SAP licensing is famously complex. With hundreds of SKUs, evolving product names, vague roadmaps, and dense legal documents, navigating SAP’s licensing structure can feel like a full-time job. Having worked across platforms including Salesforce and Oracle, I can say confidently—SAP is a different beast altogether.
What Every SAP Licensing Expert Understands
SAP licences are based on three key elements:
- The solution you want to use
- How you deploy it (on-prem, cloud, hybrid)
- The applicable licensing model
The three main SAP licensing models today are:
- Perpetual: One-time purchase with annual maintenance/support fees. Still widely used in large on-prem deployments.
- Subscription: Term-based, recurring billing, most common for SAP cloud solutions.
- Consumption-based: Pre-paid credits used against services like SAP BTP, with overage charges applied as needed.
Additionally, the Digital Access licensing model allows indirect connections from non-SAP systems to SAP ECC or S/4HANA, adding a further layer of complexity.
Why SAP Licensing Complexity Matters
As more customers are encouraged to move to S/4HANA, RISE, or GROW with SAP, many are unsure how their existing perpetual licences factor into the deal. These licences are assets on the balance sheet—potentially worth millions. Without clear migration guidance, CFOs are left questioning what they actually receive in return.
Recommendations for SAP Customers
- Conduct a full licence audit before any S/4HANA migration. Validate each user and licence with functional leads.
- Build your business case around licensing impacts over 10–15 years—not just the upfront implementation costs.
- Invest in SAP licensing training for your internal team to stay compliant with entitlements and usage rights.
- Check every contract clause—especially for middleware, indirect access, and static usage terms.
- Get expert support—whether in-house or on-call—to review licence implications before signing major deals.
What SAP Should Do Better
Simplify the experience: Customers should be able to see their entire SAP licence estate in one dashboard, with the ability to forecast costs and model scenarios.
Create clear pathways: SAP must offer transparent options for migrating from perpetual to cloud licences. Without this, uptake of S/4, RISE, and GROW will suffer.
The Role of an SAP Licensing Expert
Licensing shouldn’t derail transformation. A good SAP licensing expert brings strategic oversight to commercial decisions, helping organisations:
- Stay compliant and avoid surprise costs
- Optimise spend across hybrid SAP estates
- Plan smarter migrations aligned with business goals
Whether you’re in early project scoping or approaching go-live, having the right advice could save millions. At bluewaveSELECT, we’ve supported clients through SAP licensing decisions at every stage of transformation—bringing clarity, control, and confidence.
Get in touch if you’d like to speak with a trusted SAP licensing expert about your situation.
