SAP S/4HANA Pricing

VARUN-JAIN - PeerSpot reviewer
Associate Manager - Strategy and Transaction at a consultancy with 10,001+ employees

Pricing is one area where S/4HANA has room for improvement. It's too costly for many people. They have come up with the subscription-based model also. The annual cost is $3,000 per user.

The only other expense is maintenance, but if you're paying for a subscription, you don't need to pay anything. However, there is a minimum commitment of $100,000.

Maintenance is always calculated as a percentage of your annual spending. For example, if you have implemented the solution, and it costs you $10 million in your first year, roughly 20 to 25 percent will be the operating cost. That is the maintenance fee SAP will charge. You will pay $2 million on a $10 million budget. 

You can think of that $2 million as $100,000 you would pay per employee to a team of consultants. If a company is relatively small and only implemented a few million, then we would recommend that they buy SAP business and outsource all the non-SAP activities.

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Juzar Badami - PeerSpot reviewer
Head of SAP Center of Excellence at a consumer goods company with 10,001+ employees

The licensing models for On-Prem as well as Public Cloud versions are based on no. of users charged Annually. Apart from the Licence cost there is a component of approx 20% Annual Maintenance Costs.

Apart from Licensing costs there is a cost of implementation and associated hardware (in case of On Prem)

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RohitKumar15 - PeerSpot reviewer
Lead Consultant at ITC Infotech

The product is not that cheap, not that expensive. It is costly in computing because these VMs have a huge CPU and utilization. We have a monthly billing, and there are extra costs for the license.

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Buyer's Guide
SAP S/4HANA
March 2024
Learn what your peers think about SAP S/4HANA. Get advice and tips from experienced pros sharing their opinions. Updated: March 2024.
767,995 professionals have used our research since 2012.
Richard Spithoven - PeerSpot reviewer
Owner at Slim

It's quite expensive. However, it can be expensive to maintain the solution. 

The licensing varies because I serve multiple customers, and there isn't a one-size-fits-all solution. There are additional costs for technical support and consulting

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MF
Co-owner / Board Member at ITS

The pricing model is based on an annual license. 

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Haseen Perwez - PeerSpot reviewer
SAP Chief Architect at Tata Consultancy

SAP S/4HANA is affordable for big companies, but is very expensive for small companies. The implementation costs of SAP are substantial.

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PG
Senior Manager at Capgemini

Licensing works on a subscription model for the cloud version and it's a one-time fee for the on-premises version.

We are happy with the pricing because it is dependant on the number of users who are using the solution.

I feel the pricing model is fair. It is also very flexible.

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Prashan Thilakawardena - PeerSpot reviewer
SAP MM Consultant at Applexus Technologies Inc.

We recommend annual licensing. It is expensive, but for large-scale companies, it's manageable.

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GP
Senior Partner at AGLC Consulting

Licensing is quite expensive. It works with yearly licenses and it's ugly. 

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Shylaraj AK - PeerSpot reviewer
Senior Architect at a construction company with 10,001+ employees

SAP has got different license mechanisms. It depends on how many SAP products you run and then how do you negotiate with the SAP teams and what kind of offer you get. At the same time, generally, everyone says SAP products are a bit costly. 

Some of the SAP systems are licensed based on the number of CPUs that are being deployed, and some of the SAP products are licensed based on the number of primary users, and some of the SAP systems are based on the database footprint. Different SAP products have different license mechanisms, so there should be a person who is knowledgeable about SAP that can understand and then review the licensing agreement and get the right SAP product - and perhaps help negotiate the price.

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Sahil Doshi - PeerSpot reviewer
Associate director at a consultancy with 10,001+ employees

SAP is a costly product in terms of maintenance for an organization who has reached a particular level. For organizations, like PepsiCo and Coca-Cola, they rely heavily on this solution and cost is not as issue for companies of that size.

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NAWAL SAXENA - PeerSpot reviewer
SAP Project Manager at Saudi Cable Company

There is a license required for the use of this solution and we are on a monthly subscription. The cost of the solution is expensive compared to other solutions. 

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AM
Chief Executive Officer at Redment

The price of the solution is reasonable but some modules can be expensive. When comparing SAP S4HANA to other solutions, such as Oracle, it is not expensive.

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Shubham Desale - PeerSpot reviewer
Senior Consultant at Inteliwaves

Our customers do need to pay for licenses. It is expensive.

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LH
Senior Media Strategist at a media company with 1,001-5,000 employees

We're not sure yet. I think it was six figures a year, over 100,000. It has straight-up licensing fees.

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Alaba Ayotunde O. OLUWAYIMIKA - PeerSpot reviewer
It Asset Management Lead at Dangote Industries Limited

The price could be lower.

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Anshuman Bansal - PeerSpot reviewer
Head - SAP & Digital Transformation at a financial services firm with 1,001-5,000 employees

There is a license to use this solution.

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Hisham Ismail - PeerSpot reviewer
Vice President, SAP Support Operations at Snag Free
MOORTHY ESAKKY - PeerSpot reviewer
SAP Practice Head (S4 HANA,Group Reporting & BRIM practices)FPSL/PaPM at ERP Logic

We pay for an annual license. The pricing will depend on the client's needs.

