License Optimization
Reclassify developers. Retire dormant authorisations. Right-size the developer population to the activity evidence. The continuous reduction programme that runs between the audit cycles.
Read the brief →A global manufacturing group with a 4,200-strong developer-user population was paying the Developer tier on every technical user regardless of activity. We rebuilt the classification on twelve months of TCODE evidence and removed $3.4M from the renewal forecast.
The numbers below come from a 12-month TCODE-evidence rebuild conducted between August 2025 and February 2026. Anonymised at client request and verifiable through a reference call.
The client, a global discrete-manufacturing group operating sixty-eight plants across fourteen countries, ran an SAP ECC estate with a developer-user population of 4,200 across the ABAP, BW, FI/CO, and SolMan technical teams. The renewal forecast for the developer-tier licences alone was four point nine million dollars, a thirty-eight percent increase over the prior contract value driven by the size growth of the developer population over the contract term.
The classification methodology in use assigned every user with a developer authorisation object to the Developer tier — a methodology that captured the full population but did not reflect actual use. Internal IT had repeatedly flagged that the methodology over-stated the count, but procurement had been unable to mobilise a reclassification programme inside the fifteen months between contract anniversaries.
The brief was specific: rebuild the developer-user classification on activity evidence over a twelve-month window, identify which users genuinely required the Developer tier on the SAP licence-band definitions, and present a defensible reclassification to procurement before the renewal proposal deadline.
The opening position was inherited from the SAP-supplied LAW output. The LAW report assigned all 4,200 users to the Developer tier and presented this as the contracted commitment for the upcoming renewal.
The breakdown by authorisation pattern was as follows.
We took the engagement on a renewal-preparation footing with no SAP audit in flight. The evidence brief was a TCODE-history extract over twelve months for the full 4,200-user population, supplemented by ChaRM transport-history extracts for the SolMan population and BW query-history extracts for the BW population.
The analysis tested every user against the SAP-published Developer-tier definition, which requires the user to have used a development transaction for the creation, modification, or activation of ABAP code, BW data models, or Java application objects. The methodology distinguished between authorisation-to-develop and activity-as-developer — the first is a security-design choice, the second is a licensing-relevant fact.
The reclassification recommendations broke down as follows: 1,400 users moved from Developer to Professional on the ABAP side where the user had read-only TCODE history; 900 users moved from Developer to Limited Professional where the activity was confined to query-builder use; 500 SolMan ChaRM users moved to a Professional tier on the basis that ChaRM transport approval is not a development activity under the contracted definition; 300 BW users moved to Professional on the basis that BW report-running is not modelling; 100 basis users remained at Developer on the basis that basis administration falls within the Developer-tier definition.
The output was a developer-user population of 1,000 against the prior 4,200, with the remaining 3,200 users moved to Professional, Limited Professional, or Employee Self-Service tiers as appropriate. The reclassification evidence file documented the transaction-history basis for every move, with a per-user evidence sheet that survived subsequent SAP review.
The developer-tier renewal forecast was revised from four point nine million dollars to one point five million dollars — a sixty-nine percent reduction. The contracted developer-tier commitment was renewed at the lower level with a 200-user headroom buffer for organic growth over the contract term.
The contract language was updated to reference the activity-based classification methodology as the agreed measurement standard for future USMM runs, removing the interpretation risk on the Developer-tier definition. The reclassification evidence file was deposited as a contractual annex.
Total elapsed time from engagement to completed reclassification was fourteen weeks. The renewal closed within the original contract floor on the corrected developer-tier baseline.
Five takeaways from the matter that apply to any organisation managing a large developer-user population.
We had 4,200 developer licences and 1,000 developers. Once the evidence said so, the conversation got short.
Reclassify developers. Retire dormant authorisations. Right-size the developer population to the activity evidence. The continuous reduction programme that runs between the audit cycles.
Read the brief →A pre-audit examination of developer authorisations, TCODE activity, and reclassification opportunities. We surface the exposure before SAP does, and we quantify the remediation.
Read the brief →Fifty pages on the band definitions, the activity-evidence methodology, the reclassification mechanics, and the contractual annex language.
The ECC band definitions, the Developer-tier scope, the activity-evidence requirements, and the contracted measurement standards.
How a Tier-1 insurer rebuilt its Named User band methodology and saved $5.6M on the next renewal.
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