How Redress Compliance helped a large industrial equipment manufacturer cut $2.8M from SAP's initial RISE proposal, optimise FUE licensing for 3,500+ users, negotiate phased migration terms, and secure IoT indirect access protections.
A large American manufacturing firm in the industrial equipment sector was running SAP ECC on-premise with heavy customisations for plant operations. The company was considering RISE with SAP to upgrade to S/4HANA Cloud.
SAP's RISE proposal bundled core S/4HANA with SAP Business Technology Platform (BTP) credits and SAP Analytics Cloud. The landscape consisted of on-site factories and a central data centre. The company had thousands of SAP users — from office staff to factory floor operators — and integrated SAP with IoT systems on production lines.
The move to RISE with SAP presented several interlinked challenges that made the initial proposal unsuitable for the manufacturer's operational reality.
The initial RISE quote was $8M over three years — significantly higher than expected. SAP's pricing included cloud infrastructure and a limited BTP "starter pack." The team feared overage fees if extensive custom apps consumed more BTP resources than included. They also suspected the quote was padded with services they would never fully use — effectively shelfware.
The manufacturer's usage profile was unusual: a core of 500 heavy ERP users but over 3,000 shop-floor users with minimal access. SAP's bundled FUE model risked over-counting these light users. Standard RISE contracts would not allow dropping unused subscriptions mid-term if they overestimated. They needed a way to right-size the contract to actual usage.
SAP pushed for a single big-bang migration of all plants onto RISE. This raised risks around downtime and change management. The company wanted a phased approach (plant by plant), but SAP's all-in proposal did not accommodate a hybrid transition or dual operations.
With sensors and third-party systems feeding data into SAP (IoT integration), the firm worried about indirect access charges. Moving to RISE without clarity on IoT data licensing could expose them to unexpected fees or compliance gaps down the line.
Redress Compliance was engaged as the manufacturer's independent advisor to dissect the RISE proposal and negotiate a contract that matched operational reality.
Redress performed a detailed usage analysis, mapping each user role to appropriate FUE levels. Thousands of limited shop-floor users were correctly classified — many as self-service users at 1/30th of an FUE each. This revealed SAP had overestimated required FUEs by approximately 30%. By eliminating inactive accounts and applying lower-tier licences for basic users, Redress slashed the projected subscription size. They also flagged unused modules in the quote, using this shelfware identification to demand their removal.
Redress modelled a phased migration. Instead of a single massive RISE contract covering all plants on day one, they proposed starting with corporate headquarters and one pilot plant, with others to follow over two years. They negotiated a dual-use clause allowing both legacy ECC and new S/4HANA to run in parallel during transition — without incurring extra fees or risking operational disruption.
The team tackled cost drivers head-on. By demonstrating that self-managing parts of the environment was viable, Redress pressured SAP into major concessions. SAP increased included BTP capacity and capped excess consumption fees. Redress leveraged industry benchmarks to target a steep discount, ultimately delivering approximately 35% savings off the initial subscription cost.
Redress addressed indirect access concerns by negotiating explicit terms. The final contract covered known IoT and shop-floor system interfaces, so the client would not face surprise fees for those data flows. It also documented usage assumptions (e.g., IoT transaction volumes) to prevent future disputes. The company entered RISE confident that hybrid operations would not trigger unexpected licensing costs.
By engaging Redress, the manufacturer transformed an intimidating RISE proposal into a manageable, tailored contract that aligned with their operational needs and budget constraints.
| Metric | SAP's Initial Proposal | Final Negotiated Terms |
|---|---|---|
| 3-Year Contract Value | $8.0M | $5.2M (35% savings) |
| FUE Count | Overestimated by ~30% | Right-sized to actual usage |
| BTP Resources | Limited starter pack + overage risk | Increased allocation + capped fees |
| Migration Approach | Big-bang (all plants at once) | Phased, plant-by-plant rollout |
| Dual-Use Rights | Not included | ECC + S/4HANA parallel operation |
| IoT / Indirect Access | Unaddressed — compliance risk | Explicitly covered in contract |
The final 3-year RISE agreement totalled $5.2M instead of $8M — a 35% savings. This resulted from stripping out unused components and securing better pricing on the necessary ones. The company now receives significantly more BTP resources and flexibility for the same budget.
