SAP Licensing Optimization resulted in a yearly cost reduction of 20%

In today’s dynamic business landscape, organizations face increasing challenges in managing their SAP licensing structures efficiently. For a global client that had recently migrated to SAP S/4 HANA, we were approached to help address critical licensing issues. The client identified that the licensing structure had shifted from activity-based (‘did do’) to capability-based (‘can do’), adding complexity and cost risks to their environment. Additionally, they were at risk of over-licensing, which could result in unnecessary expenses and compliance issues. 

BR1GHT, in collaboration with our partner ToggleNow, delivered a tailored SAP Licensing Optimization program. The primary objective was to minimize licensing costs, improve compliance with SAP guidelines, and enable the client to forecast future license needs effectively. 

Phase 1: Analysis and Baseline Assessment
BR1GHT, in partnership with ToggleNow, began the project by conducting a comprehensive evaluation of the client’s SAP landscape. The assessment focused on the following:

• Analyzing existing SAP license usage against purchased licenses.
• Identifying inefficiencies in user roles and assignments.
• Evaluating risks associated with the new capability-based licensing model.

The baseline assessment provided the client with a clear understanding of their licensing gaps, risks, and opportunities for cost optimization.

Phase 2: License Optimization and Cost Reduction
Leveraging Optimus for SAP Applications by ToggleNow, BR1GHT delivered customized solutions to optimize the client’s SAP licenses. Our activities included:

• Realigning licenses to eliminate unused and underutilized licenses.
• Tailoring optimization rulesets based on SAP contracts and specific client needs.
• Automating internal processes to streamline license management and reduce manual workload.

Through this phase, there was identified up to 20% cost savings by optimizing the client’s SAP licensing usage.

Phase 3: Long-term License Governance and Compliance
To ensure sustainable results, BR1GHT established a robust license governance framework in collaboration with ToggleNow. Key activities included:

• Implementing continuous monitoring and periodic evaluations of SAP license usage.
• Training client teams to manage licensing effectively and forecast future needs.
• Automating compliance reporting to align with SAP guidelines and eliminate risks of unexpected true-up bills.