Preparing SAP Negotiation Data: How to Gather the Facts Before You Negotiate

Why Data Drives SAP Negotiation Power

SAP thrives on information asymmetry – the less data you have, the more leverage they keep.

In an SAP contract negotiation, data is your strongest weapon. Every percentage point of uncertainty in pricing can cost your company thousands of dollars.

For example, a 1% difference on a $5 million SAP deal is $50,000 – real money that could be saved if you have the facts on hand. Having a data-driven foundation means you won’t be guessing or taking SAP’s word at face value. Instead, you’ll base your strategy on hard numbers and insights.

Before you even engage with SAP’s sales team, build your internal dataset: know exactly what licenses you own, how much you’re spending, how those licenses are being used, and what the market says you should pay.

Coupled with external benchmarks (like typical discounts and fair pricing), this transforms negotiation from a shot in the dark into a calculated discussion. Read our ultimate guide to SAP Contract Negotiation Tactics: How to Secure a Better Deal.

The goal is simple – turn guesswork into leverage. The following steps will show you how to gather and organize the key data points needed to put you in control of your next SAP negotiation.

Step 1 – Map Your Current SAP Spend and Contracts

Start by understanding the full scope of your SAP relationship. You need a clear picture of every contract, every dollar, and every critical date. SAP’s account executives certainly have this view of your company; you should too.

Mapping your current SAP spend and contract details is the foundation for all further negotiation planning – you can’t negotiate effectively if you don’t know what you have and what you’re paying for.

Data to Gather:

• Total annual SAP spend: Sum up everything – on-premise license fees, annual maintenance costs, and cloud subscription fees. Know your all-in annual spend.
• Contract expiration and renewal dates: Record when each major SAP contract or subscription ends, and note any notice periods (often 90–180 days) required to avoid auto-renewals or unwanted extensions.
• Maintenance base and support percentage: Identify the maintenance base (the license purchase price on which support is calculated) and the support fee percentage for each product (usually 22% of license costs annually for SAP Enterprise Support).
• Historical discounts and price uplifts: Check past contracts for the discount off list price you received on licenses or subscriptions, and any clauses about price increases (for example, if maintenance or subscription fees rose by a fixed percentage each year).
• Pending proposals or quotes: Gather any active quotes from SAP for new purchases or renewals. These will be your starting point in negotiations, and you’ll want to compare them against your benchmarks.

Checklist:

• Pull together all SAP contracts, order forms, and amendments in one place. Create a summary document that outlines key terms for each (products, quantities, prices, dates).
• Validate the maintenance base and support percentage in your agreements. Confirm that 22% support is being charged (or 19% if you’re on a legacy Standard Support plan) and see if any unused licenses are still part of that base.
• Identify upcoming renewal dates and mark your calendar at least 6 months in advance. If a contract requires a 90-day notice to terminate or change, ensure you don’t miss that window – missing it can lock you into another costly year.
• Review past price changes or renegotiations. Look at the trend: has SAP raised your fees annually? Did you negotiate a discount last time? Understanding your history with SAP will inform your strategy this time.

Tip: Build a one-page SAP spend summary broken down by product or service (e.g., S/4HANA, Ariba, SuccessFactors, BTP).

Include current spend, support costs, and key dates for each. SAP’s own account team likely has a similar snapshot of your account – you want to see what they see.

This birds-eye view will quickly show where your biggest spending and renewal risks are, helping you prioritize your negotiation focus.

Step 2 – Audit Your Usage and License Inventory

Data-driven negotiation starts with knowing what you’re actually using versus what you’ve paid for. Many SAP customers have shelfware (licenses or subscriptions they bought but aren’t using fully).

Identifying these gaps gives you powerful leverage: it shows where you’re over-invested and where SAP should concede on costs. In this step, perform an internal SAP usage audit to pinpoint your real consumption.

Key Tasks:

• Run SAP’s measurement tools (USMM and LAW): These are SAP’s license audit tools for on-premise environments. Execute an internal license measurement to get a detailed report on user counts and package/engine usage. This simulates what SAP would see in an official audit and provides a factual usage baseline.
• Compare active usage to entitlements: For each SAP product or module, list how many licenses you’ve purchased (entitlement) against how many are actually in use. For instance, if you have 500 Professional User licenses but only 380 active users, that’s 120 licenses (24%) sitting idle.
• Identify unused or underutilized licenses: Highlight the modules or components with low utilization. Maybe you licensed an SAP engine or cloud module that your team barely uses. These are shelfware – and each unused license is money spent for no return.
• Spot reallocation or trade-in opportunities: If one business unit has excess licenses and another is short, plan to reassign them instead of buying more. Or if you’ve got shelfware that you truly won’t use, note it down – you could ask SAP to credit its value toward a new purchase or reduce your maintenance accordingly.

