RISE with SAP & Private Cloud Negotiation Playbook
What Is RISE with SAP and Why It Matters
RISE with SAP is SAP’s all-in-one, subscription-based ERP offering that bundles software licenses, cloud infrastructure, and managed services into a single contract.
It centers around SAP S/4HANA Cloud (private edition) as the core ERP, delivered on a cloud of SAP’s choosing (often a hyperscaler like Azure, AWS, or Google) with SAP handling the technical management.
This bundle is designed to simplify the path to a private cloud SAP deployment, shifting the financial model from upfront capital expenditure (CAPEX) for licenses and hardware to ongoing operational expenditure (OPEX) via subscription fees.
For enterprises, RISE with SAP matters because it promises a streamlined cloud journey: one vendor (SAP) takes accountability for running the system, and the complexity of managing licenses, support, and infrastructure is reduced.
The offering is based on Full User Equivalents (FUEs) and system sizing, rather than traditional named-user licenses.
This means pricing is based on aggregated user roles and usage metrics, aiming to provide flexibility as you migrate from on-premises to cloud.
In essence, SAP positions RISE as “business transformation as a service,” ideal for organizations seeking to modernize their SAP landscape without a huge upfront investment.
However, with this convenience comes new pricing dynamics and negotiation considerations that CIOs and procurement teams must approach strategically.
Read our SAP Contract Negotiation Playbook: 10 Strategies for CIOs to Secure a Better Deal.
The RISE Licensing and FUE Pricing Model
One of the first things to grasp is the RISE with SAP licensing model, which revolves around Full User Equivalent (FUE) units.
Instead of purchasing a specific number of named user licenses for each role (as in traditional on-prem licensing), RISE uses FUEs to measure usage.
Different user types are weighted differently: for example, an “Advanced” user (a heavy user with broad permissions) might count as 1.0 FUE, a “Core” user (standard business user) could be around 0.2 FUE, and a “Self-Service” user might be only ~0.03 FUE.
In practical terms, 5 Core users might equal 1 FUE, or 30 Self-Service users equal 1 FUE. SAP tallies up all your users by category and converts them to a total FUE count, which forms the basis of your subscription fee.
This FUE pricing model gives some flexibility – you can mix and match roles without being locked into rigid license counts for each type – but it requires careful monitoring so you don’t exceed your contracted FUEs.
Comparatively, in a traditional on-premises model (or a BYOL – bring your own license – scenario), you would buy perpetual licenses for each user or module upfront and then pay annual maintenance (typically ~20% of the license cost) for support and updates. That old model treated licenses as a capital asset you own indefinitely.
With RISE, you subscribe to the software and services, so you only have the right to use S/4HANA as long as you keep paying.
This OpEx subscription bundles what you’d normally pay across several channels – software licensing, maintenance, infrastructure hosting, and some managed services – into one fee.
When comparing costs, you must consider the total cost of ownership (TCO) over a 3–5 year period: RISE’s FUE-based subscription should cover software support (no separate maintenance contract needed), data center costs, and basic technical services.
In contrast, the on-premises or BYOL approach involves paying maintenance to SAP, incurring cloud provider or hardware costs, and potentially hiring staff or contractors to manage the system.
Over a multi-year timeline, RISE vs on-prem cost evaluations can vary; some find RISE more expensive overall, while others see value in the included services.
The key is to model your own scenario: include license fees, maintenance, hardware/cloud infrastructure, and personnel when calculating on-prem TCO, and compare that to the all-in RISE subscription quote.
This SAP RISE TCO model analysis will reveal whether SAP’s proposal is financially justified or if there’s a gap you need to negotiate.
Understanding the RISE Pricing Structure
RISE with SAP pricing doesn’t follow a public price list; instead, SAP crafts a bespoke quote for each customer.
Typically, the initial quote is heavily influenced by your current spend with SAP – a common rule of thumb is that SAP might take your annual ECC maintenance expenditure and multiply it (often rumored to be around 3x) to estimate a starting RISE subscription price.
