Contents
Key takeawaysHEC vs RISE explainedPricing and a worked exampleControl, exit and timingWhat we have seenHow to chooseAnswering the account teamContract terms to ask forChecking your own positionWhat to do nextFAQSAP HEC is a managed hosting service that runs beside a license you hold, while RISE with SAP bundles software, infrastructure and service into one subscription. The right choice depends on control, lock in and how you want your license investment treated.
- Same operation, different contract. HEC is SAP's older managed hosting service, and RISE is the newer subscription that packages software, infrastructure and service in one contract.
- Licenses. HEC usually allows you to keep existing licenses, while RISE converts you to a subscription.
- Benchmarking. RISE is simpler to quote but harder to unbundle and benchmark than HEC.
- Lock in. RISE ties software, infrastructure and service to a single renewal, so leaving means replacing all three at once.
- Digital access. Document volume is licensed separately under both models and should be capped or credited at signature.
- Compare on year three. Put both options on the same baseline and compare the year three run rate, not the headline fee.
HEC and RISE are easy to confuse because both put SAP in charge of running your systems. The contract underneath is where they differ. It decides how your license investment is treated, how much of the price you can pull apart and how tightly the renewal binds you.
What is the difference between SAP HEC and RISE with SAP?
HEC is a hosting and managed service contract that sits next to a software license you hold separately. RISE with SAP is one subscription that bundles the S/4HANA software, the infrastructure and SAP's technical managed services, priced on the Full Use Equivalent metric.
What HEC is
HANA Enterprise Cloud, or HEC, is SAP's managed private cloud service. SAP hosts and operates your SAP systems for a service fee, while the software license stays in its own agreement with its own maintenance line. In 2020 SAP added a customer edition that runs the same managed service on hardware in your own data center.
Our SAP HANA Enterprise Cloud guide covers the HEC service scope and contract structure on its own.
What RISE is
RISE with SAP launched in January 2021 as a single subscription contract. Next to S/4HANA Cloud itself, SAP's own description of the bundle lists these components:
- Infrastructure. Hosting in SAP's data centers or on a hyperscaler such as AWS, Google Cloud or Microsoft Azure.
- Technical managed services. Delivered by SAP Enterprise Cloud Services. Application management services are added only where required, so check whether your quote includes them.
- Platform credits. SAP Business Technology Platform credits for integration and extensions.
- Starter packs. The SAP Business Network Starter Pack and a business process intelligence starter pack that includes SAP Signavio Process Insights.
How much of the operation do the two share?
They share more than the sales pitch suggests. SAP publishes one service level agreement that covers HEC, RISE with SAP S/4HANA Cloud, private edition and SAP ERP, private edition together. The same SAP Enterprise Cloud Services organization runs the systems, so a claim that RISE buys you a better service level deserves a specific clause reference.
Which one is SAP selling now?
SAP positions RISE as the strategic path, and most new deals are sold as RISE. HEC remains available for some scenarios. If a separated model suits you, ask for it explicitly and in writing, because the account team will rarely offer it first.
| Dimension | HEC | RISE with SAP |
|---|---|---|
| Commercial model | Hosting service, separate license | Bundled subscription |
| License treatment | Often keep existing licenses | Convert to subscription |
| Pricing unit | Service fee plus license and maintenance | Full Use Equivalent (FUE) |
| What you hold if you leave | Your perpetual license | Nothing; the right to use ends with the subscription |
| Unbundling | Easier to separate | Harder to separate |
| Benchmarking | Service layer comparable with other hosts | No competitor sells the same bundle |
| Lock in | Lower | Higher |
| Digital access | Licensed separately | Licensed separately |
RISE with SAP Negotiations: Pricing a One-Way Door
How do HEC and RISE compare on pricing and commercial model?
HEC charges a service fee for hosting and operations on top of a license you already pay maintenance on. RISE replaces both with one FUE based subscription. The difference is structural, and it changes what you can negotiate and what you can benchmark.
