Reducing SAP Shelfware: How to Reclaim and Recycle Unused Licenses
What Is SAP Shelfware?
SAP shelfware refers to SAP software licenses or modules that your company purchased but isn’t using. These unused SAP licenses still incur annual support fees (often about 20% of the license cost) even though they provide no value.
Essentially, you’re paying maintenance for software that’s sitting idle. Cutting down shelfware frees up budget for more productive uses.
Common causes of SAP shelfware include:
- Over-forecasting and Over-purchasing: Companies sometimes buy far more licenses than needed due to overly optimistic plans or vendor bundle deals. A business might license an extra SAP module or hundreds of additional users “just in case,” and then end up using only a fraction of them.
- Downsizing and Staff Changes: Layoffs, reorganizations, or employee turnover can leave licenses stranded. When people leave or roles change and licenses aren’t reallocated, those SAP user licenses remain paid for but inactive.
- Abandoned or Replaced Systems: An SAP product bought for a project might never be deployed, or a different solution might replace it. A company might license SAP CRM but later switch to another CRM platform, leaving the SAP CRM module unused. The organization continues paying support for these unused SAP modules unless action is taken.
- Lack of License Governance: SAP’s maintenance model is “all or nothing” — they keep charging for every license you own until you formally remove it. Without proactive license management (regular internal audits and reclamation), shelfware will accumulate.
Read our guide, SAP Licensing Cost Drivers & Optimization: How to Identify and Reduce Your SAP Spend.
How to Discover Shelfware
The first step is identifying which SAP licenses and components are shelfware. Here are effective ways to uncover unused licenses:
- Review SAP’s License Audit Reports: Use SAP’s built-in measurement tools to compare what you’ve purchased versus what’s actually in use. These reports highlight gaps – if the system shows you have 500 licensed users but only 300 active users, roughly 200 licenses are shelfware. Also, look for any module or engine showing zero usage.
- Analyze User Activity: Examine user login data to find dormant accounts. Identify users who haven’t logged into SAP for over 90 days. Often, a significant number of users are inactive; those licenses can be reclaimed. Also watch for users with minimal activity who have a high-cost license assigned – they might be candidates for a lower-cost license type.
- Inventory Modules and Engines: List all SAP modules and engines you’ve licensed and check if each is actually being used. Any component you’ve paid for but not implemented (or that has gone unused for months) is likely shelfware. If you’re paying maintenance for an add-on that no one uses, that’s a clear candidate to eliminate.
This discovery phase will quantify your shelfware. Having these facts in hand creates a sense of urgency to take action.
Immediate Actions
Once you’ve identified shelfware, take some quick steps internally to curb the waste:
- Reassign Idle User Licenses: If you have spare SAP user licenses (from past over-purchasing or people leaving), allocate them to current employees who need access instead of buying new licenses. Establish a license reuse standard policy to tap into unused capacity first.
- Deploy Unused Modules (If Useful): Consider whether any SAP module or feature you own but never implemented could meet a current business need. Instead of leaving that module unused, put it to work if it still has relevant value. You’ll at least get some benefit from the investment and have a justification to keep paying maintenance on it.
These immediate actions provide quick wins. You start using what you’ve already paid for and stop the bleeding of unnecessary spending while preparing for more permanent solutions.
For more optimization tips, see Optimizing SAP Named User Licenses: CIO Tactics to Right-Size Your Users.
Eliminating Shelfware Costs
To achieve substantial savings, you need to cut the maintenance costs associated with shelfware. Here are two key tactics to eliminate unused SAP licenses and modules from your support bill:
- Terminate Unused Licenses at Renewal: Stop paying SAP support for software nobody uses. At your next maintenance renewal, notify SAP to cancel those shelfware licenses so you can immediately stop incurring their 20% annual maintenance cost. Many companies have saved significantly by doing this, thereby directly reducing their future SAP maintenance costs.
- Swap or Reduce Maintenance on Software: See if SAP will let you exchange an unused module for credit toward another SAP product you need. That way, your maintenance spend goes to something useful instead of nothing. Alternatively, ask SAP to suspend support fees on a product you’re not using – they may prefer to pause maintenance rather than lose that revenue entirely.
SAP may resist these moves, but if you come with data from your audit and show you’re serious about cutting costs, they’re more likely to cooperate. By trimming or repurposing shelfware in your agreements, you can greatly reduce SAP maintenance costs.
Third-Party Support Strategy
Another way to save on shelfware is to shift support for unused or seldom-used systems to a third-party provider.
