Vendor Management Guide: Managing SAP as a Strategic Enterprise Vendor

SAP Licensing Models: S/4HANA vs. ECC, Users, and Package Pricing

SAP’s licensing basics.

SAP offers two fundamental license models: named user licenses (assigned to individual people) and package or engine licenses (based on usage metrics like transactions, employees, or orders)​. In legacy SAP ECC (ERP Central Component), customers typically bought perpetual licenses for specific user types (Professional, Limited, Employee Self-Service, etc.) plus optional module/engine licenses for add-ons (e.g., SAP HCM, CRM).

Under this model, each user requires the correct license type for their role – a Professional User license grants broad system access at a high cost. In contrast, an Employee Self-Service license is far cheaper but very limited in functionality​.

Many companies accidentally over-license users at higher levels than needed, resulting in wasted spending. (For example, one firm found it had tagged many employees as “Professional Users” in ECC when “Limited Professional” would suffice—a costly oversight that they corrected before negotiations​.) Package/engine licenses, meanwhile, cover specific SAP functions measured by metrics (like number of employees, sales orders, or CPU capacity)​.

These can also drive significant costs if usage exceeds contracted metrics. SAP will audit engine usage (for instance, HANA database usage is audited on peak memory use in the last 12 months), and one spike can trigger a compliance bill​. Proactively monitor engine metrics to avoid surprise fees.

S/4HANA introduces new licensing approaches.

SAP’s flagship S/4HANA can be licensed in two ways: traditional perpetual licensing (like ECC) or subscription-based via cloud offerings. In on-premises S/4HANA, the licensing still uses named users and package metrics, but SAP simplified the core ERP bundle (S/4HANA Enterprise Management) as a single package license that covers many modules.

In subscription models (like SAP S/4HANA Cloud or RISE with SAP), SAP uses a metric called Full User Equivalents (FUE) instead of individual named users​.

FUEs aggregate different user types into a weighted unit, simplifying pricing under one contract. Don’t assume a 1:1 swap of licenses when moving from ECC to S/4HANA; SAP’s conversion programs may credit your existing licenses, but you often won’t get full value and essentially start a new contract for S/4HANA​.

Before converting, optimize your user license assignments so you don’t carry over misclassified (over-privileged) users into the FUE calculation​. Overestimating your FUE count will inflate subscription costs, so scrub your user list and eliminate or downgrade any unnecessary licenses before migrating​.

Indirect access and “Digital Access” licensing.

A perennial SAP compliance risk is indirect access, when non-SAP systems or external users use SAP data or functions indirectly. SAP’s contracts require a license for anyone or anything that triggers SAP system processing – even if they don’t log in directly​. For example, if you build a customer web portal that pulls order data from SAP or writes data into SAP, those customer actions count as SAP usage that would normally require licensing​.

Many SAP customers have been caught off guard by this. Famously, SAP won a £54.5 million judgment against Diageo in 2017 for unlicensed indirect use via a Salesforce interface​and similarly pursued Anheuser-Busch for $600 million​. To address the ambiguity, SAP introduced a Digital Access model in 2018, which licenses certain document outputs instead of requiring named-user licenses for indirect use​.

Under Digital Access, you pay for nine document types (Sales Orders, Purchase Orders, etc.) created by external systems – a potentially more transparent, usage-based approach​. Key Guidance: Identify all third-party applications, interfaces, and bots that read or write SAP data. Work with SAP (or use their estimation tools) to gauge how many “digital documents” those integrations generate​. Depending on your environment, decide whether to use named user licensing for indirect users or move to the Digital Access document model.

The traditional model may be cheaper and simpler in environments with minimal third-party integration (e.g., only light data exchange from an HR system back to SAP)​. But suppose you heavily integrate SAP with external platforms (e.g., an e-commerce site or a third-party manufacturing system feeding data into SAP). The Digital Access license can prevent a huge compliance penalty​in that case.

Whichever model you choose, ensure it’s covered in your contract to avoid grey areas. It’s wise to negotiate language upfront that clarifies what counts as indirect usage and how it’s licensed, rather than leaving it to SAP’s interpretation later (which could be costly​).

Actionable licensing tips:

Maintain a detailed license inventory, mapping every user to the correct license type and every interface to the proper licensing mechanism. Regularly run SAP’s user measurement tools (USMM and LAW) internally – not just annually for SAP’s audit, but quarterly for your insight.

Reconcile that against your contract entitlements to spot any under- or over-utilization. Many organizations find they are over-licensed by 10-20% or more due to users who left the company or had access they never used​.

Proactively re-harvest and reassign licenses instead of buying more. Conversely, if usage is growing beyond what you bought, address it before an official audit: you can often negotiate better pricing for additional licenses in a planned purchase than paying list price penalties after an audit.

Always monitor indirect usage – if new integrations are introduced, update your licensing compliance accordingly. Good governance here avoids compliance surprises and strengthens your hand in vendor negotiations.

Cloud vs. On-Premises SAP: RISE with SAP, Hyperscalers, and HANA Enterprise Cloud

On-Premises SAP (Customer-Managed). In a traditional on-prem model, you purchase perpetual licenses and run SAP yourself (in your data center or a hosting provider). This gives maximum control and flexibility for customization and data management, but your team (or a hired provider) is responsible for infrastructure, upgrades, and meeting performance SLAs.

For support and updates, you pay SAP annual maintenance (typically ~22% of license cost)​. This model is CapEx heavy: a large upfront cost for licenses and hardware, with ongoing OpEx for support and operations​.

It can be cost-effective over a long horizon if you fully use the licenses and can run systems efficiently, but it also means complex contracts – you manage software and hardware vendors separately.

Running SAP on a hyperscaler.

Many enterprises now run SAP on cloud infrastructure (AWS, Azure, Google Cloud) in a hosted model. Functionally this is similar to on-prem, except you replace owning data center hardware with renting cloud infrastructure. You generally still use your perpetual SAP licenses (BYOL – bring your own license) unless you opt for a cloud subscription.

Vendor management wise, this means you have two relationships: one with SAP for the software and one with the cloud provider for infrastructure. Ensure your SAP contract permits deployment on cloud (most do, but check for any restrictions or required notifications). While you gain elasticity of cloud (spin up/down servers as needed), note that SAP maintenance fees remain the same and you’ll also incur hyperscaler costs.

Manage these contracts in tandem: e.g. coordinate the term of your cloud agreement with major SAP project cycles, and monitor total cost (it’s easy for cloud spend to spike if systems aren’t right-sized). One benefit is you can negotiate cloud resource discounts directly with AWS/Azure, but be cautious – if you later move to SAP’s own cloud offerings (like RISE), you might be locked into SAP’s infrastructure pricing.

