SAP License Cost Trap: How Companies Can Save Millions
May 6, 2022
Many companies pay more for SAP licenses than they actually need to – often unnoticed. Reasons include over-licensed users, incorrect usage allocations, and unused modules. These hidden costs can accumulate to millions over the years.
Common mistakes in licensing:
1. Over-licensing: Companies purchase more licenses than they actually need.
2. Wrong license types: Many users have expensive full access rights, even though they only utilize basic functions.
3. Unused functions: Modules and applications are licensed but never used.
4. Missing compliance control: Companies risk back payments if SAP discovers irregularities during an audit.
How an analysis optimizes costs:
With a detailed analysis of actual system usage, West Trax can help companies deploy licenses more efficiently. This allows for the identification of unused licenses, reallocation of user roles, and reduction of unnecessary costs – without restrictions on operations.
Practical example: 30% savings potential through transparency
An international company with over 10,000 SAP users managed to save 30% of its license costs through an in-depth analysis by West Trax. This was made possible by optimizing user rights and switching to more flexible license models.