SAP RISE Renewal vs Exit: An Advisory Playbook for Enterprise IT Leaders

SAP RISE Renewal vs Exit: An Advisory Playbook for Enterprise IT Leaders

Renewing a RISE with SAP contract is a pivotal decision point for large enterprises. As initial RISE subscription terms approach their end, CIOs and sourcing leaders must weigh whether to renew the all-in-one SAP cloud subscription or pursue an exit strategy to alternative platforms. This playbook provides a comprehensive guide to making that decision in a strategic, data-driven way.

In summary, RISE renewal is not a routine renewal—it’s a high-stakes inflection point. Enterprises need to assess whether RISE has delivered on its promises of simplified operations and rapid innovation or if greater value lies in running SAP in a different model (on-premises, in a self-managed cloud, or via a third-party provider).

Key considerations include cost over the next term, contractual flexibility, vendor lock-in risks, and the complexity of switching. Successful enterprises begin planning 6–12 months: they baseline current usage and costs, develop a Total Cost of Ownership (TCO) comparison for staying vs. leaving, and create leverage by preparing a viable exit plan.

If renewing, negotiation is essential – savvy CIOs will secure improved terms (like price caps on renewal fees, exit clauses, and service level guarantees) and possibly even better discounts than the initial deal.

Detailed planning is required to secure new licensing and infrastructure without business disruption if exiting. In either scenario, involving independent SAP licensing advisors to benchmark and negotiate can save millions and ensure no critical terms are overlooked.

The following sections provide a detailed playbook: starting with why this renewal moment is so critical, the challenges enterprises face, a comparison of RISE versus alternative deployment options, the contract clauses to secure for flexibility, real-world pricing/discount insights, and a step-by-step timeline of recommendations to navigate the renewal or exit process with confidence.

1. Problem Definition: Why RISE Renewal is a Critical Decision Point

Moving to RISE with SAP was a strategic leap for many large SAP customers – an “ERP-as-a-Service” bundle that combined S/4HANA software, cloud infrastructure, and SAP-managed services under a single subscription.

Early adopters signed multi-year contracts (often 3 or 5 years), hoping for a smoother digital transformation. Now, as those initial terms come due, enterprises face a crossroads. The RISE renewal is not a simple maintenance renewal; it effectively determines if the organization will continue its ERP in SAP’s cloud on SAP’s terms or take back control in some fashion.

Several factors make this an especially critical decision point:

• All-or-Nothing Stakes: Under RISE’s subscription model, if you choose not to renew, you lose the right to run the SAP software delivered via RISE. Unlike traditional on-premise licensing (where you own perpetual rights and could keep running the software if you stop paying maintenance), RISE is “renting” the ERP. Thus, renewal is an on/off switch – failure to renew means a potential ERP shutdown unless you have an alternative ready. This creates high stakes: CIOs must negotiate a favorable renewal or execute a well-planned exit to avoid business disruption.
• Lock-In and Reduced Leverage: RISE customers surrendered their traditional licenses (often via contract conversion when moving to RISE) and became fully dependent on SAP’s cloud. This vendor lock-in means SAP holds significant leverage at renewal time – unless the customer has an exit strategy. In contrast, a traditional customer at renewal could fall back on existing systems or third-party support; a RISE customer who walks away has no ready ERP system. This makes the renewal a critical point of leverage for SAP and a critical point of evaluation for the customer.
• Cost and Value Reassessment: The renewal is the first chance to reassess RISE’s total cost and value. SAP’s initial RISE contracts often came with promotional discounts or incentives (e.g., credits covering migration costs). Going into renewal, enterprises need to determine if the ongoing subscription cost (potentially higher after initial incentives) is justified by the benefits received. If RISE hasn’t delivered expected value, such as agility, innovation, or cost savings, the organization must decide whether to recommit for several years or explore alternatives. This is fundamentally a high-value, multi-million-dollar decision under tight timeline pressure.
• Change in Needs or Strategy: Over a 3-5 years, an enterprise’s strategy and IT landscape may evolve. Some companies may have undergone M&A, reorganizations, or shifts in cloud strategy. The RISE renewal is a chance to realign the SAP deployment with current business priorities. For example, a company that aggressively pursued cloud in 2021 might, by 2025, feel the need for more flexibility or hybrid models not well-served by RISE. Conversely, others might double down on SAP’s roadmap if the partnership has proven beneficial. In either case, it’s a point to re-validate strategic fit: does continuing on RISE align with our next 5-10 year digital roadmap, or is this the time to pivot?
• Upcoming Deadlines and Innovations: The timing of RISE renewals coincides with broader SAP ecosystem deadlines and innovations. SAP’s 2027 deadline for ending mainstream support of ECC (extended to 2030 for some) looms, pushing customers toward S/4HANA – many via RISE. SAP has also exclusively tied certain new features (AI, advanced analytics, “green ledger” sustainability features, etc.) to its cloud offerings. Thus, renewing RISE might be seen as necessary to access innovation. However, regulatory changes (such as the EU’s forthcoming requirements in the EU Data Act for cloud portability by 2027) empower customers with future exit rights. Enterprise leaders must weigh these external factors – staying on RISE could ease access to new SAP innovations, but leaving might give more control, especially as regulations force providers to enable exits. The renewal juncture is when such factors crystallize into a go/no-go decision.

