Ever felt like managing SAP licenses is complex, costly, and constantly shifting, no matter how prepared you are? Or maybe you’ve already started planning your S/4HANA migration and discovered too late that your licensing model doesn’t quite fit your future environment?
You are not alone.
We’ve worked with companies undergoing this exact transition, and the truth is: even mature IT teams overlook key licensing pitfalls that can cost them millions in software overspend and compliance exposure. The good news? These mistakes are avoidable with the right approach and insights. That’s why many organisations turn to SAP licensing experts to help make informed decisions before migrating to S/4HANA.
Here are five critical SAP licensing mistakes you’ll want to avoid before taking your next step towards S/4HANA:
1. Assuming S/4HANA licensing is just an upgrade
Many enterprises treat the shift to S/4HANA as a technical upgrade, assuming licensing remains largely the same. It doesn’t. SAP’s digital access model, indirect use policies, and role-based licensing structures mean that a re-evaluation is essential. Failure to align license types with actual usage scenarios in S/4HANA can lead to a mismatch that significantly inflates costs or triggers non-compliance.
Many companies don’t realise just how negotiable SAP contracts can be, especially when you come to the table with solid usage data. By benchmarking your license consumption before migrating, you can strengthen your position and secure more favourable terms.
2. Using outdated user roles in your SAP licensing model
Many organisations still operate under outdated user classifications that no longer reflect how people engage with SAP systems. The shift to role-based licensing under S/4HANA makes this a risky oversight.
Before you migrate, it’s worth revisiting how your users are classified. We often find that many listed as “Professional” users could be more accurately (and cost-effectively) reclassified as “Employee” or “Developer” licenses. This simple exercise could discover substantial savings.
3. Overlooking the Indirect Access trap
Indirect access (when third-party systems connect with SAP systems) continues to be one of the most overlooked and expensive licensing blind spots. With S/4HANA, SAP’s digital access model changes how these interactions are licensed, shifting away from traditional named users.
The problem? Without a clear view of how your systems are integrated, you risk unexpected (and often significant) fees. That’s why mapping interfaces and analysing traffic patterns should be built into your migration prep from the start, not left as a post-launch surprise.
4. Treating ITAM as a back-office function
License compliance and optimisation shouldn’t be viewed as just another box for procurement or audit to tick, they’re powerful strategic levers. Aligning IT Asset Management (ITAM) closely with your SAP licensing approach can reduce software costs by 15-30% and significantly strengthen your negotiating position. Companies with mature ITAM practices actively manage cloud usage, avoid audit penalties, and quickly adapt licensing strategies to support long-term digital transformation.
5. Missing timing opportunities in SAP licensing negotiations
If your SAP contract is up for renewal in Q3 or Q4, right when many S/4HANA migrations are gaining momentum, you have a valuable opportunity to renegotiate terms that align with your future-state environment. Yet too often, businesses renew under legacy terms and only realise post-migration that they’re locked into a structure that no longer fits. The key is timing. Vendors are far more open to flexibility when you bring data, a clear roadmap, and a well-defined vision to the negotiation table. But that leverage fades fast once the ink is dry.
Make the migration work for you
Migrating to S/4HANA isn’t just a tech upgrade; it’s about aligning operations, finance and compliance to drive real value. But licensing mistakes remain one of the biggest barriers to a smooth, cost-effective transition.
That’s where bedigital comes in. With the 2027 ECC support deadline approaching, now is the time to move forward with confidence. As SAP sales teams prioritise cloud revenue, involving independent ITAM experts like bedigital equips your internal teams with the insight and support they need to make stronger, more strategic decisions.
We work alongside your team to simplify the licensing complexity and build a future-proof licensing strategy tailored to your business.
Download our free SAP Licensing Whitepaper or book a call with our team today, no pressure, just straightforward advice.