In fact, SAP’s RISE bundle includes hyperscaler hosting but SAP controls the contract with the cloud provider, so you lose direct negotiation on those costs​. Always compare the 5-year TCO of self-managing on a hyperscaler versus SAP’s bundled cloud before deciding​. In some cases, large customers with strong cloud vendor discounts find self-managed cloud cheaper; in others, SAP’s bundle (with a good discount) can simplify things.

RISE with SAP (Business Transformation-as-a-Service). RISE is SAP’s flagship cloud offering that bundles S/4HANA software, technical managed services, and infrastructure into one subscription contract​.

Instead of buying licenses and then figuring out hosting and support, RISE gives a single “one hand to shake” approach: you pay SAP a recurring fee per year for a package that includes the S/4HANA Cloud software (usually the private cloud edition for large enterprises), the underlying cloud infrastructure (on SAP’s choice of hyperscaler), and SAP-provided basis support and SLAs. SAP even throws in extras like some SAP Business Technology Platform credits and Business Network (Ariba/Concur) starter access​.

Essentially, SAP becomes both the software vendor and the cloud service provider under RISE​. This OpEx model shifts you entirely to subscription licensing (you no longer “own” licenses)​. User licensing is measured in aggregated FUEs, simplifying user counts.

RISE appeals to companies looking to move off on-prem hardware and onto S/4HANA quickly, but it comes with trade-offs: you must migrate to S/4HANA (RISE doesn’t cover ECC) and commit typically to a 3-5 year contract term​.

Vendor management implications:

RISE can reduce complexity (one vendor, one bill), but scrutinize the contract. Key considerations include: allowed customizations (private cloud allows more than public cloud version, but still fewer than pure on-prem), data residency (choose primary hosting region), and the division of responsibilities.

In RISE, SAP handles system availability and basic admin, but your team still handles application-level work (configurations, user management, testing, etc.). Ensure the RACI matrix (who does what) is well-documented so nothing falls through the cracks.

Also, clarify what’s included in the RISE subscription – e.g. number of sandbox or development systems, disaster recovery environments, etc. – to avoid later surprises or extra charges​.

SAP HANA Enterprise Cloud (HEC). Before RISE, SAP’s HEC was a managed private cloud offering where SAP hosted your SAP environment for a subscription fee. It’s similar in concept to RISE’s private edition but was often a more bespoke hosting service (you still typically provided your own licenses or had a separate license deal). HEC contracts sometimes led to confusion over responsibilities and higher cost for customization.

If you are on HEC currently, SAP will likely encourage transitioning to RISE. Apply the same diligence as with RISE – ensure you understand the cost structure and any changes in terms if migrating from HEC to RISE (e.g. RISE might bundle software costs that you previously paid separately).

Key management strategies for cloud vs on-prem:

Whether on-prem, hyperscaler, or RISE, align your SAP environment choice with business strategy and flexibility needs. On-prem may offer more control, but cloud offers faster scalability and offloaded maintenance. If you choose RISE or SAP-managed cloud, negotiate hard on transparency and protections: insist on a breakdown of software vs infrastructure vs services in the price if possible (to benchmark rates)​, and lock in caps on any annual price escalations​. Standard RISE contracts often allow 3-5% yearly subscription increases and limit exit options​.

Try to cap increases to a fixed percentage or tie them to CPI with a reasonable max​. Also negotiate an exit strategy: for example, the right to export your data and assist migration off RISE at end of term, and even an option to revert to on-prem licenses (perhaps via purchasing perpetual S/4HANA licenses at a defined price if you leave RISE)​.

Having an exit clause or at least end-of-term transition assistance will prevent being locked-in with no leverage later. Lastly, if you remain self-managed (on-prem or hyperscaler), ensure you maintain strong internal capabilities or a trusted MSP (Managed Services Partner) to run SAP optimally.

The goal is to avoid service degradation when you’re the integrator, and avoid vendor finger-pointing (e.g. SAP saying an issue is your cloud provider’s fault and vice-versa). Clear support boundaries and good relationships with both SAP and the hyperscaler will help.

(Real-world example: One company comparing RISE vs self-managed found that with RISE, SAP would handle basis operations and guarantee 99.5% uptime SLA, whereas on Azure their internal team had to meet business SLAs themselves. They chose RISE but negotiated an improved SLA of 99.7% with credits for downtime, as well as a clause capping price increases to 2.5% per year – ensuring predictable costs and service​.)

Contract Governance, Pricing Negotiation, and Cost Optimization

Establish strong contract governance. Managing SAP as a strategic vendor requires continuous oversight of your entitlements, usage, and obligations. Start by maintaining a centralized repository of all SAP contracts, order forms, and related documents (license agreements, support agreements, cloud subscriptions, etc.). Key terms like license metrics, price lists, discount levels, and special clauses (e.g. indirect use terms or conversion rights) should be documented and understood by your vendor management team.

Implement a regular governance cadence – for example, quarterly internal meetings with IT, Procurement, Finance, and business stakeholders to review SAP spend and usage. These reviews should cover: current license utilization vs. entitlements, upcoming needs (new projects or users that might need licenses), and any compliance red flags.

Organizations that do this governance diligently can preempt problems and avoid overpaying by large margins. (In fact, studies show up to 90% of SAP customers overpay due to over-licensing or unused licenses​, underscoring the need for active management.)

Make someone accountable as the “SAP contract owner” internally, responsible for understanding the contract and monitoring SAP’s compliance too (e.g. are they delivering all services promised?). If you have multiple SAP agreements (perhaps from different acquisitions or lines of business), consider consolidating them at renewal to simplify management – but only if consolidation doesn’t cause you to lose any favorable legacy terms.

Plan negotiations well in advance.

SAP contract negotiations – whether for new licenses or renewals – are high stakes. Begin planning at least 6-12 months before a major contract event​. This lead time lets you shape the deal on your terms rather than reacting to SAP’s timeline. Never wait until the last minute or an SAP-driven deadline (like quarter-end) without your own strategy.

Early planning should include: a clear picture of your current SAP footprint (what you own and use), a wishlist of what you need going forward, and internal alignment on budget and objectives. One best practice is to complete an internal “Phase 0” assessment before even contacting SAP​. Inventory all your licenses and usage: how many users of each type are deployed vs purchased, how many package licenses (engines) are in use vs contracted, and what could be optimized (e.g. identify shelfware or users on too-high license types as noted earlier).

