SAP Support Renewal Checklist: How to Prepare, Negotiate, and Save Before You Renew

Introduction – Why a Renewal Checklist Is Essential

Most SAP customers treat annual support renewals as a routine task – an automatic sign-off at 22% of license costs (plus yearly uplifts). SAP counts on this customer inertia, quietly adding price increases each year.

Without a proactive approach, you risk overpaying for maintenance on software you might not even fully use.

The key to breaking this cycle is starting your renewal planning early. Begin 6–9 months before SAP sends its renewal quote. This lead time lets you audit usage, internally align on goals, and build leverage to push back on SAP’s default terms.

By preparing well in advance, you gain the upper hand – instead of scrambling reactively when SAP’s quote (with a hefty uplift) lands in your inbox. For more insights, read our ultimate guide to Negotiating SAP Support & Maintenance: Reducing Costs and Improving Terms.

A structured renewal checklist ensures you cover all the bases: from identifying “shelfware” (unused licenses still under support) to negotiating price caps that prevent automatic uplifts. Remember, SAP’s standard practice is to raise support fees annually (often 3–5% a year if unchallenged).

But with early planning, you can challenge those increases, remove unnecessary costs, and even secure better support terms. The timeline below outlines key phases and actions to take well before your SAP support renewal date:

This timeline-driven checklist will prevent surprises and put you in control of your SAP maintenance spend.

In the sections below, we break down each phase in detail – with practical steps and checklists to ensure renewal success.

Read our guide to negotiating the SAP Renewal, Negotiating SAP Support Renewals: How to Reduce Fees, Delay Uplifts, and Regain Leverage.

9–6 Months Before Renewal – Audit and Preparation Phase

Goal: Establish a factual baseline and eliminate any waste in your SAP support contract well before renewal. About 6–9 months out, kick off your internal review. This phase is all about knowing exactly what you’re paying for and what you actually use.

Most companies find they have unused SAP licenses (“shelfware”) eating up maintenance dollars. By identifying these early, you can plan to cut them from the renewal. Also, gather every detail about your current support contract now – it will form the foundation of your negotiation case.

Start by inventorying all SAP licenses under support. Cross-check this list with actual usage data: How many user licenses are active? Which SAP modules or components are in production use? Often, you’ll discover discrepancies – for example, paying support on 500 user licenses while only 350 are actively used.

This is shelfware that can potentially be dropped to save money. Next, review system usage logs and SAP user reports to quantify underused or decommissioned products. In parallel, check key contract dates and terms: When is your renewal date, and what is the required notice period for making changes? (SAP typically requires ~90 days’ notice to reduce or cancel any portion of support.) Missing that window could lock you into another year of unwanted fees, so you want these dates on your radar now.

Also, confirm your support tier – are you on Standard Support (roughly 19% of license value annually) or Enterprise Support (22%)? This affects how much you’re paying and what negotiation room you might have (e.g., possibly downgrading to a standard plan to save costs).

Finally, build your internal case for negotiation. Document why your support fees should be reduced or at least frozen: maybe usage is down, or industry benchmarks show peers paying less than 22%. The data you gather in this phase will back up those arguments.

Checklist: (9–6 Months Before Renewal)

• Run license usage reports – capture active users, modules, and systems in use.
• Inventory all licenses under support, list quantities, and compare them against usage to spot shelfware.
• Identify unused or retired licenses that you’re still paying maintenance on.
• Verify contract renewal dates and any notice period for termination or changes (e.g. 90-day notice).
• Confirm your support level (Standard vs. Enterprise) and current maintenance percentage.
• Review SAP’s maintenance fee base – ensure support is calculated on your net license spend (after discounts), not the original list price.
• Gather last year’s invoices – understand your support cost trend and any uplift applied.
• Benchmark your support rate – if possible, compare your maintenance % and terms with industry peers or benchmarks to identify if you’re overpaying.

6–4 Months Before Renewal – Develop Negotiation Strategy

Goal: Define your negotiation game plan and position your requests before SAP issues its formal renewal quote. Around 4–6 months prior, use your data to shape a clear strategy.