Why such a markup? Because the RISE bundle includes more than just software support: it adds cloud infrastructure, extra services, and a premium for the convenience of a single contract.
For example, if you’re paying $1 million a year in SAP maintenance for on-prem, your first RISE quote might come back in the realm of $3 million per year as a fully loaded package. Do not let this sticker price scare you off – SAP usually expects negotiation and has significant flexibility to discount.
Understanding the components of the RISE price is critical. Request a detailed cost breakdown of the quote from SAP, including licensing, infrastructure, and services. While they may not give precise numbers for each, pushing for transparency helps you identify where the highest costs lie.
You might discover, for instance, that the infrastructure component (hosting on Azure/AWS) in the quote assumes a very large system sizing or high contingency buffers. If you feel those are overestimated, you have room to push back or seek adjustments.
Also, be aware of SAP’s pricing assumptions: the initial quote often bakes in future growth, premium support tiers, or other add-ons that you might not strictly need.
Part of your RISE negotiation playbook should be challenging these assumptions with data – for example, if your user count or system usage will be lower than SAP’s estimate, provide that justification for a lower price.
A cautionary note on SAP’s evolving marketing: the company has been known to rebrand offerings or adjust bundles, which can subtly change costs.
Recently, SAP renamed the RISE private cloud offering to “SAP Cloud ERP, private edition” (or similar terminology). On the surface, it’s just a name change, but along with it, certain features or entitlements might shift.
For instance, what was previously included (like a certain amount of SAP Business Technology Platform credits or specific services) might now be sold separately or as a new “premium” package. Customers must stay vigilant – if SAP rebrands or “updates” the proposal, scrutinize it for hidden cost increases.
Always ensure you’re comparing apples to apples when evaluating the deal year-over-year. In summary, RISE pricing is highly negotiable. Initial quotes anchor the discussion, often at an ambitiously high number, but savvy buyers treat that as a starting point.
With the right information and leverage (discussed below), discounts of 30–50% off the initial quote are not uncommon.
The key is to unpack the quote’s structure and challenge it line by line.
Strategic Negotiation Levers for RISE Deals
Negotiating a RISE with a SAP deal requires a strategic approach. You’re not just buying software; you’re entering a long-term service relationship.
Here are critical levers to include in your RISE subscription negotiation strategy:
- Competitive Alternatives: Leverage the fact that you have options. Make it clear to SAP that you are evaluating other paths, such as staying on your ECC system with extended support or third-party maintenance, or migrating to S/4HANA using a BYOL (bring your own license) private cloud approach. If SAP senses that you might walk away from RISE, they will be more inclined to offer concessions. For example, some enterprises have used the possibility of deferring the S/4HANA move altogether (and running ECC with third-party support through 2030) as a bargaining chip. Others have compared proposals from infrastructure-as-a-service providers and independent hosting partners to show that they could run S/4HANA in the cloud without SAP’s all-in-one package. By presenting a credible alternative, you create competitive tension that pressures SAP to sharpen its pencil.
- Bundling Add-Ons: RISE with SAP is a bundle by nature, but you can negotiate what’s inside that bundle. Aim to secure additional value at the same overall price. For instance, ask for SAP Business Technology Platform (BTP) credits to be included (or increased) so you can build extensions and integrations on SAP’s PaaS without extra cost. Consider negotiating access to tools like SAP Signavio (for process analysis and optimization) or SAP Ariba/Business Network usage as part of the deal. If you will also need analytics (SAP Analytics Cloud) or integration services (SAP Integration Suite), this is the time to get them bundled at a discount. SAP is often willing to include certain add-ons or at least apply package discounts to make the RISE proposal more compelling. From a negotiation standpoint, it’s easier to get “X included for free” or “Y at a steep discount” now, rather than trying to add it later. Bundling also increases SAP’s account footprint, which they like – use that to your advantage, but only bundle what you actually foresee using.
