SAP RISE

RISE with SAP: Impact on Existing On-Premise Licences and Shelfware

How moving to RISE affects your installed SAP base — covering perpetual-to-subscription transitions, licence shelving, conversion credits, dual-use periods, lock-in risks, exit strategies, and negotiation tactics that protect your investment.

SAP RISELicence TransitionShelfware22 min read
20–22%Annual Maintenance You Stop Paying
~$4.5MCredits Secured by Early Adopters (on $5M)
6–12 MoTypical Dual-Use Grace Period
0Perpetual Rights Remaining After RISE

Table of Contents

01

RISE Transitions: From Perpetual Licences to Subscription

Foundation+

RISE with SAP is an all-in-one cloud subscription for S/4HANA, encompassing software, infrastructure, and basic support. Instead of buying SAP licences outright (CapEx) and paying annual support, you pay a recurring subscription fee (OpEx) for as long as you use the service.

This marks a shift from the traditional perpetual licence model — where ownership is indefinite — to a term-based licence model where usage rights last only as long as the subscription. Under RISE, SAP typically measures usage with Full User Equivalents (FUEs) rather than old Named User categories.

The key change: you no longer "own" a software asset — you are renting the ERP system. This has significant impacts on any installed base licences you previously purchased.

02

Converting vs Shelving Your Existing Licences

Critical Decision+

When you migrate an existing SAP ERP to RISE, a critical question arises: what happens to the licences you already paid for? In most cases, those on-premises perpetual licences must be terminated or put into "shelf" status once you sign a RISE subscription.

📦 Shelved Licences Standard Path

Licences taken out of active use — you stop paying maintenance (saving that annual 20–22% cost), but relinquish ongoing usage rights beyond a defined migration period. Your old ERP must be retired once live on RISE.

✓ Immediate maintenance savings
✓ No double-charging old + new
✓ Clean contract structure

✗ Lose perpetual use rights
✗ Can't reactivate later without new purchase
✗ No "double dipping" allowed

🔄 Contract Conversion Legacy Option

Before RISE, SAP offered programmes to convert ECC licences into S/4HANA licences (on-premise). With RISE, you're not converting to another perpetual licence — you're transitioning to a subscription. The old "conversion" model doesn't directly apply.

✓ Historical option for on-prem S/4
✓ Some credit value preserved

✗ Not available for RISE subscription
✗ Credits negotiated, not guaranteed
✗ Shelfware may get minimal credit

Dual-Use Grace Period

SAP typically allows a grace period for dual use — running your legacy ECC in parallel with S/4HANA on RISE during transition (typically 6–12 months). This must be negotiated explicitly into your contract. Ensure there is language permitting a temporary parallel run so you remain compliant during data migration, testing, and user training. Also clarify rollback options: if the cloud migration is delayed, can you continue using old licences longer?

FactorTraditional On-Premises (Perpetual)RISE with SAP (Subscription)
Licence OwnershipPerpetual rights — use indefinitely even if you stop maintenanceNo perpetual rights — access ends when subscription ends
Maintenance~20–22% per year; can drop and still use software (unsupported)Included in subscription; stop paying = lose software + support
Existing LicencesContinue using as long as you want; unused licences sit as shelfware at no costOn-prem licences for RISE-covered functions are shelved; must retire old system
Unused CapacityStop maintenance on unused modules; re-purpose elsewhereLocked-in subscription: can't scale down mid-term; over-estimated FUEs = cloud shelfware
Exit ScenarioKeep software you bought; sunset on your own timelineLose access to S/4HANA entirely; must buy new licences or find alternative
03

Financial Impact: Maintenance Savings, Credits, and Trade-In Value

Financials+

One immediate benefit of shelving old licences is eliminating annual maintenance fees. If you were paying $2M/year in SAP support for ECC, that cost disappears. But you must weigh this against the new RISE subscription fee — the goal is making cloud costs roughly equivalent to your previous maintenance + infrastructure spend.

Credits for Existing Investments

SAP usually provides credit or trade-in value for your existing investment — not a refund, but a discount applied to your RISE subscription quote. Unused maintenance can be prorated, and shelfware from past over-purchasing may be factored into a more favourable price. These credits are not standardised — they depend entirely on negotiation skill and timing.

