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 one – SAP sales teams often face quarterly and year-end targets, so aligning negotiations with those periods can yield extra concessions. Another leverage 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 fiscal year-end, which often motivates them to grant 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 hadn’t achieved. This happens because SAP is eager to book revenue before deadlines, so 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/year push, but ensure you’ve done your homework on requirements so you don’t rush into a subpar deal just to meet a date. - 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 get a credit worth 60% of their first-year RISE fees to spend on other SAP services if they moved to RISE. To migrate, ECC customers were offered a slightly smaller credit (around 45% of 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, you should ensure your past investments are not lost. Signing a RISE agreement typically terminates or transitions your existing SAP ERP license and maintenance contract. Still, SAP will usually credit the remaining value of those licenses/maintenance fees. In a contract conversion, SAP essentially “trades in” your old licenses toward 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: make sure SAP acknowledges the maintenance you’ve paid and any undepreciated license cost. Also, negotiate any needed dual-use period so you can run the legacy system during the RISE go-live phase without paying double. Doing so protects the value of your sunk costs and avoids paying for overlapping software twice. - What level of discount can organizations negotiate on a RISE with 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 their RISE costs by 15% through license optimizations and tough negotiation 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 to 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 (usage analysis, alternative cost scenarios) and be willing to push back on SAP’s first offer – SAP’s pricing has room for negotiation if you can justify why you need 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 obtained gives you a baseline to aim for and evidence to challenge SAP’s proposal. For example, if industry benchmarks show customers are getting a 50% off 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 any annual price increase 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 get 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 must give you plenty of notice of terms). The goal is to avoid a scenario where you finish a comfortable 3-year term and then SAP demands a huge uptick. Negotiating these renewal terms now gives you cost predictability and leverage later when deciding 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 some 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), but you cannot drop below your committed level until renewal. To introduce flexibility, some customers negotiate provisions such as a one-time adjustment window or tiered pricing that anticipates volume changes. For example, you might arrange that if your user count falls due to a divestiture, you can replace those with another equivalent use elsewhere or get a 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 allowing downsizing or re-allocation after a certain period. At 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. - If our needs change, can we negotiate “swap rights” to repurpose part of our RISE subscription?
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 asked for 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. In reality, the contract will explicitly list what’s included (e.g., S/4HANA software, a certain number of user licenses, basic cloud infrastructure, standard support), and anything not listed is not included and will cost extra 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 post-signature that it wasn’t – resulting in a $400K 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 things like specific system landscape, any migration assistance, included third-party software integrations, service levels, etc. 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 guard against. A big one is assuming RISE covers more than it does – remember that RISE gives rights only to the specified products; it doesn’t magically include all SAP offerings, so ensure any critical module (e.g., SAC, Ariba, etc., if needed) is explicitly included. Another pitfall is over-committing – signing a long-term deal without flexibility, then finding you’re 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. Also, failing to monitor actual usage is a trap: if you don’t monitor license utilization, you might 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 (e.g., 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 indirectly use SAP data) has historically caused surprise license fees for SAP customers. Under RISE, you need to ensure your subscription covers these scenarios. SAP will 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, 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 in a cloud subscription, SAP will retain the right to audit your usage, so you should manage those 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 use SAP’s license management tools and true-up, preventing “surprise” audits. You might also negotiate that audits can only occur once per year with reasonable notice and no audits in the first year while stabilizing the new system. 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 usually commit for the full term (commonly 3 or 5 years), and there is no early exit without 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 decide to abandon RISE mid-way (perhaps due to a merger or a move to another platform), you would still be on the hook for the remaining contract value, or you may simply not be allowed to terminate except for breach 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 termination assistance or conditions in case something fails. 