SAP Licensing costs account for a large proportion of a company’s IT budget and SAP licensing models are not always straightforward which lead to many questions within organizations on how to best manage their users and engines.

After the planned budget for a license agreement, many companies could find that they are not as compliant as they had initially thought. The reason for this can be surprisingly obvious; a lack of planning and knowledge on specific contractual obligations. Many companies after calculating their yearly spend on licensing do not consider factors that can have a negative impact on their compliance and budget.

How Do We Do It?

By measuring your usage of the SAP system, and analyzing your vendor contract to establish your entitlement, we are in a position to advise you on compliancy issues detected including current and future risk and how to avoid these potential shortfalls.

We are able to offer advice on how to optimize your license agreement whilst promoting compliance.

Budgeting and controlling license costs can be a complex endeavour with many hazards and pitfalls. Common challenges within an organization include:

  • Staff changing roles within the organization
  • Contractors accessing the SAP landscape through 3rd party applications
  • Multiple staff performing the same job function sharing a single User ID
  • The use of generic accounts
  • Indirect system usage

License Management

Project Support

Technically speaking making the changes to user license assignments in the SAP system resulting from JNC’s project outcomes is relatively straightforward. Typically these changes can be executed by a system administrator with on-hand support and guidance provided by JNC. Similarly, JNC can also execute defined change orders and work packages where client-side resources are not available to do so.

Get Compliant and Stay Compliant

Due to our extensive knowledge and experience in licensing SAP landscapes, we offer our recommendations on staying compliant with your SAP contract whilst having the ability to control future license provisions. This will consist of implementing sustainable processes helping you make the necessary license management decisions moving forward.

Roadmap to SAP
Roadmap to SAP License Contract Compliancy

Unearth the actual usage of all SAP environments from both a named user and engine measurement perspective.

  • Identify Under Licensing (non-compliance detection)
  • Identify Over Licensing (surplus asset discovery)
  • Optimize SAP License Utilization
  • Contract Review
  • Contract Negotiation
  • Contractual Risk Evaluation

Contractual risk compliance involves looking at the broader spectrum of the licensing of the SAP environment. Whilst initially focusing primarily on Named-users and Engines, we seek other areas of potential non-compliance. Non-compliance can occur in a multitude of ways depending upon the individual landscape. Our aim is to bring awareness of potential risks and in particular unforeseen risks that can result in significant and unexpected costs.

Using our experience in auditing SAP landscapes we can highlight areas of concern to ultimately bring awareness allowing your business to take decisive action to avoid costly non-compliance tariffs.

Contract Review

Obtain an extract of the customer SAP contract(s) to fully comprehend contractual boundaries for licensing named users thereafter used to perform an as-is measurement. A contract review will also consist of benchmarking contractual restrictions to educate the client on how other industry leaders are licensing their environment and identify any contractual optimization opportunities.

Named User Measurement

The purpose of this measurement is to logically determine the required licenses for all named users within the organization based on the contractual entitlement. This exercise is purely a fact-finding exercise leading us to identify potential optimization opportunities

Engine Measurements

Key business metrics are used to measure the usage of SAP for example procurement – how many revenue-generating purchase orders have been created annually? Standard audit tools will only perform an inventory of all purchase orders. We will perform a forensic analysis to determine the actual usage of engines to ensure all figures are reported accurately


Dive deeper into your landscape to discover your actual licensing position versus your potential optimal licensing position. This step heavily involves analyzing statistical data, system administration data and user provisioning data to discover what licensing you need based on your actual usage of the SAP system. This step has high success rates not only from a cost savings perspective but also steers the client for future procurements, and license management processes.

Return on Investment


JNC expect to deliver a minimum of 500% ROI from every licensing project. That’s 50,000 of cost saved for every 10,000 spent. Whilst expected ROI starts at 5x your investment JNC have delivered results up to 100x the cost of project delivery.

View our range of licensing and compliance services and speak to us about our professional services and contingency fee models.

For more information about our SAP Licensing services and to learn how we can help your business:

What Our Clients Say

“JNC Consultancy was instrumental in negotiating with SAP on our company’s behalf. Without the assistance of JNC, we would have been required to pay substantially more in additional license fees to SAP as a result of a license audit. All of this cost would have been unbudgeted in the current fiscal year.
JNC have significant knowledge regarding the SAP licensing process. Their personal style and expert knowledge proved to be invaluable throughout the discussions. We were able to avoid approximately $3 mil USD in unplanned license costs for our company.”

Let’s talk about SAP®

Start with a free high-level consultation to help you clearly understand the costs and benefits of fully leveraging SAP® for your company.

Subscribe to our latest news

Privacy Policy

Click Me