In short, RISE renewal is critical because it forces a recommitment or change of course for a mission-critical system. The costs are high, the contractual commitments are binding, and the impact on business operations is enormous.

This decision cannot be taken lightly or left to the last minute – it requires strategic foresight and rigorous analysis, as detailed in the rest of this playbook.

2. Key Challenges When Deciding to Renew or Exit

Deciding whether to renew the RISE with SAP contract or exit to an alternative is complex. Enterprise stakeholders face several key challenges during this decision process:

• 🔒 Balancing Lock-In vs. Freedom: RISE offers convenience but at the cost of lock-in. The challenge is weighing the benefit of SAP managing your ERP end-to-end (and the friction involved in leaving) against the flexibility you might regain by exiting. Many CIOs fear being “locked in” to SAP’s cloud and pricing, but also fear the disruption of moving out. This lock-in manifests in contract terms (no perpetual rights, limited ability to scale down users, etc.) and technical dependencies (data and customizations sitting in SAP’s managed environment). Exiting means regaining freedom at the price of complexity, while renewing means convenience at the price of continued dependence.
• 💰 Cost Uncertainty and TCO Analysis: Another challenge is clarifying the total cost of ownership for renewing vs. exiting. RISE bundles software, infrastructure, and basic support into one fee, which is straightforward but can obscure individual cost elements. Enterprises must project how costs will evolve. Renewal may come with price increases (especially if initial discounts expire or an indexation clause allows a ~3-5% annual uplift). On the other hand, exiting requires pricing out new licenses, infrastructure, and support separately. Comparing these apples-to-oranges scenarios over a multi-year horizon is difficult. CIOs need to account for hidden costs: for RISE, things like overage fees (e.g., extra storage, extra users beyond contract) and annual price escalators; for a self-managed route, costs of migration, hiring or outsourcing technical expertise, and possibly higher initial CapEx. Conducting a fair multi-year TCO analysis is challenging but essential to avoid budget surprises.
• ⏱ Timing and Transition Risks: The logistics of transitioning off RISE pose a major challenge. An exit is not instantaneous – it could take 6-12 months or more to plan and execute a migration to a new environment (whether on-prem or another cloud). Enterprises worry about business continuity: Can we migrate before our RISE contract lapses? What if there are delays? This makes the renewal decision timeline very tight. Leaders must prepare an exit plan well before knowing the final renewal offer from SAP, which is a challenge. Conversely, deciding to stay doesn’t eliminate risk: if the team waits too long to engage SAP on renewal terms, they might miss notice periods or lose negotiating leverage. Managing deadlines (such as contractually required notice to cancel auto-renewal, often 3-6 months prior) is a non-trivial task that, if missed, could force an unwanted renewal. Timing is critical, and juggling the parallel tracks of negotiating with SAP and preparing an alternative is a demanding project management challenge.
• 🔧 Technical and Integration Complexity: Enterprises that have spent years on RISE have likely integrated the SAP cloud environment with many other systems (SaaS applications, on-prem systems, data lakes, etc.) and may have developed extensions using SAP Business Technology Platform (BTP) or other cloud services included in RISE. Exiting RISE means re-establishing these integrations and extensions in a new setting. Data extraction from SAP’s cloud, moving customizations, and ensuring nothing breaks during cutover is complex. Even with a solid contract clause for data retrieval, there’s effort in rebuilding or migrating the environment. On the other hand, renewing means technically accepting any constraints RISE imposes (for example, limited direct database access or required cloud update schedules). Customers have cited challenges in RISE with limited access to underlying systems, difficulty performing certain basic tasks without SAP’s intervention, and constraints on custom code (especially if on a public cloud edition). Thus, staying and leaving have technical hurdles: staying might mean continued workarounds for RISE limitations, while leaving entails a potentially large migration.
