SAP HANA Enterprise Cloud (HEC) Guide

SAP HANA Enterprise Cloud (HEC) is the SAP operated private cloud for HANA based workloads. SAP runs the infrastructure, the HANA database, and an agreed BASIS scope. The customer retains the SAP application stack and the change activity above the line.

HEC predates RISE with SAP and now sits inside the broader RISE portfolio as a Private Edition path. Many large estates still run HEC as a standalone subscription, especially where the hyperscaler routing inside RISE Private Edition does not match procurement preference.

Read this alongside the SAP hub, the SAP services page, the RISE negotiation guide, the HANA Cloud guide, and the Vendor Shield subscription.

Key Takeaways

What every SAP HEC buyer needs in 2026

HEC is private cloud, SAP operated. SAP runs the infrastructure and the HANA layer on certified hardware, typically inside SAP data centers or partner facilities.
Three service tiers. Standard, Advanced, and Premium. Tier choice drives unit cost and operational responsibility.
BASIS scope sits in the contract. The line between SAP BASIS and customer BASIS scope is the largest single negotiating point.
Sizing in T shirts. SAP sizes HEC in T shirt sizes from S to 6XL based on certified HANA appliance specs.
RISE Private Edition. The hyperscaler hosted alternative to HEC under the RISE bundle.
Exit clauses matter. Data export, IP transfer, and operational handover language sit in the contract template.
Renewal lever. The HEC renewal pairs sizing, tier, BASIS scope, and RISE migration in one conversation.

What HEC is and what it is not

HEC is the SAP operated private cloud subscription for HANA based workloads. It bundles infrastructure, HANA database management, and BASIS services into a subscription fee per HANA size.

What is included in HEC

Certified HANA appliance. Hardware sized to T shirt specifications, refreshed on a defined schedule.
HANA database operations. Patching, backup, restore, performance monitoring.
SAP BASIS scope. Defined operational activities on the SAP application layer.
Data center facilities. Power, cooling, physical security, network connectivity.
SLAs. Availability, performance, and incident response commitments.

What is not included

SAP application licenses. The customer brings the S/4HANA, ECC, BW, or other SAP application licenses separately.
Customer BASIS scope. Configuration changes, transports, custom code, and integration sit with the customer.
Functional changes. Customizing, master data, and business process change owned by the customer.
Disaster recovery (sometimes). DR is an optional add on in the Standard tier, included in higher tiers.
Network from premises. The connection from customer premises or hyperscaler to HEC is a separate contract.

HEC service tiers, line by line

HEC offers three service tiers. The tier choice drives unit cost, operational responsibility split, and the SLA package.

HEC tier comparison

Tier	BASIS scope	SLA	Typical unit cost band
Standard	Database BASIS only	99.5 percent monthly	Baseline
Advanced	Database plus selected application BASIS	99.7 percent monthly	15 to 25 percent above Standard
Premium	Full application BASIS plus DR included	99.9 percent monthly	40 to 60 percent above Standard

Choosing the tier

Standard. Customers with strong internal BASIS teams who want infrastructure and HANA only.
Advanced. Customers offloading specific application BASIS activities while retaining strategic ownership.
Premium. Customers without internal BASIS, or where business continuity demands match the SLA.

BASIS scope and the customer line

The single most negotiated item on every HEC contract is the BASIS scope split. The split defines what SAP operates versus what the customer operates.

Standard BASIS scope split

Activity	Standard tier	Advanced tier	Premium tier
HANA patching	SAP	SAP	SAP
HANA backup and restore	SAP	SAP	SAP
Kernel patching	Customer	SAP	SAP
Support package application	Customer	Customer	SAP
System monitoring	Shared	SAP	SAP
Transport management	Customer	Customer	SAP
Disaster recovery	Add on	Included	Included

Where buyers should watch the scope

Custom code support. Most HEC scopes explicitly exclude custom code and Z developments.
Third party SAP add ons. Confirm scope for OpenText, Vistex, GK Software, and other certified add ons.
Non production sizing. Right size Dev and QAS to actual workload, not production parity.
Project mode versus run mode. Project activities (S/4HANA migration, upgrade, conversion) are scoped separately.

HEC versus RISE Private Edition versus hyperscaler BYOL

The buyer side decision tree for SAP private cloud weighs HEC against RISE with SAP Private Edition and against the customer self managed deployment on hyperscaler (BYOL on AWS, Azure, GCP, OCI).

Three way comparison

Dimension	HEC	RISE Private Edition	Hyperscaler BYOL self managed
Infrastructure operator	SAP	Hyperscaler under SAP control	Customer plus partner
HANA operations	SAP	SAP	Customer plus partner
BASIS scope	Tiered, in contract	Tiered, inside RISE	Customer plus partner
Bundle scope	Infrastructure plus HANA plus BASIS	HEC scope plus S/4HANA license plus credits	BYOL only
Hyperscaler choice	SAP data centers or partners	AWS, Azure, GCP, Alibaba	AWS, Azure, GCP, OCI
Pricing model	Subscription per HANA size	Subscription per FUE	Hyperscaler plus software
Exit flexibility	Moderate	Lower	Higher

Worked example. S/4HANA 12 TB landscape on HEC

A European manufacturer runs S/4HANA on premise on a 12 TB HANA database. The IT team plans a HEC migration to retire the on premise data center.

