License behavior

SAP license management, once already a domain of complex rules and opaque metrics, has developed into an even denser jungle over the past three years, with many existing customers finding it difficult to keep track of the pathways. SAP's cloud strategy and the implementation of Full Use Equivalent as a new license model are at the heart of this development.

In the on-prem world, SAP licensing was traditionally based on the purchase of nominative user licenses and functional modules. Customers acquired permanent usage rights (including a maintenance contract) for specific systems and functions—regardless of how intensively the software was used.

Rising IT costs make the optimization of SAP licenses a strategic necessity. If you wish to minimize cost risks and secure negotiating leverage, you should proactively engage in dialogue with SAP instead of merely reacting to demands.