• 🧩 Internal Alignment and Stakeholder Buy-In: Deciding “renew vs exit” isn’t purely a technical or financial question – it’s also political and organizational. Different stakeholders have different priorities: Business units might value stability and innovation (leaning toward renewing for continuity and new features), whereas the IT infrastructure team might chafe under RISE’s constraints and prefer regaining control. Procurement and finance will focus on cost predictability and avoiding an expensive reimplementation. Meanwhile, executive leadership (CIO, CFO, CEO) will weigh the strategic implications. Achieving consensus on the path forward is a challenge. CIOs and sourcing leaders must build a strong business case and narrative for whichever decision, backed by data, to get everyone on board. If the plan is to exit, they must justify the upfront effort and cost necessary for long-term agility or savings. If the plan is to renew, they must assure stakeholders that due diligence was done and the terms are as favorable as possible. This internal alignment needs careful management; misalignment can lead to late-stage objections or an under-prepared renewal that fails to meet some stakeholders’ needs.
• 🤝 Negotiation Complexity and SAP Tactics: Finally, a practical challenge is the negotiation itself. SAP knows that RISE customers have limited alternatives without significant effort, and their sales teams are skilled at using this to their advantage. Enterprises often face complex contract structures and legal terms written in SAP’s favor by default. Key protections (renewal price caps, flexibility to reduce users, or exit assistance) are not standard in SAP’s boilerplate contract, so customers must actively negotiate them. Many IT leaders and even procurement departments may not have detailed expertise in SAP’s cloud licensing nuances, which can put them at a disadvantage. There’s a challenge in gathering market benchmarks (what discount levels or terms have similar companies achieved?) and knowing how far one can push SAP. Additionally, SAP may use the renewal to upsell, proposing additional cloud services or requiring an expanded commitment. Negotiating not just price, but also scope and contract terms, under time pressure and information asymmetry, is daunting. Without experienced negotiators or advisors, customers risk accepting suboptimal terms. Thus, navigating the renewal negotiation – effectively a complex multi-year cloud outsourcing contract negotiation – is a major challenge that requires preparation and often external expertise.

Deciding whether to renew RISE or exit is challenging due to a mix of strategic, financial, technical, and organizational factors. Enterprises must confront vendor lock-in dilemmas, ensure rigorous cost comparisons, manage tight timelines and technical migrations, align their leadership, and negotiate skillfully. The rest of this playbook will help address these challenges with structured analysis and recommendations.

3. SAP RISE vs Alternatives: On-Prem, Hyperscaler Cloud, or MSP – A Comparison

When considering an exit from RISE, enterprise leaders weigh alternative deployment models for their SAP environment.

The main options are:

• Staying with RISE – i.e., renewing the vendor-managed cloud model,
• Reverting to a Traditional On-Premises setup – customer-managed in your own data center,
• Moving to a Self-Managed Cloud (IaaS) – running SAP on a hyperscaler like AWS/Azure/Google but managed by the customer (or an SI) rather than SAP, and
• Using a Third-Party Managed Service Provider (MSP) – outsourcing SAP hosting/management to a provider other than SAP (could be on that provider’s infrastructure or a cloud of your choice).