This assessment gives you data to drive negotiations. For example, if you find you have 500 Professional user licenses but only 300 are actively used, you have leverage to negotiate a conversion of 200 of them to other needed licenses or a credit toward a new purchase. By coming to SAP with a precise understanding of your utilization and needs, you prevent SAP from dictating the narrative and you can counter any “gap” claims they might raise​.

Align your stakeholders and communication. Internally, get all relevant leaders on the same page about the negotiation plan​. This includes IT, procurement, finance, and any business units reliant on SAP. Decide who will be the primary negotiators and who needs to sign off.

Also crucial is a communication plan for interacting with SAP​. SAP’s sales teams are adept at multi-threading – they might approach your executives or end-users directly to lobby for a deal. One tactic is “top-siding”: going around the negotiation team to engage a C-level executive with promises or pressure​. To counter this, nominate specific points of contact for SAP and instruct your team not to engage in off-script talks.

For instance, if SAP’s account executive tries to schedule a meeting with one of your VPs unilaterally, that VP should loop in the vendor management team. Keeping messaging consistent and channelled preserves your leverage.

Control the scope and frame of the deal.

In negotiations, be clear and firm about what you want to buy (and what you do NOT want) before SAP sends a proposal. A common SAP sales tactic is to bundle additional products or higher quantities than you asked for​. For example, you request 50 S/4HANA user licenses, and SAP’s quote comes back with 100 users plus some add-on cloud services “for a better unit price.” This can tempt you into over-committing.

Prevent that by explicitly stating your required products/volumes in writing and even what is out-of-scope. If SAP’s proposal still comes back with extras, don’t assume you must accept or pay for them – they are skilled at making it seem like a great discount on a bundle, but if those extra products are not needed, it’s not a savings at all. Stick to your list, and if something extra is interesting, evaluate it separately on its own merit and budget.

Use facts and leverage, not fear.

SAP sales often use FUD (fear, uncertainty, doubt) to push customers into deals. For instance, they might say “Competitor X in your industry is already on S/4HANA – you’ll be left behind,” or imply you’ll incur support penalties if you don’t buy now​.

They also engineer sales “events” to create a sense of urgency – like highlighting the 2027 ECC support deadline, or initiating an audit (or threat of one) to prod you into compliance purchases​. As a savvy vendor manager, recognize these tactics for what they are.

Stay anchored in your business case and independent research.

If SAP claims something (e.g. “price will increase 10% next year” or “this offer is only valid this quarter”), verify it. Often, those claims are negotiable. Indeed, customers who push back find that “last-minute” discounts magically improve when SAP’s quarter-end is hours away and the deal hasn’t closed.

Use timing to your advantage – SAP has strong incentives to book deals by year-end or quarter-end, so a controlled delay on your side (while still appearing engaged) can yield better discounts. However, balance this with your own risk tolerance; don’t push so hard that you miss a genuine deadline important to you (like ensuring support renewal is done to avoid lapse).

Optimize your existing assets first.

Before agreeing to buy more from SAP, scrutinize your current usage. This is where your internal license audit (LAW report analysis) pays off. If you find shelfware – licenses or modules you purchased but aren’t using – raise it in the negotiation.

You can request to swap them for something else of equal value that you do need, or to terminate their maintenance. SAP historically resists reducing maintenance revenue, but under the right circumstances they have allowed customers to swap unused licenses for different licenses or cloud subscriptions of equivalent value, preserving the spend but giving the customer something more useful​.

For example, if you bought 1000 CRM user licenses years ago but only 300 are used, you might negotiate to exchange the excess 700 for a new SAP product (like SAP Analytics Cloud) rather than continuing to pay support on shelfware. Weave these optimization moves into the deal. It signals to SAP that you won’t simply “buy more on top of unused stuff” and forces them to be more creative/commercial to win your expansion.

Likewise, if you suspect you’ll need additional licenses in the future but not immediately, negotiate price protections now – e.g. a clause that allows you to buy more users or modules at the same discount within 2 years​. This prevents SAP from quoting an exorbitant price later when you’re in a pinch.

Negotiate pricing and terms methodically.

Key commercial terms to focus on include: discount levels, price holds, renewal caps, payment terms, and protective clauses. Use benchmarks if available. If you have access to market data (through advisors or networks) on what discount percentages other companies got for similar SAP purchases, use that to counter SAP’s quote.

SAP’s initial offers are rarely their best – they expect savvy customers to counter. Push for transparency in any complex deal. For instance, in a RISE with SAP deal, ask SAP to break out how much of the fee is for software vs infrastructure vs services​; this helps you identify if, say, the infrastructure component is overpriced compared to market.

Aim for a win-win but be ready to leverage competition.

While there’s no exact replacement for SAP’s core ERP, for certain components (procurement, analytics, cloud platform) there are alternatives. If you’re evaluating alternatives like Salesforce (for CRM) or Workday (for HR) in parallel, that can be leverage – but use it carefully. SAP might respond by stressing the integration costs (indirect access) if you go third-party​.

In fact, some customers have seen SAP claim that choosing a competitor’s software would incur such high interface licensing fees that “it’s more cost-effective to stick with SAP”​. This is a tactic to discourage competition.

Your counter is twofold: (1) ensure you understand the true indirect access cost (see Audit Risk section) and have mitigations, and (2) remind SAP that you’re prepared to invest elsewhere if they can’t meet your requirements on value. The mere act of showing SAP you have options and a firm resolve often drives a better proposal.

Secure future flexibility and cost control.

A good negotiation doesn’t just focus on the immediate purchase – it also sets you up for the future. If you’re signing a cloud/subscription deal, negotiate the renewal terms now. For example, if you take a 3-year SAP SuccessFactors subscription, put a cap (say 5%) on the price increase at renewal in year 4​. Otherwise, SAP could hike the price significantly once you’re dependent on the product. For on-prem licenses, ensure that any pricing for expansion (add-ons) is locked in or at least tied to a discount off then-current list.

Avoid agreeing to any unfavorable “standard” term without question. If the contract has an indemnification, audit clause, or other term that you find risky, negotiate it. You may not always get changes (SAP has certain non-negotiables), but large customers often succeed in getting riders or amendments that soften onerous terms.

For example, some have added language to limit audit frequency or to exclude certain benign indirect uses from fees. Also consider contractual protections like swap rights (ability to swap one license type for another of equal value) and termination rights for cloud services (e.g. if SAP fails to meet service levels consistently). Each of these strengthens your position over the vendor in the long run.

When talks stall, escalate smartly.

