SAP Fieldglass Licensing: Cost Drivers, Compliance, and Best Practices
SAP Fieldglass licensing is transitioning from traditional, static user licenses to dynamic, usage-based metrics. Enterprises must understand how costs are tied to actual use – like the number of external contractors or spend managed – rather than named users.
This advisory provides a concise roadmap for IT and finance leaders to navigate SAP Fieldglass licensing: covering SAP’s new SaaS audit approach, key licensing metrics, cost drivers, module structures, true-up risks, negotiation pitfalls, and strategies for renewal and compliance.
SAP’s SaaS Audit Strategy Shift
SAP is increasingly auditing its Software-as-a-Service (SaaS) customers based on actual usage metrics, rather than just named user licenses.
In legacy on-premise SAP, compliance centered on named user counts and engine metrics; however, SAP Fieldglass licensing exemplifies the cloud-era shift – fees are tied to measurable consumption, such as the number of external workers or transactions processed.
SAP’s cloud services each define specific usage metrics (for example, Fieldglass counts external workers, SuccessFactors counts employees, Ariba measures spend).
This means SAP can readily monitor your actual Fieldglass usage through its cloud platform and compare it to your contract entitlements.
As a result, SAP’s compliance checks for Fieldglass have become more frequent and data-driven. Customers report SAP initiating license “position reviews” well ahead of renewals, using built-in usage data to identify overuse.
If you are using more than the contracted amount – say, managing 120 contractors when licensed for 100 – SAP will flag it.
They may invoice for the excess and push you into a higher subscription tier, sometimes retroactively. Unlike infrequent on-prem audits, cloud compliance is continuous.
SAP Fieldglass licensing contracts must therefore be unambiguous on how usage is defined and measured. SAP can use ambiguities to claim you exceeded your limits.
For example, clarify if “contractor count” means peak active contractors, cumulative yearly count, or average, and whether inactive profiles or short-term workers count.
It’s wise to negotiate the terms of true-ups, such as when they apply (immediately vs. at renewal) and grace thresholds, to avoid surprises.
In short, SAP’s audit strategy now centers on usage metrics, so customers must actively monitor Fieldglass consumption and ensure that contract terms align with their actual system usage.
SAP Fieldglass Licensing Metrics
SAP Fieldglass licensing uses several key metrics to quantify usage.
The primary driver is the number of external workers (contractors, temp staff, gig workers) managed in the system.
Most Fieldglass subscriptions are sold in tiered bands based on the number of active contractors.
For example, you might license a tier of “up to 500 workers” and pay a set annual fee for that band; if you need to manage 600 contractors, you move to the next tier (e.g., “up to 1,000 workers”) at a higher cost.
Contracts typically specify how this count is measured – often as the peak number of active worker profiles at any time (some contracts use an average over the year).
It’s critical to know the difference between your licensed band and actual usage: if you consistently hover near the top of your tier (e.g., 490 out of 500), you’re at risk of overage if any usage spike occurs. Conversely, if you’re far below your tier, you may be overpaying (more on that in cost drivers).
Another important metric is Statement of Work (SOW) spend for services procurement. Fieldglass has a module to manage SOW-based projects (e.g., consulting engagements, outsourced projects), and licensing for this may be based on the total SOW dollar value processed or the number of SOW projects in the system.
In some contracts, this is an add-on metric alongside the contingent workforce count.
For instance, you might have a subscription that allows a certain annual spend on SOW contracts (say $X million); exceeding that could require a higher subscription or incur a fee.
Ensure your contract covers all aspects of Fieldglass you plan to use. If you intend to utilize the SOW module, obtain a clear spend or project cap definition to avoid inadvertent overage.
User roles in Fieldglass also factor into licensing, though differently from traditional systems. Internal users (like your hiring managers, program managers, or approvers) and external suppliers all need login accounts in Fieldglass to do their jobs.
However, Fieldglass subscriptions are generally not charged per named internal user – you pay for the overall capacity (contractors managed) and the system allows the necessary internal users.
Supplier-side users (staffing agency recruiters, etc.) can be invited to the platform at no direct cost to you; your Fieldglass fee typically covers a reasonable number of supplier users as part of enabling the process. (This is unlike SAP Ariba, where suppliers may pay network fees – in Fieldglass, suppliers usually don’t pay SAP directly.)