- Contract Flexibility: Do not accept a boilerplate cloud contract without tailoring it to your needs. Key areas to negotiate are exit clauses, portability, and compliance safeguards. Insist on an exit clause that defines how you can terminate or not renew the RISE contract after the term and what assistance SAP provides in migrating out (e.g., data export in a usable format, migration support). You want to avoid being completely handcuffed if the relationship sours or your strategy changes. Data portability is crucial – ensure the contract states that you own the data and customizations and that SAP will facilitate a transfer to an on-prem or alternative environment if needed. Also, include compliance and performance safeguards, such as specific regulatory requirements (e.g., data residency, encryption standards, audit rights), which should be explicitly written into the contract. Clarify responsibilities for security and compliance in the shared model. If you have concerns about SAP audits or license compliance (since RISE is a subscription, classic audits of license use might change, but you could face compliance questions on things like indirect access or new SaaS metrics), nail down how those will be handled to avoid surprise charges. In short, shape the contract so that it’s not one-sided – you need flexibility and protection, not just SAP.
- Pricing Protections: One of the biggest risks in a long-term subscription is the renewal price increase. Negotiate strong pricing protections upfront. This might include a renewal cap (for example, a clause that limits any price increase at renewal to a certain percentage or tied to an inflation index). Some customers achieve a clause like “renewal increase not to exceed 5% or CPI, whichever is lower” – this kind of RISE renewal cap strategy prevents nasty surprises in year 4 or 5. Additionally, if your usage is expected to change, negotiate ramp-up/ramp-down rights. Perhaps you need only 50 FUEs in year one while you roll out S/4HANA, then 100 FUEs by year three – you should not pay for all 100 from day one. Structure the contract so the fees scale with deployment milestones. Conversely, if you might divest a business unit or otherwise reduce usage, seek rights to reduce FUE counts or other elements without penalty. Lock in any inflation-linked adjustments clearly (some contracts allow annual indexation – try to minimize or delay this). Finally, ensure service level agreements (SLAs) are part of the deal with meaningful remedies. If SAP fails to meet uptime or performance standards, you should get service credits or even the right to terminate if it’s chronic. Pricing protections are not just about cost, but also value delivery – make sure the contract guarantees the level of service you’re paying for.
- Hyperscaler Alignment: Under the hood, SAP RISE runs your systems on a hyperscaler (public cloud provider) or SAP’s own datacenters, but SAP passes those costs to you within the subscription. It’s important to negotiate RISE infrastructure cost elements by demanding transparency and caps on resource usage. Ask SAP what assumptions they used for infrastructure sizing – CPU, memory, storage, and network bandwidth. If you suspect these are overestimated (maybe to be “safe”), push for rightsizing to your actual needs with the ability to adjust later. Moreover, clarify how overages or growth are handled. For instance, if you suddenly need more storage, will that trigger an automatic fee increase? You want a commitment that infrastructure costs are capped or predictable. One strategy is to benchmark the raw cloud cost for your system if you were to run it yourself. If running the same environment on, say, AWS would cost $X, but SAP is effectively charging $X*2 for it, you have grounds to negotiate either a lower price or better resources. Ensure that SAP will provide regular reports on usage of infrastructure so you can verify you’re not exceeding thresholds. If your contract is flexible, include a clause that you can review and renegotiate infrastructure sizing annually to adjust for actual use (so you’re not locked into paying for unused capacity). Essentially, treat the cloud infrastructure portion of RISE as you would any cloud contract – with attention to capacity, usage, and cost control. This prevents SAP from quietly profiting off unused buffer and keeps your spend aligned with reality.
By pulling these levers, you transform the negotiation from simply accepting a quote to actively shaping a deal that fits your organization’s needs.
Each lever signals to SAP that you are an informed customer focused on value and risk mitigation, not just a quick purchase.