If your SAP account executive claims “this is the best I can do,” don’t hesitate to involve higher-ups – both on your side and SAP’s. A CIO-to-SAP regional manager conversation, or a CFO-to-SAP sales VP call, can unlock additional concessions that the sales rep alone could not offer​. SAP is keen on executive relationships, and if your C-level reaches out, SAP often brings a more senior commercial owner to the table who has authority to improve the deal.

Use this sparingly and respectfully (you don’t want to undermine your day-to-day negotiator unnecessarily), but for critical deals, executive engagement can yield last-minute improvements – we’ve seen extra discounts or incentives appear even after a “best and final” quote when the right people engaged​. Internally, ensure your executives know the talking points and don’t accidentally agree to something suboptimal out of enthusiasm. Brief them on the few key asks so they reinforce, not derail, your negotiation strategy.

Cost optimization in practice:

Managing SAP costs is not a once-a-year task at renewal; it should be ongoing. Conduct regular License Position Assessments (either internally or with third-party help) to compare your actual usage to what you’re paying for​. This can reveal opportunities to downshift users (e.g. from Professional to a Limited license) or to retire unused licenses before renewal​.

If you have 100 unused licenses, consider dropping their maintenance at the contract anniversary to save cost – note, SAP often disallows dropping support on licenses mid-contract, but if you have a governing master agreement that allows license termination with notice, take advantage. Another angle is to look at third-party support providers for older SAP environments.

Companies like Rimini Street and Spinnaker Support offer maintenance for SAP ECC at roughly 50% of SAP’s fee. Switching to them will cut cost, though you lose official SAP updates and support.

Some organizations use this as leverage: if SAP’s maintenance cost is too high and innovation on that platform is over, the threat or move to third-party support can push SAP to offer discounts or special support extensions. (SAP is aware of this threat – it’s speculated they use audits/indirect use enforcement to discourage customers from leaving SAP support​.)

Only consider this route if you have a stable system and a plan for how to get updates (since no further enhancements from SAP would be delivered).

In summary, treat SAP as a partnership but with careful checks and balances. Governance and negotiation discipline are your tools to keep costs in line and value on track. By knowing your usage intimately, preparing well, and negotiating assertively, you can control SAP costs, ensure transparency, and maintain a balanced relationship where SAP is a valuable enabler for your business rather than an unchecked cost center.

SAP Support, Escalation Processes, and SLAs

Know your support entitlements. SAP’s standard support offerings for on-premise software are SAP Standard Support (basic) and SAP Enterprise Support (advanced). Most large customers are on Enterprise Support, which is typically mandatory with a 22% annual fee of license value.

Enterprise Support provides 24×7 support for high-priority issues, access to SAP support tools (like the SAP Support Portal, Solution Manager functionalities, and the SAP knowledge base), and enhancement package updates. It includes service level commitments mainly around response times (e.g. Priority-1 cases get a response within 1 hour)​.

Familiarize your team with SAP’s incident priority definitions and escalation paths. For a critical production-down issue, you should log it as “Very High” (P1) and know the hotline number to call SAP support directly. Don’t passively wait for a portal response on truly critical issues – SAP’s support handbook encourages phone escalation for P1.

Ensure your support contract gives you the right to do that (Enterprise Support does; Standard might have more limited hours). Also, leverage the SAP Customer Success Manager (CSM) or whatever account resource SAP assigns for support liaison – they can often help push internally.

Premium Engagements (MaxAttention, ActiveAttention).

In addition to standard support, SAP offers Premium Engagements for an extra fee, namely SAP MaxAttention and SAP ActiveAttention. These are tailored, high-touch support and advisory services on top of standard support. MaxAttention is the top tier – SAP provides an on-site (or dedicated) team of experts who deeply know your system and help with everything from architecture to performance tuning. It’s typically used by SAP’s largest, most complex customers who need white-glove service​.

ActiveAttention (launched in 2019) is a slightly scaled-down version: you get access to a Technical Quality Manager off-site and specific expert services, but not a full embedded team​. The idea is a more flexible, lower-cost premium option for customers who still want elevated support but maybe not at the scale of MaxAttention. If you are considering a Premium Engagement, define clearly what value you expect – e.g. assistance in major go-lives, regular health checks, custom code optimization, etc.

These packages can be quite expensive and often multi-year, so ensure the scope aligns to your strategic projects. Negotiate your premium engagement contract too! Many assume the price is fixed, but elements like the number of included expert-days or the hourly rates for additional work are negotiable.

For example, insist on the ability to carry over unused service days to the next year if you don’t use them​ (SAP might otherwise have a “use it or lose it” policy annually). Also try to lock in resource rates for the duration, so SAP doesn’t raise prices on the experts in year 2​. SAP has been known to be flexible here, especially if you can benchmark what other clients pay​.

Manage support performance and hold SAP accountable.

Whether on standard or premium support, track SAP’s performance on your tickets. Use KPIs like initial response time, time to resolution or workaround, and quality of solutions provided. If you notice slippage (e.g. frequent delays on important issues), address it in your regular vendor governance meetings with SAP. SAP typically conducts an annual Support Review for big customers – use that forum to present data on how they’ve performed and push for improvement areas.

If you have Enterprise Support, remember that it includes proactive services (like Continuous Quality Checks and access to SAP’s EarlyWatch alerts). Many customers don’t utilize these fully. Schedule the periodic health checks SAP offers; they can catch issues before they become incidents.

If you have a Premium Engagement, you likely have weekly or monthly touchpoints with the SAP MaxAttention/ActiveAttention team – come to those meetings with a prioritized list of concerns or optimization requests so that you drive value. Don’t passively let the SAP team set the agenda; make sure it aligns with your pressing needs.

Escalation best practices.

Despite good support, critical issues sometimes languish. Develop an internal SAP escalation procedure. For example: if a P1 issue is not resolved or at least mitigated within X hours, your IT manager should escalate to SAP’s Mission Control Center or request an SAP escalation manager. In parallel, involve your SAP account director – they can rally additional resources. Many companies establish an internal “SAP escalation ladder” where after, say, 24 hours, the CIO will personally call SAP’s regional support manager.

These actions get attention. SAP has an official escalation process (you can request an “escalated message” status in the support portal), but real momentum often comes from human intervention via your account team. Make sure to keep escalations factual and urgent – explain the business impact of the issue (e.g. “Cannot ship product, $1M revenue loss per day”) so SAP understands why it’s critical.

Also, if you’re in a Premium Engagement, leverage your dedicated SAP support contacts – part of what you pay for is quicker escalation. Use the magic words: “We need a global escalation.” SAP might bring in a product engineering team or a senior support architect when you do this.

Service Level Agreements (SLAs).