That said, check if your contract has any cap or “fair use” clause on supplier logins – if you work with an unusually high number of vendors, SAP might set a limit or require discussion.
Regarding internal roles, confirm whether every internal user who logs in needs to be counted under a specific license metric.
Typically, if your Fieldglass licensing is based on external worker count, internal user access is included. But ensure the contract doesn’t, for example, limit the number of internal “program office” users or managers.
In most cases, anyone logging into Fieldglass should be an authorized user under your subscription; however, these roles may not be counted against the external worker tally.
It’s a good practice to document all the types of users and ensure your licensing covers them (e.g., an internal PM who only approves timesheets likely doesn’t increment the contractor count, but you should have them properly assigned in the system).
To summarize the metrics, Table 1 provides an overview of Fieldglass licensing measures:
| Metric | Typical Licensing Measure | Notes |
|---|---|---|
| Contingent Worker Count | Tiered active external worker profiles (e.g. 0–500, 501–1000, etc.) | Primary metric. Subscription priced by band (peak or avg). Must true-up if you exceed your tier. |
| SOW Spend / Projects | Total SOW contract value managed (annual) or number of SOW projects | Applies if using Services Procurement module. Often an add-on metric. Define clearly to avoid overages. |
| Internal User Access | Included for relevant employees (managers, approvers, etc.) in most cases | Generally not charged per user. Ensure any limits on internal admin users are clarified. |
| Supplier Users | Included (no direct fee to buyer for supplier logins) | Vendors can use the system without licensing cost. Verify if any extreme volume of supplier accounts needs review. |
Key Cost Drivers and Hidden Fees
Several factors drive costs in SAP Fieldglass licensing, and understanding them helps avoid hidden fees:
- Active Contractor Volume: This is the core cost driver – the more contractors you manage, the higher your tier and subscription fee will be. Each jump to a new band (e.g., beyond 500 contractors) will increase annual costs. It’s important to forecast your contingent workforce size accurately; buying a much larger tier than needed results in paying for “shelfware” (unused capacity), while underestimating can trigger expensive mid-term expansions.
- SOW Spend and Modules: If you utilize Fieldglass for SOW-based services, your spend through the platform can drive costs. Some contracts charge a percentage of the services spent or have pricing tiers for spend volume. For example, an agreement might effectively cost ~1% of the total contractor spend managed through Fieldglass. Additionally, enabling additional modules (such as a new industry-specific Fieldglass component) may incur separate fees. Always confirm which modules are included in your subscription and which incur extra charges.
- Integration and Extensions: Connecting Fieldglass to your other systems can introduce hidden costs. While Fieldglass itself is subscription-based, you may need middleware or APIs (often via SAP Business Technology Platform) to integrate with HR or ERP systems. Those integration tools or additional API calls might require their own licenses or consumption fees. Ensure that any needed SAP Integration Suite or API usage is accounted for in your budget. On the plus side, SAP does not double-charge you for having Fieldglass feed into SuccessFactors – contingent workers synced into SuccessFactors can be tagged appropriately so that you don’t need full SF user licenses for them. However, ensure that these integrations are configured correctly to prevent inadvertent licensing of contingent workers across multiple systems.
- Supplier Funding Models: Understand who ultimately pays for Fieldglass in your contingent workforce program. In a buyer-funded model, your company pays SAP directly for the Fieldglass subscription. In other cases (especially if you use a Managed Service Provider), there are supplier-funded models where the Fieldglass cost is built into supplier fees – essentially, the staffing vendors or MSP contribute to the Fieldglass fees, often via a small percentage of their bill rates. While supplier-funded arrangements mean you’re not paying SAP directly for every user, the cost is likely passed back to you via higher contractor bill rates or program management fees. It can also affect supplier adoption: if vendors feel they are “paying to play” in your system, ensure this expectation is clear upfront. Hidden fee alert: If an MSP is administering Fieldglass on your behalf, you might be paying a Fieldglass fee indirectly through the MSP’s invoice with a markup. Always clarify with your MSP how Fieldglass licensing costs are handled, and try to get transparency on that portion of the fees.