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 duration. Therefore, focus negotiation on making the term manageable (e.g., not too long) and include provisions that protect you (data export rights, etc.) when the term ends, since you likely cannot leave earlier. - Why is having a clear exit strategy (at 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 perhaps run your SAP system in read-only mode for a period. Often, companies negotiate a clause that SAP will provide a data dump or even 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 migrate you to on-prem or another solution 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. - 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 5 years gives you an earlier decision point and more flexibility. A shorter commitment means if RISE isn’t working out, you can pivot sooner (though SAP may charge a bit 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 if you’ll still have any rights to fall back to an on-premise environment if needed (often, contract conversion means you do not, so this is mostly a point for the strategy rather than negotiation). Also, maintaining good documentation of your configurations and data can help if you ever need to migrate from SAP to something else. Toavoid 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, keep evaluating the market and SAP’s performance during 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 back it up 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 preparation aspect: get all stakeholders (IT, procurement, finance, the SAP user community) on the same page about priorities and walk-away points. A unified front with clear goals (cost savings targets, required contract terms, etc.) will strengthen your position. Finally, research SAP’s product roadmap and your own future needs – if you know, for instance, you plan to deploy Ariba or SuccessFactors later, consider negotiating those into the RISE conversation now. In short, know your current state, know your requirements, and know your objectives. This prep work ensures 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 tremendous costs. RISE with SAP uses the Full User Equivalent (FUE) metric, which essentially bundles different user types into a single count – so optimizing how many users (and of what type) you truly need directly lowers your FUE requirement (and your 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 appropriate, you can reduce the needed FUE count for RISE. One case study showed a customer maintained the same 1,000 users but, through optimization, reduced their FUE count by 227 – eliminating unnecessary capacity and yielding significant cost savings. That example translated 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 make sure those authorizations are trimmed to what’s required. - What happens to our existing SAP licenses and maintenance when transitioning to RISE?
Moving to RISE usually involves a contract conversion of your existing licenses. Your current SAP license agreement (for ECC or S/4HANA on-prem) and the annual maintenance fees will be terminated or migrated into 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 a credit for the residual value of your licenses or prepaid maintenance to offset the RISE subscription cost. It’s crucial to negotiate how this conversion is calculated. Ensure that if you’ve paid years of maintenance, the investment is recognized – SAP has programs to “protect your investments,” like 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 conversion, also clarify any interim period: often, you run legacy and new in parallel during migration – SAP’s dual license policy might allow a grace period where your on-prem licenses and RISE subscription co-exist without extra charge (offsetting dual-use costs). Make sure such details are spelled out. To summarize, expect your old contract to be subsumed by the RISE contract, negotiate credits for it, and be mindful that you are trading perpetual use rights for a subscription model when you make this leap.
Cost Breakdown & Pricing Models
- How is the pricing model of RISE with SAP structured?
RISE with SAP is sold as one 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 hyperscaler’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 like users (measured in FUEs) or resource size rather than purely on consumption hours. SAP manages the system (especially in 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 each year for those 500 FUEs, with SAP handling infrastructure and basic admin within that price. This simplifies billing (one invoice) but can mask individual component costs. The goal for SAP was to make cloud transition easier by giving a predictable subscription covering everything, rather than clients having to piece together multiple contracts. - What are Full User Equivalents (FUEs) in SAP RISE, and how do they affect pricing?
Full User Equivalents (FUEs) are the unit 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 users, you’ll overbuy FUEs and overpay; if you optimize, you can reduce 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 FUSE count needed – it directly determines your subscription fee. - What cost components are included in a RISE with 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 certain number of users/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). Plus, RISE includes tools like Business Process Intelligence (Signavio) for process analysis and other transformation assets. All these are under one contract and price. It’s important to know that while these are “included,” they might have limits (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 vs infrastructure vs services) in a RISE deal?