Each option has distinct cost, control, risk, and flexibility implications. The table below provides a comparative overview of RISE vs. On-Prem vs. Self-Managed Cloud vs. MSP across key dimensions:

Table: Comparison of SAP RISE (SAP-managed cloud) vs. customer-managed models (on-premises, self-managed hyperscaler) and third-party MSP option. Each model has pros and cons – the optimal choice depends on an enterprise’s priorities (cost vs. control vs. convenience vs. risk).

Large enterprises often adopt a hybrid approach. For example, they keep highly customized or sensitive systems on-premises (or in a self-managed cloud) while putting more standard processes on RISE or an MSP.

It’s also possible to have a partial RISE scenario (SAP does allow splitting workloads – e.g., one division on RISE and others not – though this loses some single-contract simplicity and needs careful coordination). The decision should align with the organization’s IT strategy, internal capabilities, and risk tolerance:

• If speed and simplicity are top priorities (and the organization is comfortable conforming to SAP’s cloud standards), renewing RISE can make sense—it offers one vendor accountability and rapid access to new cloud innovations.
• If cost control and flexibility are more important, moving to a self-managed infrastructure or an MSP might be preferable, as it avoids the premium of RISE and allows tailoring the environment.
• Those with strong internal IT skillsets may lean toward self-managed options to leverage their expertise, whereas companies wanting to focus on core business (outsourcing IT operations) may value the hands-off nature of RISE or an MSP.

Crucially, any comparison must include a 5-10 year TCO analysis. Often, RISE’s OPEX model looks attractive initially. Still, it could become more costly if SAP’s annual increases compound or you’re paying for bundled services you don’t fully use.

Alternatives might have higher upfront costs but lower run rates later. Each enterprise should model scenarios side by side (which we’ll discuss in the recommendations section). The above comparison table is a high-level guide to the trade-offs in renewing RISE vs. exiting a different SAP hosting model.

4. Contract Terms to Seek Flexibility and Risk Mitigation

Whether you are negotiating a RISE renewal or crafting provisions for a potential exit, certain contract terms are critical to preserve flexibility and protect your interests.

Large enterprises should scrutinize and negotiate the following key clauses:

• 📜 Exit & Data Retrieval Clauses: Always plan the end at the beginning. Ensure your RISE contract explicitly covers what happens at termination. Negotiate the right to retrieve all your data (in a usable format) upon contract end. This includes transactional and master data from S/4HANA and related data in the SAP Business Technology Platform, integration middleware, or other cloud services bundled with RISE. When the contract ends, the contract should oblige SAP to promptly provide a full data export (e.g., a database backup or comprehensive data dump). Also seek a provision for termination assistance – for example, SAP providing limited support to transition the system out. While SAP’s standard contracts might not volunteer this, you can request a post-termination access window (e.g., 30-60 days read-only access after subscription expiration) to verify data and ensure a smooth cutover. These clauses ensure you are not stranded without your critical business data or scrambling to get support in the final hours if you exit. Even in renewal negotiations, raising the topic of exit rights signals to SAP that you are a savvy customer preparing for all outcomes.
• 💵 Renewal Price Protections (Caps or Indexed Limits): One of the biggest risks in any subscription model is the price jump at renewal. By default, many SAP cloud contracts, RISE included, will allow SAP to adjust pricing after the initial term, possibly significantly. To avoid future sticker shock, negotiate caps on price increases at renewal. For example, seek a clause that capped any subscription fee increase at renewal (e.g., no more than a 5% increase, or tied to a standard inflation index like CPI). Some customers lock in very low caps or flat renewal pricing for one renewal cycle, especially if they agreed to a longer initial term. If SAP is reluctant to fix a number, at least insist on an index-based adjustment (for instance, “price increases shall not exceed the local CPI, with a 3% annual cap”). The key is to eliminate the scenario of an arbitrarily large hike. Without a cap, enterprises have reported facing double-digit percentage uplifts, knowing you likely can’t drop the service easily. Make it a priority to include renewal rate protection in any contract. This protects your budget and gives you negotiating leverage in the future (SAP’s sales team will need to justify increases within agreed bounds or come to the table for any higher change).
• 🔄 Flexibility to Adjust Scope (Upscale/Downscale & Swap Rights): Business conditions change – your user counts or module usage may go up or down. Traditional SAP licensing is inflexible (reducing license counts is hard without losing value). In an RISE renewal, try to build some flexibility to adjust. For instance, negotiate the right to reduce users or switch product modules at renewal without penalties. Even if SAP won’t agree to straightforward “downscale” rights (they often resist reductions in subscriptions), you might negotiate a one-time opportunity or a percentage band within which you can adjust license quantities. Another angle is swap rights – the ability to trade one service for another. Example: if your RISE bundle includes a component you ended up not using (say SAP Analytics Cloud or a certain number of BTP credits), ask for the ability to swap that for another SAP product of equivalent value or to remove it and reduce cost at renewal. The default RISE contract is static for the term, so any flexibility must be pre-negotiated. By securing this, you ensure the solution can evolve with your business. If you over-provisioned initially, it also provides a partial safety net – you could correct course later. (One real-world example: a company found they had significantly fewer active SAP users than contracted, and negotiated at renewal to drop the user count by 15% with minimal fee impact by showing data on actual usage.) The goal is to avoid being locked into paying for capacity you don’t need and to keep the contract aligned to actual needs over time.
• 🚪 Termination for Cause & Graceful Exit Terms: Consider early termination clauses for cause and end-of-term exit. While SAP’s standard terms rarely allow much beyond SLA credits for poor service, a determined customer can push for a clause like: if SAP fails to meet critical SLA targets for X consecutive quarters, you have the right to terminate without penalty. This puts teeth into the service commitment. You might also negotiate an out if a major regulatory change prevents you from using the service (e.g., data sovereignty laws – especially relevant in highly regulated industries). Even if SAP doesn’t fully agree, raising these points can sometimes yield compromises (like enhanced service credits or a shorter term commitment). Also, discuss what happens at the end of the term if you choose not to renew: ensure the contract does not auto-renew without your explicit consent (opt-in vs. opt-out). Many cloud contracts require notice 60-90 days before expiration if you do not intend to renew. Ensure you know this date and ideally have it softened (e.g., negotiate a clause that SAP will proactively remind and seek confirmation before renewal, rather than auto-renew). This avoids being trapped inadvertently. A portable license option is another term to explore: ask if you could convert to a traditional license at the end of the RISE term. SAP may not commit to this in writing (as it essentially grants you a perpetual right). Still, some customers have informally gotten assurance that they could purchase a perpetual S/4HANA license later with some credit for subscription fees paid. Get at least the framework noted in the contract or a side letter if it’s on the table. It creates an off-ramp, so the exit doesn’t mean starting from scratch.
• 🌐 Portability and Integration Clauses: RISE contracts involve multiple components – not just S/4HANA, but possibly SAP Ariba, SuccessFactors, or integration services that are part of the solution. When planning for flexibility, ensure that connected cloud services are loosely coupled. For example, those are separate subscriptions if SuccessFactors (HR) or Ariba (procurement) are integrated with your RISE S/4 system. If you exited RISE, would those continue to function? You’d need to reconnect them to whatever new ERP environment you use. Make sure your contracts for those ancillary services are not dependent on RISE. Avoid clauses bundling their pricing together unless it’s advantageous and can be decoupled. Additionally, clarify any transfer of licenses or data between editions. Some contracts allow movement between RISE private and public editions or even to newer offerings (SAP has hinted at future “modular cloud” models). It’s wise to include language that you can transition under comparable terms if SAP introduces a successor offering or a better model. This gives you portability not just out of SAP, but within SAP’s evolving cloud portfolio, so you’re not stuck with yesterday’s model if SAP’s strategy shifts.
• 🔒 SLA, Security, and Compliance Terms: While not directly about exit, these terms affect your risk and flexibility. Insist on clear SLA definitions (uptime% %, response time for critical issues, etc.) that meet your business needs – and link them to remedies. For instance, if your business is extremely sensitive to downtime, negotiate higher than standard uptime or stronger penalties. Why this matters for renewal/exit: if SAP underperforms and you have strong SLA terms, you may have leverage to negotiate concessions or early exit if needed. Security and compliance commitments are also key – ensure data location, encryption, and privacy terms are contractually set. If down the line your compliance needs change (say new data residency laws), you want the ability to move – either within SAP’s cloud or out if they can’t comply. Documenting those aspects gives you legal footing to make changes or exit without breach. Essentially, tighten any vague contract language that could later hinder flexibility. Areas like audit rights (ensure audit processes are reasonable and give you time to remedy any findings without sudden cost), renewal notification, and assignment rights (e.g., can you transfer the contract in a divestiture scenario?) should all be reviewed. The more you clarify and customer-proof these terms, the less risk of being stuck or blindsided later.

