A guide to counting FUE (Full Usage Equivalent) users
A guide to navigating SAP Cloud ERP licensing—the new name replacing Rise with SAP—and to understanding the FUE (Full Usage Equivalent) metric: how it works, how it’s calculated, and key considerations to keep in mind when transitioning.
From the RISE program to SAP Cloud ERP: what really changes
SAP has recently announced the rebranding of Rise with SAP to SAP Cloud ERP. Beyond the name change, this transition marks an evolution in the commercial and product offering: not just a “transformation package” for migrating to SAP S/4HANA Cloud, but a true reference platform for the future of cloud ERP systems.
SAP's stated goal is to make the offering clearer and more modular, eliminating some of the ambiguities of Rise and introducing:
The core concept remains the same: “One offer, one contract.” SAP Cloud ERP gathers in a single contract the fundamental components for managing the ERP system: cloud infrastructure, managed services, technology platform (SAP Business Technology Platform), process optimization tools (SAP Business Process Intelligence), ecosystem connections (SAP Business Network), and development tools (SAP Build).
The added value for customers lies in governance simplification: fewer contracts to manage, less fragmentation, faster implementations, and centralized SLAs.
Rise with SAP introduced a subscription-based license model, marking a shift from the traditional on-premise perpetual model that SAP customers were accustomed to. With the rebranding to SAP Cloud ERP, the logic formally remains unchanged: the reference metric is still the FUE – Full Usage Equivalent.
In the past, SAP used various types of Named User licenses for direct access to the digital core. Now, consumption is measured in FUEs: a unit of measure that considers the level of use and the authorizations granted to each user. In SAP Cloud ERP contracts, within the Cloud Services section, two key entries will be found:
Usage metric: FUE
Amount: the number of FUEs purchased, valid for the duration of the contract (these are term-based licenses).
The system is simple in principle: each type of user is translated into a certain number of FUEs, and the sum determines the total consumption—which is also the basis for licensing costs.
Let's look in detail at the intended use types:
To see the roles and responsibilities with each Use Type, you need to consult the SDG (Service Description Guide) for private editions or the SUD (Service Use Description Document) for public editions. These documents list, for each Usage Type (e.g., SAP S/4HANA Cloud Core), the associated system features (e.g., management and processing of sales orders). For a more detailed level, you can refer to the FSD (Feature Scope Description), which outlines the specific capabilities of the S/4HANA Cloud versions.
Anche se la metrica FUE non è cambiata con il rebranding, occorre prestare attenzione: con gli ultimi ruleset SAP (V91 – Ruleset V1.69) alcuni ruoli utente sono stati riclassificati verso categorie più onerose (es. da Core a Advanced). Questo significa che, a parità di utilizzo, il conteggio FUE può salire e i costi aumentare in modo non sempre immediatamente evidente. Ne abbiamo parlato in un approfondimento ad hoc (link).
The FUE is flexible and can correspond to different types of users depending on usage. It’s like a token that allows you to purchase a specific user type (1:1) or more than one of lower-tier types, converting them using specific ratios, as reported on the SAP blog. Below, we can see the various ratios:
Let’s look at an example of how to count FUEs for different usage types: a company wants to use various SAP solutions within the RISE with SAP S/4HANA Cloud and SAP Cloud ERP S/4HANA cloud service and has Named User licenses it wants to convert to the updated metric.
The first step is to match existing authorizations in SAP ECC to the new SAP S/4HANA user types: to facilitate conversion to the new S/4HANA SAP metrics, SAP provides the S/4HANA Trusted Authorization Review (STAR), a service that leverages Object Analyzer to help determine appropriate FUE levels.
To count the total amount of FUE, consider the following ratios for each type of use:
If the system records the following usage: 50 Advanced Use, 200 Core Use, 90 Self-Service Use, and 10 Developer Use, the total FUE requirement for 350 users divided into the following license types (50 Professional Users, 200 Functional Users, 90 Productivity Users, and 10 Developers) is 113 FUEs.
Keep in mind that SAP imposes minimum purchase requirements for FUEs, just as it did with the Rise with SAP offering, so it is important to verify compliance with these thresholds.
Here is a report generated by the SAM tool Snow Optimizer for SAP by Flexera, which helps quickly calculate license quantities.
As long as minimum purchase requirements are met, FUEs allow flexible changes to user types during the contract period: they do not need to be fixed in advance and can be adjusted according to evolving needs.
The reallocation of licenses thus helps manage shelf-ware in a world where users constantly change (departures, role changes, etc.). Below is an example from the SAP guide related to the RISE offering.
We’ve already mentioned that the subscription-based model for direct licensing in SAP Cloud ERP is consumption-based: since FUEs align with four types of S/4HANA cloud users, the biggest challenge is mapping named users to FUEs.
Authorizations for ECC user types such as Professional, Limited Professional, Employee, Worker, etc., must be mapped to the Use Types defined by the FUE metric. The aforementioned STAR is a useful tool to determine the appropriate FUE levels.
At WEGG, we are SAP licensing experts and, in our experience, many customers simply convert the existing users in the system into a total FUE count for the contract, without performing accurate preliminary analysis.
This is a task that must be done, as calculation errors can lead to waste due to missed optimization (e.g., inactive users, duplicates, etc.) and future disputes with SAP over non-compliant users accessing the system. Therefore, we recommend paying close attention to this before signing a contract for SAP cloud offerings.
We suggest the following actions:
We recommend obtaining a complete view of user profiles and usage activities, as well as user access to modules, engines, and self-declared products: SAM analysis tools like Snow Optimizer for SAP by Flexera, natively integrated with SAP, allow you to easily retrieve this information in exportable reports. activity is counterproductive.
Estimating FUE count based on data that includes inactive users, duplicate licenses across multiple systems, or users assigned to higher-level usage types than their recorded activity is counterproductive.
The optimization of licenses based on the actual system usage must be carried out before the implementation in SAP S/4HANA Cloud, where users will be assigned their respective roles. In fact, we know that in the SAP S/4HANA system, the authorizations and capabilities granted to a user are determined by the roles assigned to that user's business record. Therefore, this needs to be defined in advance, not after the implementation, when revising roles may become more complex and challenging.
Having complete reports that cover both behavioural and authorization models allows verification that the roles and authorizations fed into the STAR simulation tool for FUE calculation are correctly configured, and also to check whether there are non-compliant users accessing the SAP system.
This preventive check enables companies to take corrective and proactive measures before a compliance audit by the vendor, avoiding unexpected additional costs.
For more details on managing the transition to SAP cloud offerings, attend our webinar scheduled for September 30: We will go in-depth into the rebranding to SAP Cloud ERP, the structure of the commercial offering, the licensing model, and key considerations to avoid compliance risks and unexpected expenses.
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