Energy Transfer Case Study

Driving Efficiency and Cost Savings: Energy Transfer’s Journey to RISE with SAP with Lemongrass

Energy Transfer, a leading U.S. midstream energy company, engaged Lemongrass, experts in SAP consulting and transformation, to support its evaluation and transition to RISE with SAP.

Lemongrass provided critical guidance in analyzing SAP contractual terms, helping Energy Transfer navigate key decisions regarding the shift from on-premises infrastructure to the RISE with SAP Customer Data Center Edition (CDC). Additionally, Lemongrass played a central role in clarifying the RACI framework and optional services available through SAP, enabling Energy Transfer to align the solution with its business strategy.

Challenge

Energy Transfer faced the challenge of selecting the most suitable RISE with SAP option that aligned with its strategic goals and operational requirements. The company also needed a comprehensive assessment of its SAP licensing position to identify cost-saving opportunities and negotiate a favorable agreement that would support both its current needs and long-term objectives.

Solution

Lemongrass collaborated closely with Energy Transfer to perform a comprehensive evaluation of the available RISE with SAP options, providing critical insight into the associated risks and benefits of each. This analysis enabled Energy Transfer to select a migration strategy that met their immediate operational needs while supporting long-term scalability.

A key aspect of the engagement was Lemongrass’s detailed licensing assessment, which identified significant cost-saving opportunities by eliminating 5,805 unused licenses and refining over 60 contractual elements.

Lemongrass also supported Energy Transfer in negotiating the RISE with SAP Customer Data Center agreement, ensuring the resulting architecture and licensing structure offered the flexibility and value needed to accommodate future business requirements.

Results

The engagement was executed smoothly and efficiently, ensuring that Energy Transfer’s IT infrastructure was fully aligned with the company’s strategic business goals. This decision laid a strong foundation for enhanced operational efficiency and long-term growth. Through effective restructuring and the elimination of unnecessary licenses, Lemongrass helped Energy Transfer achieve a significant $2M reduction in licensing costs.

Lemongrass continued to provide ongoing support and strategic advice, helping Energy Transfer ensure that the RISE licensing model met both their evolving operational and financial needs. These recommendations allowed Energy Transfer to maintain flexibility while optimizing their SAP infrastructure. As a result of this transformation, Energy Transfer is now positioned with an optimized and scalable SAP infrastructure. This new infrastructure meets both their current needs and also supports future growth, ensuring greater efficiency and cost-effectiveness in their operations for years to come.

Through this collaboration, Lemongrass showcased its expertise in SAP transformations, delivering a seamless, strategic, and cost-efficient engagement. By tailoring the approach to licensing, architecture, and business alignment, Lemongrass enabled Energy Transfer to achieve its goals and position itself for long-term success in the competitive midstream energy sector. This project further solidifies Lemongrass’s reputation as a leader in SAP consulting and transformation, providing impactful solutions that drive operational efficiency and business success.

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