Thought Leadership

Optimising SAP User (FUE) Licensing: How to Avoid Overpaying under the STAR Framework 

June 10, 2025 By Soterion

As SAP accelerates its push to transition customers to SAP Cloud ERP Private (formerly known as RISE with SAP), license management has become a key strategic and financial consideration. Licensing is no longer a one-off negotiation or annual audit task – it is now a dynamic component of your organisation’s cloud transformation strategy. 

With SAP’s Full Use Equivalent (FUE) licensing model and the introduction of monthly license measurements under SAP Cloud ERP Private, organisations face increased pressure to understand, optimise, and proactively manage their SAP user licensing. To address this challenge, Soterion’s SAP License Manager delivers comprehensive visibility into your current licensing posture and identifies the optimal license consumption scenarios to ensure your organisation only pays for what it truly needs.

The Changing Landscape of SAP Licensing

SAP’s move from ECC to S/4HANA on-premise and SAP Cloud ERP Private represents a significant shift in how user access is licensed and monitored. SAP ECC licensing was largely interpretive, relying on loosely defined user types and infrequent audits. In contrast, SAP Cloud ERP Private introduces a more definitive, rules-based approach—using the STAR framework to classify user access based on assigned authorisations with far greater precision and accuracy. 

This is achieved through the STAR framework, which uses a defined set of authorisation objects and field values to determine a user’s license classification based on what they can do, not what they actually do. If a user has even one ‘Advanced-level’ authorisation in their assigned roles, they are classified at that higher license tier, regardless of whether the functionality is ever used. 

Key changes introduced in the new licensing model:  

  • From Subjective to Structured Licensing: The STAR rule set removes ambiguity, offering a clear, downloadable list of SAP authorisation object-field combinations that map to license categories such as Advanced, Core, and Self-Service. 
  • Monthly License Measurement (RISE): Under SAP Cloud ERP Private, user licence consumption is monitored monthly. The highest monthly FUE count in the contractual period may be used as the billing baseline for license true-up. Organisations should manage their authorisation design carefully, as temporary spikes in access (not just usage) can result in permanent increases in licence costs 
  • Shift from Perpetual to Subscription Licensing: Licensing is now based on 3, 5, or 7-year subscription terms, introducing flexibility in renewal negotiations, but also locking in higher baselines if license creep goes unmanaged. 
  • Introduction of the FUE Model: Roles and users are now mapped to Full Use Equivalents.
    Each license type contributes a fraction or multiple of a full FUE:
    • Developer = 2 FUE 
    • Advanced User = 1 FUE 
    • Core User = 0.2 FUE (5 Core = 1 FUE)
    • Self-Service User = 0.033 FUE (30 Self-Service = 1 FUE)

The Licensing Challenge: Role Design vs. License Classification 

Most organisations have SAP role designs that were never intended to optimise licensing. They were built with operational security in mind, not SAP user license cost efficiency. As a result, users are frequently overclassified, causing organisations to overcommit during RISE negotiations or face costly true-up fees mid-subscription.  

Common Pain Points:

  • Overstated FUE Requirements: Due to an inappropriate role design, SAP’s STAR measurement significantly overestimates an organisation’s license (FUE) requirements.
  • Unbudgeted License Creep: A single authorisation change in a commonly assigned role can increase the organisation’s FUE count across hundreds of users overnight
  • Lack of Role Relevance: Most roles contain unused authorisations, triggering higher license classifications for no business value.
  • FUE Commitments Are Forward-Looking Only: Once your RISE license baseline is set, SAP does not allow retrospective reductions. License optimisation must be completed before or at the point of renewal to impact future costs. 

Soterion’s SAP License Manager  

Soterion has recently released an enhanced version of our SAP License Manager to support the user licensing requirements of S/4HANA and RISE with SAP, aligned with SAP’s STAR framework. 

Soterion’s SAP License Manager supports organisations at every stage of their S/4HANA journey, providing insights to optimise user licensing and control FUE (Full Use Equivalent) exposure.

1. ECC Customers Considering a Move to RISE with SAP 

Soterion analyses an organisation’s ECC environment to determine how users are actually using the system, helping calculate the optimal number of FUEs required under the STAR framework. These insights are invaluable for: 

  • Building a credible business case 
  • Planning your migration 
  • Strengthening your negotiating position with SAP 

2. S/4HANA On-Premise 

Soterion evaluates your S/4HANA on-premises system to: 

  • Continuously monitoring assigned vs actual usage 
  • Identifying FUE-impacting changes when onboarding new users 
  • Highlighting license changes resulting from access requests before they are actioned in SAP 

 By following these best practices, companies can ensure their SAP environments remain secure, compliant, and efficient. 

Don’t Believe us? Ask us to perform an assessment on your SAP system.  

The most effective way to take control of your SAP license position is to start with a licensing assessment. This includes: 

  • Measuring your current FUE consumption 
  • Identifying cleanup and redesign opportunities 
  • Calculating your licensing “best-case scenario” 
  • Preparing you for smarter contract negotiations 

Conclusion: License with Confidence 

SAP’s new licensing model rewards those who plan ahead and penalises those who don’t. Soterion’s SAP License Manager empowers your team with the data and tools to make licensing a strategic advantage, not a compliance burden. Whether you’re preparing for RISE, renegotiating your subscription, or simply trying to remain license compliant, Soterion can help you pay only for what you truly need—nothing more. 

To learn more about how the SAP License Manager can help your organisation, get in touch with our team or book a demo today. 

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