White Paper · SAP

The SAP RISE Negotiation Guide

Migrate, hybrid, or stay. The buyer side framework we use with Fortune 500 clients evaluating RISE with SAP versus on premise S/4HANA in the 2025 to 2027 transition window.

Portrait placeholder for Fredrik Filipsson, Co Founder and Group CEO
Written byFredrik FilipssonCo Founder & Group CEO · ex Oracle, IBM, SAP
Read Time22 Minutes
PublishedJul 2023
Last UpdatedMay 2026
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HomeSAP HubWhite PapersSAP RISE Negotiation Guide
The Short Version

If you read nothing else

Bottom Line

RISE with SAP is a contractual repackaging dressed as a modernisation product. The decision that determines your next five to seven years of ERP cost is not whether to move to S/4HANA; it is on what commercial terms. Most enterprises overpay because they treat RISE as the only credible path to S/4HANA when it is one of three.

Key Takeaways

Five conclusions that change the negotiation

Each takeaway is a complete claim with the implication attached. If your current RISE conversation contradicts any of these, the chapters that follow give you the evidence and the contractual mechanics to correct course before signature.

RISE is a repackaging, not a product. The S/4HANA inside RISE is the same S/4HANA you can license on premise. Treat RISE as a commercial bundle to evaluate on commercial terms, not as a technology decision.
The 2027 ECC end of mainstream maintenance is the leverage moment. Until then, SAP needs you to decide. After then, SAP's negotiating position weakens. Decide on your timeline, not on SAP's.
FUE conversion math hides user metric inflation. The Full User Equivalent translation between traditional named user metrics and the RISE FUE basis often inflates the apparent count by twenty to forty percent. Demand the conversion table; do not accept the summary.
Indirect access risk does not disappear in RISE; it changes form. The 2018 digital access pricing model travels with you into RISE. The contractual demarcation between named user and digital access is the most under negotiated provision in any RISE contract.
The hybrid pattern is the most common best outcome. Pure RISE migration is rarely the cheapest. Pure on premise S/4HANA is rarely the simplest. A hybrid (some workloads in RISE, some on premise, controlled commercial demarcation) wins on cost and flexibility in roughly half of the engagements we run.
Recommendations by Role

What to do this quarter

The guide is structured around four roles that must align before signature. If any one of them is missing the reps below, the negotiation lands on SAP's preferred terms by default.

Chief Information Officer
Owns the executive decision
  1. Decouple the technology decision from the commercial decision. S/4HANA is the technology. RISE, on premise, and hybrid are commercial wrappers. Decide the technology first, then evaluate the wrappers on their own merits.
  2. Refuse to commit to RISE before modeling on premise S/4HANA. SAP account teams will sequence the conversation to make RISE the only credible exit from ECC. Reverse the sequence and force the comparison.
  3. Treat the 2027 ECC deadline as your timeline, not SAP's. Extended maintenance, third party support, and selective migration all extend the runway beyond 2027 for organisations that need it.
VP of Procurement
Runs the negotiation
  1. Demand the FUE conversion table line by line. SAP rarely volunteers the per-metric translation; it presents only the totals. Without the line items you cannot challenge the inflation.
  2. Lock the contractual demarcation between named user and digital access in writing. The 2018 indirect access pricing carries into RISE. Specify which integration patterns count as which.
  3. Use end of SAP fiscal year (December 31) and end of Q4 as compounding leverage. The largest discounts arrive in the final two weeks of each. Plan signature timing accordingly.
Software Asset Manager
Owns the user record
  1. Reclassify users by role before any FUE conversion conversation. Most enterprises carry 15 to 30 percent over classification in named user license counts. Correct the classification first; convert second.
  2. Document every system integration touching SAP. The integrations that exist on signature day shape the indirect access exposure for the contract term.
  3. Run SAP's own measurement tools yourself first. SLAW and USMM extracts are the same data SAP would request in an audit. Find your exposure before they do.
CFO & Finance
Models the cash impact
  1. Model five year total cost under at least four scenarios. RISE migration, on premise S/4HANA migration, hybrid, and stay on ECC with extended maintenance. Year one and year five rankings are usually different.
  2. Capitalise the migration effort separately from the subscription. Implementation services, change management, and integration costs are typically two to four times the first year subscription value. Net those against any savings claim.
  3. Build the cash impact into the operating plan two quarters before signature. SAP migration savings are real, but only if Finance has a plan to redeploy them; otherwise they evaporate into the next budget cycle.
The Framework

Eight ideas and how to apply them

RISE is not a product; it is a contractual repackaging

RISE with SAP is sold as the modernisation path to S/4HANA. The technical product inside RISE is the same S/4HANA you can license on premise. What is different is the commercial wrapper: a single subscription bundling software, infrastructure (on hyperscaler of SAP's choice), and managed services into one consolidated contract. The bundle simplifies procurement; it also obscures the price of each component. The simplification is real for some organisations and a trap for others.

