How to optimise licensing under RISE with SAP

SAP’s licensing model has always required careful navigation, and the introduction of RISE with SAP adds new dimensions for organisations to consider. As SAP supports their customers in moving towards subscription-based models and cloud-first strategies, many businesses are finding it challenging to gain full clarity around what’s included in their contracts – and how to ensure these investments best align with their operational needs.

In this article, we explore how these evolving licensing models are shaping SAP customer environments, and share practical strategies to help you optimise your SAP licence landscape in the RISE era.

Understanding the shift: from traditional licensing to RISE

Traditionally, SAP customers have operated under perpetual licensing models: purchasing licenses upfront with ongoing maintenance costs. RISE with SAP represents a significant shift: a modern, subscription-based approach that consolidates infrastructure, platform and software into a single offering designed to support digital transformation.

This bundled model delivers strategic benefits, but it also requires a different kind of analysis and oversight. Key considerations include:

• Bundled pricing dynamics: It can be more challenging to isolate and evaluate the cost of individual components within the broader RISE contract.
• New licensing metrics: The introduction of the Full Use Equivalent (FUE) model means organisations need to reassess how user licenses are calculated and managed, as it may lead to higher overall license counts – and potentially higher costs – if roles and access are not optimised.
• Evolving digital access considerations: As access scenarios become more diverse, understanding how digital and indirect access are licensed remains an important area of focus.

For organisations planning a move to S/4HANA or considering RISE, these elements require proactive attention to ensure commercial alignment and long-term value.

Why is licence optimisation more critical than ever?

With the shift toward cloud subscriptions, traditional flexibility – such as adjusting license quantities annually – can become more constrained. Without careful planning, organisations risk either overcommitting (and overspending) or under-licensing, which can expose them to compliance risks.

Also, while RISE simplifies many aspects of the SAP environment, it can also mask the underlying detail of usage and entitlement. Without visibility into actual utilisation, some businesses may unknowingly pay for unused modules or underutilised services.

That’s why a data-driven licensing strategy is essential. The decisions made today – particularly in the context of multi-year agreements – can have lasting implications for cost control, agility and compliance.

Three practical strategies for licence optimisation in the RISE with SAP era

1. Conduct a comprehensive licence audit – before signing your RISE agreement

Before you sign your RISE with SAP agreement, you still have the opportunity to optimise your costs – and early planning is key. A detailed audit of your current environment with a Governance, Risk and Compliance (GRC) solution like the one from EPI-USE Labs’ partner Soterion can help you to:

• understand which licenses are actively being used – and by whom
• identify dormant or underutilised licenses that can be retired or reassigned
• evaluate the alignment between current business processes and licensed SAP modules
• gain insights into how your current role design impacts FUE consumption – and what steps you can take to minimise unnecessary license allocations.

This provides a powerful baseline for future planning, and helps you make informed decisions before committing to your RISE with SAP contract. Soterion also enables you to simulate how changes to your current role design would impact SAP’s FUE calculations, helping you reduce SAP’s initial estimate and negotiate a more accurate, cost-effective starting point.

2. Model future scenarios before migrating to RISE

Migrating to RISE without fully understanding future business needs can lead to long-term financial inefficiencies. Use scenario planning to model different growth and usage trajectories:

• How will changes in workforce size or structure affect licensing needs?
• Are there upcoming projects that will introduce new SAP modules or users?
• Would a hybrid approach to cloud and on-prem solutions provide better value?

By modelling these scenarios, you can negotiate more effectively and avoid paying for capacity you won’t need.

3. Leverage GRC tools

GRC solutions like those offered by Soterion provide the visibility and control needed to manage your licensing position effectively. One standout feature is Soterion’s ‘Stay Clean’, which delivers a dual benefit:

• It performs an access risk analysis before SAP changes are implemented, helping you stay compliant and reduce security risks.
• It also evaluates how those changes will impact Full Use Equivalent (FUE) consumption, enabling more informed licensing decisions.

By gaining real-time insights into license utilisation, identifying compliance gaps early, and managing user access more efficiently, you can significantly reduce unnecessary licence consumption and avoid surprise costs.

Soterion can also be used in business-as-usual operations to simulate the impact of future role changes or user assignments on FUE – giving you proactive control over licensing as your environment evolves.

Closing thoughts: human insights still matter

While data and technology play a critical role in optimising SAP licensing, human insight remains just as important. Licensing decisions shouldn’t be made in isolation; they require close collaboration between IT, finance, procurement and compliance teams to balance cost, risk, and operational needs.

Organisations that proactively manage their licensing strategies will not only reduce costs but also position themselves for greater agility and resilience in an increasingly digital business landscape.