RISE vs BYOL Private Cloud – Negotiation Tactics
When considering RISE with SAP versus a BYOL (Bring Your Own License) private cloud approach, it’s important to compare the trade-offs and use them to your advantage in negotiations. The core difference comes down to vendor lock-in vs flexibility.
With RISE, you are essentially outsourcing your SAP environment to SAP itself – this can create a tighter dependency on SAP for everything (software, support, infrastructure).
In a BYOL model, you might retain more control: you own the S/4HANA licenses (or purchase them outright) and deploy on your choice of infrastructure (e.g. AWS, Azure, Google Cloud, or a hosting partner), giving you the freedom to switch providers or adjust the environment independently.
From a negotiation standpoint, highlighting this flexibility trade-off can be a powerful move. Suppose SAP knows that you are comfortable with a BYOL route. In that case, they know you have the flexibility to walk away from RISE’s one-stop-shop convenience and potentially save costs by optimizing each component separately.
Use BYOL cost modeling as a benchmark.
Calculate what it would cost to license SAP S/4HANA (perhaps by converting your ECC licenses or buying new S/4 licenses), run them in the cloud, and hire third-party support or internal staff for management.
Often, companies find that a well-negotiated cloud infrastructure contract plus annual SAP maintenance is cheaper over a period (especially if they already paid for licenses upfront).
Presenting a credible cost comparison – “Our analysis shows an in-house cloud approach would cost us $X over 5 years, versus your RISE quote of $Y” – gives you a strong argument for price reduction.
SAP may counter-argue about the intangible benefits of RISE (like faster implementation or included tools), but seeing hard numbers will pressure them. It effectively says, “We are willing to do this the old way if you can’t meet us somewhere in the middle.”
Another angle is your customization and innovation strategy. Many companies moving to S/4HANA use the opportunity to adopt a “clean core” (minimal custom modifications, using standard SAP processes as much as possible).
If this is your plan, let SAP know – a clean-core approach means you are easier to support and upgrade, which could merit a better price or terms since you’re a lower-risk, lower-effort customer for them.
Conversely, if you have heavy customizations that you must carry over, RISE might have to accommodate those (which can complicate the service). In that case, push SAP on how they will support your custom code and integrations.
They may need to allocate more resources or allow for certain flexibility in the cloud environment, which could become a negotiation point (possibly affecting the price).
You can leverage this by saying, for example, “If RISE can’t handle our critical customization X, we may opt to stay on-prem or BYOL, where we manage it ourselves.”
This doesn’t mean SAP will refuse customizations in RISE – the private cloud edition is meant to allow them – but raising the complexity issue can incentivize SAP to either adjust the price or provide additional support assurances.
In summary, play RISE versus BYOL to your benefit. RISE with SAP negotiation discussions should reflect that you have done your homework on both options.
Show that you’re not afraid to maintain control via BYOL if needed, and SAP will be more inclined to make RISE attractive financially.
At the same time, carefully evaluate the qualitative benefits: RISE offers simplicity and one accountability point, whereas BYOL offers agility and independence. Knowing what matters most to your business will guide you in which points to press harder.
The best negotiators use the specter of BYOL to keep SAP honest on pricing, while ultimately choosing the path that aligns with their long-term IT strategy.
Navigating Private vs Public Cloud Within RISE
SAP offers RISE in both Public Cloud (multi-tenant SaaS) and Private Cloud (single-tenant) editions, and understanding the difference is crucial for negotiation and strategy.
The public cloud edition of S/4HANA (sometimes just called S/4HANA Cloud) is a standardized SaaS offering where you share the infrastructure, and all customers are on the same software version, with SAP pushing quarterly updates.
The private cloud edition (often what people mean by RISE with SAP for large enterprises) gives you a dedicated instance of S/4HANA, more like a hosted private environment, allowing more customization and control over update schedules. Each model has different implications:
In a public cloud RISE scenario, pricing is typically per user (or per FUE) as well, but the contracts tend to be more rigid. Since it’s a highly standardized service, SAP may not permit much deviation in terms of contract terms or technical flexibility.
