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Industry · SAP S/4HANAResearch Paper · No. 36

The SAP S/4HANA Migration Economics.

A thirty-eight page economic analysis of the conversion-versus-greenfield decision, the licensing crossover points, the indirect-use exposure window, and the negotiation moments most customers miss.

Research Paper 38 pages Published 28 May 2026 Format: PDF Access: Gated
What You'll Learn

Six learning outcomes from active matters.

  1. How the conversion-versus-greenfield decision actually breaks down. The licensing-first framework for the most consequential decision in the migration window, including the entitlement utilisation crossover point at roughly 62 per cent that flips the economic answer.
  2. How the FUE conversion ratio is calculated, and where the negotiation latitude sits. The five ratio classes, the four most common opening positions we see from SAP, and the documented reductions across more than one hundred and twenty closed conversions.
  3. How Digital Access credit is treated during the conversion. The credit-for-spent calculus, the conversion-into-FUE option, the timing effects, and the negotiation lever most CFOs miss when reviewing the conversion package.
  4. Why dual-running cutover is the highest-risk indirect-use window in the SAP lifecycle. The exposure pattern, the documented 4.2x average baseline increase, and the contractual language that protects against it.
  5. The six negotiation moments of the migration window. When each lever opens, when each closes, and the documented commercial impact of pulling each one in the correct sequence.
  6. Settlement structures that compound across the contract term. Re-measurement caps, scope-of-use clauses, conversion-credit treatment, and three more provisions that protect the migration outcome through renewal.
Table of Contents

Seven chapters. 38 pages.

Chapter IThe migration economics frameworkpg. 5
Chapter IIConversion versus greenfield: the licensing crossoverpg. 9
Chapter IIIThe FUE conversion ratio negotiationpg. 15
Chapter IVDigital Access credit and conversion treatmentpg. 20
Chapter VIndirect-use exposure during dual-running cutoverpg. 25
Chapter VIThe six negotiation moments of the migration windowpg. 30
Chapter VIISettlement structures: lessons from closed engagementspg. 35
Who It's For

Four audiences. One reference.

Chief Financial Officers

CFOs sponsoring the migration business case. The economics chapters reconcile licensing cost against the broader migration investment envelope.

Chief Information Officers

CIOs sequencing the technical migration. The exposure-window and dual-running chapters translate licensing risk into project-plan terms.

Procurement Leadership

Category managers running the conversion negotiation. The FUE-ratio and Digital Access chapters set out the specific commercial levers.

Heads of SAM

Software asset managers preparing the entitlement baseline. The credit and conversion chapters define the operational scope.

The opening conversion offer was forty-one million over five years. By the time we closed the FUE ratios, the Digital Access credit, and the dual-running exposure language, the executed offer was twenty-six.

Head of Group SAMEuropean Industrial Manufacturer · Closed Q1 2026
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