Minimize
Overhead
Optimize
Needs

Lower Licensing Costs,
Minimal Authorization Risks

Workforce Reductions and Organizational Change

Germany’s Economy is experiencing a period of slow growth, leading many Organizations to reduce their Workforce. Around one in three Companies is planning Job Cuts, while other Sectors continue to face a Shortage of Skilled Professionals.

Manufacturing, especially the Automotive Industry, and traditional Retail have been among the Sectors most affected by Workforce Reductions. Many large Organizations, including Bayer, Bosch, and ZF, have implemented or announced Restructuring Measures.

„Minimize Overhead, Optimize Needs“ (MOON) helps reduce SAP Licensing Costs by optimizing User Authorizations, removing unused Authorizations Rights, and aligning License Types with Actual Usage in SAP S/4HANA Environments.
Based on Clean Core Principles, MOON improves Operational Efficiency, reduces Complexity, and lowers Total Cost of Ownership (TCO).

Our Collaboration with DLC was a great Success. After Job Cuts and falling Profits, we had many Unused Licenses. Instead of spending Money on unnecessary Cloud Products, DLC helped us optimize our Licenses and significantly reduce Costs.

Job Cuts Due to Technological Change and Cost-Cutting Measures

There is a strong Link between Job Cuts and Software Licenses. When Employees leave a Company, their Software Licenses are often no longer needed. Instead of letting these Unused Licenses go to waste (Shelfware), Companies can exchange them for Credits and reduce Costs. This is especially relevant as Businesses invest in new Technologies like AI and look for ways to save Money.

Massive Workforce Reductions: Companies such as Bosch, Siemens, Meta, Amazon, and HP are cutting Jobs — and even SAP itself is reducing its Workforce — to lower Costs and Focus on Emerging Technologies such as AI.

KI ersetzt Arbeitskräfte, etwa bei HP oder in der Nach­richten­branche, was zu Stellenabbau führt. Besonders betroffen sind Ver­wal­tungs­bereiche sowie IT-Posi­tionen, da 35 Prozent der Firmen im IT-Sektor einen Stel­len­abbau erwarten.

Social Responsibility: To avoid Layoffs, Companies rely on natural Employee Turnover, Part-Time work for older Employees, or Compensation Programs.

Management of Software Licenses
(Software Asset Management)

  • Optimization:
    Effective License Management (SAM) during restructuring is essential to avoid hidden costs.
  • Cost Savings: 
    Unused Software Licenses can be legally resold, creating an important Opportunity to generate Revenue or reduce Costs during Workforce Reductions.
  • License Optimization: 
    After Workforce Reductions, it is essential to carefully analyze Software Usage (License Harvesting) to identify Licenses that are no longer needed. These Unused Licenses can then be reassigned, discontinued, or sold.
  • Resale of Used Licenses: 
    The market for used software licenses is well established and can help companies significantly reduce their IT costs.  The European Court of Justice (ECJ) has confirmed that the resale of software licenses is permitted under specific conditions.

Summary: Restructuring Initiatives and Technological Change are leading many Companies to reduce their Workforce. As Employees leave, Software Licenses often become unused, creating an Opportunity to optimize IT Costs. Through effective SAM, Organizations can identify, reassign, or legally resell surplus Licenses, helping to reduce Expenses and unlock additional Value from existing Software Investments.

BENEFITS M.O.O.N Service

Our 5-Step Approach to Optimizing License and Authorization Costs

  • Ensuring Correct SAP License Assignment
  • Optimized License Management
  • Reduced Administrative Overhead
  • Fixing Over- and Under-Licensing
  • Recommendations for Actions

Over-Licensing

  • Can Licenses be returned / exchanged?
  • Pay-Per-User: Cloud Subscriptions such as Microsoft 365 or Salesforce theoretically allow Licenses to be canceled on a monthly basis when Jobs are cut.
  • Risk of Over-Licensing: Subscriptions are often not adjusted quickly enough, resulting in continued Payments for Employees who have already left the Company.

Under-Licensing

  • Can Under-Licensing be reduced as a Result of Organizational and/or Technical Changes?
  • How Can Under-Licensing be resolved Cost-Effectively?