SAP RISE Negotiations –FAQs
Read our Negotiation with SAP – CIO Playbook.
- What leverage points can customers use when negotiating a RISE with an SAP contract?
Customers have several leverage points when negotiating RISE. Timing is key – SAP sales teams often face quarterly and year-end targets, so aligning negotiations with these periods can yield extra concessions. Another lever is SAP’s strategic push for cloud adoption; SAP is keen to sign RISE deals (to hit cloud revenue goals and 2027 ECC migration targets) and may offer better terms to close the deal. Customers can also leverage their alternative options – for example, evaluating S/4HANA without RISE or delaying migration – to pressure SAP into a more competitive offer. In short, let SAP know you have options and a firm budget limit; SAP will often adjust discounts or deal structures to meet your requirements if they sense you’re prepared to walk away (they’ve even “lined up numbers and discounts” to hit a customer’s target price in some cases). - How can timing (like quarter-end or SAP’s fiscal year-end) impact RISE negotiations?
Yes – timing can be a key negotiating lever. SAP sales representatives have strong incentives to close deals by quarter-end or year-end, often motivating them to offer higher discounts or more favorable terms. For example, one company aligned its contract renewal with SAP’s fiscal year-end and secured a 15% discount that previous negotiations had not achieved. This happens because SAP is eager to book revenue before deadlines. Being ready to sign at those crunch times can significantly improve your pricing. Plan your negotiation timeline to coincide with SAP’s end-of-quarter or year push, but ensure you’ve thoroughly researched the requirements so you don’t rush into a subpar deal just to meet a deadline. - What incentives or credits might SAP offer for moving from on-premise to RISE?
SAP has introduced specific incentives to entice customers to use RISE. In 2024, SAP began offering substantial migration credits. For instance, on-premises S/4HANA customers could receive a credit worth 60% of their first-year RISE fees on other SAP services if they migrated to RISE. To migrate, ECC customers were offered a slightly smaller credit, around 45% of the first-year fees. These credits offset migration costs and “protect existing investments,” effectively acting as a big first-year discount. Additionally, SAP may allow you to apply unused portions of your existing license value as credit toward RISE or provide “dual use” periods where you run old and new systems in parallel without extra charge (to smooth the transition). Always ask your SAP rep about current incentive programs – they can significantly improve the business case for RISE if you qualify. - How can we leverage our SAP licenses or maintenance investments in a RISE deal?
When moving to RISE, ensure that your past investments are not lost. Signing a RISE agreement typically terminates or transitions your existing SAP ERP license and maintenance contract. Still, SAP usually credits the remaining value of those licenses and maintenance fees. In a contract conversion, SAP essentially “trades in” your old licenses for the new subscription. Unused software (shelfware) and prepaid support can be credited to offset the RISE subscription cost. It’s crucial to negotiate the valuation of this credit: ensure SAP acknowledges the maintenance you’ve paid and any undepreciated license costs. Also, negotiate any necessary dual-use period so you can run the legacy system during the RISE go-live phase without incurring double costs. Doing so protects the value of your sunk costs and prevents you from paying for overlapping software twice. - What level of discount can organizations negotiate on a RISE with an SAP subscription?
Discount levels on RISE can be significant if you negotiate assertively. Many organizations achieve double-digit percentage discounts off SAP’s initial quotes by leveraging competition and internal benchmarks. For instance, one company cut its RISE costs by 15% through license optimizations and tough negotiations on service fees. Another client secured a similar ~15% reduction by strategically timing the deal around SAP’s fiscal year-end. Large deals are not unheard of, and you should push for even deeper discounts, especially if you’re a strategic customer or bundling multiple SAP products. The key is to come armed with data, such as usage analysis and alternative cost scenarios, and be willing to push back on SAP’s initial offer. SAP’s pricing has room for negotiation if you justify your need for a better rate. - How can benchmark data or other SAP customers’ insights help RISE negotiations?
Leveraging benchmarks from peer deals is a powerful strategy. Knowing what discounts or concessions similar companies have obtained provides a baseline to aim for and evidence to challenge SAP’s proposal. For example, if industry benchmarks show that customers are getting a 50% discount off the list price or a cap on renewal increases, you can bring that up and ask SAP to match that standard. Third-party advisors or SAP licensing experts can be very helpful here – they often have anonymized data on recent RISE deals and know where SAP is flexible. By presenting these comparisons, you effectively say, “We know what the market pays.” SAP is more likely to improve terms if they realize you’re aware of competitive benchmarks. In essence, benchmarks strengthen your position by preventing SAP from claiming an offered price is “as good as it gets” when you have evidence otherwise. - What renewal terms and clauses should we negotiate in a RISE with SAP contract?
It’s critical to negotiate renewal protections upfront. Ensure the contract includes a cap on annual price increases or a fixed price for the first renewal term. By default, SAP’s standard RISE contracts might not limit how much they can raise prices after the initial term, which could lead to sticker shock at renewal. Customers should push for clauses like: “Any renewal price increase shall not exceed X% of the previous term’s price.” Also, try to negotiate flexibility at renewal – for example, the right to adjust user counts or switch to other SAP services without penalty. Nail down the renewal notification period as well (so SAP gives you plenty of notice of the terms). The goal is to avoid a scenario where you complete a comfortable three-year term and then SAP demands a significant salary increase. Negotiating these renewal terms now gives you cost predictability and leverage later when deciding whether to renew or explore alternatives. - How can we ensure that pricing remains predictable when our RISE contract comes up for renewal?
To avoid nasty surprises at renewal, build price protections into your contract. One approach is negotiating a renewal price cap, stipulating that renewal rates cannot increase by more than 5-7% or a fixed percentage over the initial term. Some customers even negotiate that the renewal will be at the same price as the initial term, effectively locking the rate (SAP may resist, but a modest cap is often achievable). Additionally, consider negotiating rights to extend the term at the same pricing or to convert to standard S/4 licenses if you choose not to renew RISE. SAP’s standard proposal might omit these protections, so you must explicitly request them. The bottom line is to eliminate uncertainty: with an agreed ceiling on future costs, your team can budget and plan without fear of a dramatic cost spike after the initial subscription period. - Can user counts or subscription volume be adjusted during a RISE contract term?
