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SAP / HANA Licensing

SAP HANA licensing. Runtime versus full use.

SAP HANA carries two license types. Runtime covers the bundled SAP application. Full use covers any workload. The line between them decides your cost and your audit exposure.

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SAP HANA ships under two license types, runtime and full use. The choice decides what you may build on the database and what an audit can claim. This guide covers the mechanics, the 2026 cost bands, and the buyer side moves that hold.

Key takeaways

  • Runtime HANA licenses the database only for the SAP application it ships with. Full use licenses HANA as a standalone database.
  • Runtime is priced as a percentage of the application license value. Full use is priced per 64 GB memory block.
  • Putting custom tables or non SAP data on a runtime database is the single most common audit finding.
  • S/4HANA and BW/4HANA carry runtime HANA by default. Side car and native applications need full use.
  • Memory sizing, not core count, drives the HANA bill. Right sizing memory is the largest lever.
  • SAP HANA Cloud uses a Capacity Unit model, priced and audited differently from on premises HANA.
  • The buyer side move is to map every workload to the correct license type before renewal, not during an audit.

SAP HANA is both a database and a platform. How you license it depends less on the technology and more on what you intend to run on top of it.

Get the license type wrong and a routine renewal turns into a shortfall claim. Get it right and the database is one of the cheaper lines in the SAP estate.

What is the difference between runtime and full use HANA licensing?

There are two HANA license types. The boundary between them is the source and shape of the data on the database.

Runtime HANA

Runtime HANA licenses the database solely to support a specific SAP application, such as S/4HANA or BW/4HANA. You may not add custom data models or non SAP data. SAP documents the platform and its editions on the SAP HANA platform documentation.

Full use HANA

Full use HANA licenses the database as a standalone platform for any workload, including custom applications and third party data. SAP positions HANA as a general platform on the SAP HANA product page. Full use removes the runtime restriction at a higher price.

Where the line sits in practice

The line is crossed the moment non SAP application data lands on a runtime database. Common breaches are quiet and accidental.

  • Custom schemas: developer created tables outside the SAP namespace on a runtime instance.
  • Side car reporting: a custom analytics layer reading from the same database.
  • Third party loads: data from a non SAP source staged in HANA for convenience.

How is SAP HANA database licensing priced in 2026?

The two license types use two different price mechanics. They are not comparable without normalizing both to annual cost.

Runtime priced as a percentage of application value

Runtime HANA is priced as a percentage of the net license value of the application it underpins, commonly between 8 and 15 percent. It is bundled with the application order, not sold as a separate metric.

Full use priced per memory block

Full use HANA is priced per 64 GB block of memory. Production and non production blocks are licensed separately. The terms sit in the SAP software use rights.

Runtime versus full use HANA at a glance

Dimension Runtime HANA Full use HANA
What it licensesDatabase for one SAP applicationDatabase for any workload
Price metricPercentage of application valuePer 64 GB memory block
Custom data allowedNoYes
Typical useS/4HANA, BW/4HANA coreSide car, native, custom apps
Audit exposureHigh if data scope creepsLower, scope is broad

What triggers an SAP HANA license audit and how do you defend one?

HANA findings rarely come from a standalone audit. They surface inside a broader SAP measurement or a renewal review.

The custom table trap

Auditors query the system catalog for tables outside the SAP namespace on a runtime instance. A handful of custom tables can reclassify the whole database as full use.

The non SAP data trap

Data loaded from a non SAP source onto a runtime database is the second common finding. The source matters as much as the volume.

The defense framework

The defense starts with knowing your own database before SAP does. Build the evidence first.

  • Catalog sweep: list every schema and table, and tag each as SAP or custom.
  • Data lineage: document the source of every non standard table.
  • Remediation plan: move custom data off runtime instances or convert to full use on your timetable.

Where the common advice on SAP HANA licensing is wrong

The standard system integrator advice is to license everything as full use to be safe, because full use carries no data restriction. We disagree. In roughly 6 of every 10 estates we reviewed, blanket full use licensing overpaid by a wide margin, because most of the memory genuinely served the core SAP application and qualified for runtime. The buyer side move is the opposite of blanket coverage. Map each database to the workload it actually serves, keep core SAP application data on runtime, and reserve full use for the specific instances that hold custom or non SAP data. Pay full use where the data demands it, and nowhere else.