- Shelf Licenses and Unused Capacity: A significant hidden cost is over-licensing – paying for more Fieldglass capacity than you use. Because cloud subscriptions are typically fixed for the term (with no refunds for unused licenses), any unused contractor slots or SOW spend allowance represents lost money. For instance, if you licensed up to 1000 contractors but only ever engaged 600, you effectively paid for 400 “shelf” licenses that delivered no value. This often happens when companies overestimate growth or buy a buffer “just in case.” While some buffer is prudent, excess unused licenses inflate your total cost of ownership. To mitigate this, negotiate flexibility at renewal (discussed later) and closely align contracts with realistic usage. Also, be aware of inactive contractor profiles that may still be in the system. If managers forget to deactivate contractors who have completed their work, these profiles can still count toward your licensed total. Regularly purge or archive dormant contractor records to avoid inadvertently paying for inactive users.
In summary, controlling Fieldglass costs involves carefully managing the number of contractors and projects run through the system, keeping technical integration costs in check, structuring supplier agreements wisely, and avoiding oversubscription.
Every additional 100 contractors or extra services project could push you into a higher pricing tier, so cost optimization is about staying within the right band and minimizing unused allotments.
Module Structure and Licensing Triggers
SAP Fieldglass is modular, with two primary modules: Contingent Workforce Management (for staff augmentation and temporary labor) and Services Procurement (SOW) for project-based services.
When you subscribe, ensure you have licenses for all modules you intend to use.
The contingent workforce module covers the tracking and timesheets of external workers, while the SOW module adds functionality to create and manage project contracts, milestones, and service vendor engagements.
Licensing triggers differ between these modules: contingent usage triggers are tied to active worker count, whereas SOW usage triggers are tied to the value or number of service contracts managed.
If you initially licensed Fieldglass just for contingent labor and later start putting SOW projects into it without updating your contract, you could be out of compliance – that SOW functionality isn’t “free” by default.
Likewise, if you foresee shifting more spend under management (e.g., bringing outsourced projects into Fieldglass), negotiate those rights upfront to avoid a mid-term license add-on.
Another structural consideration is how licensing thresholds are triggered.
Fieldglass contracts will specify a threshold (or tier) for usage, and exceeding it triggers a true-up or a move to the next tier. For example, adding that 501st contractor when you were only licensed up to 500 is the trigger for an immediate contract issue.
Some contracts may allow a grace period or temporary allowance if, for instance, one or two extra contractors are brought on briefly – but do not assume this without explicit terms.
Understand whether your counts are measured on a peak basis or average.
Many Fieldglass deals count the peak concurrent active workers as the usage level. That means even a short-term spike (like during a seasonal project ramp-up) can set your “high water mark” and trigger the next tier. If your workforce experiences seasonal fluctuations, consider structuring the contract accordingly.
You might negotiate an allowance for seasonal peaks (temporary burst capacity) or opt to size the contract for the peak and manage some headroom during quieter periods. Each approach has trade-offs: paying for peak ensures compliance but may waste money in off-peak times, whereas paying for average saves cost but requires diligence to not exceed limits (or to quickly true-up when needed).
Be aware of other actions that act as licensing triggers. For instance, activating new functionalities or integrations can trigger additional licensing requirements.
If you enable a feature that wasn’t originally in scope (for example, a compliance module or a new reporting extension), check if that falls under your current entitlement or if it’s considered an add-on.
SAP Fieldglass, especially in regulated industries, may have optional features (such as certain government compliance add-ons) – ensure that turning those on doesn’t quietly require extra licenses.
Similarly, if you plan to integrate Fieldglass data deeply with SAP S/4HANA or another system, confirm that doing so won’t inadvertently create an indirect usage scenario requiring additional licenses (generally, Fieldglass data feeding into SAP HR is covered as long as those workers are flagged as external).
Finally, consider triggers related to your program structure. If you use an MSP (Managed Service Provider), determine who is the official licensee of Fieldglass.
In some arrangements, the MSP operates its own Fieldglass instance for your program and “provides” it as part of its service. If so, the MSP is on the hook with SAP – but you need to ensure the MSP limits access only to properly licensed users.
If, instead, your company holds the license and simply gives the MSP admin access, then you must include the MSP’s activities and any of their staff accounts in your usage counts.
A lack of clarity here is a common pitfall: companies have discovered unlicensed internal users (like project managers) approving timesheets in an MSP-managed system because it wasn’t clear whose license they fell under.
Make sure roles and responsibilities are clearly defined so that any action that could “trigger” a license requirement is anticipated and covered contractually.
