The background: The new world of SAP licensing
The way that SAP is licensed is changing substantially. As we covered here, SAP’s new Full Use Equivalent (FUE) license structure is based around roles and authorizations provisioning, not actual usage as it has been. In this model, existing users are converted to use types, which are weighted and totaled up to “Full Use Equivalents” or FUEs.
While FUEs are non-negotiable, don't worry; the change may be good news for your business. The new SAP licensing model brings welcome clarity and objectivity to what was previously a complex system. Across the four total use types that comprise the FUE structure, many functions have been pushed into lower-cost user groups, offering potential license fee savings for organizations that ensure their roles and authorizations are fit for purpose.
But now is the time to get your roles and authorizations right. SAP is using S/4HANA and RISE cloud migration opportunities to move organizations to the new licensing structure. Businesses in planning or early stages of transformation projects therefore have an immediate opportunity to right-size their roles and authorizations, save on licensing fees, and establish a target security model in the process. With RISE in particular, SAP has real-time visibility of your license position, reducing room for negotiation after the fact.
At Turnkey, we've walked this journey with numerous clients, seeing firsthand how the right approach to SAP licensing can deliver tremendous value, especially in the context of S/4HANA and RISE cloud migrations. In this blog, we'll share a recent client success story that shows exactly what's possible when you right-size your roles and authorizations and approach the SAP licensing shift strategically.