Generally, SAP RISE contracts lock in a fixed number of users (FUEs) and resources for the term, with no automatic right to reduce mid-term. Unlike some cloud services that let you scale down, RISE is more rigid – you commit to a certain capacity (e.g., number of FUEs) for the full duration. That said, you can usually add users or additional capacity if needed (by purchasing more); however, you cannot drop below your committed level until the renewal. To introduce flexibility, some customers negotiate provisions such as a one-time adjustment window or tiered pricing that account for changes in volume. For example, you might arrange that if your user count decreases due to a divestiture, you can replace those users with another equivalent use elsewhere or receive cost relief. These are special requests and not standard – SAP prefers a fixed commitment, but if your business is likely to change, it’s worth pushing for a clause that allows downsizing or reallocation after a certain period. At a minimum, plan to right-size the contract from the start (don’t overestimate users), because once signed, you’re paying for those FUEs, whether you use them or not. - Can we negotiate “swap rights” to repurpose part of our RISE subscription if our needs change?
Yes, it’s wise to attempt negotiating so-called swap or conversion rights. Swap rights would allow you to exchange some of your RISE subscription entitlements for other SAP products or cloud services as your needs evolve. For example, if you contracted for a certain number of S/4HANA users but later found that you needed fewer ERP users and more SAP BTP services (or another SAP cloud product), a swap right would let you reallocate part of your spending accordingly. SAP’s out-of-the-box RISE terms usually don’t include this flexibility, but savvy customers have requested it. Even if full swap rights aren’t granted, you might negotiate the ability to apply unused subscription value toward other SAP cloud offerings. The key argument is that business needs change over a 3-5 year term – by allowing some repurposing of the subscription, SAP keeps you as a satisfied customer rather than forcing a one-size-fits-all deal. It’s not guaranteed SAP will agree, but it’s a topic worth raising in negotiations, especially if you foresee significant shifts (e.g., moving some divisions to a different SAP product). - Why must we clearly define what’s included (and not included) in the scope of our RISE contract?
Because RISE bundles many components, it’s easy to assume everything you need is covered – a dangerous assumption. The contract will explicitly list what is included (e.g., S/4HANA software, a specified number of user licenses, basic cloud infrastructure, and standard support). Anything not listed is not included and will incur additional costs later. For example, your RISE package might include one production and two non-production systems. Still, if you need an additional test environment or specialized integration services, those must be negotiated into the contract upfront. One client learned this the hard way: they thought data migration was part of the “all-inclusive” RISE offering, only to find out after signing that it wasn’t, resulting in a $ 400,000 unplanned expense for that migration. To avoid such pitfalls, delineate every required service and deliverable in writing. Ensure the contract’s scope document or order form lists items such as the specific system landscape and any migration assistance, including third-party software integrations, service levels, and other relevant details. If a needed item is ambiguous, clarify it or add it to the agreement. This upfront diligence prevents costly surprises down the road. - What are common contractual pitfalls to avoid in a RISE with SAP agreement?
There are several recurring pitfalls that CIOs and procurement teams should be aware of. A significant concern is assuming RISE covers more than it actually does – remember that RISE grants rights only to the specified products. It doesn’t automatically include all SAP offerings, so ensure that any critical modules (e.g., SAC, Ariba) are explicitly included if needed. Another pitfall is overcommitting – signing a long-term deal without flexibility, only to find yourself stuck with unused capacity or unable to adapt if SAP’s strategy changes. Lack of pricing protections is another: not capping renewal or expansion costs upfront can lead to budget-busting increases later. Additionally, failing to monitor actual usage is a trap: if you don’t monitor license utilization, you may pay for far more users than are active. Finally, neglecting the fine print on indirect access, support SLAs, and exit clauses can come back to bite you, such as surprise fees or difficult termination conditions. Avoiding these pitfalls comes down to careful review and forward-thinking – double-check what you’re getting, build flexibility, track usage, and get all important promises in writing. - How should indirect usage (indirect access) be addressed when negotiating RISE?
Treat indirect usage as a first-class negotiation topic – don’t assume it’s automatically solved by moving to RISE. Indirect access (when third-party systems or users use SAP data indirectly) has historically caused surprise license fees for SAP customers. Under RISE, ensure your subscription covers these scenarios. SAP may sometimes include a certain amount of Digital Access (document-based licensing for indirect use) in the RISE package or offer a discounted flat fee, which is not guaranteed. The worst outcome is to ignore it and later face an audit where SAP says, “Your Salesforce e-commerce integration created 1 million SAP documents; pay us for that.” To prevent this, inventory all third-party interfaces to SAP (e.g., e-commerce platforms, CRM systems, supplier portals) and discuss them during the negotiation. You might negotiate an addendum that your RISE fee covers any indirect documents or secure a separate digital access license as part of the deal. Clarity here will save you from “gotcha” charges – indirect use fees have blindsided many customers, and you don’t want to be one of them. - What should we know about SAP’s audit and compliance terms under a RISE agreement?
Even with a cloud subscription, SAP will retain the right to audit your usage. You should review and manage these terms. SAP audits can be disruptive and lead to surprise fees, so try to negotiate some limits or transparency around them. For instance, you could request that SAP provide annual license-utilization reports via their tools (so you can self-correct any compliance issues) instead of invasive audits. Some customers seek clauses to proactively utilize SAP’s license management tools and accurately track their usage, thereby preventing “surprise” audits. You might also negotiate that audits can only occur once a year, with reasonable notice, and that there will be no audits in the first year while the new system is being stabilized. Remember that under RISE, SAP has full visibility into your system usage (since they host it), which makes it easier for them to check compliance – all the more reason to have clear rules. One best practice is to document internally what your contract entitles (user counts, document counts, etc.) and monitor it closely. In negotiation, clarify the consequences of any compliance issue – e.g., is there a right to remedy before SAP charges more? By demystifying the audit process upfront, you protect your operations from surprises and ensure a collaborative approach to compliance rather than a punitive one. - Can we exit or terminate a RISE with SAP agreement early if needed?