Essentially, you adopt SAP’s standard contract and cloud service as-is. The upside is usually a lower cost and faster deployment if your processes can fit the “vanilla” model.
However, because it’s multi-tenant and standardized, your negotiation levers are limited mainly to price per user and some timing or quantity commitments.
Don’t expect SAP to, say, alter SLA terms or include extensive custom services in a public cloud deal – those environments are the same for everyone.
For a private cloud RISE deal, you have much more room (and need) to negotiate.
This option is often chosen by larger enterprises that require flexibility – they might have significant custom code, specific integration needs, or strict regulatory requirements that the public cloud cannot meet. With a single-tenant setup, contractual terms are negotiable: you can discuss how and when upgrades will occur, how much downtime is allowable, what customizations are permitted, etc.
Be sure to negotiate stronger renewal terms and exit options for private cloud deployments because these deals often span multiple years and involve higher spend.
For example, if you’re signing a 5-year private cloud contract, push for a renewal clause that gives you the right to extend one more year at the same price if needed (to avoid being forced into a higher price if you need a short extension).
Also consider an exit clause that, if SAP’s service or pricing becomes unacceptable, you can transition to an alternative (with reasonable notice and assistance). While SAP may not readily agree to many outs, even having a clearly defined end-of-term exit process (including data migration support, etc.) is valuable.
Another aspect of negotiation between private and public sectors is the future flexibility: if you start in private, can you switch to public later (or vice versa) if your needs change? SAP’s public stance is that those are separate contracts (moving from one to the other is effectively a reimplementation and new deal).
Given that, if there’s any chance you might consider a public cloud later (for cost savings once you’ve standardized, for instance), try to incorporate terms to ease that transition – maybe a contractual mention that SAP will credit some of your investment or help in migrating to a public cloud service if you choose to. It might be a long shot, but it signals to SAP that you demand flexibility and are thinking ahead.
Ultimately, decide which model fits your business, but use the model differences in negotiation. If you truly need private, SAP knows you have fewer alternatives (because only SAP offers S/4HANA private cloud in that manner), so focus on contract terms and price.
If public cloud could work for you, let SAP know you’re considering it, because they often want to steer you to private (which generates more revenue) – this dynamic can be a bargaining chip.
And whichever you choose, ensure the contract reflects your expectations for service, updates, and control, especially for private cloud: it’s your right to negotiate these in a RISE deal.
Real-World Negotiation Case Insight
To illustrate how these strategies come together, consider a real-world inspired scenario: a large manufacturing company negotiating a RISE with SAP deal for S/4HANA private cloud. SAP’s initial proposal came in at, say, $5 million per year over a three-year term – a figure that gave the CIO sticker shock.
This quote was roughly triple the company’s current annual SAP maintenance spend, aligning with the “maintenance x3” pattern many have observed. Instead of accepting or rejecting outright, the company engaged in a rigorous negotiation process, essentially deploying a RISE negotiation playbook of its own.
First, the IT procurement team prepared a TCO comparison.
They calculated that keeping their systems on-premises (with a needed hardware refresh and continued SAP maintenance) would cost perhaps $3 million per year, and a pure BYOL cloud approach (migrating to Azure with existing licenses and third-party support) might be $4 million per year when factoring in all services.
This analysis showed SAP’s offer was significantly higher than alternatives. They shared a high-level version of this analysis with SAP, making it clear that the RISE deal had to close the gap to be viable.
Next, they leveraged competitive pressure.
The CIO briefed SAP that the company was also looking at Oracle and Microsoft Dynamics as part of a broader digital transformation assessment. This wasn’t a trivial move – switching ERP is huge – but signaling that they were not “SAP or nothing” put SAP on notice.
