Rise with SAP: Mastering challenges through proactive license management
What impact does Rise with SAP have on license management and audits? What opportunities does the new FUE model really offer? What optimization options do customers have? If existing ECC customers are considering a migration to SAP Cloud using the Rise program, they should carefully examine a number of factors beforehand. There is no doubt that Rise has significant implications that should not be overlooked.
It is about more than just switching to S/4 Hana - it is about enabling continuous digital transformation with cloud-focused solutions, services and tools. Originally, the offering comprised five core elements: S/4 Cloud, Business Process Intelligence (BPI), Business Technology Platform (SAP BTP), access to the SAP Business Network and integrated services.
Service Level Agreement
Rise works on a subscription basis with a service level agreement (SLA) that bundles the components into a single package at a fixed price. SAP takes over the operation of the solution and troubleshooting. SAP or hyperscalers such as Google Cloud, Amazon Web Services or Microsoft Azure are available to host the infrastructure. According to SAP, Rise can reduce the total cost of ownership by up to 20 percent compared to an on-premise S/4 Hana implementation, including migration costs. Rise with SAP is closely linked to the strategic orientation towards cloud computing, in particular the S/4 Hana Cloud.
Companies can also access solutions such as S/4 Cloud Public Edition and S/4 Cloud Private Edition without "Rise". In addition, the commercial package Grow with SAP has been available since the beginning of 2023, which is aimed in particular at new customers in the midmarket. With Grow, companies can opt for the S/4 Cloud Public Edition, in which the infrastructure and software functions of the cloud ERP are shared by SAP customers and managed directly by SAP.
The different user types for S/4 On-prem are probably well known. SAP distinguishes between six application scenarios: Developer Use, Professional Use, Functional Use and Productivity Use (as the most important use types) as well as Engine Use and Technical Use.
The new FUE model at Rise is different. With Rise and S/4 Cloud, SAP has taken a step towards user licensing that is intended to simplify license management. Instead of purchasing an exact number of specific user license types, SAP customers can purchase so-called FUEs (Full Use Equivalents). FUEs are a fictitious number that corresponds to the theoretical number of people who are authorized to access the full functionality of the solution. Persons with fewer authorizations are taken into account by calculating the corresponding FUE using a conversion factor. And this is defined as follows: One FUE corresponds to one S/4 for Advanced Use, five S/4 for Core Use or 30 S/4 for Self-Service Use.
Full Use Equivalents
The FUE model is a flexible way of using user licenses for different types of use. With a Rise-with-SAP contract, the relationship between the different types of use does not need to be defined. It offers great flexibility: savings can be achieved without reconfiguration rights or contract renegotiation. The FUE model is available in different levels depending on the number of users. Example: 1001 to 2000 users: 164 Euro per FUE per month (Private Edition) or 135 Euro for Public Edition. A solid analysis of the aforementioned user licenses is required to avoid unnecessary costs. Pricing without a contextual analysis of the license types can drastically affect the amount of FUEs purchased.
With Usu's SAM for SAP software tool, the calculated FUE values can be conveniently displayed on a special results page. SAP user licenses are a significant part of the costs associated with S/4. Managing SAP licenses is a major challenge for many existing SAP customers, whether in the traditional on-premises world or in dynamic cloud environments. Standard Rise with SAP contracts include licensing based on authorization rather than usage. This has an impact on the price: authorization-based licensing is on average 50 to 150 percent more expensive than usage-based licensing.
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