Understanding the RISE with SAP Licensing Model: Everything You Wanted to Ask But Didn’t

Getting to Know the RISE with SAP License Simplified model

The RISE with SAP licensing structure has quickly become the cornerstone offering for companies seeking to fine-tune their ERP (enterprise resource planning) operational solutions. With SAP keeping pace with cloud-first initiatives and increased flexibility, new and existing customers need to know how the licensing of RISE with SAP is structured.

If you believe that all your past questions about the RISE with SAP licensing model finally meet their answers, including user types, FUE (Full User Equivalent) concept, contract duration and so on – then read this blog to find explanations. If you have even considered migrating to SAP’s cloud offerings or would like to finally modernize your shop and are tired of the headlines, this guide will give you a clear understanding so that your choices are made from an informed basis.

Get started with the RISE with SAP License Model

Overview of RISE with SAP:
RISE with SAP is an end-to-end package intended to help businesses strive ahead in their transformation journey. It includes the SAP S/4HANA cloud offerings, the SAP Business Technology Platform (BTP), business process intelligence and a range of industry solutions in one bundle. It makes the entire ERP suite easy and enables businesses to run operations, scale and adapt easily. The RISE with SAP model is a subscription that gives businesses the option to pay for what they consume, thus gaining better control over costs and greater flexibility.

Relevance for Enterprises looking for ERP Solutions:
As companies increasingly move to the cloud, RISE with SAP provides customers a holistic offering that will allow them to simplify their transformation process and lower their total cost of ownership by taking advantage of SAP’s industry and business-process expertise coupled with operational experience in cloud infrastructure, subscription billing and insertion orders. This is the right model for today’s businesses, providing greater flexibility and efficiency.

Latest News and Updates from the SAP Ecosystem:
SAP is relentlessly investing in its cloud portfolio, and RISE with SAP becomes a cornerstone to enable our customers to journey to the Cloud. Key Recent enhancements: Increased SAP S/4HANA, SAP BTP and automation integration helps companies to tap into the full potential of their data and processes as they happen.

Understanding the FUE Model

What is the FUE Model?
FUE (Full User Equivalent) is the license metric for RISE with SAP. The user-centric instead of device- or system-centered pricing is considered in the FUE scheme. It provides companies with the option of paying for usage of SAP software through users rather than by user or device in an enterprise.

Definition and Significance:
The FUE model enables companies to assign their license according to specific user roles and scenarios, so that they pay only for the SAP functionalities required by a given user.
Patent: Cost effective – Traditional models required businesses to buy software licenses for individual users or devices; with FUE, you only pay for what you use so you can be more cost-effective.

The Impact of the FUE Model on Licensing Fees:
The FUE model considers full consumption of SAP solutions by users, but charges based on depth of functionality needed. For instance, the licensing cost for an employee who’s given access to premium offerings like analytics or cloud services will be different from that of an employee with relatively simpler requirements.

Comparison with Traditional Licensing Models:
In traditional SAP licensing models, the number of users or infrastructure necessary to power that SAP software played roles. The FUE model removes this complexity and simply addresses usage, which is a lot simpler, more equitable and cost-effective way of businesses to deal with their licensing.

Contract Terms Explained

The RISE with SAP contract includes flexible options that can be customized to fit an organization’s needs, regardless of size.

RISE with SAP Contract Terms Broad strokes:

• Subscription-Based Framework: Businesses pay on a monthly, or most commonly annual basis. It is pay as you go, so companies only pay for what they use.
• Flexible Term and Replenishment: Businesses can subscribe to terms that best meet their strategies. Auto renewal of the services is facilitated by means of clauses in the contract.
• Customization Options: Businesses have the flexibility to tailor services they need under RISE with SAP, selecting certain functionalities (in finance, supply chain or customer relationship management CRM) depending on what best suits their business.

Flexibility and Customization Options:
RISE with SAP provides flexibility in contract type and service consumption. Customization and extensions are possible with the SAP BTP, helping adapt to an organization’s specific industry and operational process requirements.

Renewal and Termination Clauses:
Contracts are renewable and terminable upon notice. RISE with SAP also gives businesses the ability to tweak their licensing to meet changing demands, helping them scale up or down as needed.

User Segmentation in RISE with SAP

How These Types Are Categorized from User Perspective:
The FUE model is a distinction between users and their roles with an information system. This categorization helps to establish what specific license requirements are necessary for each user and that services for which businesses are not being charged.

Implications for Types of Users:
A set of user types (e.g. casual users, power users and admin users) are assigned to pricing tiers. For example, a healthcare manager with unrestricted access to all systems could be considered as a high-tier user, and an on the ground operational employee category would depend upon restricted usage.