⏰ 2021 Early Adopters

Near-100% maintenance value credited. First year of RISE almost cost-neutral. Example: $5M maintenance → ~$4.5M in credits.

📅 2025–2026 Movers

Credits diminishing as 2027 deadline approaches. Example: same $5M maintenance → ~$3M in credits. The $2M gap means double-paying during transition.

⚠️ Post-2027 Stragglers

Minimal leverage. Extended maintenance at premium prices (to 2030). See: 15 Things CIOs Need to Know About ECC End of Life.

Avoiding Double Payments

Align your RISE start date with your maintenance renewal cycle. If maintenance bills in January, start RISE right after — negotiate a credit for any prepaid support. Prevent overlap where you're paying for cloud and on-prem support simultaneously. This is also the moment to trim what you don't need: discontinue maintenance on modules that won't be used in S/4HANA so they aren't included in the RISE scope. Eliminate shelfware from your contract and only pay for what you truly need.

Real-World Example — Licence Trade-In

A global enterprise had $10M in unused SAP licences (shelfware from prior over-purchasing) and was paying $5M/year in maintenance. SAP offered a credit roughly equal to one year of maintenance plus a portion of the shelfware value, cutting initial RISE fees by ~50%. Over a 5-year contract, this saved tens of millions. A different firm that approached SAP later received only a maintenance credit with no shelfware consideration — resulting in a higher net subscription cost.

💡 Negotiation Tip

Document your unused licences and maintenance spend and use that as leverage. SAP sales teams do have flexibility to apply one-time credits or discounts for customers transitioning a large install base. Download: White Paper — Is RISE with SAP Right for You? 10-Step Evaluation  |  White Paper — 10 SAP Negotiation Tactics You Should Know.

04

Perpetual Rights Lost: Lock-In Risks and Exit Strategy

Risk+

Under the old model, owning perpetual licences meant a fallback: you could run SAP indefinitely on-premise, even without support. With RISE, if you stop paying, your ERP turns off. No perpetual usage right to fall back on — significantly increasing vendor lock-in.

SAP's strategy is to shift customers into "lifetime" subscriptions where leaving the platform is difficult. For CIOs, this means planning for the endgame up front.

Key Contract Protections to Negotiate

Renewal caps: Insist on a cap on subscription price increases at renewal (e.g., no more than ~5% per year). Right-sizing at renewal: Allow user count adjustments for divestitures or downturns. Exit assistance: Data export rights, extended read access, or migration support if you leave. Conversion option: Some customers negotiate the option to convert their subscription investment into a perpetual S/4HANA licence if they choose not to renew — SAP doesn't offer this by default, but raising it improves your position.

⚠️ No Turning Back Without Cost

Once you shelve old licences and go to RISE, returning to on-premises later means buying new licences from scratch. Any "conversion" back to perpetual would be negotiated from a position of weakness. If you have doubts, consider a phased approach: migrate a portion to RISE while keeping some core systems on-premises. Note: SAP's incentive programmes usually require a full contract conversion for the main ERP. Read: RISE vs Traditional Licensing: Contractual Flexibility Comparison.

05

Strategic Recommendations

Key Actions+
1
Inventory Your Licences and Usage

Before negotiating RISE, take stock of all current SAP licences — heavily utilised and unused — plus maintenance expenses. This baseline helps you argue for credits and ensures you only subscribe for what you need. See: SAP Licence Optimisation Through Periodic User Classification Reviews.

2
Negotiate Conversion Credits Upfront

Don't accept the first quote. Push for trade-in credits for existing licence investments and any remaining support period. If you renewed maintenance last quarter, negotiate to apply that payment toward the RISE fee. Download: White Paper — 10 SAP Negotiation Tactics.

3
Align Timing to Minimise Overlap

Plan your RISE start date to coincide with the end of a maintenance cycle. Avoid periods where you'd pay for on-prem and RISE simultaneously. Co-term the end of maintenance on products to sync with RISE commencement.