Early termination is very difficult in standard RISE contracts. When you sign RISE, you typically commit for the full term (commonly 3 or 5 years), and there is usually no early exit option without incurring heavy penalties, if any. Unlike some SaaS offerings that might allow you to scale down or cancel with notice, SAP expects you to honor the entire subscription term. If you abandon RISE midway (perhaps due to a merger or a move to another platform), you will still be responsible for the remaining contract value. You may also not be allowed to terminate, except in the event of a breach of conditions. It’s essentially like a multi-year outsourcing deal – you can’t change your mind in year 2 without cost. It’s worth negotiating for termination assistance or favorable conditions if something goes wrong. For example, some customers ask for an exit clause if SAP repeatedly misses SLAs or a major regulatory issue arises. However, SAP’s willingness to include such clauses is limited. The safer approach is to go in, expecting to live with this decision for the long term. Therefore, focus on making the term manageable (e.g., not too long) and include provisions that protect you (such as data export rights) when the term ends since you likely cannot leave earlier. Responsible for the remaining contract value. You may also not be allowed to terminate, - Why is having a clear exit strategy (at the contract end) important in a RISE agreement?
Because at the end of your RISE term, you don’t want to be caught off-guard about what happens next. An exit strategy ensures you can transition off RISE (if you choose) without losing data or operational continuity. You should negotiate what happens if you decide not to renew the RISE subscription. For example, ensure you have the right to retrieve all your data in a usable format and, if necessary, run your SAP system in read-only mode for a specified period. Often, companies negotiate a clause that allows SAP to provide a data dump or a limited-use license to access the system for archival purposes if the contract lapses. Without this, you might face a situation where your production ERP is shut off the day after your contract ends, with no access to historical records – a nightmare for finance and compliance. Also, consider SAP’s support for transition (e.g., will they help you migrate to an on-premises solution or another one if you leave RISE?). Another aspect is avoiding vendor lock-in at the end of the term: if SAP knows you can’t leave easily, you have no leverage at renewal. So, a defined exit plan (and perhaps alternative options kept in play) ironically strengthens your hand in renewal talks. In summary, plan the “end game” at the start – secure your data and system access rights for post-contract, and you’ll negotiate from a position of strength rather than desperation when the term winds down, if necessary. Learn more about Rise with SAP. - How can we mitigate the risk of being locked into RISE with SAP in the long term?
Vendor lock-in is a real concern with RISE, but there are ways to mitigate it. First, keep the initial term reasonable – opting for a 3-year term instead of a 5-year term gives you an earlier decision point and more flexibility. A shorter commitment means you can pivot sooner if RISE isn’t working out. Although SAP may charge more for a shorter deal, the flexibility can be worth it. Second, negotiate those renewal caps and exit rights as discussed, so you’re not forced to renew at an exorbitant price because you have no alternative. It’s also wise to retain your perpetual license assets (if possible) until you’re confident in RISE – in some cases, if you fully convert contracts, you lose the right to use your old SAP licenses. Ensure you understand whether you’ll still have the option to return to an on-premises environment if needed. (Often, contract conversion means you won’t, so this is mostly a point for strategy rather than negotiation.) Additionally, maintaining thorough documentation of your configurations and data can be beneficial if you ever need to migrate from SAP to another system. To avoid feeling “stuck,” give yourself options: A well-negotiated contract that balances term length, renewal control, and data ownership will prevent SAP from having an overwhelming upper hand once you’re in the RISE ecosystem. Finally, evaluate the market and SAP’s performance throughout the term. If you know you have alternatives lined up (even if just theoretically), you’ll approach the relationship with a mindset of choice rather than one of dependency. - What internal preparation is essential before negotiating a RISE contract?
Preparation inside your organization is key to a successful negotiation. Start by conducting a comprehensive analysis of your current SAP usage and licenses. Determine how many active users you have, what modules are in use, and where you’re over-licensed. This analysis will let you right-size the RISE proposal (so you don’t buy more FUEs or resources than needed). For example, if only 70% of your named users log in regularly, you can confidently propose a lower user count in RISE and support it with data. Also, identify any shelfware – unused SAP components you’re maintaining – that could be dropped or swapped in the new contract. Internal alignment is another key preparation aspect: get all stakeholders (IT, procurement, finance, and the SAP user community) on the same page regarding priorities and key points of agreement. A unified front with clear goals, such as cost savings targets and required contract terms, will strengthen your position. Finally, research SAP’s product roadmap and your own future needs. If you know, for instance, that you plan to deploy Ariba or SuccessFactors later, consider incorporating those into the RISE conversation now. In short, understand your current state, identify your requirements, and define your objectives. This preparatory work ensures that you drive the negotiation with facts and a coherent strategy, rather than reacting to SAP’s offer. - How does right-sizing our user licenses before migration help in RISE negotiations?
Right-sizing licenses can save you a tremendous amount of costs. RISE with SAP utilizes the Full User Equivalent (FUE) metric, which consolidates various user types into a single count. Therefore, optimizing the number of users (and their type) you need directly lowers your FUE requirement and subscription fee. Before negotiating, analyze your existing SAP user base: many companies find they have far more users provisioned than necessary. By identifying inactive users or downgrading heavy licenses to lighter ones where necessary, you can reduce the required FUE count for RISE. One case study demonstrated that a customer maintained a consistent 1,000 users but, through optimization, reduced their FUE count by 227, thereby eliminating unnecessary capacity and achieving significant cost savings. That example translates to over $33,000 monthly saved on a public cloud RISE subscription. Bringing these findings to SAP, you can negotiate a contract that fits your actual usage rather than an inflated one based on old license counts. It cuts costs and demonstrates to SAP that you’re an informed customer who won’t pay for more than needed. Always remember: You pay for authorizations, not actual usage in RISE, so ensure those authorizations are trimmed to what is required. The number of users (and their type) you truly need directly lowers your FUE requirement and - What happens to our existing SAP licenses and maintenance when transitioning to RISE?
