As organizations accelerate their transition to RISE and S/4HANA, SAP's new FUE (Full Use Equivalent) licensing model has become a critical focus for procurement teams. This fundamental change in license measurement demands an unprecedented level of precision in understanding an organization's infrastructure and role design, as licensing requirements and tiers will now be determined by users' granted roles and authorizations within SAP – not just their actual system usage.
The traditional approach to SAP license reviews – often a surface-level analysis of user classifications and basic usage patterns – falls far short of what we recommend for security and cost-avoidance. FUE license reviews frequently uncover critical areas requiring attention – from role structures that do not align with FUE requirements to the cascading effects that licensing changes could have on established business processes, operations, and costs.
Navigating remediation requirements also demands more than just technical expertise. Success requires a deep understanding of three interconnected elements: technical architecture, business processes, and security frameworks. The key lies in aligning and optimizing these components while maintaining an effective balance between enabling and securing business processes.
The good news is that with the right approach and expertise, these challenges are entirely manageable, and the returns can be transformative. At Turnkey, our clients have typically reduced their FUEs and license costs by an average of 50% through our comprehensive review process. In this blog, we will guide you through the unique challenges posed by FUE license reviews, reveal the limitations of traditional approaches, and provide actionable strategies to help you navigate the process successfully.
Why the traditional license review process falls short
In the past, an SAP license review could have been as straightforward as identifying and culling inactive users to slim down the user base. However, this is not extensive enough under the FUE model, where different license levels are applied according to the kinds of authorizations users have within the system. This means that a review should identify what users need to do, and whether they have any unnecessary access that can be removed (especially expensive authorizations in the Advanced tier such as posting a financial document, or a role that grants such access in error).
Additionally, there are several other factors that must be accounted for within FUE license reviews that can make the process particularly challenging:
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Complex role structures: Most existing role designs were not created with FUE's granular licensing requirements in mind. Rather than unused authorizations being neatly segregated into separate roles that can be easily eliminated, organizations typically find their roles contain a mix of both used and unused authorizations. This makes optimization far more complex than simply removing certain roles from users. Instead, it requires careful analysis and restructuring of the roles themselves to separate actively used authorizations from those that are not essential, while maintaining operational integrity.
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Process challenges: Roles and authorizations are deeply intertwined with business processes, team structures, and staffing requirements. During reviews, organizations often discover that their current roles have been artificially expanded or cobbled together to accommodate awkward process workflows, rather than processes and roles being designed to work in harmony. Success therefore requires an integrated approach. The goal is to create a streamlined operational framework where roles can be refined and trimmed without disrupting – and instead enhancing – team productivity and process efficiency.
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Lack of in-depth knowledge: All the complexity above means that many organizations do not have the in-house expertise to understand why their license costs are suddenly going up and how to optimize them. Furthermore, they do not always have the joint technical and business understanding to fully appreciate the links between roles and processes and restructure them accordingly.
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Lack of buy-in: High-level stakeholders may struggle to understand why roles that have worked perfectly well for years now have to change to fit in with licensing demands. They will not know that SAP has changed its pricing model or that over-authorization will lead to large amounts of unnecessary expenditure. Many also will not realize that role remediation can have far-reaching benefits beyond license cost avoidance.
Four key elements of a FUE license review
When approached strategically, an FUE-focused license review can be incredibly valuable and financially beneficial. Organizations that tackle this process thoroughly emerge with a streamlined, optimized environment ready for S/4HANA on RISE. Better still, the significant cost savings achieved through effective license optimization can help fund your broader digital transformation journey. The key is approaching it methodically, with the right expertise and resources in place.
From our experience, success in FUE license reviews consistently depends on four key areas:
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Integrated approach: Organizations must remember that the review is about more than technology and consider processes and how they are secured. Additionally, there should be a balance between security, cost optimization, and maintaining functionality; if this is achieved, the disruption to users will be minimal.
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Impact assessment: Team structures and staffing arrangements may need to be optimized because of the review, and so users should be prepared for any changes that will affect them. For example, tasks from a high FUE license rating might be moved from one team to another to reduce the number of higher-license type users on the system. These changes should be made carefully, and every user should be kept informed and equipped with all the functionality they need for their day-to-day work.
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Implementation resources: An effective review process needs the right people in place to execute and interpret the license review report, do all the testing necessary, and execute role content or role provisioning changes while ensuring that user productivity will not be compromised.
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Stakeholder engagement: As stakeholder buy-in for any change can be difficult to gain, we recommend starting by engaging CFOs and financial controllers. This is because the major cost savings of license reviews are the easiest and clearest benefit to articulate. From there, other benefits like process efficiency and security improvements can be highlighted to bring more stakeholders on board.
In summary: Migrating with confidence
A license review – and the ability to make informed changes based on the results –can be hugely beneficial for any organization migrating to FUE licenses. Not only can it streamline the transition towards S/4HANA and RISE, but it can ease that transition while simultaneously generating substantial cost savings.
At Turnkey, our license review and remediation processes are designed to establish a best-fit scenario specific to your organization’s requirements and appetite for change. We can show you the hard facts of your licensing position, what they mean for your organization, and where you can make the most effective changes based on our experience in fine-tuning roles and authorizations.
Partnering with Turnkey gives you the confidence that your cost savings and operational improvements will be maximized, and that any day-to-day disruption will be minimized. You will get a holistic view based on our technical, process, and industry benchmark knowledge. We bridge the gap between process and technical, baking in security best practices along the way.
Contact the Turnkey team today and find out more about maximizing the opportunity of your upcoming FUE license review.
