SAP’s FUE Pricing Model: What It Means for Your Business

Introduction

In the congested software market of today SAP is still in the forefront with pioneering products. SAP RISE FUE (Full User Equivalent) and re-imagining the way that SAP businesses are pricing their licenses. One such innovation is SAP RISE FUE (Full User Equivalent), a licensing proposal that is transforming how companies think about license pricing. Delivering a more personalised and flexible pricing model, SAP RISE FUE gives Organisations a software payment model that squarely fits business needs today rather than the preset and unchangeable approach of traditional licensing.

This blog will cover how SAP RISE FUE (Flexible Usage Extension) is revolutionising License pricing forever by bringing to market a more flexible and user-centric model, making licensing more cost-efficient, transparent and scalable for large SMEs through to Enterprise.

Understanding SAP RISE FUE

With the new SAP RISE FUE (Full User Equivalent) pricing model, businesses now face a more complex way of calculating their SAP licensing cost which marks a significant departure from traditional considerations. Instead of traditional models in which licenses are tied to hardware or the number of users, SAP RISE FUE is catered around real usage – so businesses can pay for what they use.

A Shift to User-Centric Pricing:

SAP RISE FUE is away from the classical static licensing tied to a device or fixed capacity. It permits companies to buy licences depending on how intensively employees work with the SAP system. It now enables businesses to match their SAP costs to what they use and the value they get out of it.

Improved Cost Transparency and Predictability:

Predictability is one of the most pressing issues with traditional SAP licensing, particularly as organizations grow and scale. SAP RISE FUE makes this simpler by giving you more visibility on how costs are allocated, so that it’s easier to predict and control licensing costs.

Advantages of SAP RISE FUE

The SAP RISE FUE model is replete with advantages which serve business in search of more flexible and better license means. Let’s explore the top advantages:

• Flexible User Types:
  With SAP RISE FUE businesses can customise user types by roles and authorizations. This allows companies to adjust the cost to actual usage, instead of paying the same rate for every user regardless of how often they use the product at a particular access level.
• Cost-Effective License Pricing:
  With SAP RISE FUE, customers can also benefit from being charged only for resources that they actively use. This pricing freedom reduces over-provisioning and lets companies focus their budgets more efficiently on value-driving activities like expanding, innovating and scaling.
• Scalable Solutions:
  Your licensing needs will change as your business model changes and grows. SAP RISE FUE scales with the business by pricing to usage. This will allow you to add or move users, knowing that your licensing costs are not tied to the size of your business, but instead remain consistent with your company’s requirements.

SAP RISE FUE Pricing Model: How It Works Separated into Parts

The SAP RISE FUE pricing model can be confusing at first, and so to demystify the model it’s essential to drill into the fundamentals.

Feature	Description
FUE Calculator	Analyzes and computes the potential savings of cost and best distribution of licenses.
User-Type Weighting	Adapts expenses to users roles and access features in the company.
Licensing Cost Transparency	Offers a transparent view of the complete cost structure, facilitating the predictability and control over licensing costs.

• 
  FUE Calculator:
  The FUE calculator is the SAP RISE FUE model’s primary mechanism for organisations to forecast potential savings, taking into account their usage patterns and license dispersals. It allows enterprises to see where cost savings can be achieved and how many licenses should go to every type of user.
• User-Type Weighting:
  This specific function of RISE is powered by SAP Foundation for Unified Experience (FUE) – which lets organizations attribute proportions and weights to user types or roles access. It could be argued that if a user needs to access multiple modules or becomes more engaged with the system their license requires an increase in cost rather than limited availability, although this is open for debate.
• Licensing Cost Transparency:
  As a result, with SAP RISE FUE, companies develop clearer visibility into total cost of ownership. The model provides a departure from traditional SAP licensing, which has left the door open for companies to pay for licenses they don’t place in active use or underestimate how many they’ll need.