SAP’s RISE pricing is notoriously opaque in terms of component breakdown. The invoice generally won’t separate how much is for software license versus how much is for infrastructure, etc.. SAP effectively resells cloud infrastructure and services as part of the package, often with a 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 might give you sizing details, they typically present 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 that would have been cheaper if bought 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 if you require additional hardware beyond a certain point, how it will be charged.SAP won’t volunteer a cost breakdown by default, but you should certainly ask. Understand the resource sizing and service levels you’re getting for the 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 sized 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 license cost), and you separately pay for hardware/infrastructure and IT staff or outsourcing to run 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 RISE can be cost-effective: SAP has stated up to 20% lower total cost of ownership over five years compared to on-prem 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 RISE would cost more over the contract’s life than renewing existing licenses and moving to cloud infrastructure directly, largely due to the SAP premium and paying for unused bundle components. To compare, you’d break down all costs: with the traditional model, factor in license depreciation, maintenance, hardware refreshes, admin/support personnel, downtime risks, etc., and compare to RISE fees.Many find that RISE’s bundled price is competitive for a new S/4 implementation from scratch, but for those who already paid for licenses, RISE can be pricier unless SAP gives credits. Ultimately, the cost comparison is complex and very case-specific – you should run a detailed TCO analysis for your 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 could license S/4HANA Cloud directly (especially the public cloud edition) or even 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) has a SaaS-style fixed price per user (by type), and you’d pay the hyperscaler for infrastructure, whereas RISE wraps those into one. SAP has positioned RISE as more convenient, but you might find that licensing S/4HANA Cloud “a la carte” gives 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, doing your hosting and management might 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. In summary, RISE tends to cost more than the sum of its parts if you sourcethem individually, but it offers simplicity. Evaluate if that convenience is worth the premium, and remember you can indeed pursue S/4HANA Cloud outside of RISE if it looks more cost-effective or aligned to your needs. - 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 with a private environment (essentially a single-tenant system that can be heavily configured like on-prem). For example, pricing data has shown something on the order of USD 178 per FUE per month for Private Edition vs. $147 per FUE per month for Public Edition at a certain scale (1000+ 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 savings to you.I n contrast, Private Edition means dedicated infrastructure and more bespoke management, which costs more. Beyond per-user costs, consider that Public Edition might limit some functionality, and you must adapt business processes to SAP’s standard; if those limitations are fine, you save money. Private allows more customization (and perhaps the ability to bring across more existing processes), but you’ll pay for that comfort. Additionally, certain components might be included differently: e.g., Private Edition comes with full ERP scope, whereas Public might have certain features or industries that are not available yet. This could influence cost if you need to add third-party solutions. Bottom line: Ifpure cost is the focus and your business can fit into the standardized cloud model, Public Edition under RISE is cheaper. Suppose you require the Private Edition, budget for a higher subscription fee. Always get SAP to quote both options if you’re undecided, and ensure you compare what’s included because the service scope can differ (e.g., update frequency, extension capabilities). - Can RISE with SAP reduce the total cost of ownership compared to on-premise (as SAP claims)?
SAP touts that RISE can lower the total cost of ownership (TCO) by up to 20% compared to a traditional on-prem deployment. This claim typically involves avoiding hardware capital expenses, reduced internal IT effort, faster implementation of innovations, etc. In practice, whether you realize TCO savings depends on your starting point. If you’re currently on old hardware facing an upgrade, paying high maintenance, and lacking cloud expertise, RISE’s bundled approach could save you money and headaches over 5 years (through standardized service and economies of scale). It also can prevent costly downtime or performance issues by having SAP handle the environment with defined SLAs. However, some customers are skeptical: they find that while certain costs (data center, admin labor) go down, other costs (subscription fees, potential premium for SAP’s involvement) go up, 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, watch out for hidden costs that SAP’s TCO projection might not include (like change management, reimplementing customizations, or integrations). To decide if the 20% TCO reduction is realistic, do a line-by-line comparison for your scenario. 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 extra staff, translating to 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 make sure the scope of what’s being compared 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 one notable item – moving your historical data into S/4HANA is usually a separate project (often handled by a system integrator) and not included in the RISE subscription by default (unless explicitly added). Similarly, implementation services and configuration are not part of RISE (you either use SAP Services or a partner for that, at extra cost). Within the RISE scope, you get standard infrastructure, but if you need extra systems (like an additional training client or a second sandbox), that could be an extra charge. Also, watch for third-party add-ons: if you integrate non-SAP solutions or need SAP functions like tax localization engines, those might require additional licenses outside RISE. Upgrades and new features: SAP will provide technical upgrades (especially if you’re on public edition), but any effort to adjust custom code or re-test processes falls on you (or your integrator), which means services cost. 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 might not be fully covered (as discussed earlier) – you may need a digital access license if not negotiated in. 