The company can modernise at their own pace — one plant at a time — without incurring upfront costs for all users and capacity. The dual-use allowance means minimal disruption to manufacturing operations during each phase of the transition.
The firm effectively "immunised" itself against known indirect usage risks. No surprise audit fees: IoT data integrations and shop-floor system interfaces are covered and agreed in writing. Documented usage assumptions prevent future disputes.
"Our SAP rep wanted us to go all-in blindly. Redress showed us a smarter path. They squeezed out the fluff we'd have paid for but never used, and got SAP to agree to a phased approach that fits how we operate. We ended up saving a fortune and can roll out S/4HANA without risking our production schedule. Having an independent expert solely in our corner made all the difference."
— IT Director, Manufacturing Firm (USA)
RISE with SAP is a bundled subscription offering that combines S/4HANA Cloud (private or public edition), SAP Business Technology Platform credits, cloud infrastructure, and migration tools into a single contract. Unlike traditional perpetual SAP licences where you buy and own software outright, RISE is a time-bound subscription — typically 3–5 years. The bundled nature means you receive a package of services, but not all components may be relevant to your needs, which is why independent review is critical before signing.
FUE (Full Use Equivalent) is SAP's metric for RISE contracts. Different user types consume different fractions of an FUE — a power user might count as 1 FUE, while a self-service user might count as just 1/30th. Getting the FUE classification right is critical: in this case study, SAP had overestimated the required FUEs by approximately 30% because shop-floor users with minimal access were counted at too high a level. Proper role-mapping can deliver substantial savings.
Savings vary by organisation, but across Redress Compliance's RISE engagements, reductions of 25–40% from SAP's initial proposal are common. Savings come from right-sizing FUE counts, removing unnecessary bundled modules, negotiating BTP resource allocations, and securing competitive pricing through industry benchmarks. In this case, the manufacturer achieved a 35% reduction — from $8M to $5.2M over three years.
Yes, and for manufacturing environments this is strongly recommended. SAP often proposes full-scope migrations to maximise deal value, but phased approaches with dual-use clauses (allowing ECC and S/4HANA to run in parallel) are negotiable. This was a key outcome in this engagement — the manufacturer could roll out plant by plant without risking production schedules or incurring double licensing fees.
Shelfware refers to bundled software components, modules, or service credits included in the RISE proposal that the customer will never actually use. SAP's bundled approach often includes BTP starter packs, Analytics Cloud licences, or integration tools that may not be relevant to your environment. Identifying and removing shelfware before signing is one of the highest-ROI activities in any RISE negotiation — it was a key driver of the $2.8M savings in this case.
Indirect access — where non-SAP systems (sensors, IoT platforms, third-party applications) read from or write to SAP — can trigger unexpected licensing fees if not explicitly addressed. The solution is to negotiate clear contract language covering all known system interfaces, document expected transaction volumes, and agree on how future integrations will be handled. In this engagement, Redress secured explicit protections for all IoT and shop-floor data flows.
Standard RISE contracts are relatively inflexible — you cannot easily drop unused subscriptions mid-term. This is why right-sizing at the outset is essential. However, with the phased approach negotiated in this case, the manufacturer has built-in adjustment points as each new plant is onboarded, allowing licence counts and resource allocations to be recalibrated at each phase rather than locked in for the full term.
SAP's sales teams are incentivised to maximise deal value, and RISE proposals are complex bundles that are difficult to evaluate without deep licensing expertise. An independent advisor like Redress Compliance brings benchmarking data from hundreds of SAP engagements, detailed knowledge of FUE classification rules, and negotiation leverage that internal teams typically lack. In this case, the advisor's involvement delivered a 35% cost reduction and critical contractual protections.
Don't sign on SAP's dotted line without a second look. Redress Compliance helps you negotiate flexible terms, control cloud costs, and safeguard your operations — so you get the benefits of SAP's cloud on your terms.