Is Your RISE Licensing Strategy Leaking 15-30% in Hidden Costs?

The transition to RISE with SAP is reshaping the ERP landscape, presenting both challenges and opportunities for forward-thinking organizations. As the shift from perpetual licenses to usage-based subscriptions accelerates, C-suite leaders face a critical choice: treat licensing as a mere administrative overhead or leverage it as a strategic differentiator.

The move to a subscription model has not only upended traditional ERP economics but has also unlocked new avenues for cost savings and efficiency. This year’s pioneers are already reaping the benefits by optimizing Full User Equivalents (FUEs) and Bill of Materials (BoM), with which they are driving down operational expenses, sidestepping hidden costs, and future-proofing access control.

The subscription model demands new thinking, and savvy leaders are embracing analytics-powered strategies to rethink license consumption. Analytics are now powering how they optimize license allocation, plan cloud ramp-ups, and ensure compliance while simplifying access for users. The result is a reduction in shelfware and a significant boost in value, with some organizations reporting savings of 15–30% over multi-year horizons.

What Strategic License Management Delivers:

  • 15-30% cost savings: Multi-year optimization of FUE and tier pricing
  • Shelfware elimination: Data-driven license consumption analysis
  • Future-proof access control: Right-sized BoM configuration
  • TCO reduction: Intelligent cloud ramp-up planning over 3 to 5-year horizons
  • Simplified compliance: Clear operating models for cloud ERP roles and responsibilities
  • Contract leverage: Negotiation expertise backed by data points

Infosys plays a crucial role in this transformation, offering contract negotiation expertise and data-driven insights to safeguard your bottom line. Our guidance helps organizations navigate the nuances of license conversion, optimize FUE and tier pricing, and develop ramp-up plans that deliver sustainable total cost of ownership (TCO) reductions.

The message is clear: don’t wait until you’re forced to adapt. Lead with strategic license management and stay ahead of disruption. By treating licensing as a lever for innovation and efficiency, organizations can confidently embrace the future of cloud ERP, ensuring compliance, cost control, and competitive advantage in the subscription-first world.

Author Details

Sanket Warudkar

Sanket Warudkar is Sr. Director of SAP Digital Practice at Infosys, bringing over 25 years of expertise across the SAP ecosystem. He has a rich background spanning roles as software engineer, architect, and program manager, with a track record of delivering large-scale business transformation programs. Sanket currently heads the SAP on Cloud Service offering for North America, guiding customers in planning and executing their S/4HANA Private Cloud adoption journey. Renowned for his strategic vision and hands-on leadership, he helps enterprises unlock value through successful cloud migrations and digital transformation.

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