Moving to RISE usually involves converting your existing licenses. Your current SAP license agreement (for ECC or S/4HANA on-premises) and annual maintenance fees will be terminated or migrated to the RISE subscription. You won’t typically continue paying maintenance on old licenses once you’re on RISE – instead, that value is rolled into your RISE deal. SAP will often give credit for the residual value of your licenses or prepaid maintenance to offset the cost of the RISE subscription. It’s crucial to negotiate how this conversion is calculated. Ensure that if you’ve paid for years of maintenance, the investment is recognized – SAP has programs to “protect your investments,” such as giving credit for unused license capacity or a portion of your maintenance base toward the RISE fees. Be aware that once converted, you may lose rights to those perpetual licenses for the software moved into RISE. In other words, you can’t typically fall back to your old SAP system using the same licenses if you leave RISE (unless you negotiate something special). During a conversation, also clarify any interim period. Often, you run legacy and new systems in parallel during migration. SAP’s dual license policy may allow a grace period during which your on-premises licenses and RISE subscription can coexist without an additional charge, offsetting dual-use costs. Ensure that such details are spelled out. To summarize, expect your old contract to be superseded by the RISE contract, negotiate credits for it, and be aware that you are transitioning from perpetual use rights to a subscription model when you make this change.
Cost Breakdown & Pricing Models
- How is the pricing model of RISE with SAP structured?
RISE with SAP is sold as a single, bundled subscription – often described by SAP as “one offer, one price, one contract”- covering a range of elements. Instead of buying software licenses, hardware, and support separately, you pay a regular (e.g., annual) subscription fee, including the S/4HANA software usage, the underlying infrastructure (cloud hosting on SAP’s or a hyperscale’s data center), and standard support services. In essence, it’s SAP’s ERP-as-a-service model: you get the software and the needed services in a package. The pricing is typically based on metrics such as users (measured in FUEs) or resource size rather than purely on consumption hours. SAP manages the system (especially in the public cloud edition), and the cost covers that operational overhead. For example, if you sign a 3-year RISE deal for 500 FUEs, you’ll pay a fixed subscription fee each year for those 500 FUEs, with SAP handling infrastructure and basic admin within that price. This simplifies billing (with a single invoice) but can obscure the costs of individual components. The goal for SAP was to make the cloud transition easier by offering a predictable subscription that covers everything, rather than clients having to piece together multiple contracts. a single invoice) But it can obscure the costs of individual components - What are Full User Equivalents (FUEs) in SAP RISE, and how do they affect pricing?
Full User Equivalents (FUEs) are the units of measure SAP uses in RISE contracts to quantify users in a standardized way. Different types of users (e.g., heavy “Advanced” users vs. light “Self-Service” users) are normalized into FUEs using weighting factors. For example, SAP might define that 1 Advanced Use = 1 FUE, whereas 1 Core Use (a lighter user) = 0.2 FUE, and perhaps 1 Self-Service Use = 0.05 FUE (SAP’s actual factors: 5 Core users equal 1 FUE, 30 Self-service equal 1 FUE, etc., per their definitions). You purchase a total number of FUEs rather than specific counts of each user type. This gives you flexibility – you can mix and match user types as long as the sum of their weighted values stays within your FUE total. Pricing is then set per FUE. The impact on cost is significant: if you overestimate the number of users, you’ll overbuy FUEs and overpay; if you optimize, you can reduce the FUE count and save money without sacrificing user access. It also means that when SAP quotes RISE, they often give a rate like “$X per FUE per month” for your volume tier, and you multiply by the number of FUEs you need. Bottom line: FUSEs simplify licensing by aggregating users, but you must carefully calculate the number of FUSEs needed – it directly determines your subscription fee. - What cost components are included in a RISE with an SAP subscription?
RISE with SAP bundles several cost components into its single subscription fee. The major components include: (1) SAP S/4HANA software licenses – essentially the right to use the S/4HANA Cloud (private or public edition) for a specified number of users or functions. (2) Infrastructure (IaaS) – the cloud hosting of your SAP systems on a hyperscaler (like AWS, Azure, GCP) or SAP’s data center, including compute, storage, and networking needed to run SAP. (3) SAP Basis and application management services – SAP (or their partner) handles system monitoring, updates, and technical support, which in a traditional model you might staff or outsource separately. (4) SAP Business Technology Platform (BTP) credits – many RISE deals include a starter amount of BTP consumption credits or services, enabling you to build extensions or use SAP’s integration and innovation tools. (5) SAP Business Network starter pack – access to networks like Ariba, Concur, etc., may be included at a base level to jump-start your use of those (e.g., some Ariba procurement transactions). Additionally, RISE features tools such as Business Process Intelligence (Signavio) for process analysis and other transformation assets. All these are under one contract and price. It’s essential to note that while these are “included,” they may have limitations (e.g., BTP credits quantity or only a certain number of partner network connections). But from a cost perspective, you’re not paying separate line items – you pay one subscription that covers software, hardware, and standard services in one bundle. - Can we obtain a transparent breakdown of costs (software, infrastructure, and services) in a RISE deal?
SAP’s RISE pricing is notoriously opaque in terms of component breakdown. The invoice generally won’t separate the cost of software licenses from the cost of infrastructure, etc. SAP effectively resells cloud infrastructure and services as part of the package, often with markup, and does not disclose the internal split. As a customer, you can request more transparency – some companies ask SAP to provide estimates of the infrastructure cost portion (like how many SAPS or virtual machines you’re getting) and the service cost portion. While SAP may provide sizing details, it typically presents a single subscription price. One strategy is to do your benchmarking: price out what it would cost to run equivalent systems directly on a hyperscaler. In one case, a customer discovered they were paying premium rates for infrastructure through RISE, which would have been cheaper if they had bought it directly from AWS. Armed with such info, you can pressure SAP for a better deal or explanation. It’s also possible to negotiate caps or transparency clauses – for instance, an agreement that charges will be incurred only if you require additional hardware beyond a certain point.SAP won’t volunteer a cost breakdown by default, but you should ask. Understand the resource sizing and service levels you’re getting for your price. If SAP is unwilling to break it down in the contract, use that as leverage: express that you need to justify the cost internally and that an unbundled view (even if not formally in the contract) is needed to approve the deal. This can sometimes push SAP to adjust pricing to align with realistic infrastructure values or ensure they correctly size the environment.. - How does the cost of RISE with SAP compare to traditional SAP licensing and on-premise operation?
