How we can help

Our SAP license compliance & optimization service empowers you to gain control over your SAP environment, enhancing efficiency and mitigating risks in the process.

Given that your SAP licenses likely constitute a significant portion of your IT budget, and SAP’s licensing models are renowned for their complexity, JNC consultants will familiarize themselves with your organization, your SAP usage, and the scope of your existing licenses. Our commercially-minded advisors will meticulously identify areas of both over and under-utilization of your licenses, providing insights on cost-saving opportunities and ensuring compliance where necessary.

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When do you need SAP license optimization?

License optimization is vital for organizations utilizing SAP. Many clients seek our assistance when expecting an imminent audit, uncertain about their compliance status, or recognizing non-compliance due to inefficient license usage. Understanding the complexity of SAP landscapes can be daunting. Partnering with JNC offers clarity and support.

Some organizations do not fully understand their SAP landscape, and that is understandable! There is a lot to take in, which is why partnering with JNC is one of the best decisions you can make. We will:

  • Provide clear insight into your current license position, both cloud and on-premise.
  • Implement necessary rectifying measures, such as removing redundant installations.
  • Minimize non-compliance risks, averting significant settlements.
  • Achieve tangible cost savings by eliminating unnecessary licenses.
  • Assist in creating and executing strategies to optimize your licensing landscape.
  • Aid in benchmarking and predicting S/4HANA migration costs, maximizing contract negotiation value.
What we do

SAP Contractual Review

We will conduct a comprehensive assessment to compile an accurate list of your current licenses, ideal for organizations uncertain about their license inventory.

We will also evaluate the Total Cost of Ownership (TCO) of your licensing landscape, ensuring transparency regarding your current and projected SAP expenditures.

Additionally, we’ll examine your contractual obligations and Terms and Conditions (T&Cs), clarifying the permissible use of your licenses. By identifying opportunities and risks within your T&Cs, we’ll enhance your understanding of your contracts and ensure ongoing compliance.

Our deliverable will be a concise, user-friendly document outlining your existing T&Cs and entitlements.

License Advisory

Our ad-hoc advisory service caters to specific scenarios, perfect for clients with complex requirements beyond typical SAP usage or those needing swift, expert support for their distinct needs.

If you require guidance on a particular aspect of your SAP licensing without a comprehensive review, our consultants can still support.

We offer clarity and guidance through intricate situations, having handled diverse scenarios such as rectifying ambiguous contract language, advising on new product purchases, defending audits for specific products, addressing licensing term changes, and more.

Effective License Position (ELP)

If you are concerned about non-compliance or lack comprehensive knowledge of your SAP licenses, you may find yourself paying unexpected and unbudgeted costs.

We consolidate your licenses and current usage into a user-friendly document, enabling you to comprehend financial risks and identify opportunities to save money.

This marks the initial step in managing and understanding your SAP licensing status. We will help you mitigate any risk and reduce unbudgeted expenditure; our consultants have spent decades working with businesses, creating and implementing strategies that deliver tangible cost savings and wider value.

Many organizations find that they are not as compliant as they first thought.

Book an initial consultation with one of our SAP consultants and gain insights into your SAP environment.

Our process

How we ensure your SAP license compliance

The JNC team have developed a unique, proven process over decades of SAP license optimization. Here is how we are able to deliver tangible value to international organizations.

Optimize your SAP Licensing
The Process
2. Review contract and entitlement

We painstakingly review your support maintenance contract(s) and SAP master agreement, including annual invoices and order forms. From this, we generate a bill of material (BoM) outlining your entitlements, current software usage, Terms & Conditions (T&Cs), and associated metrics. The BoM also breaks down your total cost of ownership.

3. Create Effective Licensing Position

The process of establishing an Effective License Position (ELP) is paramount. We compare your licensing entitlement with your actual software usage to pinpoint any compliance issues. Additionally, we identify surplus software assets and recommend cost-saving measures.

4. Execute mitigation strategies

At this stage we implement your mitigation strategies if risk and surplus have been identified.

By understanding your growth targets and long-term organizational plans, we will devise a future-proof SAP product plan. This plan will outline strategies to minimize unnecessary usage and eliminate surplus licenses from your estate, ensuring compliance both now and in the future.

5. Develop negotiation strategy

Negotiating with SAP can be intimidating. Our consultants assist in crafting a negotiation strategy tailored to achieve optimal outcomes for your organization. With an understanding of SAP’s objectives and sales tactics, we consistently secure the best deal aligned with your business goals.

1. Measure actual usage

We deploy SAP standard tools to replicate SAP auditors’ findings. For any aspects not covered by these tools, we assist in implementing steps to verify usage accurately. This results in a comprehensive report that feeds into your Effective License Position (ELP).

Strategic Audit Defense and License Optimization for Prominent Fashion Company

Latest Insights

Case Study

IndigoFusion sought JNC’s expertise to navigate the complexities of their SAP audit and reduce the financial burden of the compliance fees. They had already committed to an S/4HANA Cloud contract and were in the midst of migration when SAP audited their on-premise systems. The audit findings included $26 million in scope, leading the client to seek JNC’s help to contest and mitigate these claims.

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Our team are on hand to deliver tangible value. Get in touch today.

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