SAP Licensing for S/4HANA – The Complete Guide

SAP Licensing for S/4HANA Introduction

SAP S/4HANA is a powerful and innovative enterprise resource planning (ERP) solution that offers businesses the tools they need to streamline their operations, improve decision-making, and stay ahead of the competition. However, to fully take advantage of the capabilities of SAP S/4HANA, it’s essential to have a clear understanding of the SAP licensing options available and how to choose the right license for your business.

In this guide, we will explore SAP licensing for S/4HANA in detail, including the options available, pricing, and how to make the right choice for your business.

SAP Licensing for S/4HANA: Understanding the Options

One of the most important decisions you will make when choosing SAP S/4HANA is the type of license you need. There are several different options available, including:

  • Named User Licenses
  • Concurrent User Licenses
  • Device Licenses
  • Package Licenses
  • Indirect Access Licenses

Each option has its benefits and limitations, and the right choice will depend on the size of your business, the number of users you have, and your specific business needs.

Pricing and Cost Considerations for SAP Licensing for S/4HANA

The cost of SAP licensing for S/4HANA can vary depending on the type of license you choose and the number of users you have. Named user licenses are typically the most expensive, while concurrent and device licenses are usually less expensive.

It’s also important to consider the ongoing costs of using SAP S/4HANA, including maintenance and support fees, training, and any customization or upgrades that may be required.

Choosing the Right SAP License for Your Business: Tips and Considerations

When choosing an SAP license for your business, there are several important factors to consider, including:

  • The size and needs of your business
  • The number of users you have
  • Your budget
  • Your current and future business goals
  • Your IT infrastructure

By taking the time to consider these factors and weigh up your options carefully, you can ensure that you choose the right SAP license for your business and get the most out of your investment in SAP S/4HANA.


What is the difference between named user licenses and concurrent user licenses?

Named user licenses are assigned to specific individuals, while concurrent user licenses allow multiple users to access the system simultaneously. Named user licenses are typically more expensive, but they offer more flexibility and control over who has access to the system.

What is an indirect access license?

An indirect access license is required when a third-party system accesses SAP data through an interface, such as an API. This license type is necessary to ensure that third-party systems comply with SAP’s licensing terms.

How does the cost of SAP licensing for S/4HANA compare to other ERP solutions?

The cost of SAP licensing for S/4HANA can be higher than other ERP solutions, but it is essential to consider the long-term benefits and the capabilities of SAP S/4HANA when comparing.


SAP licensing for S/4 4HANA is a crucial aspect of any implementation of the powerful enterprise resource planning solution. With a range of options available, including named user licenses, concurrent user licenses, device licenses, package licenses, and indirect access licenses, it’s important to carefully consider your business needs and choose the right license for your organization.

Cost is also a consideration when it comes to SAP licensing for S/4HANA, with different options having different price points. It’s important to factor in not just the upfront costs, but also the ongoing costs of maintenance, support, and any upgrades or customizations that may be required.

Ultimately, by taking the time to carefully consider the factors that are important to your business, including size, user needs, budget, goals, and IT infrastructure, you can choose the right SAP license for S/4HANA and unlock the full potential of this powerful ERP solution.


  • Fredrik Filipsson

    Fredrik Filipsson possesses 20 years of experience in Oracle license management. Having worked at Oracle for 9 years, he gained an additional 11 years of expertise in Oracle license consulting projects. Fredrik has provided assistance to over 150 organizations worldwide, ranging in size and tackling various Oracle licensing challenges, including Licensing Assessments, Oracle audits, Oracle ULAs, and more.