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It's Time to Turn on the Lights to SAP Licensing

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 This week, our blog is a bit out of the ordinary.


As the marketing manager of Xpandion, I often deal with our communications strategy, which includes overseeing blog publications, email and messages we receive on social media. I’d like to share an email written by our CEO to a longtime client who has also become a very good friend of his. I’m sharing it because it was so sincere and emphatic. Of course, all original identifying information has been changed or removed.

The email goes like this…

 “Dear John,

Glad to know that your team in China is working well with the new upgrade. As always, we’re here if you should need anything at all. 

I just got back from a new customer meeting, and based on where your company was with SAP Licensing when we met, I thought you’d appreciate hearing this. 

It’s about being in the dark. People just don’t understand that they can have impact on their SAP Licensing situation, and this unawareness really concerns me from a professional point of view.

As you know, there are approximately 100,000 SAP customers all over the world. Let’s assume that 50% of them will do nothing about optimizing their SAP Licensing status, and take them out of the equation right off the bat. We’re left with 50,000 customers that pay big time each year for their SAP licensing. We’re talking about 3 billion dollars – not too shabby.

So, in this meeting I ask the customer, “When you negotiate with SAP – how do you know what your REAL needs are? How do you know if you need 10,000 or 20,000 Professional licenses?”  

And he says, “We don’t talk about that. We just talk money. They want to charge 15 million dollars, we offer 12 million dollars, and we go back and forth until we meet in the middle.” 

“Great,” I say, “but how do you know that you even need to pay 12 million dollars?”

And he answers, “We don’t. We assume that the licensing quota is right.” 

“But,” I say, “the licensing was put in place 10 years ago and has been increasing over the years. Don’t you check your licensing according to the de-facto usage of your employees?”

You can guess the answer. Or lack of one. I actually felt sort of bad for putting him on the spot because he became visibly worried.

But then I told him about LicenseAuditor. How helpful it is, and has been to many companies before him. He can know what Licenses he really needs and what he doesn’t. His SAP Licensing negotiations can be based on the real number of licenses needed, not on dollars. I even told him your company’s story and how you tell me that, just like you don’t know how you managed to survive before the mobile phone, you don’t know how your company survived before LicenseAuditor. He was stunned to hear how much effort and how many resources it saved your company.

And that was the “aha moment.”

The light bulb turned on in his head and the smile crept up on his face. He realized that he’s been offered the opportunity to sit in the driver’s seat of a Ferrari when he’d been wasting his time lugging around a wheelbarrow.

Of course, at this point, he couldn’t sign on the “X” fast enough, but more importantly, I walked out of that meeting having accomplished something that matters more; the very reason I started Xpandion in the first place – to arm enterprises with user activity data, so they can act smarter.

So, I just wanted to say thank you for believing in our mission from the beginning. Today we signed another happy customer. Only 49,999 more to go. One by one, we’ll continue to turn on the lights to SAP licensing.

Your colleague and esteemed friend,



Amazing, right? What are your thoughts? Share them here.


LicenseAuditor is the soution to your SAP Licensing needs. To find out more, contact us now.



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