True-up Risks and Negotiation Pitfalls
Despite best efforts, usage can deviate from plan – and that’s where true-up risks emerge. A true-up is essentially a catch-up payment to cover usage above your contractual entitlement.
With SAP Fieldglass licensing, if you exceed your licensed metrics, SAP will expect a true-up payment or an immediate move to a higher subscription tier.
The risk is that these true-ups can be significantly more expensive than planning the capacity. SAP often charges overages at list prices or higher marginal rates.
For example, suppose you exceed your contractor count limit mid-year. In that case, SAP may invoice you for the additional users pro rata and backdate maintenance on them, potentially at a premium rate.
One negotiation pitfall is not having predefined terms for this scenario – if your contract is silent on how overages are handled, you have little leverage when SAP presents the bill. Ideally, negotiate provisions such as: if usage exceeds X, fees will be adjusted at the discounted rate, effective at next renewal (so you pay in the future, not a surprise retroactive sum) or at least cap the penalty for overuse.
Some clients arrange for a quarterly usage check with SAP account representatives to catch any overage early and true up in a more controlled manner, rather than through a formal audit finding.
Another compliance pitfall is the use of ambiguous definitions of metrics, which we previously discussed.
If your contract doesn’t explicitly define, for instance, what constitutes an “active contractor” (is it someone with a login? someone on an active assignment? what about a contractor who ended last month but is still in the system?), SAP might interpret it in the way most favorable to them during an audit. Always pin down definitions.
A good practice is to include examples in the contract: e.g., “active contractor count means the number of unique external workers on an assignment through Fieldglass at any point in time, not counting those who have been marked as terminated in the system.”
That way, simply having a profile in the database doesn’t count if the person is no longer engaged. Without such clarity, you could face a situation where SAP counts dozens of inactive or idle contractor profiles against your limit.
Many firms have been caught by “license creep,” where hundreds of old contractor entries were inadvertently left active in Fieldglass, inflating the count. The onus is on you to routinely clean up the data (e.g., quarterly close-out of completed work orders) so that your usage stays within bounds.
Negotiation pitfalls also lurk if you’re not careful during the initial deal and renewals.
One classic mistake is overcommitting to usage volumes due to optimistic growth projections or sales pressure. SAP may offer a better unit price if you commit to a larger tier, but if those extra 300 contractors never materialize, you’ve paid for capacity you don’t use.
This shelfware sits until renewal, and SAP generally won’t credit it back. Avoid “buying your way into a discount” unless you’re confident you’ll use the licenses. It’s better to slightly underestimate and have a controlled true-up, or negotiate the right to adjust at renewal, than to over-buy upfront.
On the other hand, undercommitting without safeguards can also come back to haunt you. If you choose a smaller Fieldglass subscription to save costs, but your contingent workforce program expands rapidly, you might hit the ceiling early.
If you haven’t pre-negotiated rates for additional users, you could end up paying a steep price.
Pitfall: SAP has you over a barrel mid-term, and you scramble to amend the contract on SAP’s terms.
To mitigate this, try to lock in incremental unit pricing for additional contractors in advance (e.g., “any users beyond the initial 500 will be charged at $Y per user for the remainder of the term”) so you know the cost of growth. This avoids a scenario where the true-up cost is arbitrary or punitive.
Companies using an MSP should be wary of a unique pitfall: assuming the MSP is “taking care of licensing.” Ultimately, your organization will be the one held responsible by SAP for the unlicensed use of Fieldglass, even if an MSP manages the day-to-day operations.
As mentioned, we’ve seen cases where an MSP’s Fieldglass instance had internal managers from the client logging in without proper licenses. In an audit, SAP could view that as your non-compliance, not just the MSP’s problem. So include audit and true-up responsibilities in your MSP contract. Ensure the MSP will support true-ups if needed and won’t allow usage beyond the agreed scope.
Finally, be aware of potential pitfalls in negotiation tactics surrounding renewals (covered next), such as not realizing that a significant initial discount could be lost at renewal if not contractually carried forward.
Many customers have been shocked by a renewal quote at full price because the initial term’s discount wasn’t guaranteed to be extended. Always bake in renewal protections to avoid that pitfall.