Checklist:

• Document actual vs. entitled usage in a simple spreadsheet. For each license type or subscription, have columns for purchased quantity and current usage. Calculate the utilization percentage. This makes it easy to see where you have surplus.
• Quantify the cost of shelfware by determining the original cost of unused licenses. For example, if 120 Professional User licenses are unused and each was priced at $1,000, that’s $120,000 in shelfware. More importantly, you’re paying 22% of that each year in maintenance (~$26,400) for nothing. Make note of these wasted support dollars – they are prime targets for elimination or credit.
• List unused modules or under-deployed products: Perhaps you own an SAP industry solution or add-on that’s not rolled out. Write down these items with their annual cost impact.
• Document potential savings: Using the data above, estimate how much you could save by removing or optimizing licenses. This could be in the form of reduced maintenance fees (dropping shelfware from support) or avoiding new purchases by utilizing what you already have.

Negotiation Angle: Leverage your usage data to challenge SAP’s proposals.

If SAP comes pushing for a new purchase, you can respond with, “We have 120 unused licenses in our inventory – let’s discuss applying that value instead of selling us more.” When it’s renewal time, argue for a reduced maintenance base: “Why should we keep paying support on licenses we aren’t using?”

This factual approach can justify requests for cost reduction far better than generic complaints about price. SAP reps are used to clients coming unprepared; when you show you’ve done a usage audit, it signals that you expect a financially rational deal.

What leverage do you have? – Leverage Points in SAP Negotiations: Timing, Competition, and Internal Alignment

Step 3 – Benchmark SAP Pricing and Discounts

Now that you have your internal house in order, turn to external market intelligence. SAP’s pricing is famously opaque and highly variable – similar customers can end up with very different deals. By collecting benchmark data, you ensure that SAP’s quote is not taken at face value.

Instead, you’ll know if it’s aggressive or if there’s ample room for improvement.

Benchmarks serve as an anchor for your counteroffers and a reality check on what “good” looks like.

What to Benchmark:

• Discount levels on licenses: What kind of discount off list price do enterprises like yours usually get for on-premise SAP software? Often, it’s in the range of 40–70% off list for large license deals. If SAP’s offering only 20% off, that’s a red flag. For cloud subscriptions (SaaS like SuccessFactors, Ariba, etc.), typical discounts might be lower – perhaps 25–40% off list – but significant nonetheless.
• Maintenance rates and policies: Know the standard support rate (22% of license net price annually for Enterprise Support). If you’re a very large customer or still on Standard Support, that could be ~19%. Also, check if SAP has ever given concessions on maintenance or if third-party support is an option – this frames what leverage you have on support costs.
• Price increase caps: What’s common in the market for caps on annual fee increases? Strongly negotiated SAP contracts often include clauses that cap maintenance or subscription price increases to 2–3% per year (or tie them to inflation indexes). If your contract lacks caps, that’s something to target.
• Cloud renewal uplifts: Cloud services often experience a price increase at renewal if not negotiated. Benchmark what others tolerate – as a rule of thumb, avoid any renewal uplift above 5%. Best case, lock in pricing for a couple of years or ensure any increase is minimal. Many savvy customers insist on a maximum 0–5% increase at renewal or even price holds.

How to Build Benchmark Confidence:

• Peer insights: Tap into your network of CIOs, IT procurement, or user groups. Without violating any NDAs, you can often learn ballpark figures. For instance, another company might share, “We got 50% off on S/4HANA licenses last year.” These peer benchmarks are gold for understanding the realm of possibility.
• Independent advisors and reports: Consider insights from third-party negotiation consultants or industry reports (many publish average discount ranges or case studies). An independent advisor who sees many SAP deals can tell you if SAP’s quote is above market.
• Leverage competitive quotes: If feasible, get quotes for alternative solutions or even a third-party support provider. Even if you’re committed to SAP, knowing that Vendor X could replace an SAP module at a lower cost, or that a third-party support firm would charge 50% of SAP support, gives you bargaining power.
• Historical deals and your own benchmarks: Look at your company’s prior deals with SAP or other vendors. How does SAP’s current offer compare to what you achieved in the past? If last time you got a 60% discount, there’s no reason to accept 30% now – unless something has drastically changed. Document these comparisons.