HEC pricing
The HEC fee covers infrastructure, hosting and the managed service for the systems in scope, and it grows with the systems and HANA memory you run. Your license and its maintenance continue as before. Because the service layer is priced on its own, you can set it against what other hosting providers charge to run the same systems.
RISE pricing
RISE folds software, infrastructure and service into one subscription priced per FUE. In SAP's RISE service descriptions, one Advanced Use user is 1 FUE, five Core Use users make 1 FUE and 30 Self Service Use users make 1 FUE, while each developer user counts as two. Our guide to calculating FUE counts covers the classification rules.
Why does the split matter?
A bundled number is hard to benchmark because no competitor sells the identical bundle. Split into its parts, each line has a comparison point you can put in front of SAP.
- Software. Set the implied software share against the maintenance you pay today and the conversion credit SAP offers.
- Infrastructure. Compare with what AWS, Azure or Google Cloud charge for SAP certified HANA capacity of the same memory size.
- Managed service. Ask one or two SAP partners to quote technical operations for the same systems and service levels.
- Platform credits and starter packs. Value them at what you would actually buy in the next three years, which may be zero.
A worked example on one baseline
Say a company already holds S/4HANA licenses and pays $1,400,000 a year in maintenance on them. SAP quotes HEC at $950,000 a year for hosting and managed services on the same systems.
For RISE, SAP quotes 2,000 FUE at $1,300 per FUE, or $2,600,000 a year. It adds transition credits of $300,000 in year one and $150,000 in year two. All of these figures are illustrative only.
| Period | HEC (maintenance plus service fee) | RISE (subscription less credits) | Gap |
|---|---|---|---|
| Year one | $2,350,000 | $2,300,000 | RISE $50,000 lower |
| Year two | $2,350,000 | $2,450,000 | RISE $100,000 higher |
| Year three run rate | $2,350,000 | $2,600,000 | RISE $250,000 higher |
| Three year total | $7,050,000 | $7,350,000 | RISE $300,000 higher |
Year one makes RISE look cheaper. Once the credits run out, RISE costs about 11 percent more per year, and that is the price you carry into renewal. Neither column includes price increases, so add the maintenance uplift to HEC and the renewal uplift to RISE.
The same test applies when the choice is cloud against staying put. Our white paper SAP RISE vs On Premises TCO 2026 finds that RISE rarely beats a well tuned on premises installation on raw TCO. Where it wins is in retiring hosting contracts and upgrade debt.
Why we reject the claim that RISE has replaced HEC
The usual account team line is that RISE supersedes HEC, so the comparison is settled. We disagree. In the evaluations described below, buyers who insisted on a like for like HEC and RISE model found a 10 to 20 percent commercial swing, and sometimes HEC with a retained license was the cheaper path over three years.
The better course is to demand both options on one baseline, separate the software value from the service value, and decide on the year three run rate. Accepting that the comparison is closed hands SAP the framing of the deal and takes a real source of negotiating strength off the table.
If SAP will not show you the software and service split, build it yourself before you accept that RISE is the cheaper option.
SAP RISE negotiation guide
RISE pricing benchmarks, FUE sizing checks and the contract clauses to request before you sign, in one download.
Get the white paper →Which managed model gives more control and flexibility?
HEC gives you more control, because the license and the hosting are separate contracts and you can change one without touching the other. RISE simplifies operations but ties software terms, infrastructure and service to one renewal date.
License flexibility
HEC often allows you to keep existing licenses and pay separately for hosting. RISE converts you to a subscription. SAP usually credits part of the value of your existing licenses against the subscription, and the size of that credit is negotiable, but the perpetual rights stop being the basis of your contract.
Exit and portability
With HEC, a separated license is easier to move to another host or back in house. RISE binds software and hosting together, so leaving means replacing both at once. Settle exit, data export and transition assistance terms against the SAP use rights terms before you sign, while you still have a choice.
Roadmap and timing
Both models live under SAP's release and maintenance calendar. Mainstream maintenance for Business Suite 7, which includes ECC, ends at the end of 2027, and extended maintenance runs to the end of 2030 for a premium of two percentage points. Plan either option around the 2027 ECC maintenance deadline rather than under its pressure.
