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Case Study · SAP · RISE

RISE with SAP cut thirty percent. Asia Pacific telecom conglomerate.

A 25,000 employee telecom conglomerate across Singapore, Malaysia, Thailand, and the Philippines cut RISE with SAP cost by thirty percent and won contract flexibility on BTP overage, indirect access, and annual escalator. The buyer side reference for procurement and CIO leaders heading into RISE conversion.

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30%RISE cost reduction
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A telecom conglomerate operating across four Asia Pacific markets converted from on premise SAP ECC to RISE with SAP and cut the headline RISE price by thirty percent.

The win sat in three levers. The Full Use Equivalent baseline, the BTP overage clause, and the indirect access redline. Each one moved real money. The combined saving was USD 14.4 million across the five year RISE term.

Read this with the SAP knowledge hub, the RISE negotiation landing, the RISE hidden costs guide, and the indirect access guide. Pair it with the SAP services page and the Vendor Shield subscription.

Key Takeaways

What a CIO and procurement leader need to know in 90 seconds

  • RISE price cut thirty percent. From USD 48M to USD 33.6M across five years.
  • FUE baseline restated. Down from 12,000 to 8,500 FUE after license cleanup.
  • BTP overage clause negotiated. Cap on year over year BTP consumption uplift.
  • Indirect access redline. Specified static read user count.
  • Annual escalator capped. Three percent year over year, not seven.
  • Migration term extended. Eighteen month go live runway, not twelve.
  • Win sat in preparation, not the negotiation room. Eight months of baseline work before the SAP conversation opened.

Client situation

The client operates a telecom group across four Asia Pacific markets. The SAP estate runs ECC 6.0 with industry add ons, BW data warehouse, and a series of CRM, billing, and provisioning integrations.

The starting estate

  • Users. 25,000 employees, 7,800 named SAP users.
  • FUE baseline. 12,000 Full Use Equivalents on the SAP audit position.
  • Modules. ECC FI, CO, MM, SD, PP, BW, plus telecommunications industry add ons.
  • Integrations. Twenty eight non SAP systems writing into ECC, fifteen reading from ECC.
  • Current spend. USD 8.5M annual SAP support fee.

The trigger

The 2027 ECC end of maintenance deadline forced a conversion decision. The CIO and CFO wanted RISE with SAP as the conversion path and asked Redress to run the buyer side negotiation in parallel.

Starting position

SAP opened the RISE conversation with a USD 48M five year quote based on a 12,000 FUE baseline, a 35 percent BTP overage rate, and a seven percent annual escalator.

The opening SAP quote

ItemQuoteConcern
FUE baseline12,000 FUEIncludes shelfware from ECC license history
RISE annual feeUSD 9.6M year oneReflects inflated FUE baseline
BTP overage rateUSD 0.35 per BTP unitNo cap on year over year consumption uplift
Annual escalator7 percentAbove market for cloud subscription
Indirect accessDocument license modelNo cap on read user count
Migration term12 months go liveTight against industry add on complexity
Total five yearUSD 48MHeadline figure unacceptable to CFO

The FUE baseline carried legacy shelfware

The 12,000 FUE position reflected the historic SAP order forms, not the actual usage. License cleanup analysis identified 3,500 FUE of unused or duplicated entitlements that the client had paid for but never deployed in production.

Approach

Redress ran a structured eight month engagement across four phases. License baseline, BATNA development, RISE negotiation, and contract redline.

Phase one. License baseline

  1. FUE audit. Independent count of named users by license type and module.
  2. Shelfware identification. Cross reference order forms with actual usage logs.
  3. Indirect access mapping. Catalog the twenty eight integration points.
  4. BTP usage forecast. Three year consumption projection based on current SCP usage.

Phase two. BATNA development

  • Third party support quote. Rimini Street and Spinnaker Support pricing on the existing ECC estate.
  • S/4HANA on premise option. Customer hosted deployment costing.
  • Extended maintenance budget. SAP's published extended maintenance pricing through 2030.
  • Greenfield BATNA. Oracle ERP Cloud and Microsoft Dynamics 365 indicative pricing.

Phase three. RISE negotiation

The negotiation ran across four rounds with the SAP local Asia Pacific account team and the SAP regional escalation desk. Each round narrowed the gap on FUE baseline, BTP overage, and escalator.

Phase four. Contract redline

  • BTP overage cap. Twenty percent year over year maximum uplift on BTP consumption rate.
  • Indirect access clause. Static read user count, no document throughput counting.
  • Annual escalator. Three percent year over year, capped.
  • Migration term. Eighteen month go live runway, six month parallel run period.
  • Exit clause. Twelve month notice period at year four, no termination penalty.

The thirty percent saving did not come from negotiation pressure. It came from eight months of baseline work that gave the procurement team the data to reject the SAP opening position with confidence. Preparation beat tactics every time.