Checklist:

• Set target discount ranges: Before negotiations, decide on a reasonable target discount for each item. e.g., “For this $2 million license purchase, our goal is to pay only $800k (60% off list). For this $500k cloud renewal, we aim for at least 30% off the list price.” Write these targets down – they will anchor your counteroffers.
• Compile benchmark data points: Create a quick list or table of key metrics (discount percentages, support fees, typical terms) gleaned from peers or research. This is your cheat sheet to reference during talks.
• Compare SAP’s proposal to benchmarks: Do the math: If SAP’s quote is $1 million at 20% off list, but you know peers got 50% off, that suggests a peer-average price of $600k. That means SAP is $400k above a competitive level. Quantify these gaps. When you tell SAP, “your price is 20% higher than the industry average we’re seeing,” it adds pressure for them to justify or adjust it.

Tip: Treat SAP’s first proposal as an opening bid, not a final market price. Sales reps often start with a middling offer to see if you’ll bite. By coming armed with benchmarks, you can respond with confidence: “We’ve done our homework, and customers of our size usually see deeper discounts and better terms. Let’s talk about getting closer to those.” This signals to SAP that bluffing won’t work – you know what the going rate is, and you expect no less.

Below is a quick reference table of common SAP pricing benchmarks to guide your planning:

Typical SAP Pricing Benchmarks

Use these figures as guidelines. If SAP’s offer falls outside these ranges (in their favor), you have a strong case to push back using data from this table.

Step 4 – Understand SAP’s Financial Calendar and Sales Pressure

Timing is everything in negotiations, and with SAP, it’s especially true. SAP’s sales teams have quarterly and annual targets.

Their fiscal year mirrors the calendar year, divided into four quarters.

As each quarter-end approaches – and most intensely at year-end (Q4) – SAP’s urgency to close deals increases. Understanding this cycle allows you to time your negotiation for when SAP is under pressure to hit quotas, enabling you to extract the best concessions.

SAP Fiscal Quarters:

• Q1 (Jan–Mar): Start of the fiscal year. SAP reps focus on building a pipeline. Pressure is relatively low, so deep discounts are less common early on.
• Q2 (Apr–Jun): Mid-year. Sales teams are still pushing deals along, with moderate flexibility if they need to catch up on targets.
• Q3 (Jul–Sep): Pressure begins to mount. SAP is evaluating if they are on track for the year. If behind, they may increase incentives to close deals before the Q4 crunch.
• Q4 (Oct–Dec): Crunch time – SAP’s fiscal year-end is December 31. This is when sales pressure is highest. Reps and managers are often scrambling to meet annual revenue goals. They become much more flexible on pricing and terms in the final weeks of Q4, because every deal could make or break their year.

In practical terms, a deal that SAP only offered a 30% discount on in Q2 might suddenly get bumped to 50%+ in late Q4 if they need the numbers.

We’ve seen scenarios where, in the last week of December, SAP threw in an extra 10–15% discount or added free extras just to get the signature in by year-end. You want to be the customer in a position to take advantage of that timing leverage.

Timing Strategy:

• Start early, but don’t finish early: Begin your internal prep and even initial talks with SAP 3–6 months before your renewal or purchase deadline. This gives you ample time to gather data (as we’re doing now) and explore options. But plan to finalize the deal toward the end of the quarter, when SAP is most eager.
• Aim for quarter-end (especially Q4): Align your negotiation milestones such that your final decision phase lands in the last two weeks of a quarter. If your renewal is not naturally near a quarter-end, you might negotiate a slight extension or time your RFP process to hit these dates. Q4 is king for leverage – if you can wait until Q4 to sign, SAP will know you’re timing it for maximum advantage.
• Use internal processes to your advantage: One tactic is to pace the negotiation by citing internal approval requirements. For example, telling SAP, “We’ll have to get this through our budget committee next month,” can help stretch discussions closer to quarter-end. You maintain control of the timeline. SAP will be aware you’re not closing the deal too early, and they’ll often improve the offer as the deadline nears.
• Be ready to move when the time is right: While you delay to build pressure, also make sure all your internal ducks are in a row (approvals, legal review, etc.). That way, if SAP does come back with a great end-of-quarter offer, you can execute quickly. If you’re not ready, you could miss the window, or SAP might doubt your ability to sign, which could reduce your leverage.

