2020-08-02T08:16:46Z
Miriam Tover - PeerSpot reviewer
Service Delivery Manager at PeerSpot (formerly IT Central Station)
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What is your experience regarding pricing and costs for SAP S4HANA?

Hi,

We all know it's really hard to get good pricing and cost information.

Please share what you can so you can help your peers.

22
PeerSpot user
22 Answers
TM
Partner at a tech services company with 1-10 employees
Real User
Top 20
2022-10-31T13:47:48Z
Oct 31, 2022

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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Sahil Doshi - PeerSpot reviewer
Associate director at a consultancy with 10,001+ employees
Real User
Top 20
2022-09-08T09:27:15Z
Sep 8, 2022

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.

Sergio Ortiz Vega - PeerSpot reviewer
IT systems consultant at a tech services company with 501-1,000 employees
Real User
Top 5
2022-08-18T22:05:57Z
Aug 18, 2022

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.

MC
Head of Procurement at a retailer with 501-1,000 employees
Real User
Top 20
2022-06-27T13:37:37Z
Jun 27, 2022

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

GB
Director at Fujitsu
MSP
Top 20
2022-05-16T13:42:03Z
May 16, 2022

Its pricing could be better.

Haseen Perwez - PeerSpot reviewer
SAP Chief Architect at Tata Consultancy
Real User
Top 20
2022-05-12T06:53:00Z
May 12, 2022

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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Alaba Ayotunde O. OLUWAYIMIKA - PeerSpot reviewer
It Asset Management Lead at Dangote Industries Limited
Real User
Top 5Leaderboard
2022-03-30T12:34:11Z
Mar 30, 2022

The price could be lower.

Virendra Rai - PeerSpot reviewer
Director- APAC at 2iSolutions
Real User
Top 10
2022-03-24T12:51:00Z
Mar 24, 2022

Licensing costs are high.

Juzar Badami - PeerSpot reviewer
Head of SAP Center of Excellence at a consumer goods company with 10,001+ employees
Real User
Top 5
2022-03-09T10:11:17Z
Mar 9, 2022

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)

AK
Civil Engineer at gieco
Real User
Top 10
2022-01-25T13:31:05Z
Jan 25, 2022

It is very expensive. It is not cheap.

BA
Head of Information Technology
Real User
Top 20
2021-12-23T13:40:00Z
Dec 23, 2021

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

AW
Senior IT Manager with 501-1,000 employees
Real User
Top 20
2021-10-18T13:55:47Z
Oct 18, 2021

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

DiaaHussein - PeerSpot reviewer
Digital Transformation Director at a tech services company with 201-500 employees
Real User
Top 10
2021-10-04T16:52:19Z
Oct 4, 2021

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

NAWAL SAXENA - PeerSpot reviewer
SAP Project Manager at Saudi Cable Company
Real User
Top 10
2021-09-28T14:20:05Z
Sep 28, 2021

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.

Ali Mirnia - PeerSpot reviewer
Chief Executive Officer at Redment
Real User
2021-08-30T11:01:39Z
Aug 30, 2021

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.

Puneet - PeerSpot reviewer
Senior Manager at Capgemini
Real User
Top 5Leaderboard
2021-07-04T11:23:20Z
Jul 4, 2021

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.

LH
Senior Media Strategist at a media company with 1,001-5,000 employees
Real User
2021-07-02T17:36:49Z
Jul 2, 2021

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

CP
Associate director at a consultancy with 1,001-5,000 employees
Real User
Top 20
2021-05-20T15:24:27Z
May 20, 2021

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.

Shylaraj AK - PeerSpot reviewer
Senior Architect at a construction company with 10,001+ employees
Real User
Top 5Leaderboard
2021-04-27T12:40:49Z
Apr 27, 2021

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.

PP
Lead Consultant at a computer software company with 5,001-10,000 employees
MSP
2020-12-02T22:30:43Z
Dec 2, 2020

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

SL
Technical Director at a tech services company with 51-200 employees
Real User
2020-08-30T08:33:21Z
Aug 30, 2020

The pricing of the solution is quite high.

AS
Mechanical Engineer at a real estate/law firm with 1,001-5,000 employees
Real User
Top 20
2020-08-02T08:16:46Z
Aug 2, 2020

This is an expensive product.

Related Questions
Sep 27, 2021
Hi peers, Can anyone explain the main differences between SAP Business One (SAP B1) and SAP S/4HANA?  Also, do you have pointers to each product's reviews? Thank you.
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Evgeny Belenky - PeerSpot reviewer
Director of Community at PeerSpot (formerly IT Central Station)
Sep 27, 2021
@Ricardo Mano, Here are the reviews by real users on IT Central Station: https://www.itcentralstation.com/products/sap-business-one-reviews and  https://www.itcentralstation.com/products/sap-s4hana-reviews
Evgeny Belenky - PeerSpot reviewer
Director of Community at PeerSpot (formerly IT Central Station)
Sep 27, 2021
Hi @Shahzad-Islam, @VenkataM, @MuhammadWaqar, @Puneet, @Shankar Agarwal, @SanjeevKumar12 , Can you please chime-in here and share your expertise? 
HH
Director, Information Technology at VACCO Industries, Inc.
Sep 6, 2021
Hello peers, I work as the Director of IT at an Aerospace/Defense company. Currently, I'm checking Deltek CostPoint 8 and SAP S/4HANA and I'm looking for their comparison. Can anyone help?  Thanks
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Mahdi Ajoudanian - PeerSpot reviewer
Product Manager at irisa
Sep 6, 2021
Hi @Hovik Hacobian, Can I ask how you reach these systems? The ERP selection for an organization (or industry) needs methodology and experience. SAP is a Tier1 ERP but Deltek is not. So I think your roadmap is wrong from the starting point. But in general, some important parameters in selecting a system are YOUR: - Organization size (eg. 10,000 employees and users, or 10M$ USD Revenue Per Year), - Organization process (eg. full purchasing process without HR Process), - Organization industry (eg. project-oriented (E, EPC, ...), Manufacturer, Sales), - Organization needs and priorities (eg. good UI/UX over best functionality), - Organization maturity (eg. best practice process over "as-is" process). Finally, I think, first, you must clarify your needs and answer the top questions. After that, select the best choices. Both systems are great, but just for a best-fit organization. Best Regards
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