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 gives you basic SAP Enterprise Support equivalent; if you want a dedicated support manager or enhanced SLAs, that’s additional. Lastly, custom development tools – RISE includes some BTP credits, but heavy use of BTP beyond the small included amount will cost extra (as we’ll cover below). The takeaway is to identify everything you will need to fully operate SAP in the cloud (from initial migration to daily usage) and confirm which are included versus not. Anything not included should be negotiated in or budgeted as a separate line item so it doesn’t catch you by surprise. - What hidden or unexpected fees should we watch for in a RISE with 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 undersized and you need more CPU, memory, or storage later, you’ll 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 hard to tell 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 slap you with unforeseen charges. Exceeding usage thresholds: some RISE components come with limits (e.g., number of documents in Document Management, or users of SAP Analytics Cloud if it’s included) – surpass those, and you might need to buy more. 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 could surprise you – while standard support is included, if you require extensive consulting from SAP or premium engagement (like ActiveAttention or MaxAttention services), those are extra contracts. Custom enhancements: If you heavily use SAP BTP to build apps or integrate, you might burn through the included credits quickly and then have overage charges (which can “escalate quickly” if usage is high). Finally, note things like currency fluctuations – if your RISE contract is in a currency different from your local, some contracts allow SAP to adjust for currency changes year over year (this can be negotiated out for 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 nasty surprises mid-term. - How is SAP Business Technology Platform (BTP) usage accounted for in RISE, and can it incur extra 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 (for example, a certain number of credits to use integration services, extensions, etc.). This is great for building Fiori apps, workflows, or integrations on SAP’s platform. However, if your usage of BTP exceeds that included allotment, you will incur additional charges on a pay-as-you-go basis for BTP. These costs can be tricky because BTP runs on a consumption model (CPU hours, memory, API calls, etc.). Many customers underestimate how quickly they can burn through credits, especially if they start deploying numerous apps or 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 knowing the overage rates. It’s wise to discuss this with SAP: if you anticipate heavy BTP use, negotiate a larger BTP capacity upfront at a better rate or a cap on charges beyond a threshold. Also, set up monitoring on BTP consumption from day one. In summary, BTP is a powerful part of RISE’s value proposition (because it enables cloud extensions), it’s a metered service – use beyond the included amount is a variable cost. To avoid budget surprises, either limit BTP use to included levels or bake in an expected volume (and pricing) into 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 still be vigilant. What RISE changes is that your core ERP usage is subscription-based, but if external systems (non-SAP) are creating SAP business documents (sales orders, invoices, etc.) or querying SAP data, SAP’s licensing policy around indirect use still applies. Many customers assume moving to a subscription means that indirect access is moot. Still, SAP continues to enforce licensing for indirect use via its Digital Access model (document licensing) unless explicitly covered. In some RISE contracts, SAP has been willing to include a certain amount of Digital Access documents or even an enterprise license for indirect usage 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 your 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 says 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 expense (maintenance and infrastructure) into a pure operating expense subscription. In the classic model, you’d pay a big upfront license fee for 1000 users and then 22% of that fee annually for support. 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 means better cash-flow spread but potentially higher cumulative cost over time compared it to an owned asset (since maintenance doesn’t compound if the license is paid off). Another difference is flexibility: the traditional model gives you perpetual rights – you could stop paying maintenance and still use the software (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 (like a 3-year contract paid annually or quarterly). In contrast, traditional maintenance is year-to-year (albeit with penalties if you lapse and want to restart). Accounting-wise, many companies like the subscription because it can often be treated as an operational expense fully. In contrast, licensesmight be capitalized and amortized – depending on your accounting preferences, this could be a pro or con. Pricing structure also differs: traditional licensing has volume discount tiers, but once purchased, adding users later means buying more licenses (maybe at a different discount). In RISE, you negotiate the whole thing as a package, and adding users might be at pre-agreed rates (if negotiated) or at list if not. Also, under RISE, SAP’s support cost hikes (which have been ~5% annually recently) are not directly seen – instead, any increase would come at renewal or via built-in escalators.In summary, the subscription model provides predictable periodic costs and simplicity but at the trade-off of perpetual rights and possibly higher long-term payouts if you keep the software for a long time. CIOs often have to explain that it’s like leasing a car versus buying – leasing (RISE) includes maintenance and is hassle-free. Still, if you lease forever, you might pay more than if you bought and maintained a car (traditional licensing). - 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 is a clause that 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 uplift on the subscription fee 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 might 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, SAP (like most vendors) wants to ensure their subscription revenue keeps pace with costs. If your RISE quote or draft has an escalation clause, scrutinize it. You can negotiate it down or out – some customers have achieved a zero percent escalator during the initial term, locking the price for, say, 3 years, and only deal with 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-1 price will hold – read the contract for any automatic hikes. Pushing back on those can save a lot over a multi-year period. Getting a good deal on escalators at the outset is much easier than trying to fight a price increase later. - What strategies can we use to optimize and control our RISE with SAP costs during the contract?