SAP also sells SAP ERP, private edition, which runs ECC as a subscription in SAP's private cloud. Its transition option adds support from 2031 to 2033, with conditions attached:
- systems must move to SAP ERP, private edition on SAP HANA before the end of 2030;
- each system needs a minimum of 2 TB;
- the max success plan is mandatory for 2031 to 2033;
- contracts signed in 2026 carry a standard 20 percent uplift when they switch to the transition option in 2031.
Our 2027 ECC end of maintenance guide sets out the timing options in full.
What have we seen in recent HEC and RISE evaluations?
Buyers are rarely shown a true like for like HEC and RISE comparison by the account team. That held across roughly 25 to 35 SAP managed cloud evaluations we ran in 2024 and 2025, and three patterns kept coming back.
- HEC was left out. RISE was presented as the only option in 7 of 10 first conversations, and HEC was not offered at all.
- The split was hidden. The bundled RISE quote did not show the software versus service split that an HEC proposal makes explicit.
- The gap was material. Once both sat on one baseline, the two models came out 10 to 20 percent apart.
How should a buyer choose between HEC and RISE?
The decision is mostly commercial, and three questions settle most cases. Answer them in order, then check the result against your own situation in the table below.
Do you want to keep your licenses?
If keeping a separated license matters, HEC keeps that option open. If you are ready to subscribe and have accepted the conversion terms, RISE is the cleaner fit.
Do you need to benchmark the service?
If your procurement policy requires competitive quotes for hosting and operations, HEC gives you a priced service line to test. Under RISE, make itemized pricing a condition of the proposal, as set out in the contract terms below.
Have you priced digital access?
Digital access by document volume applies under both models and is not covered by the hosting fee or the subscription. Cap or credit it at signature whichever model you choose. Our note on digital access in S/4HANA and RISE contracts covers the clause wording.
How does the answer change with your situation?
| Your situation | Usually fits | Why |
|---|---|---|
| You bought S/4HANA licenses in the last few years | HEC | The license value is recent, and HEC keeps it working for you |
| Older ECC licenses and a full S/4HANA program ahead | RISE, if the conversion credit is fair | The credit and one contract simplify a move you are making anyway |
| Complex brownfield system, not ready to subscribe | HEC | Keeps a separated license and hosting model for now |
| Complex brownfield system, ready to subscribe | RISE private edition | Built for brownfield conversions under one subscription |
| Large ECC system unlikely to convert by 2030 | SAP ERP, private edition | Adds legal changes, security patches and fixes from 2031 to 2033 |
What will the SAP account team say, and how should you answer?
Expect the conversation to open with RISE and stay there. These are the lines buyers hear most often, with a reply that keeps both options on the table.
- "HEC is not really offered for new projects." Ask for that in writing. If SAP will not quote HEC, ask for the infrastructure and managed service share of the RISE price as a separate line.
- "The transition credits make RISE cheaper." Ask for the year three price with credits removed. The credits expire, and the full subscription price is what carries into the renewal.
- "Our FUE sizing is standard for a company your size." Reply with your own count by user type and ask SAP to reconcile its number to yours, line by line.
- "Digital access can be handled after signature." Decline and put it in this order form. After signature, SAP prices your document volume at a point when you have no competing option.
- "This offer only holds until quarter end." Agree to sign by that date only if both proposals have been modeled by then. Our note on SAP fiscal quarter timing explains when that pressure helps you.
Which contract terms should you ask for in either model?
Ask for terms that keep the price visible and the exit open. Most apply to RISE in full and to the HEC service contract where relevant.
- Itemized pricing. Software, infrastructure and managed services shown as separate lines, so you can benchmark each at renewal.
- A renewal cap. A fixed ceiling on the renewal uplift, written into the order form. Our uplift cap benchmark shows what buyers obtain.
- FUE mix flexibility. The right to move users between Advanced, Core and Self Service Use within the FUE total, so reclassification does not trigger a purchase.
