USU is recognized as one of the three most utilized third-party providers for Software Asset Management (SAM) tools in the Gartner® Avoid These Licensing and Pricing Pitfalls When Negotiating SAP Deals research.
Peter Stanjeck, Senior Vice President & Managing Director R&D at USU, states: "In discussions with customers at this year’s DSAG conference in Germany, it became clear that many user companies have significant consulting needs related to RISE and licensing issues. Companies, particularly those migrating to S/4HANA or RISE with SAP, are seeking support to better assess and address technical challenges and potential cost risks. They are looking for guidance and concrete solutions that not only facilitate the technical migration but also ensure license transparency and long-term flexibility.
Many of our industry contacts reported that the vendor is increasingly focusing on cloud solutions and offering attractive options for long-term cloud contracts. However, companies also experience that these agreements often involve complex licensing models and long-term commitments, with a lack of clear price breakdowns. This leads to uncertainty regarding long-term cost transparency. While the RISE with SAP initiative is seen as a comprehensive approach to cloud transformation, it often comes with challenging contractual terms that are difficult for companies to navigate.
Another frequently mentioned topic is the indirect use through interfaces or third-party systems, which can become an additional cost driver. Changes in licensing metrics and product SKUs (Stock Keeping Units) are also leading to unexpected budget burdens. Due to the complexity of the FUE (Full Use Equivalent) model, which evaluates license requirements across different user roles, many user companies fear a significantly increased risk of over-licensing.
Moreover, many of our customers have pointed out regular increases in maintenance and cloud fees, often adjusted according to local price indices. This could present an additional challenge in strategic budget planning. Another critical point raised by many companies is the tiered pricing model: Customers often feel pressured to purchase additional licenses to reach certain discount levels, which frequently results in unused licenses ("shelfware") and ties up valuable resources."
For more information about USU Solutions, visit here.
Gartner disclaimer
Gartner, Avoid These Licensing and Pricing Pitfalls When Negotiating SAP Deals, Victoria Rowan, Mike Tucciarone, Jan Cook, 22 October 2024.
Gartner is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Peter Stanjeck, Senior Vice President & Managing Director R&D at USU, states: "In discussions with customers at this year’s DSAG conference in Germany, it became clear that many user companies have significant consulting needs related to RISE and licensing issues. Companies, particularly those migrating to S/4HANA or RISE with SAP, are seeking support to better assess and address technical challenges and potential cost risks. They are looking for guidance and concrete solutions that not only facilitate the technical migration but also ensure license transparency and long-term flexibility.
Many of our industry contacts reported that the vendor is increasingly focusing on cloud solutions and offering attractive options for long-term cloud contracts. However, companies also experience that these agreements often involve complex licensing models and long-term commitments, with a lack of clear price breakdowns. This leads to uncertainty regarding long-term cost transparency. While the RISE with SAP initiative is seen as a comprehensive approach to cloud transformation, it often comes with challenging contractual terms that are difficult for companies to navigate.
Another frequently mentioned topic is the indirect use through interfaces or third-party systems, which can become an additional cost driver. Changes in licensing metrics and product SKUs (Stock Keeping Units) are also leading to unexpected budget burdens. Due to the complexity of the FUE (Full Use Equivalent) model, which evaluates license requirements across different user roles, many user companies fear a significantly increased risk of over-licensing.
Moreover, many of our customers have pointed out regular increases in maintenance and cloud fees, often adjusted according to local price indices. This could present an additional challenge in strategic budget planning. Another critical point raised by many companies is the tiered pricing model: Customers often feel pressured to purchase additional licenses to reach certain discount levels, which frequently results in unused licenses ("shelfware") and ties up valuable resources."
For more information about USU Solutions, visit here.
Gartner disclaimer
Gartner, Avoid These Licensing and Pricing Pitfalls When Negotiating SAP Deals, Victoria Rowan, Mike Tucciarone, Jan Cook, 22 October 2024.
Gartner is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