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Sergio Ortiz Vega - PeerSpot reviewer
IT systems consultant at a tech services company with 501-1,000 employees

It is an expensive solution. On a scale from one to five, with five being the most expensive, I would rate the price at four.

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TM
System & Network Engineer at a tech services company with 1-10 employees

The solution often does not survive our shortlist round because it is very expensive when compared to other products. It is only appropriate or selected for very specific use cases and types of companies. 

In some cases, the solution is ten to twenty-five times more expensive than competitors like Dynamics because it requires licensing, cloud environment costs, and contracts for maintenance and support. 

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PS
SAP Technology Manager at a financial services firm with 5,001-10,000 employees

SAP licenses are more costly than others. But now SAP provides flexible models for licenses for users who are in a higher position or only have to give approval or check things.

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MC
Head of Procurement at a retailer with 501-1,000 employees

I'm not responsible for the licensing arrangements. I can't speak to the exact cost. 

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DH
Digital Transformation Director at a tech services company with 201-500 employees

SAP S4HANA is expensive and for smaller businesses, it is very difficult for them to have the budget.

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GB
Director at a tech vendor with 10,001+ employees

Its pricing could be better.

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SK
Administrator at HCI

I would rate the price of SAP S4HANA a four out of five.

The price of SAP S4HANA could be cheaper.

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CP
Associate director at a consultancy with 1,001-5,000 employees

I have found the price of the solution is on the medium to the expensive side of the scale. There is a license for this solution and there are additional maintenance fees.

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Kumar Saurav - PeerSpot reviewer
Director - SAP BTP at Incture

The cost is reasonable but it's important to check on the options they offer to ensure you get what you want and that you're not paying for things you don't need. It's about having a consistent experience. 

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PV
Project and Service delivery Manager at a tech services company with 11-50 employees

This is not the cheapest solution on the market, so you need to invest seriously in it. As a solid product, it has a solid price. It's definitely one of the more expensive tools on the market, but it's also one of the best products on the market. 

You need to pay for licensing. There are multiple models, but typically, it's a yearly subscription. Usually, when you implement it from scratch, you don't just purchase it for the first year, but for three or five years. 

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DK
IT & SAP Head at kudos chemie limited

The price of SAP S4HANA is reasonable.

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AS
SAP Business Analyst with 11-50 employees

In Nigeria, we have to consider currency conversion rates with the Euro and Dollar that impact the final cost. But I believe that it'll be cheaper in the cloud where SAP has to do the maintenance of the server and more in the long run. 

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NH
Director Comercial at a computer software company with 10,001+ employees

It is important to understand the licensing model and ensure that the sizing of the platform is correct for the number of users and the volume of information to be processed.

Some components may require additional licensing.

The concept of digital or indirect access should be eliminated

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VB
Works at a tech services company with 1-10 employees

The solution is expensive. There are many discussions surrounding the topic of third-party indirect usage of SAP solutions. If you have a third-party system and you have a connection to the SAP system, should this third-party usage qualify as a cost or not. It is very complicated to handle with the SAP organization.

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PP
Lead Consultant at a computer software company with 5,001-10,000 employees

The price of this product is an issue for some customers.

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Steven Leung - PeerSpot reviewer
Technical Director at DynaSys

The pricing of the solution is quite high. 

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AS
Mechanical Engineer at a real estate/law firm with 1,001-5,000 employees

This is an expensive product.  

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Virendra Rai - PeerSpot reviewer
Director- APAC at 2iSolutions

Licensing costs are high.

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NS
IT Director at a wholesaler/distributor with 51-200 employees

There is an annual license for SAP S4HANA.

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ML
SAP Consultant at a tech services company with 1-10 employees

I have not dealt with licensing directly because our head office manages that. We only pay SAP to perform maintenance on the solution instead of doing it in-house. Given the size of an ERP system, you need some extra labor to maintain it, but it's justified if you look at the cost-benefit analysis. Some companies go overboard with hiring many people, and then they say it's too expensive.

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AK
Civil Engineer at gieco

It is very expensive. It is not cheap.

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BR
Head of Information Technology at a energy/utilities company with 51-200 employees

The licensing costs are not transparent at all - for example, we pay a 22% annual maintenance fee without really getting any value for it.

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AW
Senior IT Manager with 501-1,000 employees

Though we are talking about a competitively priced model, the pricing could be more cost-effective. 

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SV
Lead Consultant at a retailer with 1,001-5,000 employees

The price of the solution is expensive.

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CA
SAP Consultant at a tech services company with 51-200 employees

The price of the solution is on the higher side compared to others.

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it_user852423 - PeerSpot reviewer
Project Coordinator at Exzatech Solutions Ltd

The cost is $5000.

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Buyer's Guide
SAP S/4HANA
March 2024
Learn what your peers think about SAP S/4HANA. Get advice and tips from experienced pros sharing their opinions. Updated: March 2024.
767,995 professionals have used our research since 2012.