SAP RISE FUE Calculation for Contract Negotiation

SAP RISE FUE Calculation for Contract Negotiation

RISE with SAP replaces perpetual licenses with subscription-based FUE metrics (Full Use Equivalents).

Calculating the right FUE count is as critical as counting named users used to be. CIOs must audit actual usage (removing unused licenses), apply SAP’s FUE weighting factors, and factor in tiered pricing to optimize cost.

This article explains how to convert existing user roles into FUE, shows cost examples under RISE pricing tiers, and highlights negotiation and contract tips to avoid overpaying or audit risks.

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What is FUE, and why does it matter

Under RISE with SAP, SAP S/4HANA Cloud is delivered as a subscription rather than a one-time license. All user access is measured in Full-Use Equivalents (FUE) instead of named user licenses.

Different user categories (akin to Professional, Limited, Employee, and Developer users on-prem) map to FUE units with fixed ratios.

SAP defines four RISE user roles: Advanced (full use), Core (limited), Self-Service (employee), and Developer. Each role type counts differently toward your FUE total (see table below).

Each Advanced user equals one FUE; five Core users equal one FUE; thirty Self-Service users equal one FUE; and two Developer users equal one FUE.

These weights reflect the relative value of access. RISE contracts also include minimum commitments (typically 35 FUE for public cloud, 40 FUE for private cloud, and 500 FUE when including SAP’s Experience Management tools).

Read What Is SAP Private Cloud (Formerly RISE with SAP).

Calculating Your FUE Requirement

Begin by inventorying all active SAP users and roles. Remove any shelfware (unused licenses) before migration. Use SAP tools (like the Authorized Users report or the S/4HANA Trusted Authorization Review) to classify each user into one of the four roles above.

For example, if you have 40 Advanced-use users, 75 Core-use, and 270 Self-Service users, your FUE calculation is:

• Advanced: 40 × 1.0 = 40 FUE
• Core: 75 ÷ 5.0 = 15 FUE
• Self-Service: 270 ÷ 30.0 = 9 FUE
• Total = 64 FUE.

FUE units are calculated by weighting each user type (Advanced=1, Core=5, Self-Service=30, Developer=0.5). In this example, 40 Advanced + 75 Core + 270 Self-Service users yield 64 FUE.

Always validate the classification—tools like SAP’s STAR service and USMM reports can help, but they may misidentify broad roles. Manual review of roles/authorizations is often needed.

RISE Pricing and Cost Examples

RISE subscription pricing is tiered by total FUE volume. Public pricing (e.g., DACH region lists) shows very high per-FUE costs for small counts and steep discounts at scale.

For example, early tiers might be:

At very low volumes, RISE can cost hundreds of euros per FUE per month, but prices drop sharply past volume breaks. In practice, large customers (thousands of FUE) can negotiate well below the list price.

RISE deals may also include a fixed base subscription fee (for infrastructure and platform services) plus per-FUE charges, so always clarify what is bundled.

Pricing Example: Industry benchmarks report that a typical 10,000-user mix (2,500 Advanced; 3,000 Core; 4,500 Self-Service) would cost about €43.8 million in on-premise license fees over 10 years (excluding hardware).

The equivalent RISE private-cloud package was estimated at €42.5 million total (including infrastructure) over 10 years. This illustrates how RISE can be cost-competitive at scale (though exact figures depend on your negotiated tiers and credits).

Negotiating RISE Contracts

When converting to RISE, leverage your existing investment. SAP often grants credits for remaining maintenance and unused licenses.

Timing matters: align the RISE contract start with the end of your current maintenance period to avoid double payment.

Early adopters of RISE (circa 2021) secured very generous credits (often ~90–100% of unused support), but incentives have tapered as the 2027 ECC-end date approaches. You should document any shelfware and ask SAP to apply it to your quote.

Also, use volume tiers strategically. If you are just below a pricing break, it may be cheaper to buy a few extra FUE to reach the next tier (as savings per FUE can outweigh the cost of the extra units).

However, do not overcommit far beyond actual needs. Scope the deal tightly: include only roles and modules needed in S/4HANA. Omit unused modules or users from the contract to reduce the base FUE count.

Finally, negotiate terms to protect flexibility. Lock in caps on annual renewal increases (e.g. ≤5%) and seek clauses to adjust your FUE counts upward or downward if business changes.

Discuss exit provisions: while SAP won’t typically give you perpetual rights back, you can negotiate for guaranteed data export and transition support if you leave the cloud.

Read RISE with SAP License Costs and Enterprise Benchmarks.

Risks and Best Practices

• Under-licensing risk: If you under-count FUE, you face compliance violations and surprise audits. Always round up to cover occasional usage spikes and new hires.
• Over-licensing risk: Overestimating FUE means wasted subscription expense. Mitigate by cleaning up inactive users first and negotiating mid-year true-ups rather than upfront bulk buys.
• Shelfware: Carrying unused licenses into RISE only increases costs. Use this migration to shed any perpetual licenses or modules you won’t use.
• Audit and Reporting: Keep detailed role-to-user mappings and run SAP’s License Audit Workbench (LAW) periodically. Even in the cloud, SAP can request audit reports against your FUE commitment.
• Vendor Lock-In: RISE is pure OpEx – if you stop paying, access stops. Maintain internal plans (or even a negotiated fallback) in case you ever want to switch ERP.

Recommendations

• Audit current usage: Conduct a thorough user/role inventory. Remove inactive users and non-critical modules before converting to FUE.
• Use SAP tools cautiously: Run the STAR service and LAW audit, but manually review their outputs. The automated tool may misclassify generic roles (e.g., SAP_ALL) as higher-use.
• Apply correct FUE weights: Remember that Advanced=1, Core=5, Self-Service=30, Developer=0.5. Sum all contributions to get the total FUE.
• Target volume discounts: Structure your FUE purchase to hit price breakpoints (even if it means a small buffer). Confirm pricing tiers and consider multi-year commitments for better rates.
• Align contract timing: Start RISE right after your last maintenance payment. Negotiate pro-rated credits for any prepaid support.
• Document shelfware: Keep evidence of unused licenses/maintenance to push for better trade-in credits. Early negotiation can yield tens of percent off initial bills.
• Cap renewals: Insist on a renewal price cap (e.g., 3–5% annually). Lock in a long initial term if possible to fix rates.
• Exit strategy: At a minimum, negotiate data export rights and an orderly offboarding plan. Consider requesting a clause that allows for conversion to on-prem licenses if you decide to walk away.
• Continuous review: Don’t treat FUE as “set and forget.” Re-evaluate user roles and FUE counts annually, especially before renewals or expansions.
• Leverage expertise: If needed, work with SAP licensing consultants or user groups. A third-party audit report or benchmark can strengthen your negotiation stance.

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