This matters because the comparison customers should run is not RISE versus ECC; it is RISE versus on premise S/4HANA versus hybrid versus extended ECC maintenance. The first comparison is the one SAP wants. The second is the one that produces a defensible decision. Customers who frame the choice as binary almost always end up paying more than necessary.

Practical Tip

Ask SAP for a separate quote on RISE for SAP S/4HANA Cloud Private Edition AND on standard S/4HANA on premise licenses with separate infrastructure on the hyperscaler of your choice. Compare the two. The gap between them is the value SAP is asking you to pay for the bundling, not for S/4HANA itself.

The 2027 ECC deadline is the leverage moment

SAP's mainstream maintenance for ECC 6.0 ends December 31, 2027. Extended maintenance is available to 2030 at a premium, third party support to 2030 and beyond. Until 2027, SAP's commercial position is strong because every ECC customer must decide. After 2027, SAP's commercial position weakens because the customers who have not migrated have actively chosen alternatives.

The leverage moment is therefore the eighteen months before your individual decision date, which may be earlier than 2027 if your project timeline requires it. Customers who arrive at SAP's negotiation table inside that window with a credible alternative path (extended maintenance, hybrid, on premise S/4HANA) negotiate from strength. Customers without an alternative negotiate from compliance.

Negotiation Lever

Maintain extended maintenance and third party support as documented options in your decision matrix until signature. Most customers eliminate them mentally early in the process; SAP knows this and prices accordingly. The credible existence of alternatives is the discount.

FUE conversion: where the user metric inflation hides

RISE prices users in Full User Equivalents (FUEs), a normalisation across what used to be Professional User, Limited Professional User, Employee Self-Service, and Developer named user types. The FUE conversion ratios SAP publishes look reasonable on the surface (1 Professional = 1 FUE, 5 ESS = 1 FUE). The conversion arithmetic, applied across a real customer license inventory with classification drift accumulated over many years, often inflates the apparent FUE count by twenty to forty percent compared with what a clean reclassification would produce.

The fix is to reclassify users by actual usage before any FUE conversation. Pull the SAP transaction frequency data per user, classify each user against the documented FUE thresholds, and produce the correct count yourself. SAP will not volunteer the corrected number; SAP's commercial interest is in the higher conversion total.

What to Ask SAP

Before any FUE pricing conversation, ask SAP in writing for the current FUE conversion table for your contract, the documentation of the classification thresholds for each user type, and the integration of those thresholds with the Digital Access pricing model. The answer to all three exists internally at SAP. The customer side mistake is to negotiate without seeing them.

Indirect access and the digital access reset

SAP's 2018 digital access pricing model converted indirect access charges from per user to per-document. Documents are counted across nine categories (sales orders, purchase orders, invoices, etc.) at varying rates. Inside RISE, the digital access pricing model travels with you. The bundle does not eliminate the exposure; it changes how the exposure is measured.

The contractual demarcation that determines what counts as digital access is the single most under negotiated provision in any RISE contract. The default contract treats almost every external system integration as triggering digital access. The negotiated contract specifies which integration patterns are permitted, which trigger documents, and which do not. Without the demarcation, you sign up to an open ended exposure that can produce six and seven figure true up bills mid term.

The RISE versus S/4HANA total cost of ownership

A serious comparison between RISE and on premise S/4HANA covers five years across six cost categories: software license or subscription, infrastructure (hyperscaler or on premise), managed services or internal operations, implementation services, ongoing maintenance and support, and migration cost. RISE bundles three of those (software, infrastructure, managed services) into a single subscription line. On premise unbundles them.

