IBM Internal compliance review

SAP Enterprise Licensing Strategy

Organizations are constantly changing and this poses major challenges and opportunities for SAP licensing

We look at the present and future states of your business and identify the contract and licensing models that will deliver the most significant commercial benefits.

Enterprise licensing strategy stages

  • Review contract and entitlement

    By reviewing your SAP master agreement and support maintenance contract(s) – including annual invoices and order forms – we can produce a bill of material (BOM) to outline your terms of software use, entitlements and associated metrics. This will also include a total cost of ownership summary.

  • Create effective licensing position

    By comparing your licensing entitlement with measured software use we can create an Effective Licensing Position (ELP) and determine any potential compliancy concerns and surplus software assets.

  • Document target model

    We analyse the target SAP landscape and new organizational structure, including future SAP product requirements and licensing costs for named-user licenses, packages, databases and cloud subscriptions.

  • Perform gap analysis

    The gap analysis compares the as-is state, ‘what we have and use’, with the to-be state, ‘what we need’. This includes quantifying surplus software and any potential compliance concerns.

  • Develop negotiation strategy

    When negotiating it is important to first define your BATNA (best alternative to a negotiated agreement) and ZOPA (zone of possible agreement) to clarify the best and least acceptable outcomes to your organization. The negotiation may include terminating existing SAP agreements, migrating to alternative licensing models or purchasing SAP software and services that reflect your target outcome. We include cost models for each option.

Key benefits

  • Consolidation

    Years of mergers, acquisitions and divestments can result in a complex picture of contracts, entitlement and license assets. Consolidating all this change into an effective licensing model often presents opportunities to improve your licensing position both from a simplicity and cost point of view.


  • Optimization

    Achieve the most efficient and cost-effective contract and licensing solution for your business.