Results

The final RISE deal closed at USD 33.6M across five years, a thirty percent reduction on the SAP opening position. The contract carries flexibility on BTP, indirect access, escalator, and exit.

Final RISE deal versus opening quote

ItemOpeningFinalMovement
FUE baseline12,0008,500Down 3,500
RISE annual fee year oneUSD 9.6MUSD 6.5MDown USD 3.1M
BTP overage capNone20 percentCap added
Annual escalator7 percent3 percentDown 4 points
Indirect accessDocumentStatic read userModel changed
Migration term12 months18 monthsAdded 6 months
Exit clauseNoneYear fourAdded
Five year totalUSD 48MUSD 33.6MDown USD 14.4M

Summary of the win

  • USD 14.4M saved across five years. Thirty percent reduction on the SAP opening position.
  • FUE baseline reset. Removed legacy shelfware from the cloud subscription.
  • BTP cap added. Year over year overage rate locked.
  • Indirect access clarified. No surprise audit exposure post conversion.
  • Annual escalator halved. Three percent versus seven percent.
  • Migration runway extended. Six extra months for the industry add on cutover.
  • Exit clause secured. Year four notice with no termination penalty.

Lessons for procurement and CIO leaders

Five lessons sit inside this deal that apply to any RISE conversion across the Asia Pacific region or beyond.

Five lessons

  1. Baseline before the conversation. Eight months of license cleanup beat any negotiation tactic.
  2. Build a credible BATNA. Third party support, on premise S/4HANA, and greenfield options.
  3. Redline BTP overage rate. Cap the year over year uplift in writing.
  4. Redline indirect access. Move from document to static read user where possible.
  5. Negotiate an exit clause. Year four notice protects against vendor lock in.

What to do next

The seven step checklist below is the buyer side starting position before any RISE with SAP conversion conversation.

  1. Baseline the FUE position. Independent count by license type and module.
  2. Map indirect access. Catalog every integration that reads or writes SAP.
  3. Forecast BTP consumption. Three year usage projection.
  4. Build the BATNA. Third party support, on premise S/4HANA, greenfield ERP.
  5. Engage the SAP team. With the baseline data and BATNA in hand.
  6. Redline the contract. BTP cap, indirect access, escalator, exit clause.
  7. Engage independent advisors. Buyer side only, no SAP conflict of interest.

Frequently asked questions

How long did the engagement take?

Eight months from kickoff to final signature. Three months on license baseline and BATNA development, three months on the four round RISE negotiation, and two months on contract redline and signature. The preparation phase delivered most of the value before the SAP conversation opened.

Why was the FUE baseline so inflated at the start?

The 12,000 FUE position reflected the historic SAP order forms across two decades of acquisition activity. The customer had bought licenses for projects that never deployed, retained licenses for employees who had left, and never reconciled the order form against actual usage. License cleanup is a standard first step for any RISE conversion.

How does the BTP overage cap work?

The contract specifies a year over year cap on the BTP consumption rate uplift. If BTP usage doubles in year three, the per unit price cannot rise more than twenty percent over the year two price. The cap protects against the SAP discount erosion that often hits BTP consumers in years three and four.

Was third party support a real option in the negotiation?

Yes. Rimini Street and Spinnaker Support both quoted on the existing ECC estate at roughly fifty percent of the SAP annual support fee. The third party quote functioned as a real BATNA throughout the negotiation. The customer reserved the right to keep ECC and use third party support if the RISE price did not move.

What did the indirect access redline change?

The contract moved from the document license model to a static read user count. Document licensing prices each document transmitted between non SAP systems and SAP. Static read user prices a fixed user count regardless of document volume. The static model removed the surprise audit exposure that document licensing creates.

How does Redress engage on RISE conversion negotiations?

Redress runs RISE conversion advisory inside the Vendor Shield subscription and the Renewal Program. Every engagement is led by a former SAP commercial executive on the buyer side and supported by the RISE benchmark we maintain across recent conversions at similar scale and geography.

How Redress engages on SAP advisory

Redress runs SAP advisory inside the Vendor Shield subscription, the Renewal Program, the Benchmark Program, and the Software Spend Assessment.

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A buyer side reference on RISE with SAP conversion. FUE baseline math, BTP overage cap, indirect access redline, annual escalator, and exit clause across the five year RISE term.

Independent. Buyer side. Written for CIOs, CFOs, and procurement leaders carrying SAP ECC heading into the 2027 end of maintenance deadline. No SAP influence. No sales kickback.

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30%
RISE cost reduction
$14.4M
Five year saving
500+
Enterprise clients
$2B+
Under advisory
100%
Buyer side

The thirty percent saving did not come from negotiation pressure. It came from eight months of baseline work that gave the procurement team the data to reject the SAP opening position with confidence. Preparation beat tactics every time.

Group CFO
Asia Pacific telecom conglomerate
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