RISE with SAP and traditional on premise are two different commercial models. The right answer turns on FUE math, hyperscaler choice, exit terms, and the conversion mechanics. Read the buyer side compare before the next term call with SAP.
RISE with SAP bundles S/4HANA Cloud, hyperscaler hosting, and basic operations in a single subscription. Traditional on premise keeps the licenses on the buyer balance sheet with separate hosting and run. The right model depends on FUE math, hyperscaler choice, exit terms, and the conversion mechanics.
Pair this compare with the SAP cloud licensing models reference, the RISE negotiation playbook, and the digital access analysis before any RISE conversion call with SAP.
SAP positions RISE as the default path forward. The buyer position is that RISE is one option, not the only option. The compare table forces SAP to defend the conversion math against a real on premise alternative.
An enterprise SAP estate that signs RISE without a compare table typically overspends ten to thirty percent against a defended scenario. The waste compounds over the typical five year RISE term.
RISE prices on Full User Equivalents, hyperscaler tier, term length, and add on modules. The FUE band is the headline. The hyperscaler tier sets the run cost. The term length unlocks the deepest discount band.
| Lever | Impact | Negotiable |
|---|---|---|
| FUE volume | Drives the subscription line | Yes, on banding |
| Term length | Three or five years for best rate | Yes |
| Hyperscaler tier | Premium versus standard run | Yes, on data and region |
| Conversion credit | On existing on premise licenses | Yes, very |
| Escalator | Annual uplift on subscription | Yes, cap available |
Traditional on premise prices on named user metrics, engine licenses, and twenty two percent annual support. The hosting sits on the buyer side, on premise or on a hyperscaler with separate paper.
Always compare RISE and on premise on a five year total cost of ownership. A three year compare flatters RISE. A one year compare flatters on premise. Five years smooths the conversion credit, the support escalator, the FUE banding, and the hyperscaler tier into a single defensible picture for the CFO.
The conversion credit is the most negotiable line in any RISE conversion. SAP applies a credit on the existing on premise net license fee. The credit is not a fixed formula. The opening offer is rarely the final number.
The RISE exit terms are inside the RISE paper, not the hyperscaler paper. The exit line decides whether the workload can really leave. On premise carries less lock in because the licenses sit on the buyer balance sheet.
| Lever | RISE | On premise |
|---|---|---|
| Data egress | Inside SAP paper | Hyperscaler controlled |
| Runtime exit | Cooperation period required | Buyer controlled |
| License recovery | No, subscription only | Yes, licenses retained |
| Termination for cause | SAP paper | Buyer favored |
The compare table is the artifact that closes the RISE versus on premise decision. Five year total cost of ownership side by side. Every assumption documented. Every line tied to a quote.
The compare table is what moves the SAP conversation from sales pitch to commercial decision. Without it, the room follows the seller agenda. With it, the buyer leads.
The seven step checklist below moves a SAP estate from sales pitch to defended decision.
The Full User Equivalent or FUE is the RISE pricing metric. SAP maps existing named user categories to FUE through a published conversion table. The FUE count drives the RISE subscription line. Independent advisors run the FUE forecast against current usage to defend a smaller band than the SAP opening number.
No. RISE wins on small and mid sized estates with limited internal Basis capacity and on greenfield S/4HANA deployments. On premise wins on large estates with strong internal teams and on workloads that need deep customization. The compare table makes the call on a five year total cost of ownership.
The conversion credit is set by SAP as a percentage of the existing on premise net license fee. The opening offer is rarely the final number. Buyer levers include support shelf, module retirement, digital access true up, and a credible decision not to convert. Independent advice typically moves the credit by ten to twenty points.
Yes. A hybrid is common. Finance and the core S/4HANA tenant move to RISE, while complex industry modules or heavily customized add ons stay on premise. The compare table runs per module so the hybrid scenario can be costed line by line against the all in cases.
Yes. AWS, Azure, GCP, and Alibaba each carry different run economics for S/4HANA. The hyperscaler tier inside RISE sets the run cost. The same FUE band can move five to ten percent on hyperscaler choice. Buyers should price at least two hyperscalers on the same workload before signing.
A clean enterprise RISE conversion runs twelve to twenty weeks from contract pull to signature. Add four to eight weeks if digital access is unsettled. Add another four weeks if hybrid is on the table. The compare table is the artifact that compresses the timeline by giving SAP a defined buyer position from week one.
Redress runs RISE versus on premise compares as part of the buyer side SAP practice. The work covers the contract pull, the FUE forecast, the hyperscaler pricing, the conversion credit, the compare table, and the term negotiation. Engagements close in twelve to twenty weeks.
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A buyer side guide to RISE with SAP. Includes the FUE forecast template, the hyperscaler price table, the conversion credit scenarios, the compare table format, and the exit term checklist used across hundreds of SAP engagements.
Independent. Buyer side. Built for CIOs, CFOs, and procurement leads carrying SAP RISE conversion or renewal decisions. No vendor influence. No sales kickback.
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Open the Paper →The compare table moved the SAP conversation from a default RISE pitch to a defended hybrid that kept finance on premise and saved nineteen percent on a five year basis.
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