SAP shelfware — licences and modules your organisation purchased but does not use — is one of the most pervasive and avoidable sources of IT overspend. With SAP's annual support fees running at approximately 22% of the original licence cost, every unused licence generates a recurring financial drain that compounds year after year. A 500-user SAP estate with 20% shelfware is wasting upwards of $400K annually on support fees alone, with no corresponding business value. This guide provides a systematic framework for discovering shelfware, reclaiming unused licences, eliminating unnecessary support costs, and building the governance structures that prevent shelfware from returning.
SAP shelfware accumulates through a predictable set of organisational behaviours, and it persists because SAP's commercial model provides no incentive to help you reduce it. Understanding both the causes and the structural reasons why shelfware endures is the first step toward eliminating it.
The most common causes of shelfware are over-purchasing during initial deployment (buying licences based on projected rather than actual headcount), organisational changes that leave licences stranded (mergers, divestitures, layoffs, restructuring), abandoned projects that were licensed but never fully implemented, and the gradual accumulation of unused licences as employees change roles or leave without their SAP access being reclaimed. In larger organisations, shelfware can also arise from decentralised purchasing — different business units licensing SAP modules independently, without visibility into what the broader organisation already owns.
Organisations frequently buy SAP licences based on optimistic projections — "we'll need 800 users within two years" becomes 500 active users three years later, with 300 licences generating $600K+ in annual support costs for zero usage. SAP's volume discount structure incentivises large upfront purchases, compounding the problem.
Mergers, divestitures, layoffs, and restructuring strand SAP licences across business units. When 200 employees are made redundant, their SAP licences typically remain active for months (or years) because licence reclamation is not integrated into HR offboarding processes. The support fees continue silently.
SAP modules purchased for projects that were scaled back, replaced by another solution, or simply never implemented. The organisation continues paying 22% annual support on an asset that delivers no value — and may not even be installed. This is particularly common with SAP CRM, SAP BW, and industry-specific add-ons.
SAP's maintenance model charges support on every licence you own, regardless of usage. There is no automatic mechanism to reduce support costs when usage drops. Unless you actively negotiate licence termination or reduction with SAP, support fees continue indefinitely. SAP has no commercial incentive to alert you to unused licences.
"SAP will never tell you that you have shelfware. Their revenue model benefits from your over-licensing. The only way to identify and eliminate shelfware is through your own systematic discovery process — or by engaging an independent advisor who is aligned with your interests, not SAP's."
Shelfware discovery requires a combination of SAP's built-in measurement tools, user activity analysis, and a thorough inventory of licensed modules versus deployed modules. The goal is to produce a comprehensive picture of what you own, what you use, and the gap between the two.
SAP's User and System Measurement Monitoring (USMM) and Licence Administration Workbench (LAW) provide a baseline comparison of licensed quantities versus actual system usage. Run these reports across all SAP systems (ECC, S/4HANA, BW, CRM, etc.) to identify discrepancies. If you have 500 Professional User licences but USMM shows 340 active users, the 160 unused licences are immediate shelfware candidates. Ensure your SAP Basis team runs these reports quarterly, not just before audits.
Extract user login data from SAP to identify dormant accounts. Any user who has not logged into SAP in the past 90 days should be flagged for review. In most organisations, 10–25% of named user licences are assigned to users who have not accessed SAP in three months or more. These dormant accounts represent immediate reclamation opportunities — their licences can be returned to a central pool without impacting any active user.
Create a complete inventory of every SAP module, engine, and add-on that appears on your licence agreements. Compare this against what is actually deployed and in use. Any module that is licensed but not installed, installed but not used, or used by fewer users than licensed represents a shelfware reduction opportunity. Pay particular attention to industry-specific modules, SAP BW, SAP CRM, and any add-ons acquired during bundle negotiations.
Review the licence type assigned to each active user against their actual SAP usage. A Professional User licence ($3,000–$5,000 list price) assigned to someone who only views reports or enters timesheets is functionally shelfware — they should be downgraded to a Limited Professional or Employee Self-Service licence at a fraction of the cost. Usage analysis tools (SAP's built-in reports or third-party tools like Snow Optimiser or Flexera) can identify these mismatches at scale. For licence type guidance, see: Understanding SAP Licence Types.
Before taking action, quantify the financial impact of your shelfware to build the business case for remediation. SAP shelfware costs are easy to calculate — every unused licence generates an annual support fee of approximately 22% of its original list price, regardless of whether it is used.
| Shelfware Category | Example | Annual Support Cost | 5-Year Cumulative Waste |
|---|---|---|---|
| Unused Professional Users (150 licences) | 150 × $4,500 list × 22% | $148,500 | $742,500 |
| Dormant module (SAP CRM) | $500K original licence × 22% | $110,000 | $550,000 |
| Over-licensed users (200 users on Pro instead of Limited) | 200 × ($4,500 – $1,500) × 22% | $132,000 | $660,000 |
| Unused engine/package licences | $300K original × 22% | $66,000 | $330,000 |
| Total shelfware cost | $456,500/year | $2,282,500 |
These figures are illustrative but representative. For a mid-size SAP customer, shelfware often represents $200K–$500K in annual waste. For large enterprises with thousands of SAP users, the figure can exceed $1M annually. The five-year cumulative impact makes the business case for remediation compelling — even a partial reduction delivers significant savings.