Companies like Rimini Street or Spinnaker Support provide SAP support at a much lower cost than SAP’s own support.
This can be a smart move for stable legacy systems or modules you must keep (for data retention or compliance) but aren’t actively developing.
- Lower-Cost Support for Shelfware: Third-party support typically costs about half of SAP’s fees. Moving an idle SAP system to an independent provider can immediately slash your support expenses while keeping the system running. This is ideal for systems you don’t plan to upgrade, since you’ll forgo SAP’s updates (which you likely don’t need for shelfware).
- Leverage and Caution: Letting SAP know you’re considering third-party support gives you bargaining power, and they might offer better deals to keep your business. However, leaving SAP maintenance means losing official updates and could incur penalties if you return later. Use third-party providers primarily for static systems that won’t need future upgrades.
By using third-party support selectively, you can cut costs on the portions of your SAP portfolio that would otherwise be expensive shelfware. It’s a tactical move to stop paying premium prices for maintenance when a more economical solution will suffice.
Internal License Recycling Process
To keep shelfware from creeping back, implement an ongoing SAP license recycling program (license re-harvesting) in your organization. This means continuously reclaiming and reusing licenses to avoid unnecessary purchases.
Key components of license recycling include:
- Reclaim Licenses After Departures: Ensure that whenever an employee with SAP access leaves the company, their user account is removed and their license is returned to the pool. Tie this into your HR off-boarding process. Promptly recovering licenses from departing staff prevents those entitlements from sitting unused under an ex-employee’s name.
- Maintain a License Pool and Reuse: Track how many licenses are purchased vs. in use. Keep unassigned licenses in a central “license pool.” When a new user or project needs SAP access, allocate from the pool instead of buying new. This practice saves money by using licenses you’ve already paid for.
- Regular Audits and Right-Sizing: Schedule periodic checks to catch any new software early. Remove or reassign user accounts that haven’t been used in a few months. Also, review license assignments: if someone has a high-tier SAP license but only uses basic functions, downgrade them to a lower category. Regular cleanup and optimization ensure your licenses stay aligned with actual usage, so unused capacity doesn’t build up again.
By institutionalizing license recycling, you create a “use it or lose it” culture for SAP assets. Every license is either actively in use or it gets pulled back and made available for someone else. Over time, this discipline greatly reduces waste and keeps your SAP licensing lean and cost-effective.
Preventing Future Shelfware
After cleaning up existing shelfware, it’s crucial to avoid the same mistakes in the future. Preventative measures include:
- Phase Purchases & Use Flexible Licensing: Align your SAP license acquisitions with real needs and timelines. Instead of purchasing a large number of licenses upfront based on long-term plans, buy in smaller phases as projects progress or user count grows. Also, favor subscription-based or cloud licensing when available, because those models let you scale up or down. Phasing and flexibility ensure you’re not locked into paying for capacity that isn’t being used.
- Enforce License Request Governance: Put a strict process in place for any new license requests. For example, require approval from a software asset management or licensing team before buying additional SAP licenses. That team should verify there are no unused licenses already available and that the correct license type is being requested (to avoid over-licensing). By scrutinizing new purchases and validating true need, you’ll prevent unnecessary licenses from being bought. Regularly reviewing license utilization as part of IT governance keeps everyone aware of the license footprint and helps guard against the creep of shelfware.
Be deliberate and data-driven with SAP licensing decisions. By pacing your purchases and having oversight on additions, you can avoid the pitfalls that lead to shelfware. The result is a leaner, more cost-efficient SAP environment in the long run.
Checklist: Shelfware Reduction Plan
Use this checklist as a roadmap to reduce SAP shelfware and prevent it from returning:
- Identify Unused Licenses/Modules: Audit your SAP landscape to find all licenses and modules that are not being used or are underutilized, and document how much they cost in maintenance.
- Eliminate or Repurpose at Renewal: At your next contract renewal, remove unused licenses from maintenance and eliminate unused SAP modules from your support contract, or negotiate a swap for other SAP products you need. The goal is to stop paying for software you don’t use.
- Implement License Recycling: Reclaim licenses when employees leave, and reuse them for new hires or projects before buying more. Keep a central license pool and make license recycling standard practice.
- Track Savings and Monitor: Measure the savings from cutting shelfware and report those wins to stakeholders. Continue to monitor license usage with periodic audits so that shelfware doesn’t build up again.
By following these steps, you can reduce SAP shelfware and avoid wasting budget on unused software. The result is a leaner license portfolio, lower maintenance costs, and a solid return on your SAP investment.
Read about our SAP License Optimization Service.