Best Practices for User Classification:

• Analyze User Roles – Organizations need to go through their internal users and determine who all needs access to complete SAP services and who can have partial functionalities.
• Regular Review – As your business expands, routinely review classifications for users and move licenses around to prevent overprovisioning.

Common Questions Answered

Frequently Asked Questions (FAQs)

Q: What is RISE with SAP?
A: RISE with SAP is the approach to enable every customer to become a best-run business, powered by the world’s leading cloud company that has a vision to help customers accelerate cloud adoption and make it easier for companies to do business in the cloud.

Q. How does the FUE model work?
A: The FUE pricing is based on real usage of SAP software consumption per individual users. It also makes it possible for companies to allocate licenses according to user roles, which allows them to save on costs when pricing and usage are in sync.

Q:How are employees characterized in the model RISE with SAP?
A: We categorize the users into roles and levels of system access. Businesses are charged for licenses depending upon how much access users have to SAP applications, with more expansive exposure being priced higher.

Q. How does RISE with SAP enable digital transformation?
A: RISE with SAP is designed to support businesses in their digital transformation and provides a modern, cloud-based ERP system that merges critical business processes into one cloud-based software suite, enables data-driven decision-making, and ensures scalability without the typical complexities of traditional licensing.

Q. What is the advantage of the FUE approach as compared to classical licensing?
A: FUE model has superior cost predictability, flexibility and scalability. Unlike traditional per device or user licensing models, the FUE model enables organizations to pay for what they use, offering a more flexible and cost-effective license structure.

Competitive Analysis

RISE with SAP is not the only solution in the ERP platform. You won’t be the only one that forms your competitors as Oracle ERP, Microsoft Dynamics 365 and Infor CloudSuite all provide cloud solutions. However, RISE with SAP shines because of its unified licensing model and complete package that covers the full spectrum of what businesses require to transform digitally.

Unique Advantages of Cremencing Solutions:
We focus more on SAP Custom Development at Cremencing Solutions, which not only helps businesses use the RISE with SAP model but also make their SAP landscape customized to suit unique business requirements. Our expert staff make sure you are maximizing the value from your SAP solutions and at the best cost versus performance.

Real-World Applications

RISE with SAP has found broad customer uptake spanning multiple industries, with many businesses having realized significant benefits for their operational efficiency, cost management and scalability.

Case Study 1: Manufacturing Industry
One major manufacturing company used RISE with SAP to simplify their supply chain and production control. Connecting SAP S/4HANA with SAP BTP, we were able to track production metrics in real time, shorten lead times and lower costs.

Case Study 2: Retail Sector
One of the largest retailers turned to RISE with SAP, which helped them integrate their customer experience with backend operations. And they were able to personalize offerings using data insights from SAP Analytics Cloud, which led to a 20% increase in customer satisfaction and a 15% boost in revenue.

Conclusion

The FUE (Full User Equivalent) model of RISE with SAP enables companies to have a flexible, scalable and value-oriented way to keep their SAP applications up and running. This shifts us away from legacy licensing and billing models that provides businesses with a more transparent and efficient means of consuming resources, so only what is used needs to be paid for. The SAP BTP integration adds value to RISE with SAP, offering customers a formidable arsenal for digital transformation.

If you want to get the most out of your SAP licensing & make best use of RISE with SAP, Cremencing Solutions are here for you.
SAP Custom Development – Our specialists’ team can support you on every phase of SAP Custom Development and help with incorporating the RISE with SAP model smoothly. Reach out today and begin your digital transformation journey.

FAQs

What is RISE with SAP licensing?
Q: What is the subscription-based model for integrated SAP solutions that facilitates licensing based on usage rather than hardware or device?

How is the user categorized under the RISE with SAP model?
A: Users are categorized as per the role and access need with cost model specific.

Advantages of FUE model?
A: “The FUE model provides flexibility, price predictability and scalability that are based on real user requirements as opposed to fixed costs and device-centric models.

Resources

• SAP Official Website – Find out more about RISE with SAP, and how it can simplify your business processes.
• Turnkey Consulting: RISE with SAP FAQs – Exploring the details of the RISE with SAP FUE license model and its advantages.
• Cremencing Solutions SAP Custom Development – Find out what Cremencing Solutions can do to maximize your SAP investment with custom development services.

With a focus on these essential elements of the RISE with SAP licensing model, this blog aims to be a definitive resource for companies seeking to achieve optimal value from their SAP ecosystem and take advantage of the breakthrough pricing approach.