Traditional SAP licensing is typically a large upfront CapEx (for perpetual licenses) plus annual maintenance (20–22% of the license cost). You also separately pay for hardware, infrastructure, and IT staff, or you can outsource the operation of the system. RISE converts this to an OpEx subscription – you pay periodically for everything bundled. In the short term, RISE can appear more expensive annually than just maintenance fees, but remember it includes hosting and other services. Over a multi-year horizon, SAP claims that RISE can be a cost-effective solution. SAP has stated that it can be up to 20% lower in total cost of ownership over five years compared to on-premises S/4HANA. This assumes you’d otherwise invest in hardware, upgrades, and higher internal costs.On the other hand, some customers find that doing it themselves (especially if they already own licenses and infrastructure) might be cheaper, albeit with more effort. For example, if you have a fully depreciated hardware environment and low labor costs, staying on-prem might cost less per year than RISE’s subscription. Also, RISE’s convenience comes at a premium – SAP adds a margin for managing everything. In one analysis, companies determined that RISE would cost more over the contract’s life than renewing existing licenses and transitioning directly to cloud infrastructure, largely due to the SAP premium and the cost of unused bundle components. To compare, you would break down all costs. With the traditional model, factor in license depreciation, maintenance, hardware refreshes, administrative and support personnel, downtime risks, and so on, and compare them to rising fees. Many find RISE’s bundled price competitive for a new S/4 implementation from scratch. However, for those who have already paid for licenses, RISE can be pricier unless SAP offers credits. Ultimately, the cost comparison is complex and case-specific; therefore, you should conduct a detailed total cost of ownership (TCO) analysis tailored to your specific scenario. Just be wary of simple claims; scrutinize what’s included on both sides of the comparison. - How does RISE with SAP pricing compare to licensing SAP S/4HANA Cloud without the RISE bundle?
Importantly, you are not obligated to use RISE for SAP’s cloud ERP. You can license S/4HANA Cloud directly, especially the public cloud edition or the private edition, via a traditional subscription. Then, you could contract a cloud hosting provider and support services separately. Regarding pricing, SAP S/4HANA Cloud (public) offers a SaaS-style fixed price per user by type, with the hyperscaler handling infrastructure costs. In contrast, RISE wraps these costs into one. SAP has positioned RISE as more convenient, but licensing S/4HANA Cloud a la carte” offers more visibility or a slightly lower cost if you can run things efficiently. For example, S/4HANA Cloud Public Edition has published user prices and tends to be less expensive per user than a full RISE Private Edition subscription, but it comes with less flexibility. Some midmarket customers use the newer GROW with SAP offering, essentially the S/4HANA public cloud without the full RISE bundle (targeted at smaller implementations). SAP explicitly notes that RISE is not mandatory – you can choose standalone SaaS licensing for S/4 if that suits you. Cost-wise, if you have the skills and vendor relationships, handling your hosting and management might help avoid SAP’s markup. Conversely, SAP might discount RISE more heavily than standalone licenses to encourage adoption. It’s worth asking SAP for a comparative quote: “What if we just subscribe to S/4HANA Cloud and handle hosting ourselves?”In some cases, seeing that breakdown can either reveal hidden costs or give you bargaining power for the RISE deal. - Is there a difference in cost between RISE and SAP’s private and public cloud editions?
Yes, there is a cost difference. Generally, RISE with SAP Private Edition is more expensive per user than the Public Edition. This reflects your higher-dedicated resources and flexibility in a private environment (essentially a single-tenant system that can be heavily customized, like on-premises). For example, pricing data has shown a difference of around USD 178 per FUE per month for Private Edition compared to $147 per FUE per month for Public Edition at a certain scale (1,000+ users). That’s roughly a 20% premium for private. The rationale is that in Public Edition (multi-tenant SaaS), SAP can achieve economies of scale and enforce standardization, passing some of these savings on to you - Can RISE with SAP reduce the total cost of ownership compared to on-premise (as SAP claims)?
SAP claims that RISE can reduce the total cost of ownership (TCO) by up to 20% compared to a traditional on-premises deployment. This claim typically involves avoiding hardware capital expenses, reducing internal IT effort, and faster implementation of innovations, among other benefits. In practice, whether you realize TCO savings depends on your starting point. If you’re currently on outdated hardware, facing an upgrade, incurring high maintenance costs, and lacking cloud expertise, RISE’s bundled approach could save you money and headaches over the next five years (through standardized services and economies of scale). It can also prevent costly downtime or performance issues by having SAP manage the environment with defined service-level agreements (SLAs). However, some customers are skeptical: they find that while certain costs (data center, admin labor) decrease, other costs (subscription fees, potential premium for SAP’s involvement) increase, sometimes making RISE cost-neutral or even more expensive in the long run. For instance, if you’ve already heavily invested in a competent SAP Basis team and efficient infrastructure, switching to RISE might not yield big operational savings – you might just replace internal costs with SAP subscription costs of equal or greater size. Also, be aware of potential hidden costs that SAP’s TCO projection may not account for, such as change management, reimplementation of customizations, or integration costs. Conduct a line-by-line comparison for your scenario to determine if a 20% TCO reduction is realistic. Include all the “soft costs” of on-prem (upgrades, downtime risk, personnel, etc.) and compare to the RISE subscription plus any extras (e.g., additional services not in RISE). Some early adopters have reported smoother operations and avoided hiring additional staff, resulting in savings. Others felt the cost was higher but justified it with faster transformation or access to new technology. In summary, RISE can reduce TCO, but not automatically by 20% in all cases. Validate SAP’s math against your cost model and ensure the scope of comparison is apples-to-apples. - What is typically not covered by a RISE contract that could lead to additional costs?
