Understanding SAP’s FUE Pricing Model: RISE with SAP S/4HANA Cloud Licensing

Understanding SAP’s FUE Pricing Model: RISE with SAP S/4HANA Cloud Licensing

If you’re navigating SAP S/4HANA Cloud adoption, understanding the RISE with SAP licensing model is critical.

SAP’s Full Usage Equivalent (FUE) model offers flexibility by allowing customers to allocate licenses across different user types — from self-service to advanced use — helping reduce shelfware and optimize cost.

Key Highlights:

• One contract, one offer — covering infrastructure, deployment,
  and business process intelligence
• Flexible deployment: Public or Private Cloud
• Embedded tools: Readiness Check, Custom Code Analyzer, Learning
  Hub
• Cloud Extension Policy: Seamless transition from on-prem to
  cloud
• Business Network Starter Pack: Ariba, Asset Intelligence,
  Logistics Network access

Full Usage Equivalent (FUE) is SAP’s unit-based licensing model that replaces the old Named User structure. Instead of purchasing licenses for each individual user type, organizations now convert various user roles into FUEs using predefined ratios.

This model applies to both SAP S/4HANA Cloud Public Edition and Private Edition under the RISE with SAP offering. 

The 4 Dimensions of S/4HANA Cloud Licensing (subscription):

Strategic Considerations

1. User Classification: Accurately categorize users based on actual usage to avoid over-licensing
2. Scenario Planning: Model different user mixes to optimize cost and performance
3. Contract Review: Understand entitlements in your Cloud Service Description Guide
4. Audit Readiness: Maintain documentation and usage logs for compliance
5. Extension Policy: Leverage SAP’s Cloud Extension Policy to transition from on-prem licenses 

For example:

Let’s say your organization has:

• 40 Advanced Users → 40 FUE
• 100 Core Users → 20 FUE
• 600 Self-Service Users → 20 FUE
• 2 Developers → 4 FUE

Total FUEs required: 84

This model helps you right-size your investment and avoid paying for unused capacity.

Key Takeaways

• FUE is not just a pricing model — it’s a strategic framework for managing cloud ERP access
• It empowers organizations to scale intelligently, stay compliant, and optimize cost
• Understanding FUE is essential for CIOs, SAP Architects, and Procurement Leaders planning their RISE with SAP journey

Strategic Benefits of FUE

• Flexibility: Reallocate users across use types during the subscription lifecycle
• Transparency: Clear cost structure aligned with actual usage
• Scalability: Supports growth without overbuying licenses
• Simplicity: One license material, one metric, one contract
• Cloud Readiness: Aligns with SAP’s modular cloud architecture

What’s Included in RISE with SAP?

RISE with SAP is a bundled offering that includes:

• SAP S/4HANA Cloud (Public or Private Edition)
• SAP Business Technology Platform (BTP) with CPEA credits
• SAP Business Network Starter Pack (Ariba, Asset Intelligence, Logistics)
• Embedded Tools: Readiness Check, Custom Code Analyzer, Learning Hub
• SAP Cloud Extension Policy: Seamless transition from on-prem licenses

  Cloud Extension Policy

  SAP’s Cloud Extension Policy allows customers to convert on-prem licenses into cloud subscriptions, protecting existing investments while enabling innovation. Key benefits include:

  • Seamless support across hybrid landscapes
  • Lower TCO with SAP Rapid Deployment and MaxAttention
  • Flexible 3–5 year subscription terms
  • Protection of prior investments with reduced transition barriers

  Mapping Classic Users to FUE