Additionally, the company engaged a third-party advisor to benchmark RISE deals in their industry, arming them with evidence that similar-sized firms were paying 30-40% less per FUE than what SAP initially quoted.
During negotiations, they also focused on value-add and commitments. The customer asked for inclusion of SAP BTP credits and a few licenses for SAP Analytics Cloud, which they knew SAP was keen to promote.
In return, they were willing to sign a 5-year contract (instead of 3) – a longer commitment that SAP values because it locks in recurring revenue.
That multi-year commitment became a bargaining chip: the company said, essentially, “If you can meet our target price (which was about 25% lower than your quote) and include these extras, we will commit for five years and serve as a reference for RISE.” SAP, eager to showcase a win, sharpened its pencil.
The result was a roughly 25% reduction in the annual RISE cost and a contract that included additional platform benefits and a cap on renewal increases.
The customer achieved this by combining tactics: a credible threat of alternatives, data-driven arguments on cost, and a concession (in the longer term) that mattered to SAP. This case shows that with preparation and a firm stance, it’s possible to significantly improve a RISE deal from the starting offer.
The key takeaway: treat SAP’s first quote as an opening bid.
By briefing SAP on competitive options and demonstrating your homework, you can shift the power and drive the price and terms into a much more favorable range.
Checklist — Securing the Best RISE Deal
When negotiating RISE with SAP, use this checklist to ensure you’ve covered all bases and secured the optimal terms:
- Inventory Your SAP Entitlements: Start by documenting all your existing SAP licenses, contracts, and current annual spend (maintenance fees, etc.). Knowing what you already own (and pay) is critical. This lets you highlight any licenses that could become shelfware under RISE and ensures you leverage their value (e.g., through credits). It also gives a baseline to measure the RISE proposal against your current ECC spend.
- Demand a Detailed Cost Breakdown: Do not accept a lump-sum number without insight. Ask SAP to break down the RISE quote into major components – application subscription (license equivalent), infrastructure, and services/management. The goal is to identify any disproportionately high charges. For instance, if infrastructure is a big part, you might negotiate on system sizing or hosting options. A breakdown also helps you explain the quote internally and build your negotiation strategy for each element.
- Model the 3–5 Year TCO: Perform a side-by-side SAP RISE TCO model analysis. Project your costs over a 3 to 5 year period for RISE versus staying on-prem or going BYOL. Include everything: subscription fees (with any expected increases), potential overage costs, and compare against on-prem costs (licenses depreciation, maintenance, hardware refresh, cloud costs, internal support). Don’t forget to factor in likely escalation risks – for example, if RISE has a clause allowing annual price indexation, simulate how that adds up by year 5. This TCO model will be your evidence to either justify the move or negotiate a better deal.
- Negotiate FUE Flexibility and Renewal Caps: Make sure the contract has flexibility in user counts and strong renewal protections. For FUEs, negotiate a right to rebalance user types periodically – e.g. if your user mix changes, you can adjust how FUEs are allocated to Advanced vs Core users without extra cost as long as total FUE is constant. If you anticipate growth or reduction, incorporate ramp-up/ramp-down provisions. Importantly, lock in a renewal cap strategy: ensure the renewal price increase is capped (say 5-10% or tied to inflation) so you won’t face an untenable jump. Clear renewal terms mean you won’t be hostage to a massive price hike after your initial term.
- Align Contract Timing with Your Fiscal Calendar: Plan the signing and renewal dates to suit your financial planning. If your fiscal year starts in July, for example, having the RISE contract renewed in Q3 could be problematic for budgeting. Wherever possible, align the contract term so that negotiations and renewals coincide with a time of year that works for your budgeting cycle (and when you have leverage). Also, coordinate internally – ensure your procurement, IT, and finance teams are in sync on timelines and approval requirements. This internal alignment prevents last-minute scrambles and gives SAP the impression that you are methodical and willing to walk if terms aren’t right by your key deadlines.