The bundling makes RISE look simpler in year one. Across five years, the bundling has a cost: the implicit premium for the bundle, the loss of optionality on infrastructure pricing, and the absence of the cost reduction you would otherwise capture as the on premise estate matures. Customers who model only the first two years routinely select RISE. Customers who model five years more often select a hybrid. The arithmetic depends on the size and shape of the estate. The framework runs the comparison in detail.

Red Flag

If the SAP account team's TCO comparison stops at year three, the comparison is incomplete. RISE subscription pricing escalators, infrastructure cost compounding, and the absence of license amortisation tail all become visible in years four and five. Demand a five year comparison; refuse to negotiate against a three year one.

The hybrid pattern is real, and often the answer

The framing of the decision as RISE versus on premise forces a binary that the contract does not require. In practice, many of the largest RISE evaluations we have closed produced a hybrid: core ERP modules in RISE for the operational simplicity, ancillary modules on premise for the cost control, with a contractually defined demarcation between them. The hybrid is operationally more complex than either pure path but commercially superior in roughly half of cases.

The hybrid is contractually achievable but commercially difficult. SAP account teams resist hybrid structures because they fragment the commercial relationship. The customer side push for hybrid succeeds when the customer arrives with the workload partition, the cost model, and the contractual demarcation already drafted. Account teams negotiate hybrids when the customer brings the structure; they refuse them when the customer asks for one.

The contractual flexibility provisions that matter

Three contractual provisions determine whether RISE is genuinely flexible or only superficially so. First, the right to reduce subscription quantities at annual checkpoints, with caps on the reduction percentage. Second, the right to migrate workloads between hyperscalers during the term, with the cost responsibility for the migration. Third, the indirect access demarcation discussed earlier. None of these appear in the standard RISE template at meaningful strength. All of them are negotiable for customers who ask.

Without these provisions, the RISE subscription is a fixed quantity, fixed hyperscaler, open ended exposure contract. With them, RISE becomes the flexible commercial wrapper SAP markets it as. The difference is in the appendix. Customers who negotiate the headline subscription discount but not the appendix flexibility lose the value of any discount they secured.

Sample Clause · Annual Quantity True Down
Customer shall have the right, at the conclusion of each annual period, to reduce the contracted subscription quantity for any product line by up to twenty percent (20%) of the original annual contracted quantity, provided written notice is given to SAP no less than ninety (90) days prior to the annual anniversary date. The reduction shall apply to the remaining term and shall reduce subsequent invoices proportionately.
SAP does not include this provision in the standard RISE template. We negotiate it into roughly seventy percent of the contracts we work on; the success rate depends almost entirely on raising it before the commercial discount conversation, not after.

SAP's counter moves and how to handle them

SAP account teams have a small set of repeatable counter moves they deploy when a customer signals serious negotiation. The first is the 2027 deadline acceleration, in which the maintenance end of life is presented as a more urgent constraint than it actually is. The second is the partner ecosystem framing, in which the implementation partner (rarely SAP itself) intermediates the commercial conversation in ways that align with the partner's revenue rather than the customer's cost. The third is the executive sponsorship, in which a senior SAP regional leader engages directly with the CIO to reframe the conversation strategically rather than commercially.

None of these are illegitimate. All of them are negotiation. The guide includes the standard responses we deploy: deadline reframing that documents the actual maintenance options, partner management that distinguishes implementation choice from commercial negotiation, and executive handling that keeps the commercial conversation in the commercial team. Customers who have read the responses in advance handle the moves; customers who encounter them for the first time often do not.

Practical Tip

Document every SAP and partner communication during the evaluation. Email, call, and meeting. Counter moves work because the customer side internal record is incomplete and the SAP side record is comprehensive. Equalise the records and most of the leverage equalises with them.

Decision Matrix

Where each path lands on cost and flexibility

The four credible paths plotted against five year total cost and contractual flexibility. Drift, the path most enterprises end up on by default when they accept SAP's framing, is the only quadrant where both metrics deteriorate.

SAP RISE Decision Matrix
Five year cost versus contractual flexibility
FLEXIBILITY HIGH LOW FIVE YEAR COST LOW HIGH On premise S/4HANA Lower cost, full flexibility Hybrid Often the practical optimum RISE migration Bundled, less commercial leverage Drift / unprepared RISE Late preparation, no leverage CHEAP & FLEXIBLE EXPENSIVE & FLEXIBLE CHEAP & LOCKED EXPENSIVE & LOCKED
Gold marker: commercial path with controllable outcome. Red marker: planning failure. Placement is approximate and shifts with FUE volumes, integration complexity, and 2027 timing constraint.
Strengths and Cautions

The four paths compared

Photocopy this section into your next steering committee deck. The decision is rarely about which path is theoretically best; it is about which cautions your organisation can absorb.