For on-premise support, SAP’s SLAs are usually about response time, not fix time. Be aware: SAP does not usually promise to fix an issue in a certain timeframe in standard contracts – just to respond and engage appropriately. In cloud contracts (like RISE or SuccessFactors), there are uptime SLAs (e.g. 99.5% availability)​ and sometimes resolution timeframes for critical issues. If your business requires a higher SLA, negotiate it.

For instance, 99.5% uptime allows about 1.8 days of downtime yearly, which might be too much for a global 24×7 operation. You could ask for 99.7% or 99.9% uptime; SAP may or may not agree depending on the service, but it’s worth trying especially for production systems​. More importantly, negotiate meaningful remedies for SLA breaches. Standard cloud contracts might give a service credit of, say, 2% of monthly fee for an SLA miss – which on a $100k/month service is only $2k, not much consolation for a major outage.

If you’re a large client, push for stronger credits or even the right to terminate if SLAs are consistently missed​. It’s also wise to include an SLA for support response on critical issues in cloud agreements (e.g. “Priority 1 issues will have a support engineer working within 30 minutes and continuously until resolved”). Document all such commitments.

Handling SAP patches and improvements.

Part of support is getting patches, updates, and new features. Make sure you have a process to evaluate SAP’s regular updates (for on-prem, you get support packs; for cloud, they push updates quarterly). If you’re on cloud, those updates are automatic – ensure your team is aware of upcoming changes via SAP’s release notes so there are no surprises to your business processes.

If on-prem, plan your support pack or enhancement pack updates periodically to stay within supportable versions (SAP requires you not to fall too far behind or they may not fully support you). SAP Enterprise Support gives you tools like the Maintenance Planner and Upgrade Checks – use them.

Finally, don’t be afraid to escalate beyond support into the SAP product organization if needed. If you encounter a software bug that is severely impacting you and not getting resolved, ask your account executive to arrange a call with SAP product development or engineering.

On rare occasions, having the voice of the customer heard at the product owner level can expedite a fix or workaround. User groups (ASUG, DSAG, etc.) can also help – if you raise a concern there, SAP often pays attention to broad customer feedback.

(Example: A manufacturing company on SAP MaxAttention had chronic performance issues in its SAP ERP during quarter-end closing. After regular support channels failed to fix it for months, they invoked their MaxAttention escalation. SAP flew in a performance expert team for a week, identified a database indexing problem, and solved it – fulfilling the promise of premium support. The key was the customer’s persistent escalation and use of their paid entitlements.)

Navigating SAP Sales and Account Management Tactics

Expect a well-oiled sales machine. SAP is a large enterprise vendor with a highly organized sales approach. Your account will have a hierarchy of SAP reps – an Account Executive (salesperson), possibly a Customer Success partner, and overlays for specific products (cloud reps for Ariba, SuccessFactors, etc.). They have quotas and will regularly pitch new products or expansions.

Be prepared for quarterly business reviews or “value discovery” workshops initiated by SAP. While these can be useful to learn about new solutions, they are also sales opportunities for SAP. Keep the relationship professional but arms-length when it comes to sales initiatives.

It’s wise to have a single point in your org (like the vendor manager or IT leader) coordinate all SAP interactions so you can track what they’re promoting and gauge if it aligns with your roadmap.

Common SAP sales tactics:

• Leveraging End-of-Life or Deadlines: SAP knows ECC support end (2027) is a huge event. They use this to create urgency – offering incentives to move to S/4HANA now, or warning that waiting means losing out on deals​. As 2027 nears, they may tighten these incentives. (One tip: use the deadline as leverage back at them – they also need your business. “We know you want us to transition before 2027; we want a better price to do so.” SAP is often more flexible now than they will be after you’ve crossed the deadline​.)
• Audit and “Compliance” Pressure: As mentioned earlier, indirect access or license compliance issues may be surfaced by your SAP rep outside the formal audit cycle. It’s not uncommon for a rep to say, “Let’s do a license review to make sure you’re compliant,” which conveniently finds a shortfall that a new purchase would resolve. Sometimes these are genuine, but sometimes it’s a tactic. Handle it by doing your own assessment (so you know the truth) and if a shortfall exists, consider negotiating it as part of a broader deal (rather than a standalone buy at list price under threat). In worst cases, SAP might initiate a formal audit knowing it will spur you into purchase – try to stay ahead of audits by self-auditing and addressing gaps on your terms.
• Executive Access and Name-Dropping: SAP will involve their senior executives to woo your C-suite. They might have an SAP executive sponsor call on your CEO or CIO periodically. The conversation will be friendly and high-level (“How can we support your strategy?”) but ultimately they are looking for opportunities to upsell. These relationships aren’t bad – in fact, having an SAP exec interested in your success can help when you need support or a favor – but manage expectations internally. Prep your executives on what SAP’s goals likely are, so your exec can respond with your company’s needs (“We need better support in Asia,” or “We are only interested in S/4HANA after 2 years, not now,” etc.). That helps steer the conversation rather than letting SAP drive it.
• Bundling and Discount Illusions: SAP might propose a large bundle of software (e.g. “RISE with SAP plus Ariba plus Analytics all together for 30% off!”). While the overall discount might sound great, often the bundle includes products you don’t really need or could buy later. Beware of shelfware in new clothing. Always break down a bundle: ask SAP for individual component pricing. Often you’ll find one component is heavily discounted but others are not. You can then decide to maybe only take the attractive pieces. It’s okay to say “we’re not ready for product X yet, we’ll take just Y and Z now.”
• Playing divisions off each other: If you are a global company, SAP may try to deal with each region or division separately to maximize revenue (and it complicates your leverage). Conversely, they might push for an enterprise-wide deal when you prefer phased adoption. Coordinate internally so SAP gets a unified message. Don’t let a regional manager sign a new contract in isolation if you can help it – it could undermine a global negotiation.
• “One-Time” Programs: SAP occasionally announces programs like “2025 S/4 Upgrade Program – convert now and get 50% off HANA DB” or similar. These can be legitimate opportunities, but read the fine print. Sometimes the discount is off list price which was inflated to begin with, or it requires a long-term commitment. Evaluate these offers against independent ROI analysis rather than the marketing brochure alone.