Once you’re in a RISE contract, cost optimization becomes about the vigilant management of usage and entitlements. One strategy is to perform regular license audits internally – even though you can’t reduce the committed number of FUEs mid-term, you should monitor user assignments. If you notice you provisioned 500 users but only 400 are actively using, take note for renewal time to potentially reduce then (and in the meantime, avoid adding new users unnecessarily by reassigning existing licenses). Also, continuously monitor SAP BTP consumption if you’re using those services – put alerts in place so you don’t unknowingly incur large overage fees; you might find optimizations like shutting off unused BTP applications or cleaning up integrations can stay within included limits. Environment right-sizing doesn’t stop at signing – if your system usage changes (e.g., transaction volumes grow), watch the performance and talk to SAP about resizing only when needed (and understand cost impact before agreeing). Another tactic is to schedule periodic business reviews with SAP to review your actual consumption vs. contract entitlements. SAP might help identify under-used areas that could be trimmed at renewal or new features that could justify the cost by providing more 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, have a process to evaluate if all 50 are truly needed and recycle licenses if possible.Additionally, use the tooling SAP provides (like SAP’s Cloud Usage Analyzer or License Management tools) – these can report user activity, document counts, etc. 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 consumption in many cases, so if you over-allocate and under-use, you’re throwing money away. Studies have found that authorization-based licensing (like RISE’s user model) can be 50–150% more expensive than pure usage-based licensing if you’re not careful. In practical terms, if you paid for 100 FUEs but only 50 FUEs worth of activity is 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 aren’t being used, perhaps you can remove some users or repurpose them elsewhere. 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 creeping above entitlement (say you suddenly have more named users active than you contracted for), you can address it (e.g., purchase additional FUEs or throttle usage) before SAP comes knocking with 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 end up overpaying for unused capacity or getting hit with unexpected needs and costs later. Don’t let the cloud nature of RISE lull you – good governance on usage is as important as it was on-prem, if not more, because now every license you don’t use is directly wasted Opex. - 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 do come with 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 might push for higher uptime or specific support response times – though 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 fee credited for the downtime). These credits are nice but often not commensurate with 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, and excluding consequential damages. This means if SAP’s service failure causes you a huge loss (e.g., missed sales), SAP’s contract says they owe at most some 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. Also, ensure data protection responsibilities are spelled out (if you’re in a regulated industry, this is key). Some customers negotiate more liability in specific areas, like asking for a higher cap on direct damages in case of willful misconduct or data breach. It’s also wise to include a clause requiring SAP to assist in disaster recovery beyond just infrastructure (like helping restore service rapidly). Nonperformance penalties can sometimes be negotiated – e.g., if SAP fails to meet a migration deadline, they might agree to provide extra consulting at no charge. Essentially, don’t accept the boilerplate SLA/liability terms without review. While you may not get dramatic changes, small tweaks can protect you better. 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 SAP usage? 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 negotiated 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 list price or a new negotiation. Ideally, structure your contract with tiered pricing – e.g., if you originally contract 500 FUEs and later go to 600, the per-unit price stays the same or drops once you pass a threshold. Many customers negotiate a predetermined price for expansion to avoid renegotiating from scratch when they’re in the middle of a term with less leverage. Also, consider infrastructure: more users or transactions might require scaling up the environment (more memory/CPU). 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 on SAP next year, try to bake that in now when you have negotiating power, rather than later when you’re essentially a captive customer mid-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 (good problem to have!), approach SAP as early as possible to discuss options – sometimes they might propose a contract amendment that increases volume but on favorable terms, especially if you extend the contract term. In summary, adding more to RISE will increase your subscription fees, but how much depends on the pricing framework set 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. - How does the length of the RISE contract (e.g., 3-year vs 5-year) impact pricing and flexibility?