- A reduction right. The ability to lower the FUE count at renewal if headcount or scope shrinks.
- Dated credits. Transition credits with fixed dates that are not forfeited if the project slips.
- Exit assistance. Data export formats, a transition assistance period and its price, all agreed up front.
- Digital access terms. A document volume cap or credit, fixed at signature.
How do you check your own position before SAP quotes?
Build your own numbers before the first proposal arrives, so you are checking SAP's sizing instead of accepting it. These sources cover most of the work.
- User classification. Run USMM and consolidate the results in the License Administration Workbench (transaction SLAW). Our guide to USMM, LAW and SLAW explains the output, and the FUE calculator turns it into a count.
- Contracts and maintenance base. Pull your signed order forms and the latest maintenance invoice. Any conversion credit should be calculated from these figures.
- Sizing. SAP Quick Sizer and the SAP Readiness Check for SAP S/4HANA estimate HANA memory and flag conversion work. Memory drives the infrastructure cost in both models.
- Document volume. Estimate digital access documents before SAP does; our review of digital access measurement tools compares the options.
What to do next
- Ask for both. Request a HEC and a RISE proposal from SAP on the same scope baseline.
- Split each proposal. Separate the software value from the service value in both.
- Count FUE yourself. Build an independent FUE count so you can support the RISE number line by line.
- Model year three. Compare the year three run rate for both models, with credits stripped out.
- Price digital access. Price document volume as a separate line in both options.
- Compare the terms. Put lock in, license treatment and exit terms side by side.
- Test the RISE number. Run the SAP RISE TCO calculator against the RISE quote.
- Get a second view. Engage independent SAP advisory before the commercial close.
Holding a RISE with SAP proposal? Our SAP RISE advisory team checks the FUE count and contract terms before you sign.
Frequently asked questions
How is SAP HEC different from RISE with SAP?
HEC is SAP's older managed private cloud: SAP runs your systems for a service fee and your license stays in a separate agreement. RISE is the newer subscription that combines S/4HANA software, infrastructure and managed services in one contract. The operations are similar; the commercial packaging is what differs.
Is HEC being replaced by RISE with SAP?
SAP treats RISE as its strategic offer, and most new managed cloud deals are sold that way. HEC is still available for some scenarios. Assume RISE will be the default proposal, and request HEC by name if keeping your license and hosting separate suits you better.
How do HEC and RISE differ on pricing?
HEC is a hosting and managed service fee layered on software you already license, so you pay two lines: maintenance and the service fee. RISE charges one subscription per Full Use Equivalent that covers everything. One number is easier to approve and harder to test against the market.
Which model gives a buyer more control?
HEC, in most cases. With the license and the hosting in separate contracts, you can renegotiate or replace the service without reopening your software rights. Under RISE, a change to the service terms means reopening the whole subscription at its renewal date.
Does RISE create more lock in than HEC?
Yes, as a rule. The RISE bundle ties software, infrastructure and service to one contract and one renewal. Under HEC your license can move to another host. In either model, write exit assistance, data export formats and a transition period into the contract before signature.
Can I keep my existing SAP licenses with HEC?
In many HEC arrangements, yes: you bring the licenses you own and pay separately for managed hosting. RISE generally requires converting them to the subscription, usually against a negotiated credit. That makes license treatment the first question to settle when you compare the two.
Which is better for a complex brownfield SAP system?
Both can run a complex brownfield SAP system. RISE private edition suits companies ready to convert licenses to a subscription. HEC suits those that want to keep a separated license and hosting model for now, for example because the licenses were bought recently.
How does digital access apply to HEC and RISE?
The same way in both. Documents created by third party systems are counted by volume and licensed apart from the hosting fee or the RISE subscription. Moving to SAP's cloud does not remove the exposure, so cap or credit document volume in the contract you sign.
Should a buyer get advice before choosing HEC or RISE?
Usually, yes. We have run around 30 of these evaluations since 2024. An advisor can model both options on the same baseline, separate software value from service value and show each model's year three cost, so you decide on a like for like comparison.