How do you right size and reduce SAP HANA cost?

HANA cost tracks memory. Every gigabyte you remove from memory moves you toward fewer licensed blocks.

Right size memory first

Size memory against measured peak use, not the project start estimate. Over provisioning of 15 to 30 percent is common and pays for itself once corrected.

Tier cold data out of memory

Native Storage Extension and data tiering move warm and cold data to disk backed storage. Aged records can be archived out entirely before the renewal is sized.

Editorial photograph of a data center server hall housing in memory database hardware
A HANA memory review usually reclaims one or two 64 GB blocks per production system before any data is archived, simply by sizing against measured peak rather than the original project estimate.
35
HANA reviews 2024 to 2025
27%
Median memory over provisioning found
6 in 10
Estates with runtime data exposure

Source: Redress Compliance advisory engagement file, 2024 to 2025.

The HANA bill is a memory question wearing a licensing costume. Cut the memory and the license type stops mattering nearly as much.

Buyer side moves that hold

Three moves recur in every well managed HANA estate. They share one trait. They happen before the vendor conversation, not during it.

  • Baseline early: sweep the catalog and size memory 9 to 12 months before renewal.
  • Separate environments: license non production at the correct lower tier, not the production tier.
  • Normalize the comparison: model on premises HANA against SAP HANA Cloud on equal annual terms.

Suggested reading

What should a buyer do next?

  1. Sweep the HANA system catalog and tag every schema as SAP or custom.
  2. Flag any runtime instance carrying custom or non SAP data as a remediation item.
  3. Size memory against measured peak use, not the original project estimate.
  4. Move warm and cold data out of memory with Native Storage Extension and tiering.
  5. License non production environments at the correct lower tier.
  6. Normalize on premises HANA against SAP HANA Cloud on equal annual cost.
  7. Engage independent SAP advisory before the next measurement or renewal.
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Frequently asked questions

What is the difference between runtime and full use SAP HANA licensing?

Runtime HANA licenses the database only for the SAP application it ships with, while full use licenses HANA as a standalone database for any workload. Runtime forbids custom data models and non SAP data. Full use removes that restriction and prices per memory block.

How is runtime SAP HANA priced?

Runtime HANA is priced as a percentage of the net license value of the SAP application it underpins, commonly in the 8 to 15 percent band. The exact rate depends on the application and the contract. It is a database entitlement bundled with the application, not a separate metric.

How is full use SAP HANA priced in 2026?

Full use SAP HANA is priced per 64 GB block of memory, with list pricing in the tens of thousands of dollars per block before discount. Production and non production blocks are licensed separately. Memory sizing, not core count, drives the bill.

Does S/4HANA include a HANA database license?

Yes, S/4HANA and BW/4HANA include a runtime HANA entitlement by default. That entitlement covers the SAP application data only. The moment you add custom schemas or non SAP data to that database, the runtime restriction is breached and full use applies.

What is the most common SAP HANA audit finding?

The most common finding is custom or non SAP data sitting on a runtime licensed HANA database. Auditors query the system catalog for tables outside the SAP namespace. A small set of custom tables can convert a low cost runtime entitlement into a full use shortfall.

How do you reduce SAP HANA license cost?

The largest lever is memory. Right size the HANA memory footprint, move cold data out of memory with Native Storage Extension and data tiering, and archive aged records before sizing the renewal. Memory reduction maps directly to fewer 64 GB blocks.

Is SAP HANA Cloud licensed the same way as on premises HANA?

No. SAP HANA Cloud uses a Capacity Unit consumption model rather than per memory block perpetual or fixed term licensing. The two are priced and audited differently, so a like for like comparison needs both models normalized to annual cost.

When should a buyer review HANA license type?

Review HANA license type before every renewal and before any project that adds custom data models, side car applications, or non SAP sources to a HANA database. Reviewing during an audit is too late, because the finding is already on the table.

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SAP HANA is one of the cheaper lines in the estate when the license type matches the workload, and one of the most expensive when it does not.

Fredrik Filipsson
Co Founder and Group CEO, Redress Compliance