Contract length is a significant factor. Pricing-wise, SAP often incentivizes longer terms with higher discounts or credits. A 5-year commitment might fetch a better annual rate than a 3-year because SAP locks in your business for longer. For instance, SAP might offer an extra few percentage points off if you commit to 5 years or include additional services like extended transformation support. However, a longer term reduces your flexibility. If the market changes or if RISE isn’t meeting expectations, you’re stuck longer (unless you negotiate mid-term exit rights, which are rare). Flexibility-wise, a 3-year contract gives you an earlier opportunity to renegotiate or consider alternatives. Technology is evolving fast, so some customers prefer not to be tied up for too long. Also, internal business changes (mergers, divestitures) are harder to accommodate in a 5-year deal unless specifically accounted for.On the other hand, if you’re pretty confident in the RISE path and want to avoid the overhead of renegotiating soon, a 5-year term locks in your costs for a longer period (assuming you’ve capped any escalators). One approach is to go medium-term (3 years) with an option to extend at the same terms for 1-2 more years, giving you both the initial lower risk and the ability to carry on if all is well. It’s worth discussing scenarios with SAP: sometimes, they may give a price hold guarantee for a certain period, even if your formal term is shorter, as a compromise. Also note that SAP’s incentives, like the first-year credit program (60% off first year), might have a minimum term requirement (they wouldn’t give that for a 1-year deal; it’s aimed at multi-year).In summary, a longer contract can lower annual costs but increase lock-in risk, whereas a shorter contract gives flexibility but might cost more per year. Evaluate your organization’s appetite for commitment vs. flexibility. If you go long, double down on those protections (price caps, service quality) because you’ll live with them longer. If you go short, be prepared to invest effort in renegotiation or migration planning sooner. Always align contract length with your strategic roadmap – for example, if you think in 3 years you might reevaluate cloud vs on-prem or consider another vendor, don’t sign a 5-year deal now. - 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 outside of RISE) and host it on your preferred cloud (AWS, Azure, Google) or on-premise. You can hire a managed service provider for cloud infrastructure management. This route might give more cost transparency and avoid the RISE bundle premium. Some customers go this way if they find RISE too restrictive or pricey. Another alternative, if you’re not ready for S/4HANA at all, is to stay on ECC longer – SAP support for ECC runs to 2027 (and is extended to 2030 at an extra cost). You could even consider third-party support providers for ECC (like Rimini Street) to save on maintenance, although that has its trade-offs. By not jumping to RISE immediately, you retain leverage (SAP knows you can stick with what you have, especially since many SAP customers have not moved yet – about two-thirds still haven’t transitioned to S/4HANA cloud). Also, consider competitor solutions, such as Oracle, Microsoft, etc., if feasible. Though switching ERP is a massive undertaking, the mere possibility can be a negotiation lever.Additionally, SAP has introduced GROW with SAP (for mid-market, mainly S/4HANA public cloud) ,which might be more scaled-down and cost-effective if you’re a smaller enterprise – it’s an alternative packaging to RISE. And for certain functionalities, SAP SaaS line-of-business products (SuccessFactors for HR, Ariba for procurement, etc.) can be adopted standalone without RISE if you want to modernize piece by piece. Ultimately, within the SAP realm, the primary alternative to RISE is S/4HANA in a more self-managed cloud scenario or delaying the move until you’re comfortable. Make sure SAP knows you are thoroughly evaluating these options. Often, SAP will become far more flexible on RISE pricing and terms if they realize you might pursue a non-RISE path (nothing motivates a vendor like a credible walk-away). The decision should come down to a mix of cost, risk, and business fit – but having a Plan B (or C) ensures you only sign RISE if it truly makes sense and is negotiated to your satisfaction.
