6 Steps to Take Before Negotiating Your SAP S/4HANA Contract

Transitioning to SAP S/4HANA is one of the most important technology moves your organization will make. It impacts your architecture, your operations, and critically your long-term costs. SAP will come prepared with a clear sales strategy; your best move is to prepare just as thoroughly.

Here are six essential steps every organization should take before engaging SAP in contract discussions.

1. Understand SAP’s Negotiation Playbook

SAP is highly motivated to accelerate S/4HANA adoption. Expect aggressive sales tactics: limited-time incentives, pressure linked to maintenance deadlines, and in some cases, licensing audits.

By anticipating these moves, you can keep discussions grounded in your priorities rather than being driven by SAP’s timeline.

2. Audit Your Current ECC Environment

Take a detailed look at your existing ECC landscape:

• How many licenses were purchased vs. how many are in use?

• Are license types aligned to actual user needs?

• Which modules are critical for the future, and which can be retired?

  
  

This audit equips you with facts that strengthen your negotiation position and helps avoid paying for more than you truly require.

3. Eliminate Shelfware and Technical Debt

Many organizations carry unused licenses or modules and still pay maintenance on them. This “shelfware” drives up cost without delivering value.

Identify unused assets and plan to retire them before engaging SAP. This step not only reduces cost but also simplifies the negotiation by focusing on the licenses and modules that matter.

4. Address Indirect Access and Digital Access Early

Indirect (or digital) access when external systems interact with SAP is often a source of unexpected licensing fees.

Evaluate your exposure before SAP raises the topic. Model different usage scenarios, estimate your actual risk, and decide on the licensing approach that fits your organization. This proactive stance prevents surprises and positions you to negotiate more favorable terms.

5. Select the Right HANA Database Model

Every S/4HANA deployment runs on HANA, but there are two key licensing models:

• Runtime: Lower cost but limited flexibility.

• Full-use: More capabilities, priced by actual usage.

  
  

Carefully assess your current and future requirements, including analytics and integrations, before making a choice. Negotiate terms that allow flexibility if your needs expand.

6. Forecast Future User Demand Accurately

After rationalizing your current user base, estimate how many additional users you will realistically need in the near term.

Avoid overcommitting to licenses for future scenarios that may not materialize. Instead, negotiate scalable pricing or protections that support growth without inflating current costs.

Conclusion

Negotiating an SAP S/4HANA contract is not just about securing the best deal today. It’s about ensuring long-term flexibility and cost efficiency. By auditing your current environment, eliminating unused assets, proactively addressing indirect access, and making informed decisions on database and user growth, you shift the balance of power in your favor.

Preparation is your strongest negotiation tool. The more disciplined and data-driven your approach, the better positioned you’ll be to achieve terms that align with your business goals.

At Wyn, we believe that strong negotiations start with clarity: knowing what you need, what you don’t, and how to protect your future flexibility.