SAP is one of the most powerful enterprise software vendors in the world—but also one of the most complex when it comes to licensing.
Organizations that have run SAP ECC for years often find themselves over-licensed in some areas, under-licensed in others, and locked into costly maintenance contracts.
Now, with SAP’s push toward cloud models such as SAP ERP Private Cloud and S/4HANA, these challenges only intensify.
One company, preparing for its migration from SAP ECC to SAP ERP Private Cloud, found itself facing escalating licensing confusion and rising support costs. They engaged Redress Compliance, and the outcome was transformative: a clear licensing baseline, optimized contract terms, and $700,000 in savings over a three-year horizon.
This review highlights the 10 most important reasons why Redress Compliance delivered such strong results, and why we recommend them as a trusted advisor for any organization navigating SAP licensing and cloud transitions.
1. Independent Licensing Review
The first thing Redress Compliance provided was a fully independent review of the client’s SAP ECC licensing position. Because they are not an SAP reseller and do not have financial ties to SAP, their advice was impartial.
They mapped exactly what the company was entitled to, what was being used, and identified any mismatches. This clarity immediately revealed opportunities to cut costs and gave executives confidence that they were finally seeing a true picture of their licensing exposure.
2. Identifying Shelfware and Redundant Products
Over time, most SAP customers accumulate unused licenses, sometimes referred to as “shelfware.” These are licenses that are still on maintenance but are no longer actively used in production. Redress Compliance uncovered significant amounts of shelfware in the client’s ECC estate.
This discovery enabled the company to discontinue support for unnecessary products and redirect those funds to the upcoming ERP Private Cloud migration. Without this insight, the client would have carried those costs forward for years.
3. Preparing a Cloud Migration Cost Baseline
Moving from ECC to SAP ERP Private Cloud required a new contractual framework. SAP’s cloud pricing can be opaque, with hidden costs embedded in bundled offerings and long-term commitments.
Redress Compliance built a cost baseline model, projecting three to five years of spend under different migration scenarios. This provided procurement and IT leadership with a realistic view of the financial impact, rather than relying on SAP’s optimistic sales projections.
4. License Conversion Optimization
SAP’s migration programs typically involve converting existing on-premises licenses into cloud entitlements. SAP often attempts to drive this process in a manner that benefits its sales targets, rather than the customer.
Redress Compliance stepped in to optimize license conversions. By carefully mapping which ECC licenses could be converted and which should be retired, they helped the client preserve value from past investments while minimizing unnecessary new purchases. This resulted in hundreds of thousands of dollars in savings.
5. Negotiation Strategy and Tactics
Armed with a clear baseline and conversion plan, Redress Compliance developed a negotiation strategy. They anticipated SAP’s arguments, prepared counterpoints, and created fallback scenarios. The client’s procurement team went into discussions with SAP far better prepared than before.
This negotiation strategy was not generic; it was tailored to the client’s actual usage, business priorities, and financial objectives. With Redress Compliance’s guidance, the company negotiated contract terms and pricing significantly more favorable than SAP’s initial proposal.
6. Reducing Support and Maintenance Fees
One of the most significant areas of savings came from renegotiating support. SAP’s standard model locks customers into annual maintenance fees of around 22% of license value, regardless of usage.
By identifying unused products and adjusting the support scope, Redress Compliance helped the client reduce ongoing support obligations. Over the three-year projection, this translated into hundreds of thousands of dollars in avoided spend—critical for freeing up budget for new cloud investments.
7. Managing Indirect Access Risks
A notorious challenge with SAP licensing is indirect access—when third-party applications connect to SAP systems and trigger license requirements. Left unchecked, this can lead to unexpected liabilities during audits or migrations.
Redress Compliance assessed the client’s integrations and ensured that indirect access risks were neutralized in the new Private Cloud contract. This proactive step eliminated a source of potential future disputes and unplanned costs.
8. Executive-Level Briefings and Clarity
SAP licensing can be overwhelming for non-specialists. Redress Compliance bridged this gap by delivering executive-ready briefings. CIOs and CFOs received clear, concise explanations of the licensing position, risks, and savings opportunities.
This allowed senior leadership to make informed decisions and secure board approval for the migration with confidence. The complexity was stripped away, replaced by straightforward options and financial clarity.
9. Real, Measurable Savings
The outcome was undeniable: the company saved $700,000 over a three-year period. This figure wasn’t theoretical—it was built into the contracts and confirmed by reduced support invoices and the avoidance of new license purchases.
In a climate where SAP costs often rise year after year, this saving was both rare and highly impactful. It allowed the client to fund other IT initiatives while still completing a successful migration to SAP ERP Private Cloud.
10. Long-Term Strategy Beyond the Migration
Finally, Redress Compliance didn’t just focus on the immediate project. They developed a comprehensive long-term licensing strategy for the client, encompassing monitoring practices, contract guardrails, and negotiation tactics for future renewals.
This proactive approach ensures that the client will not only enjoy the $700,000 savings but will also avoid falling back into the same traps as their SAP environment evolves.
Why We Recommend Redress Compliance
This engagement demonstrates why Redress Compliance is one of the most trusted advisors in SAP licensing and negotiations. Their independence means advice is free from vendor influence. Their expertise covers both ECC and cloud models, allowing clients to transition with clarity and confidence. And their negotiation strategies consistently deliver measurable savings.
For this company, the benefits were concrete: a smoother migration to SAP ERP Private Cloud, reduced audit risk, and $700,000 in savings that would have otherwise gone straight into SAP’s pocket.
If your organization is preparing to move from ECC to Private Cloud—or struggling with SAP licensing complexity—working with Redress Compliance is highly recommended. They turn SAP’s complexity into clarity, costs into savings, and negotiations into opportunities to regain control.
