions

If you would like to learn about Software Compliance Data Solutions contact us today:

Address: 475 Wall St Princeton, NJ 08540

Telephone: (646) 808 - 5897

Email: info@licensingdatasolutions.com

Sorry, this website uses features that your browser doesn’t support. Upgrade to a newer version of Firefox, Chrome, Safari, or Edge and you’ll be all set.