HEC sizing

Production. 12 TB HANA, 4XL T shirt size.
QAS. 8 TB HANA, 3XL T shirt size.
Dev. 4 TB HANA, 2XL T shirt size.
Sandbox. 2 TB HANA, XL T shirt size.
DR for production only. 12 TB HANA in second SAP data center.

Annual cost math

System	T shirt	Standard tier annual	Premium tier annual
Production	4XL	1,150,000 USD	1,675,000 USD
QAS	3XL	620,000 USD	900,000 USD
Dev	2XL	320,000 USD	465,000 USD
Sandbox	XL	180,000 USD	260,000 USD
DR for production	4XL	290,000 USD	Included in Premium

Tier mix optimization

Production on Premium. 1.675M USD per year for the SLA and full BASIS scope.
QAS on Advanced. 770,000 USD per year for kernel and selected application BASIS.
Dev and Sandbox on Standard. 500,000 USD per year for HANA only operations.
DR included in Premium on production. Excluded from non production.
Mixed tier annual cost. 2.945M USD per year versus 3.3M USD on Premium across all environments.

Seven HEC negotiation levers

The seven levers procurement carries to a HEC negotiation

Tier per environment. Premium on production only, Advanced on QAS, Standard on Dev and Sandbox.
BASIS scope clarification. Custom code, third party add ons, and project mode all in writing.
T shirt size discipline. Right size at contract start, with a re sizing review at month 12.
DR mode. Active passive standby, active active, or cold DR with separate pricing.
Term length and uplift cap. Three year term with annual uplift capped at 3 to 5 percent.
Exit clauses. Data export window, format, transition assistance, hyperscaler portability.
RISE alternative posture. Open a parallel RISE Private Edition quote on AWS or Azure to anchor commercial discipline.

What to do next

The eight step checklist takes an SAP HANA landscape from a tactical HEC purchase to a strategic, right sized contract.

Inventory the HANA landscape by system, by size, by usage pattern.
Right size each system against actual workload, not historical sizing.
Map the BASIS scope split per environment.
Build the tier mix model against operational responsibility appetite.
Open the RISE Private Edition counter quote on AWS or Azure.
Negotiate the BASIS scope language in writing inside the master agreement.
Lock the term, uplift cap, and exit clauses before the SOW.
Set the month 12 re sizing review in the contract.

Frequently asked questions

What is the difference between HEC and RISE with SAP?

HEC is the SAP operated private cloud subscription for HANA workloads. RISE with SAP is a broader bundle that includes the S/4HANA license, business technology platform credits, and a private cloud edition that can run inside HEC or on a hyperscaler (AWS, Azure, GCP, Alibaba).

The HEC contract scope sits inside RISE Private Edition. Customers who buy RISE get HEC as one infrastructure option, alongside the hyperscaler routes.

How does SAP size HEC in T shirt sizes?

SAP uses T shirt sizes from S to 6XL to size HANA appliances inside HEC. Each T shirt size corresponds to a certified HANA appliance with defined memory, CPU, and storage. The customer's HANA database memory footprint drives the sizing.

The buyer side priority is to right size at contract start against actual workload, and to include a re sizing review at month 12 in case the original sizing overshoots or undersizes.

What is included in HEC Standard versus Premium tier?

HEC Standard includes HANA database operations (patching, backup, restore, monitoring) on the SAP side and leaves kernel patching, support packages, and transports with the customer. HEC Premium adds application kernel patching, support package application, transport management, and disaster recovery on the SAP side.

Advanced sits in between, typically covering kernel patching and selected application BASIS activities. Tier choice should match the customer's internal BASIS capability.

Can we exit HEC to a hyperscaler or RISE during the term?

The HEC contract is a subscription with a defined term, typically three years. Exit during the term reduces the fee only if a mid term true down clause is in the contract. Most standard HEC contracts do not carry mid term true down.

The exit posture is built into the renewal cycle. Buyers approaching term end should open a parallel RISE Private Edition or hyperscaler BYOL quote 12 months out to anchor the renewal conversation.

Does HEC cover SAP application licenses?

No. HEC is an infrastructure plus HANA plus BASIS subscription. The customer brings the SAP application licenses separately, whether perpetual licenses with annual support or RISE with SAP subscription licenses.

The HEC contract should align with the SAP application license model. Customers running perpetual SAP licenses with annual support typically run HEC standalone. Customers on RISE typically run HEC as RISE Private Edition.

How does Redress engage on HEC advisory work?

Redress runs SAP HEC advisory inside the Vendor Shield subscription, the Software Spend Assessment, the Renewal Program, and on engagement basis 12 months out from HEC term end. Every engagement is led by a former SAP commercial professional on the buyer side.

The output is a sizing memo, a tier mix model, a BASIS scope clause set, an exit clauses package, and a RISE counter quote position memo.

How Redress engages on SAP HEC advisory

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

Read the related SAP hub, the SAP services page, the RISE negotiation guide, the HANA Cloud guide, the HANA database licensing guide, the RISE TCO calculator, the S/4HANA deployment models guide, the benchmarking page, the about us page, and the contact page.

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SAP HANA Enterprise Cloud (HEC). What it covers, what it costs, what it leaves out.