COMPARE SAP RISE FUE vs Traditional Licensing Models

To understand the benefits of SAP RISE FUE, let’s compare with the traditional licensing model side by side:

Feature	SAP RISE FUE	Traditional Licensing
Flexibility	High	Limited
Cost Management	Predictable	Often unpredictable
Scalability	High	Limited
Complexity	Simple and unified	Complex, varies by product
User-Centric Approach	Yes	No

• 
  Flexibility & Scalability:
  Standard SAP licensing models are generally inflexible and force companies to have more capacity than they require. Comparison: SAP RISE FUE Flexibility If you want choice and the ability to scale licensing as your business grows without traditional complexity, then look no further than SAP RISE FUE.
• Cost Predictability:
  SAP RISE FUE has its own dedicated guidance services that can drive a more predictable cost model versus traditional license models, which sometimes requires customers to base cost on fixed licenses or hardware.
• User-Centric Approach:
  The FUE model is intended to be more flexible by reflecting the real usage behaviors of the users in an organization. Historically, licensing has pivoted on a flat-rate or device-centric schedule that doesn’t always reflect differences in users throughout the company.

Impact on Businesses

The new business model of SAP RISE FUE has the ability to change how companies budget for their SAP resources and spend on them:

• Optimized Resource Allocation:
  Transition to a user-oriented pricing approach and better manage resources, plan budget for SAP operations. SAP RISE FUE simplifies paying for what you use so organizations don’t spend on unused licenses and resource are optimized.
• Cost Savings:
  The FUE model could result in significant cost savings by no longer having to over-provision licenses or services that are otherwise idle. By running only the services that bring value to their business, companies make better use of their IT budgets.
• Better Planning and Budgeting:
  Transparent costs enable businesses to perform better cost control of their SAP investments. SAP RISE FUE’s predictable and scalable aspects allow institutions to better project their licensing requirements, ensuring they pay only for what is used.

Conclusion

SAP RISE FUE isn’t just a way of buying SAP licenses, it represents an intelligent and innovative solution to how your organization can manage and distribute its SAP resources.

“With SAP RISE FUE, we have developed a flexible and low-cost approach for companies to easily scale according to their business needs whilst retaining full control over their licensing budgets.”

Here at Cremencing Solutions, we are experts in SAP Custom Development. Our mantra is helping you get the most of your investment in SAP RISE FUE with customized solutions. With our knowledge of SAP systems and licensing, your organisation can take advantage of this effective pricing model to empower productivity, innovation and growth.

So you’re looking to maximize your SAP licensing and leverage the SAP RISE FUE pricing model? Our experts at TJC will help with the smooth deployment of SAP RISE FUE, enabling your business to realise the value in your SAP investment. Get in touch with us today!

FAQs

• What is SAP RISE FUE?
  A: SAP RISE FUE (Full-User Equivalent) is a new flexible monetary license model that allows organisations to subscribe and pay for SAP services based on the user interaction or utilization against defined business topics, by comparison with paying by devices or fixed licenses.
• How does it help enterprises with SAP RISE?
  A: SAP RISE FUE offers cost effectiveness, scalability, and flexibility from paying for only what a business consumes of its own actual use of SAP services by ensuring more efficient resource allocation and license management.
• Is SAP RISE FUE for companies of all sizes?
  Q: Will I be able to use FUE on my Business or can it only be applied to specific business size?
• What is FUE in SAP RISE?
  A: Weighted costs will be applied based on user roles/access levels so that businesses can allocate their licenses cost as they see fit.

Resources

• SAP Official Site
• More about SAP RISE
  Discover how FUE with SAP RISE can help your business.
• FROM MINDFORE’S SAP FUE PRICING MODEL BLOGS
  記事元: MINDFORE BLOG在SAP FUE定価モデル記事 Mindfore Blog on SAP FUE Pricing Model
  Explore further SAP RISE FUE and what it means for SAP licensing.
• Cremencing Solutions SAP Custom Development
  Learn how Cremencing Solutions can accelerate your SAP ecosystem with customized development and SAP RISE FUE model support.

“Let us help you transition your SAP environment so that it’s more tightly aligned with how your business operates, how your IT systems need to support it and where technology is headed.”