Despite its comprehensive nature, RISE contracts have boundaries. Data migration is a notable item – moving your historical data into S/4HANA is usually a separate project, often handled by a system integrator. Unless you add it explicitly, it is not included in the RISE subscription by default. Similarly, implementation services and configuration are not included in RISE; you must use SAP Services or a partner for these services at an additional cost. Within the RISE scope, you get standard infrastructure. However, if you require additional systems, such as a second training client or a sandbox, an extra charge may apply. Also, watch for third-party add-ons: if you integrate non-SAP solutions or require SAP functions like tax localization engines, these may necessitate additional licenses beyond RISE. Upgrades and new features: SAP will provide technical upgrades (especially if you’re on the public edition), but any effort to adjust custom code or retest processes is your responsibility (or that of your integrator), which means additional service costs. Another thing often not covered is extensive testing support or interface rework during migration – those are project costs, not in the subscription. Indirect access licenses may not be fully covered (as discussed earlier) – you may need a digital access license if it was not negotiated. High availability/disaster recovery beyond what’s standard: RISE includes certain resiliency (e.g., one failover zone), but if you want, say, a secondary system in another region for DR, that’s an extra service. Advanced support: The subscription provides a basic SAP Enterprise Support equivalent. These are additional options if you want a dedicated support manager or enhanced Service Level Agreements (SLAs). Lastly, custom development tools – RISE includes some BTP credits, but using BTP heavily beyond the included small amount will incur extra costs (as we’ll cover below). The key takeaway is to identify all the necessary components for fully operating SAP in the cloud, from initial migration to daily usage, and confirm which items are included and which are not. Anything not included should be negotiated in or budgeted as a separate line item so it doesn’t catch you by surprise. Although it may not be fully covered (as discussed earlier), you may still need a digital access license if that’s the case. - What hidden or unexpected fees should we watch for in a RISE with an SAP contract?
Hidden costs can lurk around the corners of a RISE deal, so it’s great you’re asking. One area is cloud infrastructure sizing: SAP proposes a certain system size for the subscription. If it turns out to be undersized and you need more CPU, memory, or storage later, you will incur additional fees to upgrade your environment. Conversely, if it’s oversized, you’re paying for unused capacity. Since SAP doesn’t itemize the infrastructure cost, it can be challenging to determine if you’re overpaying. Another hidden cost can be related to network and data transfer – large volumes of data egress (exporting data out of the cloud) might not be included. They could be billed separately by the hyperscaler via SAP. Indirect usage fees are a major “gotcha” if not addressed. As mentioned, if third-party systems indirectly use SAP functionality and it’s not covered in the contract, an audit could result in unforeseen charges. Exceeding usage thresholds: Some RISE components come with limits (e.g., the number of documents in Document Management or the number of users of SAP Analytics Cloud, if included). Surpassing these limits may require additional purchases. SAP Business Network transactions: RISE’s starter pack might include a certain number of Ariba transactions or Concur users; beyond that, normal fees apply. Additionally, support-related costs may surprise you – while standard support is included, if you require extensive consulting from SAP or premium engagement services (such as Active Attention or Max Attention), these are additional contracts that incur extra costs. Custom enhancements: If you heavily use SAP BTP to build or integrate apps, you may quickly exhaust the included credits and incur overage charges (which can escalate quickly if usage is high).
Finally, note factors such as currency fluctuations – if your RISE contract is denominated in a currency different from your local one, some contracts allow SAP to adjust for currency changes on an annual basis (this can be negotiated out for greater predictability). To avoid hidden fees, explicitly ask in negotiations: “What happens if…we need more storage, or more users, or more transactions?” and get those scenarios documented. A well-negotiated contract will outline how scaling is priced, preventing any nasty surprises in the long term. - How is SAP Business Technology Platform (BTP) usage tracked in RISE, and do these tracking methods incur additional costs?
SAP BTP is included in RISE in a limited way. Typically, SAP provides a baseline amount of BTP resources or credits as part of your RISE subscription, such as a certain number of credits for using integration services, extensions, and other services. This is great for building Fiori apps, workflows, or integrations on SAP’s platform. However, if you use BTP beyond the included allotment, you will incur additional charges on a pay-as-you-go basis for BTP. These costs can be tricky because BTP operates on a consumption model (e.g., CPU hours, memory, API calls). Many customers underestimate how quickly they can burn through credits, especially when deploying numerous apps or running heavy analytics on BTP. If, for instance, you develop a custom extension that processes a lot of data or use BTP for extensive integration scenarios, you might consume more than the free credits. Then, SAP will bill the overages, which can unexpectedly add thousands of dollars per month. The key is understanding exactly how much BTP usage is included in your RISE contract (e.g., “X credits per year” or a certain service plan) and the overage rates. It’s wise to discuss this with SAP: if you anticipate heavy BTP use, consider negotiating a larger BTP capacity upfront at a better rate or a cap on charges beyond a specified threshold. Also, set up monitoring on BTP consumption from day one.In summary, BTP is a powerful part of RISE’s value proposition, as it enables cloud extensions. It’s a metered service – using it beyond the included amount incurs variable costs. To avoid budget surprises, either limit BTP use to included levels or include an expected volume (and pricing) in your contract. - Does RISE with SAP eliminate indirect access fees, or do we still need to manage indirect usage costs?
RISE does not automatically eliminate indirect access considerations; you must remain vigilant. What RISE changes is that your core ERP usage is subscription-based. However, if external systems (non-SAP) create SAP business documents (such as sales orders or invoices) or query SAP data, SAP’s licensing policy regarding indirect use still applies. Many customers assume that moving to a subscription means indirect access is no longer relevant. Still, SAP continues to enforce licensing for indirect use through its Digital Access model (document licensing) unless explicitly covered. In some RISE contracts, SAP has been willing to include a certain number of Digital Access documents or even an enterprise license for indirect use as part of the deal – this is something you should negotiate upfront. If you don’t, you could face a scenario where SAP audits your environment and says, “By the way, your e-commerce site created 100,000 sales orders in S/4HANA – pay us for those documents.” The cost for that could be very significant if not pre-negotiated. So, clarify with SAP during negotiations: “With this RISE subscription, do we have rights for indirect usage? If so, what and how much? If not, what’s the model?” Ideally, get a clause that includes your named FUE count or digital access license to cover typical third-party interactions, perhaps with specified systems. If SAP is unwilling to bundle it, consider purchasing a Digital Access license separately to cover your needs. In short, RISE simplifies a lot, but indirect access is one area where you must dot the i’s and cross the t’s – it’s safer to assume it’s not covered unless the contract explicitly states so to avoid later compliance fees. - How does the RISE subscription model differ financially from SAP’s traditional license + maintenance model?