Once you have identified and quantified shelfware, the next step is to eliminate the associated costs. This requires a combination of internal reclamation (recycling licences to active users) and contractual negotiation with SAP (reducing or terminating licences on your support agreement).
For comprehensive SAP negotiation guidance, see: SAP Contract Negotiation Service.
For SAP systems or modules that must remain operational for compliance, data retention, or limited business use — but do not require SAP's ongoing updates or enhancements — third-party support providers offer a cost-effective alternative to SAP's standard maintenance.
Third-party support providers (Rimini Street, Spinnaker Support, and others) typically charge approximately 50% of SAP's standard support fee. For a $1M annual SAP support bill, moving stable, non-upgraded systems to third-party support can save $500K annually while maintaining break-fix support, tax and regulatory updates, and security advisories.
Third-party support is most effective for systems that are functionally stable — you are not planning to upgrade, implement new modules, or apply SAP enhancement packs. This includes SAP ECC systems that will remain in use past 2027, standalone SAP modules (BW, CRM) that are in maintenance mode, and any SAP product where you only need break-fix support and regulatory updates.
If you leave SAP maintenance and later want to return, SAP typically requires you to pay back-dated support fees for the entire period you were off maintenance, plus a reinstatement penalty. This makes the decision effectively irreversible. Use third-party support only for systems where you are confident you will not need to return to SAP maintenance.
"Third-party support is a powerful cost reduction tool, but it is not a shelfware solution on its own. It reduces the cost of maintaining systems you still need but cannot justify at SAP's pricing. The primary shelfware strategy should always be to eliminate or reclaim licences you do not need at all."
A formal licence recycling programme ensures that shelfware is identified and reclaimed on an ongoing basis, rather than accumulating until the next audit or renewal cycle. The programme should be integrated into existing HR, IT, and procurement processes.
When an employee leaves the organisation (resignation, redundancy, retirement), their SAP user account must be deactivated and their licence returned to a central pool within five business days. This should be an automated step in your HR offboarding workflow, triggered by the employee's termination date. Without this integration, departed employees' licences sit idle for months — in some organisations, years — generating support costs with no associated user.
Track all SAP licence entitlements in a centralised register (spreadsheet, CMDB, or SAM tool). When licences are reclaimed from departing employees, role changes, or shelfware discovery, return them to the pool. When a new employee or project requires SAP access, allocate from the pool before requesting new licence purchases. This simple discipline prevents the most common source of shelfware — buying new licences when unused ones already exist.
Run SAP usage reports quarterly to identify dormant accounts (90+ days inactive), over-licensed users (Professional licences on users with limited activity), and unused modules. The quarterly cadence catches shelfware before it accumulates — waiting for annual reviews or audit preparation allows waste to compound over multiple quarters. Assign a licence manager or SAM analyst to own this process.
Situation: A manufacturing company with 1,200 SAP users had not conducted a formal licence review in three years. SAP's annual support bill was $2.4M. An independent review by Redress Compliance revealed 280 dormant user accounts (23% shelfware rate), an unused SAP CRM module ($350K original licence value), and 180 Professional User licences assigned to employees who only used self-service functions.
What happened: The 280 dormant accounts were deactivated and licences returned to the pool, eliminating 150 licences entirely (the rest absorbed future new hires). The SAP CRM module was terminated from the support agreement at renewal. The 180 over-licensed users were downgraded from Professional to Limited Professional or Employee Self-Service.
Not all shelfware is obvious. Over-licensed users — employees with high-tier SAP licences who only perform low-tier activities — represent a hidden form of shelfware that is often larger in financial impact than completely unused licences. Right-sizing named user licences is one of the highest-ROI activities in SAP licence optimisation.
| User Category | Typical List Price | Annual Support (22%) | Appropriate For |
|---|---|---|---|
| Professional User | $3,800–$5,400 | $836–$1,188 | Power users with full cross-module access |
| Limited Professional | $1,200–$1,800 | $264–$396 | Users restricted to specific modules |
| Employee Self-Service | $100–$300 | $22–$66 | Timesheet entry, payslip viewing, leave requests |
| Developer | $3,500–$5,000 | $770–$1,100 | ABAP developers, technical configurators |
| Downgrading 200 users from Professional ($5,000) to Limited Professional ($1,500) saves ~$154K in annual support | |||
For a detailed breakdown of SAP user licence categories and when each is appropriate, see: SAP Professional User Licence Advisory.
Eliminating existing shelfware is only half the solution. Without governance changes, shelfware will return. The following framework prevents future accumulation by embedding licence management into your organisation's standard operating procedures.