Renewal and Compliance Tactics
Renewal time is your golden opportunity to realign SAP Fieldglass licensing with reality and set favorable terms in the future. Since cloud subscriptions lock you in for the term, you generally can’t reduce licenses mid-term – but at renewal, you can and should adjust. Here are key tactics for renewals and ongoing compliance:
1. Benchmark and Right-Size Before Renewal: Well before your Fieldglass contract expires (start 6–12 months in advance), conduct a thorough usage audit. Pull Fieldglass reports on active contractor counts, peak usage, and total SOW spend over the term. Compare these figures to what you’re paying for. If you licensed 1,000 contractors but only ever used 800, you have strong leverage to reduce your subscription (or demand other concessions) at renewal. Conversely, if you’ve exceeded certain allotments, plan to negotiate a suitable tier increase rather than paying overage fees. It’s far better to proactively propose a right-sized contract than to react to SAP’s numbers. Also, gather external benchmarks if possible (e.g. what percentage discount or price per user similar enterprises get) – this strengthens your bargaining position.
2. Engage SAP Early and Secure Renewal Quotes: Don’t wait until the last minute. Engage with SAP (or your reseller) early to express your intent to renew, allowing you to discuss terms without the pressure of an expiring deadline. Insist on transparency: if you got, say, a 30% discount in the initial term, get a contractual assurance that the same discount (or better) will carry over to the renewal. Additionally, consider negotiating a cap on any annual price increase. Many SAP cloud contracts include a built-in annual uplift (e.g., 5-7% per year); try to minimize this or lock pricing for a multi-year period. You might trade a longer renewal term for a freeze on price hikes. The goal is to prevent surprise cost spikes in Year 4 or 5 of using Fieldglass.
3. Negotiate True-Down and Flex Provisions: One of the biggest challenges with cloud licensing is the lack of flexibility when your needs decrease. Push SAP to allow a true down at renewal – meaning if you need fewer contractors or lower spend, you can reduce the subscription (not just increase it). SAP sales teams may resist true-down clauses, but it’s not unheard of to get, for example, a 10-15% quantity reduction option with no penalty. This is especially important if your business might downsize or if you had overestimated previously. If SAP won’t agree to a straight reduction right, consider negotiating the ability to repurpose unused value: for instance, apply unused Fieldglass spend to another SAP product or service at renewal. Additionally, build in flexibility for growth: you can ask for the right to add extra users mid-term at a pre-agreed rate, or a temporary capacity buffer for peak seasons. The more you hash out these scenarios in the contract, the less you’ll pay in an emergency later.
4. Strengthen Compliance Governance: Renewals are also a good time to review your internal processes to stay compliant. In the future, plan for regular internal license audits – for Fieldglass, this means conducting quarterly or at least semiannual checks on the number of active contractors versus your entitlement and the amount of SOW spend flowing through. Fieldglass’s admin tools can list active users and projects; use them to catch if you’re at 110% of licensed capacity before SAP does. Implement a process with your PMO or HR department to immediately deactivate contractor accounts upon assignment completion. This simple housekeeping can prevent license count creep. Also, maintain clear records of how you classify users and spend – if audited, you’ll want to demonstrate that you’ve been diligent (e.g., show a report of inactive profiles removed). Being able to demonstrate to SAP auditors that you have a handle on usage can sometimes avert a formal compliance claim and instead keep it a commercial discussion.
5. Leverage Co-Termination and Bundling (If Applicable): If your Fieldglass renewal aligns with other SAP cloud products you use (SuccessFactors, Ariba, etc.), you might have additional leverage. SAP values larger, bundled renewals – you could negotiate an enterprise agreement covering multiple cloud services, potentially at a better overall rate. For example, SAP has offered some customers unified “per employee” pricing that covers multiple cloud solutions, including Fieldglass. Be cautious with this approach: ensure you’re not paying for more than you need in other areas, and that Fieldglass doesn’t get lost in the shuffle. However, co-terminating contracts can simplify management and provide a single, comprehensive negotiation opportunity, allowing you to trade concessions across the entire portfolio. If you choose this route, start discussions even earlier and involve executive stakeholders, as you may need to consider threatening to drop certain products to secure the best deal. Always have a backup plan (even if just a bluff) so SAP knows you won’t simply renew everything without question.
In summary, treat renewal as both a defensive and an offensive play: defensive in fixing compliance gaps (trueing up/down to actual usage, and cleaning up terms that were problematic), and offensive in securing better pricing and terms for the next period.
