SAP Licence Monitoring and Control

In complex environments where SAP ERP is available to a large and varied user base; license management is no trivial matter and can; over time; lead to problems of misalignment between the actual use of the various SAP modules and what is contractually agreed (and paid for).

This misalignment can lead to two different types of problems; depending on the case:

1. The user base of the application has increased over time; and if this has not been communicated to SAP and properly negotiated; the company is paying less than it should and may be subject to specific audits by SAP or one of its partners; with unpleasant consequences in the form of penalties from SAP.
   
2. If; on the other hand; the actual use of the system has decreased over time for various reasons; or if some of the modules subscribed to have never actually been used; the opposite situation occurs; i.e. the company is paying more than it should.
   

The SAP license calculation model is not based simply on nominal per-user licenses; but is defined by an aggregate usage metric called FUE (Full Usage Equivalent). Users are classified into several categories depending on their level of interaction with the system; and some categories are 'more powerful' than others: for example; a user authorised to modify the source code belongs to a more powerful class than another user who is only authorised to read the various functions offered; therefore; the first user obviously consumes more FUE than the second.

FUE is conceptually similar to a 'currency' that expresses the scope of action granted to each user; including as a combination of multiple access rights that may differ from module to module.

This explains the statement at the beginning of the article; namely that if not properly addressed; SAP license management can lead over time to situations of substantial misalignment between actual use and contractual terms.

In this type of situation; ERA Group can help the customer to regularly analyze the status of SAP system usage within the company; in order to obtain a clear and up-to-date picture of the situation.

Secondly; ERA can also offer customers the support they need to better organize negotiations with SAP; which; like all major software providers; does not easily give up its recurring revenue; even in the event of errors; offering technological upgrades that may or may not be of interest to the company.

A very topical example is the much-publicised upgrade by SAP to version S/4 with the HANA database engine (SAP recently announced that it will discontinue support for all R/3 ECCS versions by the end of 2027).

For this reason; in addition to having clear and objective data; it is necessary to prepare an appropriate negotiation strategy; with a clear understanding of your company's needs and strategies in terms of the evolution of the tool.