This is when you decide what you want from the renewal – and what leverage you have. Internal alignment is critical at this stage: procurement, IT, and finance should agree on the objectives and fallback options. Present a united front to SAP with well-defined goals.

First, set clear objectives for the negotiation. For example, will you push for an outright support fee reduction or discount (e.g., from 22% down to 20%)? Or aim for a rate freeze (no uplift this year, keeping costs flat)? Perhaps your strategy is to terminate support on unused licenses (“partial termination”) to trim the maintenance base. It could be a combination of these.

Next, model the financial scenarios for each option. Calculate how much you’d save if SAP agrees to a 0% increase versus a 2% cap, or how much dropping certain licenses would save annually. Having these numbers helps prioritize your asks – and shows SAP you’ve done your homework.

At this point, it’s wise to prepare alternatives to strengthen your hand. One effective lever is obtaining a quote from a third-party support provider. Independent SAP support firms often charge about 50% of SAP’s fees for similar coverage.

Even if you intend to stay with SAP support, a third-party quote (or at least the evaluation of one) gives you credible leverage. It signals to SAP that you have options and are not afraid to consider leaving their support.

In addition, identify any upcoming triggers that could influence SAP’s willingness to negotiate. Are you evaluating a move to SAP S/4HANA or considering new SAP cloud products? Expansion plans or even the possibility of migrating away can make SAP more flexible in negotiations – they’ll want to keep you as a customer for those future opportunities.

Internally, engage all stakeholders now. Ensure IT is on board with any potential changes to support coverage, that finance understands the budget impacts, and that procurement leads the commercial strategy.

Also, decide on your “walk-away” thresholds – for instance, if SAP doesn’t budge below a certain uplift or price, are you prepared to shift to third-party support or cut scope? Knowing this in advance prevents last-minute indecision.

Checklist: (6–4 Months Before Renewal)

• Define your objectives – e.g., seek a X% discount, Y-year rate freeze, or drop support for specific software.
• Quantify savings scenarios – model the cost impact of each objective (e.g. 2% cap vs. 0% increase vs. removing $N in licenses).
• Align internal stakeholders – ensure procurement, IT, and finance agree on the negotiation goals and backing data.
• Obtain a third-party support quote – get at least one proposal from an independent SAP support provider as a benchmark and leverage point.
• Prepare an escalation pitch – draft a memo or slide deck to present your case to SAP’s account team, highlighting usage data and cost concerns.
• Set your “walk-away” limit – determine the point at which you would refuse renewal (or escalate to higher management), such as a maximum acceptable increase or an alternative plan if SAP says no.

4–2 Months Before Renewal – Formal Negotiation Window

Goal: Enter negotiations with SAP and secure written agreements on improved terms before the renewal quote is finalized. About 2–4 months out, it’s time to put your strategy into action and open formal discussions with SAP.

By now, you should initiate contact with your SAP account manager (if you haven’t already) to let them know you intend to discuss the renewal, not just passively renew. This signals to SAP that they can’t take your renewal for granted.

When negotiations start, present your case backed by the data you gathered. Clearly outline the issues: for example, “We have 15% of licenses not in use – we need those removed from support,” or “Our support costs have risen faster than inflation – we need an uplift cap going forward.”

Share any benchmarking info or the third-party quote subtly (“We’ve reviewed alternative support options, and they come in significantly lower, which is a concern for us.”).

By demonstrating that you know your environment and the market, you encourage SAP to respond with concessions rather than standard talking points.

Be specific in requesting concessions. Don’t shy away from asking for what you want:

• Remove or credit unused licenses (shelfware) from the maintenance contract to avoid paying for idle software.
• Multi-year rate freeze or cap – for instance, no increase for the next 1–2 years, or cap annual maintenance increases at 2% maximum. (Having a cap in writing protects you from surprise 5% hikes in year two or three.)
• Discounted support percentage – negotiate a lower blended rate, such as 20% instead of 22%, especially if you’re adding new licenses or if your environment has stabilized with fewer support needs.
• Maintenance re-leveling – sometimes called contract realignment: ensure all support fees are based on current net license values and adjusted for any reductions. This might mean rewriting the contract to reflect today’s footprint, not what you bought years ago.