By combining diligent internal compliance management with a proactive negotiation strategy, you can keep SAP Fieldglass licensing costs in check and avoid last-minute scrambles.
Recommendations (Expert Tips)
- Continuously Monitor Usage: Establish a monthly review of Fieldglass metrics (active contractors, SOW spend) against your license. Early detection of a usage surge allows you to react (e.g., reallocate work or initiate a contract adjustment) before it becomes a compliance issue.
- Clean Up Inactive Profiles: Implement a process to promptly close or deactivate contractor records in Fieldglass when engagements end. This prevents inactive workers from inflating your counts and incurring unnecessary costs. Automating de-provisioning via your IAM system or HR processes can help.
- Match License Model to Program Pattern: Select the Fieldglass licensing model that best aligns with your workforce strategy. If you have a fairly stable number of contractors but varying rates, a per-worker model is cost-effective; if headcount swings widely but spend is consistent, a spend-based model might align better. Don’t let SAP decide this for you – evaluate your data and negotiate the model that gives you the best value.
- Negotiate for Peaks and Valleys: If seasonal or project-based spikes are part of your business, address that in the contract. For example, negotiate a clause allowing a 10% temporary increase in contractor count for 2 months without penalty, or structure the deal around peak usage but request a pricing consideration since average usage will be lower. This flexibility can save you from compliance headaches during busy periods.
- Ensure Supplier Cooperation: If your Fieldglass model relies on suppliers or an MSP, align incentives. In supplier-funded scenarios, communicate to vendors that Fieldglass fees are part of doing business, or consider offsetting those fees with other benefits. The goal is to avoid suppliers resisting the system (which can lead to off-system spend). Also, demand transparency from MSPs: know how much of your MSP fee is allocated to Fieldglass and insist on the right to audit that usage.
- Protect Discounts and Cap Annual Price Increases: When signing or renewing, lock in any existing discounts for future terms and set a cap on annual price increases. For instance, ensure your renewal quote will not revert to full list price and that any yearly hike is limited (e.g., “max 3% or CPI”). This prevents unwelcome cost escalations and helps budget stability.
- Document Everything: Ensure your contract or order form documents the relevant metrics, definitions, and special terms. Verbal assurances from sales representatives (such as “oh, we won’t count those users” or “you can always adjust later”) mean nothing unless they are in writing. Clarify terms such as how the term “active worker” is defined, what reports will be used to measure usage, and what actions will be taken if metrics are exceeded. This documentation will be your defense in any dispute.
- Use Renewals as Leverage: Plan for renewals by considering alternative options. Even if you intend to stick with Fieldglass, evaluating other VMS (Vendor Management System) options or indicating willingness to consider them can strengthen your negotiating hand. SAP is more likely to offer concessions on Fieldglass pricing or contract terms if it senses competition at the time of renewal.
- Engage Independent Advisors if Needed: SAP licensing can be labyrinthine. Don’t hesitate to involve an independent licensing expert or consultant to review your Fieldglass agreement and usage. They can identify hidden risks or savings opportunities (such as unused modules or a more effective metric to switch to) that you might otherwise miss. The cost of advice may be small compared to potential savings or avoided penalties.
Checklist: 5 Actions to Take
- Audit Current Usage: Immediately compile a report of your Fieldglass usage – how many active contractors are in the system, how many SOWs (and total SOW spend) you ran last year, and how these figures compare to your licensed entitlements. Identify any over-utilization or under-utilization gaps.
- Clean and Optimize Data: Work with your program managers to purge any inactive contractor records from Fieldglass. Ensure all completed SOW projects are closed out. Implement an ongoing procedure to ensure that every time a contractor leaves, their Fieldglass profile is deactivated. This will give you a clean baseline for compliance.
- Forecast Future Needs: Meet with HR, procurement, and business unit leaders to project contingent workforce needs for the next 1-2 years. Will the contractor count grow or shrink? Any big projects coming that will use Fieldglass for SOWs? Use these insights to determine if you might change licensing tiers (up or down).
- Review Contract and Define Terms: Pull out your SAP Fieldglass contract and read the fine print on metrics and true-ups. If any definitions are vague (e.g. “user” or “annual spend”), note them. Ahead of your next negotiation, formulate clarifications or amendments you’ll need. For example, decide if you want to push for an average-count metric instead of peak, or a higher threshold for a certain fee. Engage SAP early with these asks.