Checklist:

• Map each contract to SAP’s quarter: For every SAP agreement up for renewal or every big purchase you plan, write down its ideal negotiation period. e.g. “Contract X – renews March 2026 (Q1); plan to negotiate into late Q4 2025 for a Q4 close.” This ensures you don’t inadvertently let a renewal happen in an off-peak time.
• Monitor SAP’s engagement: Take note if SAP reps start unusually pushing for meetings or proposals as quarter-end approaches. A flurry of calls or emails in late September or late December is a sign they are eager to close. Recognize that as their need, and don’t rush to accommodate unless the terms are right.
• Align internal approvals with quarter-end: Coordinate with your finance and exec teams to ensure quick approvals are available near quarter-end. Also, prepare any needed executive involvement (like a CFO ready to make a final call) during that time. You want to remove any internal bottleneck that could prevent you from capitalizing on a last-minute improved offer.
• Stay firm on your timeline: SAP might push you to close a deal earlier (they sometimes claim things like “prices are going up next month” or “this special discount expires if we wait”). Unless there’s a truly good reason, stick to your plan. Often, these are tactics to get you to sign on their timeline. By politely resisting and sticking to your schedule, you send the message that you’re not desperate – you’re negotiating on your terms, not SAP’s.

Timing your negotiations with SAP’s sales calendar is one of the simplest yet most effective levers to improve your deal. When SAP needs the sale more than you need to sign, you have the upper hand.

Step 5 – Create a Negotiation Data Pack

By this stage, you’ve gathered a lot of information – now it’s time to organize it into a cohesive negotiation pack. Think of this as your internal “playbook” or dossier for the SAP negotiation.

It should be a concise document (or deck) that anyone on your team can skim and grasp the key facts and game plan.

This data pack ensures everyone on your side is aligned on the story the data tells and the objectives you’re after, before you ever get on a call or meeting with SAP.

Contents of Your Data Pack:

• Spend summary and contract matrix: A table or chart listing each SAP product/contract, what you’re paying, key contract dates, and any notable terms. This is the financial overview. (For example: S/4HANA – $1.5M license spend, $330k maintenance, renews Dec 2025, 50% discount last negotiated).
• Usage and entitlement analysis: Summarize the findings from Step 2. Highlight overall license utilization (e.g. “We’re using 80% of our SAP licenses, with 20% shelfware worth $X in unused value, costing $Y in annual support”). Note any major unused components.
• Benchmark pricing targets: Outline your targets from Step 3. For instance: “Current SAP offer vs. target – SAP S/4HANA: SAP quote $2M (20% off list), our target $1.2M (60% off list based on benchmarks).” Do this for each major item. Essentially, this is your wish list backed by data.
• SAP fiscal calendar & negotiation timeline: A brief section mapping your plan from Step 4: when you intend to negotiate and how SAP’s quarter timelines line up. For example: “Plan to finalize Q4 2025. Will use Q3 to exchange proposals, Q4 last week to close if terms met.” This reminds everyone why you might wait or accelerate at certain points.
• “Walk-away” thresholds and alternatives: Clearly state your red lines – the maximum you’re willing to pay or terms you must have. Also note what you’ll do if SAP doesn’t meet them (your Plan B). For example: “If SAP won’t budge beyond 30% discount, we will consider extending our existing system another year or dropping module X from the scope.” Knowing your BATNA (Best Alternative To a Negotiated Agreement) strengthens your resolve.

Format tip: Keep the pack concise and visual. A few slides or a well-structured spreadsheet is far better than a 50-page report no one reads.

Use charts or color-coding to flag important points (like high spend areas or big gaps between SAP’s price and your target). The idea is that your CFO, IT lead, and procurement team can all quickly get on the same page regarding the strategy.

Checklist:

• Review internally with stakeholders: Gather your team – IT, Procurement, Finance, and Legal – and go through the data pack. Make sure everyone agrees on the numbers and the interpretation. This alignment is crucial; you don’t want internal disagreements in the middle of negotiating with SAP.
• Define negotiation roles and messages: Decide who will lead conversations with SAP and who will support. For instance, the ITAM manager might run through usage data, while procurement discusses pricing benchmarks. Ensure each knows the key points to hit. Rehearse how you’ll present certain demands or respond to SAP’s likely counter-arguments.
• Set clear goals and fallback positions: As a team, confirm your best-case targets and your fallback. For example: “We aim for $1M total savings; we’re willing to settle for $700k if needed, but no less.” Also, identify what terms are non-negotiable (like a price cap or a contractual escape clause). This prevents confusion under pressure.
• Prepare an escalation plan: If the SAP account manager stonewalls or can’t approve what you need, be ready to escalate. That could mean having your CIO contact SAP’s senior sales executive, armed with your data pack highlights to argue the case. Plan these moves (“If by mid-Q4 we don’t have progress on discount X, we involve the CFO with a call to SAP’s VP”). Sometimes higher-level engagement can break a deadlock – but it should be done in a controlled, pre-planned way with everyone aware.