During this period, keep the pressure on politely but firmly. Document all offers and promises from SAP in writing (email is fine). If SAP verbally agrees to a 2-year freeze, ask them to confirm via email or include it in a draft quote.

This avoids “amnesia” later and ensures the final contract matches what was discussed. It’s also wise to ask for an updated maintenance base calculation after any agreement on removing licenses or discounts – this recalculation should show your new, lower support cost in detail.

Meanwhile, review that all product lines or license types are covered in the negotiation. If you have multiple SAP contracts (for different modules or subsidiaries), strive for price alignment across them, so one isn’t left at a higher rate than the others. As talks conclude in this window, prepare your counterproposal for internal sign-off

Checklist: (4–2 Months Before Renewal)

• Initiate renewal talks with SAP – communicate that you intend to review and negotiate the renewal (don’t let it be “auto-renewed”).
• Present your case with data – share license audit findings, usage stats, and cost concerns to justify your requests.
• Request specific concessions: a multi-year rate freeze, a lower support percentage, the removal of unused licenses, and capped yearly increases.
• Negotiate uplift caps – push to limit any annual maintenance increase to ≤2% (or get a 0% increase for at least the next year).
• Get it in writing – obtain written confirmation (email or draft agreement) of any concessions SAP agrees to.
• Ask for a recalculated quote reflecting any changes (dropped licenses, new discounts) to verify the new lower support base.
• Ensure consistent pricing if you have multiple contracts or license bundles – align support rates and terms across all of them.
• Prepare internal approvals – brief your executive sponsors on the expected deal so that final sign-off is a formality, not a delay.

Read how SAP third-party support works: Third-Party SAP Support: Cost Savings, Risks, and When It Makes Sense.

2–1 Month Before Renewal – Finalization & Governance

Goal: Close the deal with SAP on your renewal, making sure all negotiated benefits are captured in the final paperwork, and internally approve the agreement.

As you enter the final 30–60 days before the renewal date, the focus shifts to finalizing the contract and double-checking the details. By now, SAP should have provided a revised renewal quote or amendment that includes the outcomes of your negotiation.

It’s critical to scrutinize this document line by line to ensure it matches every concession and change you fought for.

First, review the final quote or contract from SAP meticulously. Verify that the support percentage is exactly what was agreed (for example, if SAP agreed to 20% or a freeze, confirm the math reflects that). Check that any multi-year terms or caps are explicitly stated (e.g., “Support fee will remain $X for year 2025 and 2026” or “annual increase capped at 2%”).

Ensure any licenses you negotiated to remove are indeed excluded or credited in the quote. If you dropped shelfware, the maintenance base (total license value) should be lower now – confirm the numbers.

Look out for any hidden clauses that might reinstate costs, such as a line about “indexation” or “CPI adjustment” that wasn’t in your agreement.

If anything is missing or seems off, now is the time to immediately flag it to SAP and get a corrected quote.

Remember, verbal assurances are not enough – only the written contract governs what you’ll pay.

Once the quote is verified correctly, move to internal approvals. Route the final agreement through your finance, procurement, and legal teams as required. Since you involved them earlier, this should be a quick rubber stamp.

They’ll check that the pricing and terms align with what was expected and that legal protections (e.g., termination options, if any negotiated) are captured. It’s wise to also document the changes for your own records.

Write a summary of what was achieved (e.g., “Removed 150 unused user licenses – saved $X, secured 0% increase for next year, capped increases at 2% thereafter”). File this along with the signed contract – it will be invaluable when planning the next renewal. Finally, communicate the outcome internally. Inform all stakeholders (IT, procurement, finance, and any budget owners) of the new support terms and costs.

Everyone should know the wins you achieved and the commitments made. Also, set a reminder in your team’s calendar for about 9 months before the next renewal, so the process kicks off even if team members change.