Financially, RISE turns what was traditionally a capital expenditure (license purchase) plus ongoing operating expenses (maintenance and infrastructure) into a pure operating expense subscription. In the classic model, you would pay a large upfront license fee for 1,000 users and an annual support fee of 22%. With RISE, there’s no upfront license cost – instead, you pay, for example, an annual subscription per FUE/user that inherently includes support and the right to use the software for that year. This results in a better cash flow spread but potentially higher cumulative costs over time compared to an owned asset, as maintenance costs are not compounded when the license is paid off. Another difference is flexibility: the traditional model gives you perpetual rights – you can stop paying maintenance and still use the software, although it will be unsupported. With RISE, if you stop paying, you lose access. So, the financial model shifts from an ownership to a rental paradigm.Additionally, RISE often involves a multi-year commitment, such as a 3-year contract paid annually or quarterly. In contrast, traditional maintenance is year-to-year, although there are penalties if you lapse and want to restart. Accounting-wise, many companies like the subscription because it can often be fully treated as an operational expense.In contrast, licenses might be capitalized and amortized – depending on your accounting preferences, this can be either a pro or a con. The pricing structure also differs: traditional licensing has volume discount tiers, but once purchased, adding users later means buying additional licenses (possibly at a different discount). - Are there built-in price escalators or inflation adjustments in RISE contracts?
Many SAP RISE contracts do include price escalators by default, so it’s something to check and negotiate. An escalator clause increases the subscription fee by a certain rate each year (or at renewal) to account for inflation or other factors. For example, SAP might propose a 3% annual increase on the subscription fee, which is built into a multi-year contract. Alternatively, if the contract is flat for the term, you might face a larger jump at renewal if it is not capped. SAP’s standard terms may allow them to raise fees at renewal without a limit, which is why we advise negotiating a cap. It’s not uncommon to see language like’ fees shall increase by CPI or 3% annually, whichever is higher,” or something along those lines – especially given recent inflation. Like most vendors, SAP wants to ensure its subscription revenue keeps pace with costs. If your RISE quote or draft includes an escalation clause, review it carefully. You can negotiate it down or out – some customers have achieved a zero percent escalator during the initial term, locking the price for 3 years, and only deal with an increase at renewal (and even that can be capped). If SAP insists on an escalator, try to make it as low as possible or tied to a standard index, ideally with a cap. Also, consider currency: if you’re paying in a different currency than SAP’s costs, they might include a currency adjustment clause – negotiate that as well, perhaps by agreeing to pay in a stable currency like USD or EUR to remove that variable. In summary, don’t assume the year-one price will hold – read the contract for any automatic price hikes. - What strategies can we employ to optimize and manage our RISE with SAP costs throughout the contract?
Once you’re in a RISE contract, cost optimization becomes about the vigilant management of usage and entitlements. One strategy is to conduct regular internal license audits. Even though you can’t reduce the committed number of FUEs mid-term, you should still monitor user assignments. If you notice that you provisioned 500 users but only 400 actively use them, take note for renewal time to potentially reduce the number. In the meantime, avoid adding new users unnecessarily by reassigning existing licenses as needed. Also, continuously monitor SAP BTP consumption if you’re using those services – set up alerts so you don’t incur large overage fees unknowingly. You may find that optimizations, such as disabling unused BTP applications or cleaning up integrations, can help you stay within the included limits. Environment right-sizing doesn’t stop at signing. If your system usage changes (e.g., transaction volumes increase), monitor performance and consult with SAP about resizing only when necessary, considering the cost impact before making a decision. Another tactic is to schedule periodic business reviews with SAP to review your actual consumption vs. contract entitlements. SAP may help identify underutilized areas that could be optimized at renewal or new features that could justify the cost by providing additional value. Internally, maintain a cost governance process: treat the RISE subscription like a cloud budget for which IT and business units are accountable. For instance, if a business team wants to onboard 50 new users, it should have a process to evaluate if all 50 are truly needed and recycle licenses if possible.Additionally, use the tooling that SAP provides, such as SAP’s Cloud Usage Analyzer or License Management tools – these can report user activity, document counts, and more on an ongoing basis. By doing all this, you avoid “creep,” where, over time, you quietly exceed thresholds or carry inefficiencies that you must pay for at true-up or renewal. Essentially, treat RISE not as a fixed cost, but as a managed service where you have some control levers: manage user access diligently, optimize processes to reduce resource use (e.g., archiving data to control database growth can avoid having to pay for extra storage), and keep an open dialogue with SAP on how to run efficiently. This proactive approach can translate to negotiating power later – you can demonstrate where you’ve been efficient and push for commensurate pricing adjustments. - Why is it important to monitor actual usage under a RISE subscription?
Under RISE, you’re paying for authorized capacity (users, resources) rather than actual usage in many cases, so if you over allocate and underutilize, you’re wasting money. Studies have found that authorization-based licensing, like RISE’s user model, can be 50–150% more expensive than pure usage-based licensing if not carefully managed. In practical terms, if you paid for 100 FUEs but only 50 FUEs of activity are happening, you might be paying double what you would in a pay-per-use scenario. Monitoring usage helps identify these gaps. For example, if certain modules are not being used, you may be able to remove some users or repurpose them for other purposes. Or if certain integrated systems aren’t sending the volume of transactions expected, you might not need the extra buffer you negotiated.Additionally, monitoring helps with compliance – if you find usage patterns exceeding entitlement (for example, you suddenly have more named users active than you contracted for), you can address it (such as purchasing additional FUEs or throttling usage) before SAP raises an audit finding. Another angle: usage data provides leverage. When renewal time comes, you can use your collected stats to argue for a reduction or at least fend off an unjustified increase. Without data, SAP holds the cards (they have system logs, but you should have your record). Also, by monitoring, you might discover new efficiency opportunities. For instance, if many users are only logging in once a month, perhaps you can switch them to a lighter license type (if that’s a possibility under FUE weights) and thus carry a smaller FUE count next term. In short, continuous usage monitoring ensures you maximize the value of what you’re paying for. It turns the subscription from a static cost into a dynamically managed investment – you keep everything right-sized. Companies that “set and forget” their RISE contract often overpay for unused capacity or faceunexpected needs and costs later. - Can we negotiate service level agreements (SLAs) and liability terms in a RISE contract to protect our interests?