By ticking off each item in this checklist, you’ll approach the RISE deal with a comprehensive view and a firm grasp of both technical and commercial details.
It’s all about being proactive and not leaving any stone unturned before you sign on the dotted line.
The Critical FAQs for RISE Negotiations
When preparing for a RISE with SAP discussion, executives often grapple with a few common questions.
Here are critical FAQs and answers to guide your negotiation:
- Q: Can our existing ECC or S/4HANA licenses be converted or credited into a RISE deal?
A: You generally cannot “convert” a perpetual license into a subscription one-for-one, but you can negotiate credits for past investments. SAP has programs that allow the value of your existing licenses or the annual maintenance you’ve been paying to offset RISE costs. For example, if you have a large ECC install base, SAP might reduce the RISE subscription fee or give a one-time credit so you’re not paying twice for the same capability. It’s crucial to raise this: ask for a formal credit for unused software or a maintenance waiver during the overlap period. Many RISE contracts include a provision that essentially says your old licenses will be shelved (you won’t use them in production), and in return, SAP gives a subscription discount equivalent to a portion of your maintenance spend. The key is ensuring your previous investment in SAP doesn’t lose value. - Q: What happens to our existing maintenance contracts once we switch to RISE?
A: When you move to RISE for the products in scope (say S/4HANA replacing ECC), you will no longer need to pay separate maintenance on those old licenses, because RISE’s subscription includes support. In practice, you should coordinate with SAP to terminate or suspend maintenance agreements for any licenses that RISE fully replaces. Often, the RISE contract start date will coincide with the end of a maintenance period. If you’ve prepaid maintenance or there’s overlap, negotiate how that is handled – possibly a refund or credit. It’s important to get clarity: have SAP confirm in writing that maintenance charges for legacy systems will stop (or be credited) once you are live on RISE. Also, check what rights you retain for those old licenses. Some customers keep the old licenses (deactivated) as a fallback in case they ever leave RISE, but they won’t have support on them during the RISE term. Ensuring a clean break in maintenance payments prevents paying double support costs. - Q: Is RISE mandatory for moving to S/4HANA in the cloud, or do we have other options?
A: RISE with SAP is not mandatory – it’s SAP’s preferred offering, but you do have alternatives. SAP would love to move all customers to RISE. Yet, you can still pursue a traditional migration: for example, purchase S/4HANA licenses (using SAP’s conversion programs or new licenses) and run them on your own infrastructure or a third-party cloud (the BYOL model). You could also consider S/4HANA Cloud, public edition as a standalone SaaS subscription (often targeted at mid-market or simpler use cases, sometimes branded as “GROW with SAP” for new customers). Essentially, you can get to S/4HANA without RISE; it just requires managing more pieces yourself. That said, SAP often bundles incentives (and sometimes better pricing) if you go with RISE, since it’s strategically important to them. The takeaway is: don’t feel forced into RISE if it doesn’t meet your needs – it’s a choice, not an obligation. Evaluate it alongside the do-it-yourself approach and choose what aligns with your company’s capabilities and cost structure. - Q: How can we protect against vendor lock-in or future changes like SAP rebranding the offering?
A: Protecting against lock-in and opaque changes comes down to the contract. Negotiate explicit exit rights and clarity on future product changes. For lock-in, ensure you have an exit strategy: for instance, a clause that if the contract ends, SAP will provide all your data and assist in transition (at a predefined cost or included). While you may not get a full “easy out,” even having data portability and a transition assistance clause gives you leverage to leave if necessary. As for rebranding or scope changes – we’ve seen SAP rename RISE or adjust packages (e.g., adding new “premium” tiers). To guard against this, include language in the contract that grandfathers your terms: if SAP changes service names or packaging, they must provide you equivalent services at no less favorable terms through your contract duration. You can also negotiate a review/benchmark clause: if, say, after two years, SAP introduces a new pricing model or significantly drops prices for the same service, you have the right to renegotiate or adopt the better pricing. It’s also wise to insist on transparency: no hidden fees or mandatory add-ons down the road. Finally, staying informed is part of protection – keep an eye on SAP announcements (like pricing changes or new editions) so you can proactively address them. In short, bake as much predictability and clarity into the agreement as possible, so you’re not surprised by a name change that comes with a cost change.
