Best Practices for Selecting an SAP Licensing Package
For companies looking to invest in SAP, understanding your SAP licensing package options doesn’t have to be overly complicated or stressful. The licensing model from SAP is “modular,” meaning you pay for the solutions you need and how you want these solutions to be deployed, providing you flexibility in selecting the model that’s best for your business.
KEY TAKEAWAYS
Licensing decisions should align to 3–5 year business goals (growth, M&A, automation).SAP licensing combines package licenses (usage-based metrics) and named user licenses (role-based access).Align licenses to end-to-end process flows to avoid over-licensing and uncover new opportunities.Licensing and deployment go hand-in-hand. Cloud vs. on-prem (and public vs. private cloud) decisions directly impact licensing structure, cost, integration needs, and security considerations.Plan for growth and integration risk.
When it comes to choosing an SAP licensing package, there’s no “one-size-fits-all” solution for every business. Furthermore, because licensing decisions are now deeply intertwined with business outcomes, many organizations are rethinking how they approach them. As such, it’s critical to first understand and identify what your business requirements will be – the “must haves.” Below are some best practices to keep in mind as you get started.