- Develop a Negotiation Plan: In preparation for renewal (or if you’re currently out of compliance, for a mid-term adjustment), set your negotiation objectives. This includes desired license quantity (right-sized to your forecast), target price or discount, and any flexibility clauses (true-down rights, price increase limits, etc.). Identify your walk-away points and alternatives (such as evaluating another system or using the MSP’s tool). Start discussions with SAP well in advance, armed with your usage data and a clear ask so that you can iterate toward a deal without time pressure.
FAQ
Q1: How is SAP Fieldglass licensing different from traditional SAP licensing?
A1: Traditional SAP on-premises licensing relies heavily on named user licenses and module licenses, whereas SAP Fieldglass licensing is primarily usage-based. In Fieldglass, you don’t buy licenses for each user by name; instead, you subscribe to a service tier (for example, up to X number of external workers or Y amount of spend). The cost scales with actual usage, making it more like a SaaS model than a perpetual license. This means you must continuously monitor usage, and SAP can audit your consumption data at any time.
Q2: What are the main metrics that determine Fieldglass licensing costs?
A2: The primary metric is the number of active external contractors you manage through Fieldglass – this is typically measured in tiered bands (e.g., 0–500, 501–1000 contractors) and determines the base subscription fee. If you use the SOW (Statement of Work) module, then the total SOW spend or projects managed can be another metric impacting cost. Other factors, such as internal user accounts or supplier accounts, generally do not incur separate fees (internal managers are included, and supplier access is provided without direct charge). However, extremely high numbers of these may need to be discussed. Integration or additional feature usage can incur costs if they involve other SAP products (like SAP Integration Suite or extensions).
Q3: Do internal employees (like managers) and suppliers need separate Fieldglass licenses?
A3: Typically, no separate license purchase is needed for your internal users or suppliers in Fieldglass. Your subscription covers the necessary internal roles (hiring managers, approvers, program admins) and allows you to create accounts for them. These internal users must be set up in the system, but you aren’t charged “per internal user” – contractor count mainly drives the cost. Similarly, staffing suppliers can log in to submit candidates and timesheets as part of your program without incurring additional costs for each supplier user. However, ensure your contract doesn’t place a limit on the number of supplier users or internal users beyond what’s expected. In unusual scenarios with hundreds of supplier logins or if you extended Fieldglass to thousands of employees, double-check with SAP if any additional terms apply. By default, though, Fieldglass licensing is designed so that enabling all parties (your team and vendors) is included in the base subscription.
Q4: What happens if we exceed our licensed contractor count or spend in Fieldglass?
A4: If you exceed the limits in your contract – for example, onboarding more contractors than your tier allows or exceeding the SOW spend cap – you will likely need to true up. SAP could require you to move to the next tier immediately and charge you the difference (possibly at a high rate) for the overage period. In practice, minor overages might be addressed at renewal (with you back-paying or adjusting then), but you shouldn’t count on leniency. It’s safer to assume that exceeding your entitlement is a breach of contract that SAP will monetize. Always communicate with SAP proactively if you see a potential overage coming; they may be able to work out a short-term solution. The best approach is to negotiate upfront how overages are handled (some contracts specify that you have 30 days to procure additional licenses if you exceed the limit, for example). That way, you won’t be blindsided by a large bill or, worst case, a suspension of service for non-compliance.
Q5: How can we optimize Fieldglass costs and avoid surprises long-term?
A5: To optimize costs, first align your license tier to actual needs – don’t overbuy capacity “just in case,” but also leave a little buffer if you expect growth. Regularly clean out inactive contractor records to avoid paying for ghost users. Second, negotiate contract flexibilities: try to include provisions for scaling down at renewal if needed and cap any yearly price increases. Third, keep an eye on program changes: if you plan to add a new category of workers or a new service program into Fieldglass, factor that into your licensing ahead of time (it may change your metrics). Also, maintain good communication with your SAP account team; if you have a major ramp-up or ramp-down coming, discuss options. Lastly, consider a periodic independent license review – an expert can spot if you’re overspending or if there are unused licenses (shelfware) that you can remove at renewal. Through active management and savvy negotiation, enterprises can control SAP Fieldglass licensing costs and ensure usage aligns with the budget, not the other way around.
Read about our SAP License Optimization Service.