How to handle these tactics:

1. Stay in control of the agenda. Continuously refer back to your IT strategy and budget. If SAP pitches something outside of it, it’s okay to say “not this year, revisit later.” Keep a roadmap document to share with SAP that shows when you plan major changes or evaluations – this can preempt some pressure.
2. Use data and third-party input. If SAP claims their offer will save you 30%, verify with external benchmarks or consultants. A strong internal business case (or an external review) can cut through sales hype. For example, SAP might claim RISE will cut your TCO by 20%​; you should model it yourself. If your model shows only 5% savings, you have justification to ask SAP for a better price or reject the push.
3. Incentivize the sales team the right way. Sometimes giving SAP some business in one area can relieve pressure in another. If SAP is aggressively pushing cloud subscriptions but you truly only need on-prem right now, consider: can you find a small win to give them (like buying an extra module you were considering anyway) in exchange for them backing off elsewhere? This kind of trade can maintain a positive relationship. Make it explicit: “We might consider module A this year (which helps your quota), but we need your support in keeping our maintenance cost stable and no hard push on S/4 until we’re ready.”
4. Hold them to account on promises. Any sales promises (e.g. “free training if you buy,” “we’ll include 100 hours of migration support”) – get it in writing on the order form or contract. Memories fade once the deal is signed and reps change roles. If it’s not in the contract, it’s not guaranteed.

Build a balanced relationship. Ideally, you want SAP to view your organization as a long-term partner, not just a sales target. Invest time in the relationship: participate in SAP customer councils or user groups, give feedback on products, and celebrate joint successes. If SAP sees that delivering value to you will earn references or case studies, they are more likely to focus on your success, not just the next sale.

At the same time, be a tough but fair customer – reward good behavior (renewals, expanded footprint when ROI is proven) and push back on bad behavior (surprise cost increases, poor support). The goal is a professional relationship where SAP’s team knows you are knowledgeable and won’t be easily pressured, but you’re also open to innovation that genuinely benefits your company.

When that respect is established, the sales tactics tend to soften and the conversations become more about solving your business challenges with SAP’s help – which is the ideal outcome.

Audit Risk Management and Indirect Access Mitigation

Prepare for SAP audits as an ongoing discipline.

SAP license audits (often yearly “LAW” audit requests) are a normal part of the relationship. Instead of treating them as ad-hoc fire drills, incorporate audit readiness into your management process.

This means keeping your user lists clean (removing access promptly for leavers, avoiding assigning superfluous licenses), documenting where and how every third-party system interacts with SAP, and running internal usage reports regularly. When SAP sends an official audit notice, don’t panic – if you’ve been monitoring, you should have a good sense of your compliance position. Respond to audit requests cooperatively but carefully.

You typically have to run SAP’s measurement programs (USMM and LAW) and possibly provide additional data. Do so within the required timeline, but also use that window to double-check everything. It’s not unheard of to discover an inadvertent shortfall – if so, you might decide to quickly purchase the needed licenses before submitting the audit data (potentially at a better negotiated rate than being charged via audit).

Always keep communications with SAP audit teams factual and separate from sales discussions – if an SAP sales rep tries to use an audit finding to pressure a sale, you can insist to handle the compliance first independently.

Identify indirect access exposure proactively.

As discussed in licensing, indirect usage is a top audit risk. Don’t wait for SAP to discover a third-party interface you forgot about. Map out all data flows to and from SAP​. Engage application owners to identify any system or user that reads/writes SAP data without a direct SAP login.

Common culprits: middleware interfaces, customer or supplier portals, mobile apps, even Excel macros using ODBC. Once mapped, classify these connections: are they read-only exports (SAP calls this “Indirect Static Read” which currently doesn’t require a license if done properly), or are they creating transactions in SAP (e.g. an eCommerce site creating sales orders)? For each, determine if you have the appropriate licensing.

Maybe you already licensed an “SAP Platform User” for those external parties, or maybe you did not. Close the gaps on your terms. You might decide to purchase a block of “SAP Application Extension” named-user licenses for external systems, or opt into the Digital Access model for a more predictable approach​. In some cases, you could re-architect a bit: e.g. use an SAP provided interface (like SAP Gateway) that might be licensed differently or ensure certain data is exported to a separate database so that external access doesn’t hit SAP directly.

Mitigate indirect use with contract clauses and SAP’s programs.

Starting 2018, SAP provided the Digital Access Adoption Program (DAAP) which gave customers a chance to trade some existing license value for digital document licenses. If you haven’t, check if SAP is still offering incentives for switching to the document model. Some companies negotiated a one-time waiver or cap on indirect usage fees during S/4HANA migrations – essentially convincing SAP to not audit legacy indirect use as they move to the new model.

See if those options apply when you transition. Also, in new contracts, explicitly limit indirect risk: for example, when signing a cloud product order form, add a clause that its use won’t count as indirect use back to your ERP (if applicable). Gartner has even recommended wording that states new definitions only apply to the new product​, ensuring SAP can’t retroactively charge you across the estate.

Be aware of common audit triggers.

SAP often focuses audits if they suspect something. Signs that draw attention include: no recent license purchases (if you haven’t bought anything new for a while, SAP might audit thinking you grew usage without licenses)​, mergers or acquisitions (your landscape changed), large increase in user counts reported, or if you’re nearing a deadline like a contract renewal or end of a program (they might audit before renegotiation to maximize their position).

Also, if you publicly announced a move to a competitor for some function, SAP might audit to ensure you’re not integrating that competitor in a non-compliant way​. Knowing this, if you fall into any scenario, double-check your compliance before SAP comes knocking.

During an audit, engage but manage scope.

When the official auditors (often SAP’s License Audit and Compliance team) come, they may ask not just for LAW but for additional evidence or scripts on specific systems. Make sure you understand what they are requesting and push back on anything outside the contract’s audit clause.

For instance, if they start asking for non-SAP system logs, you might involve your legal team to ensure that’s required. Aim to keep the audit factual. If results come out in your favor (no compliance issues), great – you have that peace of mind and can even use it in negotiation (“We are fully compliant per your audit, so we expect a customer in good standing treatment.”).

If the audit finds shortfalls, don’t accept the first fee quote blindly. Audit findings are negotiable. SAP would prefer you buy something than pay a one-time penalty, so you can often convert an audit finding into a purchase with discounts or into a broader contract (e.g. roll it into that S/4HANA migration deal). Always verify the finding; ask SAP for how they calculated it. If indirect usage is flagged, perhaps you can argue some of it is “static read” or otherwise not licensable – the definitions are nuanced​. Engage experts if the exposure is large.

Indirect use mitigation example:

A company discovered that a custom mobile app used a single background SAP user to let 500 employees clock in/out from phones – a clear indirect access scenario. Before SAP ever audited, the company addressed it by buying the proper SAP ESS (Employee Self-Service) licenses for those 500 employees (which was cheaper than any potential fine) and reconfigured the app to use individual logins. They also whitelisted this scenario in a contract amendment. In the next audit, SAP had no issue because it was properly licensed. The proactive approach cost far less than a post-audit true-up would have. The lesson: find and fix indirect access internally first​.

