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


Ensure Compliance
Avoid costly audit penalties and legal risks


Maximize ROI
Get the most value from your SAP investments

How Licensing Data Solutions Can Help
Your Organization?
We help organizations gain visibility, control costs, and ensure compliance across their SAP environment.


Assess
Comprehensive visibility into license usage and entitlements





Optimize
Strategic license allocation aligned with business needs





Defend
Complete audit readiness and compliance assurance



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 Analysis
clauses specific to user access, levels and restrictions

Software entitlement data gathering

User license assignment analysis

Engines analysis

HANA Database Analysis

Indirect Access Analysis

Business Objects Analysis

SuccessFactors Analysis



Your Complete Report Deliverables
Our service culminates in these comprehensive deliverables designed to provide clear visibility and actionable recommendations

Current ‘SAP Effective Licensing Position’

Detailed SAP SLAW Engine Analysis and Optimization Position

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

SAP LMBI (Business Objects) Compliance and Optimization Report

SuccessFactors Compliance and Optimization Report

Independent recommendations for licensing, process, and contract improvements

Road map for recommended SAP license management strategy

All deliverables are provided in editable format with comprehensive explanations and executive summaries
Our Numbers Speak for Themselves
Proven results that demonstrate our expertise and commitment to excellence in SAP licensing

Enterprise SAP
Clients

Client Savings

SAP Licensing
Experts

Years of SAP
Experience

Audit Defense
Success Rate
The LDS SAP Advantage
Expert SAP License Management to Reduce Costs and Eliminate Compliance Risks

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.

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.

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.




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.
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.
Unlicensed third-party systems (e.g. Salesforce, web portals, IoT devices) accessing SAP data without appropriate user or document licenses.
SAP considers this chargeable and can retroactively demand licenses.
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.
Users assigned cheaper licenses (e.g., Employee Self-Service or Limited Professional) but performing higher-level activities (e.g., creating sales orders, managing inventory).
SAP can reclassify thousands of users to more expensive license types.
$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.
Enterprises often over-purchase licenses without aligning them to actual usage.
Millions spent annually on shelfware and inactive users.
$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.
Using SAP HANA Runtime Edition (restricted use) for custom or non-SAP applications, which requires the more expensive Full Use license.
License breach penalties, forced conversion to full licenses.
$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.
Using SAP HANA Runtime Edition (restricted use) for custom or non-SAP applications, which requires the more expensive Full Use license.
License breach penalties, forced conversion to full licenses.
$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.
SAP engines (modules like CRM, WM, Payroll, etc.) are often licensed separately. Incorrect or underestimated usage can lead to severe under-licensing.
Retroactive fees, backdated license charges.
$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.
Poor documentation, custom terms, or lack of centralized license data leads to misinterpretation of entitlements.
Inability to defend position during audit; reliant on SAP's interpretation.
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.
Enterprises fail to maintain accurate license measurement processes or license position documentation.
Audits are time-consuming, disruptive, and prone to costly findings.
Multi-million dollar settlement offers or forced purchases
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.
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
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.
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 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

Transition

SAP RISE
RISE Simulation
RISE Simulation Analysis
A strategic advisory service designed to:

Assess your current SAP system landscape

Identify licensing and compliance risks

Evaluate cost impact and cloud sizing under RISE model

Support migration planning to SAP S/4HANA Cloud
Full Use Equivalent (FUE) Conversion

Professional User
= 1.0 FUE
Full access user

Functional User
= 0.5 FUE
Limited access user

Productivity User
= 0.2 FUE
Basic access user

Employee User
= 0.1 FUE
Self-service user

Developer User
= 0.5:1 FUE
1 developer = 2 FUEs


Key Benefits of Our RISE Simulation

Strategic Clarity
Make informed decisions with complete visibility into licensing impacts

Cost Optimization
Identify opportunities to reduce costs through proper FUE allocation

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 SpecialistsDon'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.
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
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
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
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.
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
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
Financial Services Firm

Cost Avoidance Through License Optimization and User Reclassification
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.
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
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.