Benchmark discount ranges for SAP on-premise licenses, RISE with SAP subscriptions, SaaS modules, and support — so you can gauge if your SAP deal is competitive and negotiate better terms.
SAP's published list prices are rarely what large customers pay. Nearly every enterprise deal involves a negotiated discount off those sticker prices. For example, SAP might quote a $5M list price for software, but a 40% discount drops it to $3M — saving $2M upfront and lowering ongoing support fees (since maintenance is typically ~22% of the discounted price).
Without knowing industry benchmarks, organisations risk accepting a subpar deal. High-overpay scenarios happen when buyers lack visibility into what peer companies are paying.
Key point: Treat SAP's list price as a starting point. Savvy CIOs and CFOs come armed with benchmark data showing what discounts (30%, 50%, 70%) other enterprises achieved. This transparency forces SAP's hand to offer a more competitive rate or justify why your deal should differ.
SAP software licensing is available in tiers of user access, each with a corresponding price point. Understanding these types and their list price ratios is critical for budgeting and negotiation:
| License Type | Access Level | Approx. List Price (On-Prem) | Cloud Equivalent |
|---|---|---|---|
| Professional User | Full access to all SAP modules and functionality | ~$3,000 per user (one-time) | ~$100–$200 per user/month |
| Limited Professional (Functional) | Restricted to specific modules or business areas | ~$1,500 per user (~50% of Professional) | ~$30–$60 per user/month |
| Self-Service (ESS) | Simple self-service tasks (time entry, expenses, pay stubs) | ~$100 or less (~5% of Professional) | A few dollars per user/month |
Why this matters: By matching each employee to the right licence type, companies avoid overpaying for unnecessary access. A finance clerk who only needs basic input screens should be a Limited user at half the cost — not a full Professional licence. Focus your discount negotiations on the tier where your biggest costs lie (typically Professional users), since that's where discounts yield the largest absolute savings.
What kind of discount off list price is normal? While every contract is unique, industry benchmarks reveal clear ranges:
| SAP Deal Type | Typical Discount Range | Notes |
|---|---|---|
| On-Premise Licences (Perpetual) | 40–60% common; up to 70–80% in large deals | Big ERP deals rarely pay list. Global rollouts can see 70%+. Mid-sized deals without aggressive negotiation might only get ~30%. |
| RISE with SAP (Cloud Subscription) | 10–30% common; up to ~50% multi-year | Cloud subscriptions see smaller percentages but still significant. Multi-year, bundling, or year-end timing push discounts higher. |
| SaaS Modules (e.g., SuccessFactors) | ~5–20% off subscription fees | More fixed-price, but enterprise buyers with large user counts can still negotiate modest reductions. |
| Annual Support Maintenance | No discount on 22% rate — focus on caps | Can't cut the rate, but negotiate caps on annual increases (e.g., ≤3%/year) and ensure support is calculated on discounted licence price. |
| Special Programs | Up to ~90% in niche cases | E.g., SAP's Digital Access initiative offered 90% off to incentivise compliance. Don't expect 90% across your whole deal. |
How to use this: If your negotiated discount falls well below these ranges, it's a red flag. If you only got 20% off on a big on-premise purchase where peers get 50%, you have room to push harder. A Fortune 500 manufacturer standardising on SAP negotiated ~70% off list by bundling multiple systems in a single large deal. A mid-sized company with minimal negotiation might only receive 25% — a difference of millions of dollars.
SAP's cloud subscription models alter how pricing and discounts are applied:
RISE with SAP bundles software, hosting, and support into a single annual fee, often priced on Full User Equivalents (FUE) — roughly $120 per Professional user/month at list (as of 2025). Negotiation outcomes for large enterprises:
| Scenario | Users | Typical Negotiated Price | Discount Achieved |
|---|---|---|---|
| Mid-size enterprise | ~1,000 | ~$80/user/month | ~33% off list |
| Large enterprise | 5,000+ | ~$60/user/month | ~50% off list |
| Mega-deal (multi-year) | 10,000+ | Negotiable — case-by-case | Can exceed 50% |
GROW with SAP targets small/mid-sized businesses with pre-set functionality and lower entry cost. Pricing is more standardised — less room for deep discounts beyond ~10% or promotional incentives. GROW focuses on finding the right edition (Base vs Premium) rather than aggressive price negotiation.
Either way, even cloud quotes are negotiable. SAP expects customers to seek better terms than the first number presented. Multi-year commitments (3–5 years), bundling BTP credits, and year-end timing all create additional discount leverage.
Geography, timing, and deal structure all influence SAP pricing flexibility:
| Factor | Impact on Discount | How to Leverage |
|---|---|---|
| Deal Size & Volume | Larger deals = larger discounts (50%+ common) | Bundle modules or plan phased growth to appear larger. Even mid-market deals benefit from volume optics. |
| Timing (Quarter/Year-End) | Extra 5–15% discount at year-end (Dec) | Align negotiation to SAP's fiscal calendar. Same deal can become much cheaper when reps need to hit targets. |
| Competition & Alternatives | SAP sharpens pencils when rivals are in play | Create credible competitive scenario (Oracle, Microsoft). Even hinting at third-party support or project delays creates pressure. |
| Strategic Logo Value | Well-known brands get exceptional discounts | If you're a reference customer or first-in-market for a sector, negotiate above-market terms. |
| Existing SAP Footprint | High-spend loyalty creates leverage | "We spend $X million yearly — we expect a generous discount on new deals as partnership." |
| Negotiation Preparation | Benchmark-armed teams consistently get 15–25% better outcomes | Come with specific asks backed by data. Signal that you have benchmark information — this shifts the tone immediately. |
Transparency is your most powerful negotiation tool. Here's how to build and use it:
Gather peer benchmarks. Use industry contacts, Gartner/IDC data, or independent advisory firms to understand what similar organisations in your industry and region are paying. Even rough data points (e.g., "peer companies with 2,000 users typically get 55% off on-prem") give you a negotiating anchor.