In summary, negotiating a RISE contract (new or renewal) must go beyond price. It’s about building in escape hatches and guardrails: exit rights, price locks, adaptability flexibility, and protections against poor service or changing circumstances.

These terms often must be proactively requested; SAP’s standard agreement does not volunteer them. Enterprises that secure these clauses will be in a far better position if they decide to exit in the future or even just to keep SAP honest during the renewed term.

If you’re already mid-contract and lacking some of these, consider raising them in renewal talks as non-financial requirements—sometimes SAP is more amenable to tweaking terms if the headline price is untouched (and vice versa).

The contract is your primary tool to mitigate vendor lock-in, so invest the time and legal resources to get it right.

5. Discounting and Pricing Insights from Real-World RISE Deals

Understanding how SAP prices RISE and what discounts are achievable in the market is crucial for negotiation.

Over the past few years, enterprise RISE deals have varied widely in pricing, but a few patterns and insights have emerged:

• Aggressive Upfront Incentives: SAP has offered substantial incentives in initial contracts to encourage customers to adopt RISE. For example, in 2023, SAP introduced a global program providing credits worth 50-60% of the first-year RISE fees for customers moving from on-premises S/4HANA or ECC. These credits (usable towards SAP services or subscriptions) effectively halve the migration cost for many and proved persuasive in sealing deals. User groups like DSAG and ASUG lauded this as a necessary sweetener to overcome cost concerns. Insight: If you adopted RISE with such an incentive, recognize that your Year-1 price was artificially low. The true “run-rate” cost kicks in later. As you approach renewal, be prepared that SAP may not extend the same level of discount – renewing at list price after a heavily discounted intro would mean a dramatic cost increase. Leverage this in negotiations: remind SAP reps that the initial deal economics included those credits and that continuing with RISE must remain financially viable. Customers have successfully argued for renewal pricing that blends the benefit of initial incentives rather than losing them entirely.
• Typical Discount Ranges: Enterprises have achieved significant discounts off SAP’s official price lists for RISE, especially for large user volumes or multi-year commitments. While individual deals are confidential, independent advisors report that initial RISE subscription discounts in large deals (>$5M/year) often range in the 20-30% off list territory, and in some competitive situations, even more. If SAP initially quoted $10M/year and then applied credits or match discounts, the contracted amount might be $7M – $8M (30%–20 % discount). However, there have also been cases where customers without leverage paid close to the list price. Insight: Always solicit multiple proposals or create competitive tension (e.g., pricing out a do-it-yourself alternative) to avoid paying list price. SAP sales teams have some flexibility to improve discounts if needed to close the deal, particularly at quarter or year-end. At renewal, use benchmarks: if you know peers in your industry got a better rate, bring that up. For instance, one CIO said they negotiated an extra 15% off after pointing out another company’s deal. SAP won’t want to lose recurring revenue customers over price if they believe you have an option to leave.
• Longer Term = Bigger Discount (But More Lock-In): SAP often ties discounting to term length. A 5-year RISE contract might have a deeper discount than a 3-year one. For example, SAP might say a 3-year term is X dollars/year, but a 5-year term could be 10% lower annually. They do this to secure longer commitments. Insight: This presents a trade-off. If you’re confident in RISE’s value, a longer term can yield savings, but it also postpones your next decision point and prolongs lock-in. Some enterprises negotiate a middle path: e.g., a 5-year contract with an option to exit at year 3 without penalty, effectively baking in flexibility. Not all SAP sales teams will allow that, but it’s worth exploring. Alternatively, take the longer term for discount but ensure strong protections (price caps, exit clause at end). If you opt for a shorter term to retain agility, be prepared to push harder on price or find other value adds, since SAP will view a short term as higher risk and might not give their best price without justification.
