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Soterion's SAP License Manager: Reaching the 100 Assessment Milestone

In a rapidly changing business landscape, organizations face increasing pressures to manage their costs more effectively, especially when it comes to software licensing. Soterion, an innovative player in the Governance, Risk, and Compliance (GRC) sphere, has marked a significant milestone by announcing that its SAP License Manager has successfully completed over 100 Full User Equivalent (FUE) assessments within just one year of its launch. This achievement signals a growing recognition among businesses of the importance of understanding their SAP licensing requirements as they transition to the SAP Cloud ERP Private.

The Transition to SAP Cloud ERP Private

The urgency for organizations to reevaluate their SAP licensing stems from SAP's shift in its measurement framework. Under the STAR measurement model used for the Cloud ERP, FUE consumption is determined based on SAP authorizations assigned to users, regardless of whether those privileges are utilized. This change has left many users faced with inflated licensing needs due to legacy SAP role designs that weren’t optimized for FUE calculations. As a result, it has become common for organizations to find themselves using up to four times more FUEs than necessary based on their actual activities.

Understanding Licensing Costs

User licenses typically represent a significant portion—30% to 60%—of an organization’s overall investment in SAP. Given that FUE consumption is monitored on a monthly basis during the subscription period, organizations must avoid falling into the trap of overestimation at the inception of their licensing agreement. Failing to manage role changes appropriately can lead to inflated costs and unforeseen true-up expenses down the line.

Soterion's SAP License Manager focuses on analyzing the actual usage of SAP authorizations rather than just the assigned access levels. It delivers crucial metrics, including the current FUE consumption based on existing role structures, the potential for reductions through remedial actions, and the optimal FUE requirements based on genuine user interactions with the SAP environment. This level of analysis not only illuminates the reality of an organization's FUE needs but also enhances negotiating power during discussions with SAP.

The Importance of Optimization

Soterion's assessments have revealed a startling trend: many companies overstate their FUE requirements significantly. By completing their centennial assessment milestone, Soterion underlines the pressing nature of effective FUE management for organizations not just migrating from SAP ECC but also those already utilising SAP Cloud ERP Private. Due to their intricate ties to financial management, SAP role designs must be treated not merely as security mechanisms but as pivotal components of cost control strategies.

Dudley Cartwright, CEO and co-founder of Soterion, emphasized the essential nature of this transition: "The STAR rulebook is relatively lenient. However, the core issue lies in the lack of time and tools available for organizations to optimize their SAP roles according to FUE standards." He went on to explain, "With the completion of 100 assessments in our inaugural year, we reiterate the critical need for organizations to have visibility into their FUE consumption, enabling them to align with their contracted entitlements and cultivate sustainable governance."

Offering Support to Organizations

To further assist corporations in understanding and managing their SAP licensing challenges, Soterion offers complimentary SAP FUE assessments. These evaluations are designed to give organizations insight into their current FUE consumption levels while identifying opportunities for optimization. The goal is to create a solid foundation for negotiations and ensure that businesses can effectively manage their SAP Cloud ERP Private subscriptions.

As businesses prepare for the end of maintenance deadlines for SAP ECC and the nuances of migrating to SAP Cloud ERP Private, it becomes increasingly clear that understanding and managing FUE consumption has transitioned from a technical necessity to a strategic imperative. Soterion remains committed to supporting its clients through these transitions, proving that with the right tools, businesses can optimize their software investments effectively.