By creating and aligning on the negotiation data pack, you ensure that when you finally engage SAP, your team presents a unified front – confident, informed, and strategic. You’ll be treating the negotiation like a well-planned project, rather than an ad-hoc haggling session.

Using Data to Frame the Negotiation Narrative

Having data is one thing; using it effectively in the negotiation is another. The way you introduce and leverage your facts can steer the conversation and even change SAP’s tone.

Remember, the goal isn’t to show SAP all your data (you won’t hand them your internal pack); it’s to use that data to control the narrative and agenda of the discussion.

When you begin talks, ground the conversation in facts from the start. For example, instead of saying “Your prices are too high,” you might say, “Our analysis shows we’re only utilizing ~75% of our current licenses, so we need to address that inefficiency before considering more spend.”

This immediately signals to SAP that you are data-driven and won’t fall for generic sales lines. Similarly, you can anchor the pricing discussion by referencing benchmarks: “Based on market data we have, a company of our size would expect around a 50% discount on a deal like this – that’s the level we need to be at.” You’re not revealing your sources, but you’re making it clear you know the norms.

Key Tactics:

• Casually reference your data findings: Weave in key stats or facts from your prep. Say things like, “According to our license audit, we have $X in shelfware. We’re looking to optimize that.” Or “We’ve mapped our SAP spend and see maintenance growing 5% YoY – we need to contain that.” These comments, delivered matter-of-factly, show SAP you have done homework and will negotiate based on evidence.
• Anchor with benchmarks early: Don’t be shy about mentioning industry benchmarks professionally. For instance: “We’ve seen other SAP clients get maintenance caps around 3%, so let’s talk about including something similar,” or “Our target price point for this renewal is around $Y, which we believe is achievable given the discounts others are getting in the market.” This puts SAP on notice that you won’t accept an outlier deal.
• Make SAP justify their numbers by turning the tables and asking questions. “Your proposal is 20% above what we’ve benchmarked as industry average – can you help me understand why?” or “What makes our situation different that we’d pay more than others in our tier?” For contract terms: “Other vendors have given us 0% increases in the first 2 years; why is SAP insisting on 5%?” Forcing SAP to explain and defend its position, in light of data, often exposes weaknesses in its argument and opens the door for concessions.
• Project an informed, business-focused stance: Throughout discussions, present yourself as a knowledgeable, no-nonsense buyer. You’re not here to badger for a deal without reason; you’re here to achieve a fair outcome based on facts. Use firm language: e.g., “Our team has analyzed the usage and costs thoroughly, and here’s what makes sense for us…”. Avoid getting emotional or making it personal – this is about business, after all. If SAP makes a claim, you can respond with data: “I hear you, but the data we gathered shows a different story – let’s reconcile that.” This keeps the conversation grounded.

Finally, maintain control of the pace and agenda. Because you have the data, you set the narrative. If the SAP rep tries to derail by pushing a limited-time offer or a new product bundle, steer it back: “We’ve evaluated our needs carefully; let’s stick to optimizing what we have first, as our data indicates.” Use your information as both shield and sword – to protect against upsell pressure and to push for what you want.

Throughout the negotiation, keep your tone firm, fact-based, and calm. SAP negotiators respond best to precision and persistence.

By demonstrating that every ask you make is backed by analysis (and that you’re prepared to walk if it’s not met), you earn their respect and attention. In the end, the message you send is: “We know what we’re talking about, we know what we need, and we know what’s fair.” This is the narrative that will drive the negotiation in your favor.

5 Data Preparation Tactics to Remember

• Build your internal data pack before engaging SAP. (Prepare first, negotiate second.)
• Map renewals against SAP’s fiscal quarter-end cycles. (Timing can boost your bargaining power.)
• Use usage and spend data to justify cost reduction requests. (Facts make a compelling case for savings.)
• Benchmark aggressively — SAP expects informed counteroffers. (Come armed with market info to counter their quotes.)
• Never negotiate blind; control the timing, not SAP. (Stay in command of the process and use data at every turn.)

Read about our SAP Contract Negotiation Service.

fredrik.filipsson

Fredrik Filipsson is the co-founder of Redress Compliance, a leading independent advisory firm specializing in Oracle, Microsoft, SAP, IBM, and Salesforce licensing. With over 20 years of experience in software licensing and contract negotiations, Fredrik has helped hundreds of organizations—including numerous Fortune 500 companies—optimize costs, avoid compliance risks, and secure favorable terms with major software vendors. Fredrik built his expertise over two decades working directly for IBM, SAP, and Oracle, where he gained in-depth knowledge of their licensing programs and sales practices. For the past 11 years, he has worked as a consultant, advising global enterprises on complex licensing challenges and large-scale contract negotiations.

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