License costs under control: How targeted analyses can reduce SAP budgets

SAP licenses are one of the most expensive IT expenses for many companies - which is precisely why they should be reviewed regularly. In practice, however, this rarely happens systematically. Instead, many companies rely on one-off clean-ups when changing systems or on the hope of "already being compliant". This harbors risks - and wastes potential savings of six to seven figures.

"Many companies pay 10 to 20 percent too much for SAP licenses that they don't even use."

It could be so simple: with targeted, data-based analyses, companies can make their SAP license landscape transparent, identify unused licenses and fine-tune their authorizations so that they are optimally aligned with actual requirements. The prerequisite for this is a holistic, continuous optimization process - and not just a clean-up as part of a migration project.

License optimization: manually or with tools?

At the latest during the migration to SAP S/4HANA - but ideally much earlier - the central question arises: How can license optimization be implemented in the company in a meaningful way? There are basically two approaches: manual analysis by experts or optimization with specialized tools.

Manual license optimization - between expertise and effort

Manual license optimization is based on the expertise of internal SAP and license managers who analyse user profiles and compare them with their actual usage. This can certainly work, but has clear limits:

• Time-consuming and resource-intensiveChecking thousands of user roles in large system landscapes is almost impossible to manage without a dedicated team.

• High complexity of the license rulesAssigning the correct license types to individual authorizations requires in-depth know-how and up-to-date knowledge of SAP measurement methods.

• Risk of errorHuman error in the assessment of usage and license requirements can lead to incorrect classification - with financial or compliance-relevant consequences.

• Reactive approachWithout permanent monitoring, new discrepancies quickly creep in, which only become apparent during the next audit preparation.

"Manual optimization costs time - and carries the risk of overlooking potential savings."

License optimization with tools - precise, fast, reliable

Specialized software solutions such as Xiting XAMS or XSP offer an automated, comprehensive view of the SAP license landscape. They analyse usage data, role-based authorizations and license types in real time - and immediately highlight deviations and opportunities for optimization:

• Automated, continuous analysis: Tools recognize immediately if, for example, a productivity user suddenly carries out a transaction that requires a professional license - and suggest measures.

• Reduced administrative effortLicense managers can concentrate on making decisions instead of laboriously compiling data.

• Audit-proof complianceCurrent license rules are stored and regularly updated - so violations can be reliably detected and proactively avoided.

• Better basis for negotiationAccurate license reports strengthen the position vis-à-vis SAP during true-ups or contract negotiations.

• Detection of inactive usersThe tools identify orphaned accounts, duplicate licenses or temporary user accounts that can be shut down.

• Simulation options"What if?" analyses make it possible to test potential changes in advance - such as the downgrading of entire user groups - and make their financial impact transparent.

"Tools turn license management into a plannable, strategic discipline."

Xiting solutions: Depth analysis instead of surface inspection

Xiting's solutions - XAMS (Xiting Authorizations Management Suite) and XSP (Xiting Security Platform) - build on precisely these automation benefits and help companies to keep their licensing costs under control in the long term:

XAMS analyses authorizations and usage, warns of expensive or risky role assignments and offers tools for role-specific optimization. The integrated role profiler shows, for example, which transactions in roles are superfluous - with a direct impact on license requirements.

XSP ensures Group-wide transparency: it consolidates license data from various systems, visualizes trends and provides decision-making aids for management and audit preparation.

As part of a license analysis, companies receive a well-founded evaluation of their SAP license situation. The aim is to create transparency about actual license requirements and identify potential savings through a systematic analysis. With the help of XAMS, authorization- and usage-based evaluations are carried out according to the current SAP license regulations - especially with a view to the switch to S/4HANA. The results are documented in a final report and explained by experienced SAP security consultants. This gives companies clarity about their license landscape and specific recommendations for efficient license usage.

Success factors for sustainable license management

Effective license management in the era of SAP S/4HANA is based on three pillars: transparency, continuity and technology. Those who take these three aspects into account have a good chance of noticeably reducing their license budget - and remaining audit-ready at the same time.

"License costs are not fixed - they are a variable that can be actively controlled."

Companies should be aware of this:

• Early planning in the S/4HANA project: Licensing experts should be on board right from the start, not just shortly before the go-live.

• Clean up the authorization conceptCritically review and simplify historical role structures - this not only saves costs, but also increases security.

• Establish monitoring as a permanent taskOnly those who continuously monitor their license usage remain flexible and can react quickly to changes.

• Management sensitizationSAP licenses are a strategic cost block - comparable to personnel or infrastructure. Without active management, there is a risk of inefficiency.

Conclusion: systematic savings

Licensing in SAP is complex - but also full of potential. Companies that analyze and continuously optimize their licensing landscape based on data can not only achieve massive savings, but also position themselves better strategically. The use of tools such as XAMS and XSP makes this approach not only feasible, but also measurably successful.

"The best license is the one that fits exactly - not the one that was simply available."

In times of rising IT costs and increasing compliance requirements, professional license management is becoming a competitive factor. If you create transparency, you can manage in a targeted manner - and ultimately only pay for what you really need.

Xiting: Your trusted expert for SAP security

Xiting is an SAP Gold Partner and specializes in SAP authorizations, identity & access management, governance, risk and compliance, security monitoring and cloud security. With over 140 experts worldwide and SAP-certified software solutions, we support companies as a trusted security provider in optimizing security processes and license costs, improving compliance and minimizing risks - efficiently and automatically.

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