Organisational changes such as mergers, acquisitions, restructuring, or divestitures can significantly impact SAP license management. These shifts often alter system usage, user requirements, and compliance needs, potentially leading to unexpected costs, inefficiencies, or audit penalties if not handled correctly.
This guide provides actionable strategies to optimize SAP licensing during periods of transformation, ensuring compliance while minimizing unnecessary expenses.
How Organisational Changes Impact SAP Licensing
Changes in corporate structure directly influence SAP licensing in several ways:
- Mergers & Acquisitions (M&A): Combining organizations often results in redundant or misaligned licenses, requiring careful reassessment.
- Restructuring: Workforce adjustments impact license allocation, necessitating updates to match evolving roles.
- Divestitures: Splitting entities must determine license transferability and renegotiate contracts.
- Expansion or Downsizing: Adjusting license quantities and types ensures businesses align costs with actual usage.
A proactive approach to these impacts is essential to avoid non-compliance and over-licensing.
Key Challenges in Managing SAP Licenses During Organisational Changes
Lack of Visibility into Licensing Agreements
SAP agreements are complex and rigid, often lacking built-in provisions for major business changes. Without clarity, companies risk unexpected costs or non-compliance.
Overlapping & Redundant Licenses
M&A often results in duplicate licenses, leading to inefficiencies if not consolidated properly.
Compliance & Audit Risks
New integrations can alter indirect access scenarios, increasing audit exposure and SAP licensing penalties. Key metrics such as revenue, workforce size, and spending volume are significantly impacted during mergers, often leading to renegotiations with SAP.
Complex SAP Contract Negotiations
Divestitures and restructurings require contract renegotiation, which can be challenging without expert guidance.
Best Practices for SAP License Management During Organisational Changes
Conduct a Comprehensive SAP License Audit
Start with a full assessment of current license usage:
- Identify active licenses and their allocation.
- Pinpoint underutilized or redundant licenses.
- Map licenses to specific user roles.
- In M&A scenarios, joint audits ensure both entities optimize licensing strategies.
This process can be time-intensive, so leveraging automated tools can improve efficiency.
Align Licensing with Organizational Goals
Each business transformation requires a tailored licensing approach.
- Mergers: Consolidate licenses to eliminate duplication and negotiate better terms.
- Restructuring: Reassign licenses to match evolving user roles and remove unnecessary allocations.
- Divestitures: Ensure license transferability and secure new contracts for the separated entity.
Utilize SAP License Management Tools
Deploy license optimization tools like Flexera, ServiceNow, or samQ by Voquz to:
- Monitor real-time SAP license usage.
- Identify gaps or surplus licenses.
- Generate audit-ready reports.
Investing in these tools can significantly reduce compliance risks and unnecessary costs.
Negotiate Flexible Terms with SAP
SAP contracts are notoriously rigid, so companies should advocate for:
- Temporary license scaling during transitions.
- Flexible usage rights across multiple entities.
- Transferability clauses for divestitures.
Engaging SAP license negotiation experts can help maximize cost savings.
Seek Independent SAP Licensing Advisors
For complex transitions, consulting with independent SAP experts can:
- Provide unbiased licensing recommendations.
- Assist in contract renegotiations.
- Identify long-term cost-saving opportunities.
Real-World Example: How a Global Pharmaceutical Company Saved $3M
A multinational pharmaceutical firm acquiring a regional competitor faced SAP licensing challenges.
- Twenty-five percent of licenses were redundant.
- Indirect access fees needed reassessment.
By conducting a thorough audit and transitioning to SAP’s Digital Access Model, the company saved $3 million in licensing and maintenance costs, improved compliance for future audits, and optimized their SAP investment.
Conclusion: Strategic SAP License Management for Business Transformation
Organizational changes bring SAP licensing complexities, but proactive management ensures compliance with SAP licensing policies, cost efficiency through optimized licenses, and seamless contract negotiations for business stability.
By leveraging audits, optimization tools, and expert guidance, businesses can navigate transitions smoothly while maximizing SAP investments.
Next Steps: Want Expert SAP Licensing Advice?
If your company is navigating SAP licensing challenges during a business transformation, contact our team of independent SAP experts to:
- Optimize your license portfolio
- Reduce audit risks and hidden costs
- Negotiate the best possible terms with SAP