Path
Strengths
Cautions
RISE migrationSAP's preferred path
  • Single subscription, simplified procurement
  • Hyperscaler infrastructure included
  • SAP managed services for the platform layer
  • Aligns with SAP cloud commercial direction
  • Bundled pricing hides component costs
  • FUE conversion often inflates user metric counts
  • Hyperscaler choice constrained by SAP terms
  • Subscription escalators compound across years four and five
On premise S/4HANAHighest commercial control
  • Same S/4HANA technology without bundle premium
  • Hyperscaler choice and pricing controllable
  • License amortisation produces a cost tail
  • Strongest negotiating posture for renewal
  • Internal operations and managed services are your responsibility
  • Implementation partner economics differ
  • SAP account team will resist the path
  • Requires capital expenditure rather than subscription accounting
HybridMost common best outcome
  • Core ERP in RISE, ancillary on premise
  • Wins on cost in roughly half of our engagements
  • Preserves commercial leverage for the next term
  • Limits SAP exposure on growth components
  • SAP account teams resist; requires customer side preparation
  • Operational complexity higher than either pure path
  • Contractual demarcation between RISE and on premise must be precise
  • Integration patterns must be documented in writing
DriftThe default failure mode
  • None. Drift is not a strategy.
  • Migrates to RISE under deadline pressure at full asking price
  • No FUE reclassification, no integration documentation
  • Maximum leverage to SAP, minimum to the customer
  • Sets the next renewal up to repeat the same dynamic
Reference

Acronyms used in this paper

RISERISE with SAP. SAP's bundled subscription combining S/4HANA Cloud Private Edition, infrastructure, and managed services.
ECCERP Central Component (SAP ECC 6.0). The legacy SAP ERP platform reaching mainstream maintenance end on December 31, 2027.
S/4HANASAP's next generation ERP, available on premise, in private cloud (RISE), and as public cloud SaaS.
FUEFull User Equivalent. The normalised user metric introduced for RISE pricing across what were previously distinct named user types.
ESSEmployee Self-Service. The lowest cost user category in traditional SAP licensing, with restricted transaction access.
SLAWSAP License Audit Workbench. The official SAP tool used to measure user counts and indirect access for license compliance.
USMMUser Measurement utility. The transaction within ECC and S/4HANA used to count and classify users for compliance reporting.
DADigital Access. SAP's 2018 indirect access pricing model, charging per document rather than per indirect user.
BTPBusiness Technology Platform. SAP's integration and extension platform, often bundled with RISE engagements.
BATNABest Alternative To a Negotiated Agreement. The credible non SAP option that gives the customer leverage in negotiation.
Methodology & Sources

This white paper draws on Redress Compliance engagements with more than sixty enterprise SAP clients across the past four years, a sample of thirty one RISE evaluations and contracts reviewed under non disclosure, public SAP product disclosures and pricing announcements, and the active Redress benchmark program covering RISE, S/4HANA, and indirect access pricing.

Where benchmark figures appear in the paper, they reflect the median outcome across the sample, not the maximum or marketed figure. Where contractual language is reproduced, it is anonymised and reflects clauses negotiated by Redress on behalf of clients across multiple engagements. SAP product names, terminology, and commercial constructs are used in their conventional industry sense and do not constitute legal interpretation.

Portrait of Fredrik Filipsson
About the Author

Fredrik Filipsson

Co Founder & Group CEO, Redress Compliance

Fredrik leads Redress Compliance's Oracle, SAP, and Java practices. He spent eleven years inside Oracle's commercial organisation in Stockholm and London before crossing the table in 2013, and has since closed SAP RISE evaluations, ECC migration negotiations, and indirect access settlements on behalf of more than 200 enterprise clients across Europe, North America, and Asia Pacific.

He is the author of the Redress SAP RISE Negotiation Guide and the Oracle ULA Decision Framework, and is regularly cited by Forrester and the IDC enterprise software practice on enterprise vendor commercial strategy.

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