4
Include a Dual-Use Period in the Contract

Ensure the agreement explicitly permits running legacy systems in parallel with RISE for 6–12 months. Clarify that no extra licensing fees apply during migration, testing, and user training phases.

5
Plan for an Exit (Even if You Don't Expect One)

Discuss what happens at term end. Negotiate data export rights, cap renewal price increases (~5%/year), and allow right-sizing at renewal. See: RISE Negotiations Guide for CIO and Procurement.

6
Retain Some Perpetual Rights as Backup

If risk assessment warrants it, keep a subset of licences (dev system, fail-safe environment) with active maintenance as a backup. Some customers maintain a small on-prem footprint during transition.

7
Leverage Bridge Options Only if Necessary

SAP's extended maintenance (to 2030) and RISE Private Edition bridge (to 2033) are expensive last-resort measures. Better to use SAP's incentives now. See: 15 Things CIOs Need to Know About ECC End of Life.

8
Monitor Value Throughout the Term

Treat RISE as an ongoing value proposition. Regularly benchmark what you're paying per user/workload vs what on-prem would cost. If value erodes in later terms, catch it early and renegotiate. Download: White Paper — Is RISE with SAP Right for You?

9
Educate Stakeholders on the Accounting Shift

Ensure finance and procurement understand that capital assets (licences) become OpEx. Prepare them for renewal management and the importance of setting aside funds for future subscription costs.

06

Frequently Asked Questions

FAQ+
What happens to our existing SAP licences when we move to RISE?+
Your existing SAP ERP perpetual licences are typically shelved — you stop using them for production once the new S/4HANA cloud system is live. You also stop paying annual maintenance. SAP may allow a short overlap (6–12 months) where both systems run in parallel, but after that your on-premises licences are no longer in use and usually cannot be reactivated later without a new purchase.
Do we get any credit for money already spent on licences and maintenance?+
Yes — SAP typically offers credits or discounts as an incentive. Recently paid maintenance can be prorated toward the RISE subscription. SAP may also account for existing licence investment by reducing the subscription price (a trade-in value). The extent depends on negotiation and timing — early movers have seen very generous credits (sometimes covering most of first-year cost), while later migrants get smaller offsets. Come prepared with historical spend figures. See: RISE with SAP Case Studies.
Can we ever go back to our old system if needed?+
Not easily. When you shelf old licences and commit to RISE, you can't simply revert to ECC using old licences — you've likely terminated maintenance and possibly the licence rights. Leaving RISE later means you'd need to negotiate a new contract or buy new licences from scratch. This is why negotiating an exit strategy clause upfront is critical. Read: RISE vs Traditional Licensing: Contractual Flexibility Comparison.
How does RISE handle user count changes or adding/dropping modules?+
RISE is less flexible than traditional licensing. You commit to a certain number of FUEs and specific cloud services for 3–5 years. You can increase users (at higher cost), but generally cannot reduce mid-term. Over-estimated FUEs become cloud shelfware. Size your subscription carefully and negotiate room for adjustments at renewal. SAP's standard stance is "no reductions mid-term." Learn more: FUE Licensing Explained: How to Calculate and Optimise User Counts.
What contract protections should we insist on?+
Five areas: (1) Renewal cap — limit price increases to ~5%/year. (2) Flexibility — adjust scope at renewal or for significant business events (M&A, divestitures). (3) Exit assistance — data export rights and a cooperative exit process. (4) Dual-use clause — parallel run during migration without extra fees. (5) SLA and support levels — since you've relinquished infrastructure control, ensure uptime and response commitments meet requirements. See: Complete Licensing Guide for SAP ERP Private Cloud.
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Related Guides, Case Studies & White Papers

Transitioning to RISE? Protect Your Licence Investment.

Our SAP licensing specialists help enterprises negotiate optimal conversion credits, protect perpetual rights, benchmark RISE pricing, and plan exit strategies that prevent lock-in.

FF

Fredrik Filipsson

Co-Founder, Redress Compliance

Former Oracle, SAP, and IBM — now helping enterprises worldwide negotiate better software deals. 20+ years in enterprise licensing, 500+ clients served.

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