Use tools and specialists for compliance.

You don’t have to manually track everything. There are SAP license management tools (discussed in the next section) that can monitor user counts, engine usage, and even indirect usage footprints. Use them to set up alerts – e.g. if a background interface user suddenly handles a spike in transactions, that’s a flag. Some organizations also run periodic internal audits perhaps with an external advisor to simulate an SAP audit.

This can be extremely valuable, as an outside expert might catch something your team overlooked, and then you can quietly fix it. Investing in this kind of “second pair of eyes” can save millions​. It’s much better to discover a compliance gap on your own timeline than during a formal audit or a sales negotiation when your leverage is weaker.

In summary, treat compliance management as a continuous process. Keep evidence of your compliance efforts (reports, clean-ups, licenses purchased for indirect scenarios) – if ever challenged by SAP, you can show you have been acting in good faith and diligence, which can influence how aggressively they approach you.

When managed well, audits become routine rather than scary, and indirect access becomes a calculable cost of architecture rather than an unpredictable “time bomb.”

Renewals, Expansion Planning, and Renegotiation

Start early and assess your future needs.

An SAP renewal (be it a support renewal, a cloud subscription renewal, or a new S/4 conversion deal) is not just a procurement event – it’s a strategic checkpoint. Begin the renewal planning well in advance (6-12 months out)​. Catalog what is up for renewal (which contracts, what products, how much you’re paying). At the same time, look at your future demand: are you growing, shrinking, moving to new SAP solutions, or retiring old ones? This will inform your approach.

For example, if you plan to move to S/4HANA in two years, the renewal of your ECC maintenance now might be an opportunity to negotiate conversion terms or at least prevent locking in something that hinders the move. If a big cloud subscription (say Ariba or SuccessFactors) is coming up, decide if you are renewing as-is, expanding usage, or if there’s any consideration of alternative solutions – this will affect how hard you negotiate or if you run an RFP.

Right-size and clean up before renewal.

Just as with initial negotiations, before renewing it’s critical to right-size your SAP landscape​. Perform an internal license audit and usage analysis well before renewal time. Identify any licenses or subscriptions that you aren’t using fully. It’s much easier to non-renew or reallocate licenses at the renewal point than mid-term.

For perpetual licenses, you typically can’t return licenses for a refund, but you might be able to drop their maintenance at renewal if your contract allows (some contracts auto-renew all licenses maintenance unless you cancel specific ones with notice – check this and follow the process if you want to drop any).

For cloud subscriptions, if you bought 1000 users and only used 700, plan to renew for 700 (or maybe 800 to allow growth) rather than just rubber-stamping 1000 again. SAP will of course try to renew you at the same or higher volume, but usage data is a solid backing for reducing that.

And if you need more than before, don’t just silently pay for overages – bring that into a negotiated package to get a better rate. It’s common to bundle additional users or extra modules into a renewal negotiation for a more favorable discount, rather than signing a separate expansion later at higher cost.

Leverage the renewal for better terms, not just prices.

A renewal event is your chance to fix contract terms that were suboptimal. Did your original deal lack price protection on certain elements? See if you can add it now. Are there inconsistent discounts across your various licenses?

Try to harmonize them. For instance, if you have some older licenses at a low discount and newer at a high discount, SAP might resist “lowering” any price, but you can negotiate more value in other ways – maybe additional licenses at the higher discount to replace the older ones, effectively averaging out.

Also consider negotiating swap rights at renewal: e.g. the right to swap unused licenses for other licenses of equal value over the next year or two​. That gives flexibility as your needs change without needing a new purchase. If you’re renewing a cloud subscription, push for renewal price caps or options to reduce quantities in the future​ (SAP’s cloud contracts often pre-negotiate the next renewal increase; get that capped low).

For multi-year deals, ensure any annual uplifts are clear and acceptable (if CPI-linked, maybe insist on a cap like “CPI or 3%, whichever is lower”). Weigh also the duration: a longer term can lock a good price, but a shorter term gives flexibility if you expect market changes or plan to perhaps phase out a product.

Plan for expansion in a structured way. If your organization expects to grow its SAP footprint (new modules, more users, additional cloud services), don’t do this ad-hoc if you can help it. Vendors love unplanned purchases because they have the upper hand. Instead, anticipate expansions and try to bundle them into planned negotiations.

Say you know a new warehouse management system (SAP EWM) will be needed next year – mention it during this year’s renewal talks: “We will likely need X licenses for EWM next year, keep the pricing consistent for us and we’ll come to you for it.” Maybe SAP can offer a commit-and-phase deal: you commit now to the purchase but execute later with a locked price.

If you can’t foresee some expansion, at least pre-negotiate a framework: e.g. “any additional S/4HANA users we add in the next 2 years will receive the same % discount as current” – this can be written into the contract as a volume discount extension​. That way if you suddenly need 500 more users, you’re not starting from zero on pricing.

For major expansions or changes (like moving from ECC to S/4HANA), treat it as a new negotiation entirely, but use your existing investments as leverage. If you have a lot invested in ECC, ensure SAP’s offer for S/4 considers that (they do have conversion credits, but push for more if your utilization was low)​.

Also, time your expansion deals with SAP’s fiscal calendar when possible – SAP is notably more flexible near Q4 or Q1 end when they need sales. Just be careful not to slip past a hard deadline on your side.

Renewal negotiation strategies recap:

• Plan and control the timeline: Don’t let SAP dictate when the quote comes and when it must be signed – manage those dates yourself as much as possible​​.
• Align internally: Everyone from IT to procurement to legal should know the goals and support them​.
• Communicate needs clearly: State what you expect to renew and what not; otherwise SAP might assume you’ll keep everything and add more​.
• Optimize first: Remove or repurpose any shelfware in the renewal deal​.
• Improve terms: Add clauses for flexibility, fix any pain points (like removing an old contractual restriction), negotiate better protections (volume discounts, renewal caps, etc.)​​.
• Consider future: Build in options or at least create a roadmap of expected needs to tell SAP (without committing too early unless you get a concession in return).
• Executive escalation if needed: If renewal talks stall, involve higher execs to push through a better outcome​. Especially if it’s a big renewal, a call from your CIO to SAP’s senior management indicating how important a fair deal is can tilt the scales.

One more tip: Know SAP’s sales calendar and strategy. If you are negotiating a renewal in, say, August but SAP’s fiscal year ends in December, they might be inclined to finalize early (Q3) or might wait till Q4 hoping you’ll sign then.