Checklist: (2–1 Month Before Renewal)

• Examine SAP’s final renewal quote – ensure negotiated discounts, rate freezes, and caps are all correctly reflected.
• Confirm no hidden uplifts or clauses – double-check for any language that could allow unexpected increases (e.g., CPI adjustments) that weren’t agreed.
• Verify license removals – make sure any shelfware licenses you cut are removed from the support bill or shown as credited savings.
• Check support percentages – the final maintenance rate (%) and total cost should match your negotiated outcome, with no surprises.
• Obtain internal approvals – get sign-off from finance, procurement, and legal on the finalized terms.
• Sign and secure the agreement – have the authorized executive sign the contract/order form, and save copies in your contract repository.
• Document the negotiation results – record what was changed or achieved (for next year’s reference).
• Set next renewal reminders – mark your calendar ~9 months before the next renewal to proactively start the cycle again.

Ongoing – Governance & Continuous Cost Control

Goal: Don’t treat SAP support optimization as a one-time event. Establish governance practices to continuously manage and reduce support costs throughout the year, every year.

Once this renewal is done, the clock starts for the next cycle. The best-run organizations treat SAP support like a living portfolio – regularly reviewed and right-sized.

Begin by maintaining a support renewal calendar with critical dates. Set an alert at least 9 months before the next renewal so you never find yourself scrambling.

Also track any mid-year opportunities – for example, if your contract allows dropping licenses at the anniversary with notice, flag that notice deadline. Keeping these dates visible ensures you’ll always have time to act.

Implement a habit of regular license audits. Quarterly or at least semi-annually, review your SAP user counts and module usage. If a project ends or a system is retired, identify the licenses that have become shelfware and mark them as targets for removal at the next renewal.

Similarly, monitor your support cost trend. Create a dashboard or spreadsheet that shows your total support fees year over year, and the breakdown by product. Tie this to usage metrics.

This way, you can easily see if costs are rising faster than usage or value, which strengthens your case for future negotiations.

Another ongoing practice is to keep a negotiation playbook. Document each renewal’s process: what tactics worked, what concessions SAP gave, which arguments resonated or fell flat. Note key contacts on SAP’s side – for instance, if escalating to a regional manager helped clinch a better deal, record that.

This historical knowledge will save you time and give you an edge in the next cycle. It also helps new team members get up to speed on the strategy and SAP’s behavior patterns.

Finally, look for opportunities to leverage new investments or changes with SAP. Every time you consider buying additional SAP licenses, subscribing to a cloud service, or starting an SAP project, use that as a chance to revisit your support terms globally.

For example, suppose you’re budgeting for an S/4HANA migration. In that case, you might negotiate that project and your existing support in tandem, telling SAP you need a break on maintenance to fund the new initiative.

Even outside of renewal season, significant changes in your SAP landscape can be occasions to ask for support adjustments or credits. The key is to stay engaged year-round.

By treating SAP support management as an ongoing discipline, you ensure you’re never caught off guard and continuously optimize costs.

Checklist: (Ongoing Governance)

• Maintain a renewal timeline – keep an up-to-date calendar of all SAP support contract dates and set reminders 6–9 months in advance.
• Track annual support spend vs. usage – create a dashboard to monitor if maintenance costs are in line with system value delivered.
• Audit for shelfware regularly – quarterly review license deployment to spot any new unused licenses or modules.
• Benchmark yearly – compare your support percentage and terms against market averages each year; use findings to set negotiation targets.
• Update your playbook – after each renewal, record what was negotiated, who the key SAP contacts were, and what arguments or tactics succeeded.
• Leverage new dealings with SAP – whenever you engage SAP for new purchases or projects, revisit your support contract to seek improvements or credits.

5 SAP Renewal Best Practices to Remember

1. Begin renewal prep 6–9 months early: Don’t wait for SAP’s quote – start planning at least half a year to maximize your options and leverage.
2. Audit usage and shelfware first: Understand your actual usage and eliminate shelfware before engaging SAP. This data is your strongest weapon to reduce costs.
3. Treat renewals as a negotiation, not a formality: Never automatically renew – approach each cycle as an opportunity to renegotiate terms, just like a new deal.
4. Get all concessions in writing: If SAP offers a discount or cap, ensure it’s documented in the contract or quote. Verbal promises mean nothing later.
5. Maintain a 3-year support plan: Look beyond just this year. Forecast your SAP support costs 3 years out and set targets, so you can proactively negotiate toward a sustainable, long-term cost structure.

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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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