Yes, and you absolutely should scrutinize the SLA and liability clauses. RISE contracts have standard SLAs for uptime (availability) and sometimes performance metrics, but you can discuss their adequacy. Ensure the SLA meets your business requirements (for example, if SAP promises 99.5% uptime, calculate if that’s acceptable downtime per year). If your operations are very sensitive, you may want to prioritize higher uptime or specific support response times. However, SAP may charge for enhanced SLAs or only offer what their cloud infrastructure supports. More critically, check the remedies: if SAP misses an SLA, the remedy is service credits, a small percentage of the fee credited for the downtime. These credits are beneficial, but often do not accurately reflect the business impact of outages. It’s worth negotiating stronger remedies for critical failures or ensuring the credit scheme is meaningful. SAP’s standard contract limits liability for outages or data loss quite strictly – often just to the fees paid or even less, excluding consequential damages. This means that if SAP’s service failure causes you a significant loss (e.g., missed sales), SAP’s contract states that they are only liable for service credits or a capped amount. While it’s tough to get SAP to budge on overall liability caps (they will rarely accept open-ended liability), you can clarify certain points: for example, make sure there’s a clause that SAP will indemnify you if their software infringes IP or if they grossly mishandle data.Additionally, ensure that data protection responsibilities are clearly defined (if you operate in a regulated industry, this is particularly crucial). Some customers negotiate more liability in specific areas, such as requesting a higher cap on direct damages in the event of willful misconduct or a data breach. It’s also wise to include a clause requiring SAP to assist in disaster recovery, not just infrastructure, such as helping to restore services rapidly. Nonperformance penalties can sometimes be negotiated – for example, if SAP fails to meet a migration deadline, they might agree to provide extra consulting at no additional charge. Essentially, don’t accept the boilerplate SLA/liability terms without review. Small tweaks can protect you better, even if you don’t get dramatic changes. At the very least, you come away knowing exactly what recourse you have and can plug any gaps with insurance or internal plans. Remember, once you’re on RISE, SAP is running a critical system for you – hold them to high standards and ensure the contract has teeth if those standards aren’t met. - What if we need to expand our use of SAP? How will adding more users or capacity under RISE affect our costs?
Expanding your usage is generally easier under RISE than in the old model, but it will affect costs according to your contract terms. If you foresee growth, hopefully, you can negotiate volume-based pricing or rate protection for additional users. For example, you might have a clause that says any additional FUEs added during the term will be priced at the same per-FUE rate as the original lot (or even cheaper if you cross into a higher volume band). If you didn’t, adding users could be at the list price or a new negotiation. Ideally, structure your contract with tiered pricing – e.g., if you originally contracted for 500 FUEs and later increased to 600, the per-unit price stays the same or drops once you reach a threshold. Many customers negotiate a predetermined price for expansion to avoid renegotiating from scratch when they are in the middle of a term with less leverage. Also, consider infrastructure: more users or transactions may require scaling up the environment, such as increasing memory or CPU capacity. Your contract should outline how scaling works – is it automatic and included up to a point, or do you pay more if certain performance metrics are exceeded? Clarify with SAP what happens when business growth demands more – you don’t want any downtime, but you don’t want an unwelcome surprise bill. Some contracts allow a certain headroom (capacity buffer) before costs increase. If not, expect SAP to happily sell you an add-on subscription for the extra capacity. The key is to plan for growth in advance. During initial negotiations, if you anticipate a new division coming onto SAP next year, try to factor that in now when you have negotiating power rather than later when you’re a captive customer in the middle term. It might even be worth slightly over-contracting (with the right to reduce at renewal) to secure a better price on those future users now. If unexpected growth occurs (a good problem!), approach SAP as early as possible to discuss options. Sometimes, they may propose a contract amendment that increases volume but on favorable terms, especially if you extend the contract term. Adding more to RISE will increase your subscription fees, but the amount depends on the pricing framework outlined in your contract. Ensure you have clarity on unit costs or discount structures for expansions to avoid a scenario where your cost grows disproportionately to your business growth.
the - What alternatives should we consider if SAP’s RISE offering doesn’t meet our needs or budget?
If RISE isn’t checking all the boxes, you do have alternatives, and just knowing these can strengthen your negotiating position with SAP. One alternative is the “DIY” approach to S/4HANA: license S/4HANA software directly (either perpetual or subscription-based, outside of RISE) and host it on your preferred cloud (AWS, Azure, Google) or on-premises. You can hire a managed service provider to manage your cloud infrastructure. This route may provide more cost transparency and help avoid the RISE bundle premium. Some customers opt for this option if they find RISE too restrictive or expensive. Another alternative, if you’re not ready for S/4HANA at all, is to stay on ECC longer. SAP support for ECC is scheduled to run until 2027 (and can be extended to 2030 at an additional cost). You could even consider third-party support providers for ECC, such as Rimini Street, to save on maintenance, although that has its trade-offs. By not jumping to RISE immediately, you retain leverage. SAP recognizes that you can stick with what you have, especially since many SAP customers haven’t yet moved – about two-thirds still haven’t transitioned to S/4HANA Cloud.
Additionally, competitors such as Oracle or Microsoft should be considered if feasible. Though switching ERP is a massive undertaking, the mere possibility can be a negotiation lever. Additionally, SAP has introduced GROW with SAP (mainly for mid-market, specifically S/4HANA public cloud).
💡 Make Smarter Licensing, Contract, and Cloud Decisions with Confidence
- Avoid overpaying for user licenses and cloud capacity by learning to right-size your SAP RISE subscription.
- Understand the true financial trade-offs: subscription fees vs. perpetual license value, infrastructure bundling, and support scope.
- Gain visibility into hidden costs often overlooked, from indirect access to BTP overages and contract renewal uplifts.
- Discover how mid-size companies have negotiated better deals, secured future flexibility, and maintained control post-transition.
- Free up IT and procurement capacity by simplifying contract management — without locking your organization into restrictive long-term terms.
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☁️ How Redress Compliance Helps You Navigate SAP RISE | Make the Right Decision, Avoid Lock-In
