Understanding SAP’s FUE Pricing Model: RISE with SAP S/4HANA Cloud Licensing
Understanding SAP’s FUE Pricing Model:RISE with SAP S/4HANA Cloud Licensing Understanding SAP’s FUE Pricing Model: RISE with SAP S/4HANA Cloud Licensing If you’re navigating SAP S/4HANA Cloud adoption, understanding the RISE with SAP licensing model is critical. SAP’s Full Usage Equivalent (FUE) model offers flexibility by allowing customers to allocate licenses across different user types — from self-service to advanced use — helping reduce shelfware and optimize cost. Key Highlights: One contract, one offer — covering infrastructure, deployment,and business process intelligence Flexible deployment: Public or Private Cloud Embedded tools: Readiness Check, Custom Code Analyzer, LearningHub Cloud Extension Policy: Seamless transition from on-prem tocloud Business Network Starter Pack: Ariba, Asset Intelligence,Logistics Network access Full Usage Equivalent (FUE) is SAP’s unit-based licensing model that replaces the old Named User structure. Instead of purchasing licenses for each individual user type, organizations now convert various user roles into FUEs using predefined ratios. This model applies to both SAP S/4HANA Cloud Public Edition and Private Edition under the RISE with SAP offering. The 4 Dimensions of S/4HANA Cloud Licensing (subscription): FUE Conversion Ratios User Type FUE Conversion Ratio Description Advanced Use 1 FUE = 1 Advanced User Full access to all solution capabilities Core Use 1 FUE = 5 Core Users Limited access to specific modules Self-Service Use 1 FUE = 30 Self-Service Users Very limited access (e.g., time entry, approvals) Developer Access 2 FUE = 1 Developer Access Access to development tools and environments These ratios allow organizations to mix and match user types while maintaining a predictable cost structure. Strategic Considerations User Classification: Accurately categorize users based on actual usage to avoid over-licensing Scenario Planning: Model different user mixes to optimize cost and performance Contract Review: Understand entitlements in your Cloud Service Description Guide Audit Readiness: Maintain documentation and usage logs for compliance Extension Policy: Leverage SAP’s Cloud Extension Policy to transition from on-prem licenses For example: Let’s say your organization has: 40 Advanced Users → 40 FUE 100 Core Users → 20 FUE 600 Self-Service Users → 20 FUE 2 Developers → 4 FUE Total FUEs required: 84 This model helps you right-size your investment and avoid paying for unused capacity. Key Takeaways FUE is not just a pricing model — it’s a strategic framework for managing cloud ERP access It empowers organizations to scale intelligently, stay compliant, and optimize cost Understanding FUE is essential for CIOs, SAP Architects, and Procurement Leaders planning their RISE with SAP journey Strategic Benefits of FUE Flexibility: Reallocate users across use types during the subscription lifecycle Transparency: Clear cost structure aligned with actual usage Scalability: Supports growth without overbuying licenses Simplicity: One license material, one metric, one contract Cloud Readiness: Aligns with SAP’s modular cloud architecture What’s Included in RISE with SAP? RISE with SAP is a bundled offering that includes: SAP S/4HANA Cloud (Public or Private Edition) SAP Business Technology Platform (BTP) with CPEA credits SAP Business Network Starter Pack (Ariba, Asset Intelligence, Logistics) Embedded Tools: Readiness Check, Custom Code Analyzer, Learning Hub SAP Cloud Extension Policy: Seamless transition from on-prem licenses Minimum Purchase Requirements Offering Minimum FUEs RISE with SAP S/4HANA Cloud 35 FUEs RISE with SAP + Experience Mgmt 500 FUEs RISE with SAP S/4HANA Private Edition 40 FUEs Cloud Extension Policy SAP’s Cloud Extension Policy allows customers to convert on-prem licenses into cloud subscriptions, protecting existing investments while enabling innovation. Key benefits include: Seamless support across hybrid landscapes Lower TCO with SAP Rapid Deployment and MaxAttention Flexible 3–5 year subscription terms Protection of prior investments with reduced transition barriers Mapping Classic Users to FUE Role Classic License Type FUE Use Type Chief Accountant SAP Professional User Advanced Use (1 FUE) Production Worker SAP Worker User Self-Service Use (1/30 FUE) R&D Project Manager SAP Project User Core Use (1/5 FUE) Developer SAP Developer User Developer Access (2 FUE) If you’re planning your RISE with SAP journey or evaluating your licensing strategy, let’s connect. We would be happy to share insights from recent implementations and help you build a future-ready roadmap. Have questions about optimizing your SAP licensing strategy or planning your FUE allocation? Let’s connect — we would be happy to share insights from recent implementations and help you build a future-ready roadmap. #SAPFUE #RISEwithSAP #S4HANACloud #SAPLicensing #SAPSecurity #DigitalTransformation #SAPBTP #ERPStrategy #SAPCommunity #TechLeadership #SAPLicensing #SAPFUE Streamlining SAP User Access Review (UAR) : Common pain points & Smarter Solutions