Request SAP's price breakdown. Ask SAP to itemise their quote: list price per product, discount applied, support calculation, and any bundled services. This prevents hidden markups and ensures you're comparing like-for-like when benchmarking.
Use independent benchmarking services. Firms like Redress Compliance maintain extensive deal databases and can tell you exactly where your SAP proposal falls relative to market norms. This data is often the single most impactful tool in a negotiation — it eliminates guesswork and gives you specific, defensible targets.
Document everything. Keep records of all pricing discussions, proposals, and counteroffers. This creates an audit trail for internal stakeholders and ensures SAP can't walk back concessions in later rounds.
Negotiate support separately. While the 22% support rate is typically non-negotiable, the base on which it's calculated is critical. Ensure support is calculated on your discounted licence price, not list price. Also negotiate caps on annual support increases (e.g., CPI-linked or capped at 3%) to prevent compounding cost growth over a 5–10 year horizon.
Know your numbers before you negotiate. Map every user to the correct licence type. Understand your current SAP spend, growth trajectory, and which modules drive the most value. Come to the table with a specific discount target backed by benchmark data — not a vague ask for "a better price."
Time your negotiation strategically. SAP's Q4 (October–December) and especially the final weeks of December offer the strongest discount leverage. If your timeline allows flexibility, align your negotiation to SAP's fiscal calendar.
Bundle and commit strategically. Combining multiple modules, adding cloud services, or committing to multi-year terms creates larger deals that SAP will discount more aggressively. But only commit to what you'll actually use — shelfware at 50% off is still wasted spend.
Protect the long term. Upfront discounts mean nothing if support costs compound unchecked. Negotiate renewal caps, support increase limits, and price protections for additional users. These provisions save more over 5–10 years than an extra few percent off the initial deal.
5-Point Action Checklist:
| # | Action |
|---|---|
| 1 | Benchmark your deal: Compare your SAP proposal to the discount ranges in this guide. If you're below typical ranges, push back with specific data. |
| 2 | Right-size licence types: Map users to Professional, Limited, or Self-Service. Every user on the wrong tier is money wasted. |
| 3 | Time your negotiation: Target Q4/year-end for maximum SAP concessions. Avoid signing mid-quarter unless SAP is offering exceptional terms. |
| 4 | Negotiate support protections: Cap annual increases, ensure support is based on discounted price, and get written confirmation of calculation methodology. |
| 5 | Engage independent advisory: Firms with SAP deal databases can validate your proposal in hours. The cost of advisory is typically a fraction of the savings delivered. |
40–60% off list price is common for enterprise deals. Large, bundled deals (global rollouts, multi-system purchases) can achieve 70–80% off. Mid-sized purchases without aggressive negotiation might only get 25–30% — leaving significant money on the table.
10–30% off the initial subscription quote is common. Multi-year commitments (3–5 years) and large user counts (5,000+) can push discounts to 40–50%. A 1,000-user organisation might negotiate from ~$120/user/month to ~$80 (33% off); a 5,000+ user deal could reach ~$60 (50% off).
Professional users get full access to all modules (~$3,000 list on-prem). Limited Professional users are restricted to specific areas (~$1,500, or 50% of Professional). Self-Service users handle simple tasks like time entry (~$100, or 5% of Professional). Right-sizing users to the correct tier is one of the highest-impact cost optimisations.
The rate itself is typically non-negotiable. However, ensure support is calculated on your discounted licence price (not list), negotiate caps on annual increases (e.g., ≤3% per year or CPI-linked), and consider temporary waivers or credits. Over a 10-year horizon, uncapped support escalation can exceed the original licence cost.
SAP's Q4 (October–December) offers the strongest leverage, especially the final weeks of December when sales teams need to hit annual targets. Aligning your negotiation to SAP's fiscal calendar can yield an extra 5–15% discount that wasn't available earlier in the year.
RISE targets large/complex enterprises with private cloud options and fully negotiable per-user pricing. GROW targets SMBs with standardised, lower-entry pricing and less room for deep discounts (maybe ~10%). RISE deals involve more active price negotiation; GROW focuses on choosing the right edition.
Compare your discounts to benchmark ranges: 40–60% for on-prem, 10–30% for RISE, 5–20% for SaaS. Independent advisory firms with deal databases can validate your specific proposal against comparable contracts in your industry and region — this is typically the fastest way to identify overpayment.
Timing (year-end), competitive alternatives (Oracle, Workday), multi-year commitment, and bundling multiple modules all create leverage regardless of size. Smaller deals may not reach 70% discounts, but proper preparation and benchmark data consistently deliver 15–25% better outcomes than negotiating without them.
This article is part of our SAP Negotiation pillar. Explore related guides:
Redress Compliance has helped hundreds of Fortune 500 enterprises — typically saving 15–35% on renewals and new deals.
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