For more insights, SAP Private Cloud vs DIY on Hyperscaler: License and Cost Considerations.
Five Core Recommendations for CIOs/Procurement Execs
To wrap up, here are five core recommendations for CIOs and procurement executives when approaching a RISE with SAP negotiation:
- Treat SAP’s RISE quote as a starting point – never as the final price. The first number SAP gives you is essentially an anchor. Just as you wouldn’t pay MSRP without question, don’t accept the initial RISE proposal at face value. View it as an opening offer. Scrutinize every component and be prepared to counter. SAP expects savvy customers to push back, and they have room to maneuver. Set your target price below that initial quote and use data and leverage to get there.
- Always model alternatives in parallel (e.g., BYOL, staying on-prem) to strengthen your posture. Go into negotiations armed with an understanding of Plan B and Plan C. Know what it costs to keep the status quo (maybe with upgrades or third-party support) or to run S/4HANA in a public cloud without RISE. This knowledge is power – it not only guides your decision if SAP won’t budge, but it also sends a message that you are not dependent on RISE at any cost. It’s amazing how much more seriously SAP takes your requests when they see you have a credible alternative analysis.
- Insist on firm renewal protections and exit options in the contract. Don’t get so fixated on the upfront price that you neglect the back end of the deal. Some of the worst horror stories in enterprise software come from contracts that were easy to enter and painful to exit. Negotiate renewal caps, price protections, and termination clauses now, when you have leverage. For example, get a clause that caps price increases or even fixes your renewal price if possible. Make sure you have a way out at the end of the term that doesn’t cripple the business (even if it’s just the ability to extend a few months to transition). If SAP is confident you won’t want to leave because of great service, they shouldn’t object to reasonable exit terms – if they do, that’s a red flag.
- Leverage bundling and volume for maximum value. Think broadly about your SAP landscape and upcoming needs. If you’re going to eventually need SAP analytics, integration tools, or additional modules like SuccessFactors or Ariba, consider bringing those into the conversation. Vendors often give better discounts when more is at stake. This doesn’t mean buying things you don’t need, but if SAP knows a bigger wallet share is possible, they’ll fight harder to win or keep your business. Use that to negotiate things like free training credits, additional user licenses, or even consulting services as part of the package. The goal is to improve the overall ROI of the deal – sometimes a slightly higher spend that covers more ground is better than a narrow deal at a lower price.
- Align your internal team and strategy before facing SAP’s sales pitch. Successful negotiations start well before you meet the vendor. Ensure that IT, procurement, finance, and any other stakeholders are on the same page about goals and limits. Set a unified stance on what you want (e.g., “We must have a 5-year price lock” or “We cannot spend more than $X over 3 years”). Also, time your approach: SAP’s sales team will try to impose their timeline (“quarter-end urgency”), but if you’ve aligned this with budget cycles and project plans, you can negotiate from a position of strength. Internally aligned teams won’t be easily divided by sales tactics, and you’ll present clear, cohesive requirements to SAP. This internal preparation is just as important as external strategy – it prevents unforced errors like internal dissent or last-minute surprises that SAP could exploit.
By following these core recommendations, CIOs and procurement leaders can approach RISE with SAP negotiations with confidence and clarity.
Remember that a RISE deal is not just a tech purchase, but a strategic partnership decision.
Applying a critical, value-driven mindset and challenging SAP’s pricing assumptions will ensure that if you do embrace RISE, you’re getting the best possible deal and terms for your organization’s success.
Read about our SAP Negotiation Services.
