SAP ECC End of Life and RISE with SAP
SAP’s shift from ECC to S/4HANA brings significant licensing and cost implications. CIOs must carefully navigate subscription models, licensing conversions, cost increases, and contract negotiations to optimize their SAP investment.
Here’s what you need to know and what to do.
1. ECC Licensing Ends – What’s Next?
- SAP will end ECC support by December 31, 2027. Extended support is available until 2030 but at a 2% annual maintenance increase beyond 22%.
- After 2030, SAP will not support ECC at all, effectively forcing a migration to S/4HANA.
✅ Action: Plan your migration now. Delaying could mean rising maintenance costs and less room for negotiation with SAP.
2. Subscription Model Replaces Perpetual Licensing
- ECC customers own perpetual licenses and pay an annual maintenance fee.
- RISE with SAP shifts to a subscription model, meaning ongoing payments instead of a one-time purchase.
- If you terminate RISE, you lose access to the software—unlike ECC, which you can run indefinitely.
✅ Action: Evaluate TCO over 5-10 years. A subscription may seem cheaper upfront but could cost more long-term.
3. License Conversion Can Be Costly
- Moving from ECC to S/4HANA does not mean a 1:1 license swap.
- SAP provides a License Conversion Program, but you may not get full credit for your existing ECC licenses.
- Your old perpetual licenses are effectively scrapped in RISE—you start fresh with a new subscription.
✅ Action: Push for a license credit when negotiating S/4HANA or RISE contracts.
4. RISE Bundles Hosting – But At What Cost?
- RISE includes cloud hosting (AWS, Azure, Google Cloud), but SAP controls the contract.
- You cannot negotiate cloud costs directly with hyperscalers.
- RISE’s pricing includes hosting, support, and maintenance, making it harder to see individual cost components.
✅ Action: Compare the cost of self-managed S/4HANA on AWS/Azure vs. SAP’s bundled offering before committing to RISE.
5. Named User Licenses Are Replaced by FUE (Full Usage Equivalents)
- Traditional SAP licenses use named users (Professional, Limited, Employee, etc.).
- S/4HANA (especially in RISE) uses FUEs, assigning different user types a weighted cost.
- Overestimating FUEs can significantly inflate costs.
✅ Action: Optimize user assignments before converting licenses to avoid unnecessary costs.
6. SAP Will Audit Indirect Access in S/4HANA
- Indirect access (third-party apps creating SAP transactions) remains a licensing risk.
- SAP now offers Digital Access licensing, but you may need a separate license for API-based interactions.
- RISE does not eliminate indirect access costs.
✅ Action: Conduct an internal audit of indirect access risks before signing new contracts.
7. ECC Support Costs Are Rising
- Current ECC support costs 22% of the license value annually.
- From 2028 to 2030, extended support will cost 24%+.
- RISE customers may get ECC support extended to 2033, but this requires committing to RISE.
✅ Action: Use the 2027 deadline as leverage in negotiations. SAP is more willing to offer deals now than later.
8. RISE Contracts Have Multi-Year Lock-ins
- RISE contracts are typically 3-5 years, with limited exit options.
- Annual price increases of 3-5% are common in RISE contracts.
- Some hidden costs, like extra storage, disaster recovery, and premium SLAs, may not be included in base pricing.
✅ Action: Negotiate price caps and flexibility for contract renewals.
9. SAP Maintenance Costs vs. RISE Costs
- Staying on ECC with maintenance could be cheaper in the short term but more expensive in the long term.
- RISE bundles maintenance into the subscription price, but costs may rise after initial contracts expire.
- TCO modeling is critical in comparing self-managed S/4HANA vs. RISE.
✅ Action: Model your TCO over 10 years before deciding.
10. Third-Party Support Can Reduce Costs
- Companies like Rimini Street and Spinnaker Support offer SAP support at 50% less than SAP’s rates.
- This allows companies to stay on ECC past 2027 without paying SAP’s extended fees.
- However, SAP may restrict third-party support customers from future conversion discounts.
✅ Action: Consider third-party support as a bridge strategy to delay migration without overpaying for SAP support.
11. SAP Incentives for Early Adoption
- SAP has offered migration credits for customers moving early to S/4HANA.
- Some RISE contracts offer ECC extension until 2033 as an incentive.
- These deals may disappear as the 2027 deadline nears.
✅ Action: Engage SAP now to explore migration incentives before they expire.
12. SAP Pricing Transparency is Limited
- SAP does not publicly list RISE pricing.
- Costs are tailored per customer, leading to price variations.
- Many hidden fees emerge in cloud consumption, integrations, and support tiers.
✅ Action: Demand a detailed breakdown of RISE pricing before signing.
13. SAP Penalizes Companies That Delay Too Long
- SAP has already raised support fees for customers who are delaying their S/4HANA transition.
- The longer you wait, the fewer incentives SAP will offer.
- SAP may introduce forced license conversions closer to 2027.
✅ Action: Start migration planning now, even if you haven’t moved.
14. Contract Terms Matter More Than Ever
- SAP contracts heavily favor SAP unless negotiated properly.
- Many terms limit flexibility in reducing user counts or switching providers.
- Auto-renewals at higher prices are common in RISE contracts.
✅ Action: Engage legal and procurement teams to review SAP contracts thoroughly.
15. Long-Term Cost Optimization Requires Strategy
- S/4HANA is supported until 2040, meaning your next SAP contract is a 15+ year decision.
- Locking into the wrong pricing model now can cost millions over time.
- The best strategy is a phased, well-negotiated migration.
✅ Action: Optimize every part of your SAP contract – licenses, hosting, indirect access, and long-term pricing.
Final Thoughts
SAP’s transition from ECC to S/4HANA is not just a technical migration—it’s a massive licensing and cost shift. Your decisions today will determine whether your SAP costs stay predictable or spiral out of control.
Key takeaways:
- Audit your current licensing to avoid overpaying.
- Negotiate migration incentives and long-term cost caps.
- Evaluate RISE vs. self-managed S/4HANA carefully.
- Leverage third-party support to cut costs if staying on ECC.
- Lock in the best terms before SAP incentives disappear.
CIOs who take control of licensing negotiations now will be stronger than those who wait until SAP dictates the terms.
Read SAP Licensing Changes and the 2027 Deadline.