Sometimes, strategically extending your current contract a few months (if possible) to sync with a favorable timing can help. Also, consider if SAP has any big strategy (like pushing cloud) – you might get a better deal on cloud products during renewal because SAP is incentivized internally to sell those, even if you mainly care about your core renewal.

Finally, document everything in the new contract or amendment. When you reach an agreement for renewal or expansion, ensure all elements (new prices, converted licenses, dead licenses, new terms, future options) are written in the contract.

Have your legal/procurement team review it thoroughly – SAP’s paperwork is complex and you want no surprises later. After signing, update your contract repository and governance docs with the new info so you can manage going forward. Then, it’s time to execute until the next cycle – and the process repeats, hopefully with continuous improvement each time.

Tools and Advisory Services for SAP Vendor Governance

Managing SAP’s complexity can be augmented with specialized tools and expert services. Here are some that can make a significant difference:

License Management and Optimization Tools: A number of software asset management (SAM) tools focus on SAP licensing. For example, Snow Optimizer for SAP (by Snow/Flexera) is a popular tool that integrates with SAP to analyze user activity, license assignments, and engine usage​.

It has features like contract management repositories and can simulate license allocations. Such tools help by automatically identifying mismatches – e.g. users with powerful licenses who only perform low-level tasks (candidates to downgrade) – and by consolidating data from SAP’s various audit reports. Using a tool can uncover 15-20% cost savings on average just by optimization, according to industry reports​.

Other tools include VOQUZ’s SamQ, ServiceNow SAM (which has an SAP license module), and Aspera LicenseControl for SAP (part of USU now). When evaluating tools, ensure they can handle indirect usage tracking and are kept updated with SAP’s latest license rules.

Implementing a SAM tool requires collaboration with your SAP Basis and security teams (to get the right data feeds), but once running, it gives continuous insight beyond what SAP’s own LAW tool provides (since SAP’s tools show raw consumption but don’t suggest how to optimize or reduce costs​).

Contract and Spend Management Tools:

Treat your SAP contract like a living document – tools like Ariba Contracts (ironically an SAP product) or any contract lifecycle management system can store your SAP agreements, set reminders for renewal dates, and even enforce workflows for any new purchase requests (so nothing gets bought without proper review).

On the spend side, use your financial system or a tool like Apptio or Flexera One to track SAP spending trends. For instance, if maintenance fees are increasing year over year (SAP did impose a general 5% increase in 2024 for many customers due to inflation​), having that data helps you budget and push back if needed.

Monitoring and performance tools:

While not directly about vendor management, tools that monitor SAP system usage (like SAP’s Solution Manager or third-party APM tools) can feed into vendor management by quantifying the business importance of the system. For example, if a tool shows that a particular SAP module is barely used, you might question the value of its maintenance fees at renewal. On the other hand, heavy usage metrics can justify negotiating more support resources or performance guarantees from SAP.

Advisory services and expert consultants:

The SAP ecosystem has many specialized advisory firms that help customers maximize value and control costs. Firms like Redress Compliance, and others offer services such as license audits, contract negotiation support, and benchmarking. For example, an SAP licensing advisor can benchmark your proposed deal against hundreds of others to tell you if the discount is fair, and where to push​.

They can also identify soft spots in contracts that typical IT folks might miss (e.g. obscure clauses on indirect use, or lacking cloud renewal protections). Engaging such advisors can easily pay for itself in a big negotiation through cost avoidance.

Peer networks and user groups:

Don’t underestimate the value of community knowledge. Join SAP user groups such as ASUG (Americas SAP Users’ Group) or DSAG (German SAP User Group) depending on your region. These communities frequently discuss licensing and contract experiences, and you can learn a lot from peers. Sometimes even informal networking with other SAP customers (e.g. at Sapphire or TechEd conferences) yields tips like which salesperson is flexible, or what discount someone got on a similar deal.

While you must keep specific contract terms confidential per agreements, general learnings are fair game. Gartner and Forrester also publish reports on software pricing and vendor negotiation; those can give you macro-level data to use in planning.

Third-Party Support Providers:

Mentioned earlier, companies like Rimini Street offer an alternative to SAP’s support. While using them is a significant move (as it breaks your upgrade path from SAP), simply having their proposal can be a negotiation lever. If SAP knows you are considering third-party support for an older system, they may offer concessions (like a discount on maintenance or a free extension of support for ECC beyond 2027 if you move to S/4HANA later).

Some organizations actually run a hybrid: keep SAP support for critical systems, use third-party for ancillary SAP systems to save money. If you go this route, be careful to isolate the systems (no mixing of SAP support and third-party on the same instance, as SAP will then limit support).

Automation and governance workflows:

Consider automating parts of SAP license management. For example, integrate your HR joiner/mover/leaver process with SAP license assignment – whenever an employee leaves, a workflow to remove their SAP account or mark it inactive can prevent license creep.

For movers, a role change might trigger a review if their SAP access level (and license type) should change. These processes, although not glamorous, can steadily maintain your usage at optimal levels, so you’re not surprised later.

Regular external audits/health checks:

Just as SAP audits you, turn the tables and do periodic audits of SAP (in terms of value). Perhaps every 2-3 years, conduct a competitive analysis: Are there parts of SAP’s portfolio that we use that could be replaced more cost-effectively? Are we paying for support on a product we could retire? This isn’t to immediately replace SAP, but to ensure you’re making conscious choices

There are advisory firms that conduct value-for-money assessments for SAP environments, highlighting areas for improvement (such as excessive customizations driving up costs or inefficient license deployment).

Staying educated:

Stay up to date with SAP’s changes – licensing policies evolve (for example, new user types or renamed packages), and SAP acquisitions may introduce new products or create bundling opportunities. Subscribe to SAP’s official communications on licensing or read analysis from experts whenever SAP announces something (like the recent rise of “RISE with SAP” or the maintenance fee changes).

Being aware of these updates ensures SAP’s account team can’t catch you off guard with “new rules” that you haven’t heard of. For instance, if SAP decides to adjust the Digital Access pricing or offer a limited-time conversion deal, you want to know early to take advantage or avoid pitfalls.

In conclusion, managing SAP as a strategic vendor is a continuous journey of measurement, optimization, and negotiation. Utilize all available tools – including data, software, expert advice, and peer insights – to stay ahead.

By treating SAP vendor management as a year-round discipline, not just a project when a contract is up, you will drive significantly better outcomes: controlled costs, a transparent and fair contract, minimized compliance risks, and a vendor relationship that supports your business goals on your terms. With SAP being so integral to operations, the effort invested in governance and strategy for this relationship pays back in both dollars saved and agility gained for your organization.

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