Situation: A retail enterprise with 800 SAP users implemented a licence recycling programme after an initial shelfware remediation that saved $280K. The concern was preventing recurrence as the organisation went through seasonal hiring cycles and a planned acquisition.
What happened: The governance programme included HR offboarding integration (automatic licence reclamation within 3 days of departure), a central licence pool with mandatory pre-purchase approval, and quarterly utilisation reporting. Over the following 18 months, the organisation onboarded 120 new SAP users from the acquisition and 80 seasonal workers — all absorbed from the recycled pool without a single new licence purchase.
Reducing shelfware also affects your SAP audit posture. When you reclaim and terminate licences, you are reducing your total entitlement — which means your compliance margin narrows. This is not a reason to avoid shelfware reduction, but it does require careful management to ensure that reclaimed licences are genuinely unused and that your remaining entitlements cover your actual usage. A well-executed shelfware reduction should leave you with fewer licences, higher utilisation, and a compliance position that is defensible under audit — which is ultimately a stronger position than maintaining a large pool of unused entitlements that mask underlying compliance issues.
Shelfware reduction is not purely an internal exercise — it requires contract negotiation with SAP to translate licence reclamation into actual cost savings. SAP's standard commercial position is to resist licence reductions because every terminated licence reduces their recurring support revenue. However, several negotiation tactics can create the commercial conditions for a successful shelfware reduction.
For detailed SAP negotiation strategies, see: SAP Contract Negotiation Service.
Before terminating licences, ensure all active users are assigned the correct licence type. If users are downgraded from Professional to Limited Professional, your Professional User entitlement can be reduced without affecting compliance. Run USMM/LAW after right-sizing to confirm your compliance position before approaching SAP about licence reductions.
When reducing licence counts, retain a small buffer (5–10%) above your current active usage to accommodate organic growth and seasonal variation. Cutting entitlements to exactly your current usage leaves no room for growth and creates compliance risk if even a few new users are added before the next review cycle.
SAP may schedule an audit shortly after you request significant licence reductions — this is a common tactic to verify that your remaining entitlements genuinely cover your usage. Prepare for this by running your own compliance check before requesting reductions. If your internal data is clean, an SAP audit becomes a confirmation rather than a risk event. See: SAP Licence Audit Defence Service.
Most organisations discover 15–30% shelfware during their first comprehensive SAP licence review. This includes completely unused licences (dormant user accounts and undeployed modules), partially unused licences (over-licensed users with high-tier licences performing low-tier activities), and modules that were purchased as part of bundle deals but never implemented. The exact rate varies by organisation size and how long it has been since the last formal review.
Yes, but the process requires formal negotiation with SAP at contract renewal. SAP will not automatically reduce your support bill — you must actively request licence termination and provide documentation of unused entitlements. Be aware that terminated licences are permanently removed from your agreement; if you need them again later, you must purchase them at current list prices. This makes it essential to confirm that terminated licences are genuinely unnecessary.
Implement three controls: integrate licence reclamation into HR offboarding (automatic account deactivation when employees leave), maintain a central licence pool with mandatory approval before new purchases, and conduct quarterly usage reviews to catch dormant accounts and over-licensed users. These three controls address the primary causes of shelfware accumulation and typically maintain utilisation rates above 90%.
Third-party support is a good alternative for SAP modules that must remain operational (for data retention, compliance, or limited business use) but do not require SAP's updates or enhancements. Providers like Rimini Street typically charge 50% of SAP's support fee. However, leaving SAP maintenance is effectively irreversible — returning requires back-dated support fees plus reinstatement penalties. Use this option only for systems where you are confident you will not need to return to SAP support.
Always right-size first. Downgrading over-licensed users (for example, moving users from Professional to Limited Professional) reduces your requirement for expensive licence types without reducing your total entitlement count. This creates a surplus of high-tier licences that can then be safely terminated at renewal. If you reduce counts before right-sizing, you risk terminating licences that you actually need for genuinely over-licensed users.
SAP may schedule an audit following a significant licence reduction request — this is a common practice to verify that your remaining entitlements cover actual usage. This is not a reason to avoid reducing shelfware; it is a reason to prepare thoroughly. Run your own compliance check (USMM/LAW across all systems) before requesting reductions. If your internal data is clean and your remaining entitlements comfortably cover actual usage, an SAP audit becomes a straightforward confirmation exercise.
Savings vary by organisation size and shelfware rate, but typical first-year savings range from $150K (small SAP estate with moderate shelfware) to $1M+ (large enterprise with high shelfware rate). These savings recur annually because SAP support fees are ongoing — eliminating $400K in shelfware saves $400K every year, not just once. Over a five-year period, a $400K annual reduction compounds to $2M in cumulative savings.
Redress Compliance helps enterprises discover, quantify, and eliminate SAP shelfware through independent licence reviews, usage analysis, and contract negotiation. Our advisory is 100% independent — we have no commercial relationship with SAP.