• Bundling and Multi-Solution Deals: RISE contracts can bundle multiple SAP products (ERP plus analytics, integration services, etc.). SAP may offer bundle discounts if you include more in the deal. For instance, adding SuccessFactors, Ariba, or lots of BTP consumption to the contract could yield an extra overall discount. Conversely, if you later drop a component, you might lose that bundle discount. Insight: Be cautious with bundles – ensure each component is needed and priced transparently. During renewal, review the state of each component. You might find, for example, that you’re paying for 1,000 BTP platform credits monthly but only using 200. That is negotiation fodder: ask to reallocate or reduce costs for underused services. SAP would prefer to keep you on the bundle (it simplifies their revenue and often locks you into using more SAP tech). Still, a smart negotiator will highlight waste and push for removing unused parts or adding something else in exchange. Real-world cases show that SAP will sometimes concede to swapping elements rather than risk losing the whole deal.
• Pricing Metrics and “True-Ups”: RISE’s main metric is the Full User Equivalent (FUE) count, but pricing can also involve environment sizes (for instance, HANA memory capacity, number of systems) and add-ons. It’s important to understand how your price was built. Some customers have been caught off-guard by true-up costs during the term, e.g., if they exceeded user counts or consumed more storage than included. Those come with additional fees. Insight: Before renewal, internal audit your usage against contract entitlements. SAP likely knows and will factor in if you’ve exceeded something. It might be strategic to address it now rather than at renewal crunch time (perhaps via a separate true-up negotiation). Conversely, you argue for cost reduction if you’re well under your entitlements. Make sure the renewal pricing doesn’t simply carry over oversized entitlements. Also, negotiate how incremental growth will be priced – if you expect to add 500 users next year, try to lock in the per-FUE rate now instead of later when you have less leverage.
• On-Premises Cost Increases as Leverage: SAP has been raising on-premise support fees (e.g., announcing up to 5% increases in maintenance in recent years) and emphasizing the cost to run aging infrastructure. They may use this to convince you that “staying off RISE will also cost more.” While it is true that maintenance fees and hardware/energy costs are rising, these increases are usually modest and predictable compared to a potential big jump if a RISE renewal is not negotiated. Insight: Do not accept the narrative that “your only choice is cost increase on-prem or RISE.” Use the fact that SAP’s maintenance is rising as a negotiation point: if you stay on RISE, you are avoiding some on-prem costs, so push SAP to share that benefit by keeping your cloud fee stable. Also, explore the alternative: third-party support vendors often promise to cut maintenance costs by 50% for on-prem systems. Even if you intend to stick with SAP, knowing those alternatives can be useful leverage (“We could drop SAP support and save millions, unless you make the RISE renewal compelling”). Essentially, show SAP you have a plan B for cost containment via self-managed efficiency or third-party options to encourage a better offer.
• Real-World Example – Negotiation Outcome: As an illustrative (anonymized) example, a global manufacturing company faced a RISE renewal with an initial SAP quote 25% higher per year than their current contract (due to an expired incentive and additional cloud capacity for growth). Rather than accept this, the company fully analyzed moving to an MSP on Azure. They obtained a proposal from a reputable SAP hosting provider and found they could run the same landscape for 15% lower than the current cost, after an initial license purchase. Equipped with this data, they went back to SAP. Over a series of executive negotiations, SAP relented to not only withdraw the 25% increase, but reduce the renewal price by 5% below the current level and throw in additional BTP credits. The contract was signed with a built-in cap of 3% on future increases. This example underscores that SAP will negotiate aggressively if the customer shows credible intent to leave. Still, it requires starting early (they began talks 12 months out), involving the CFO for clout, and having a concrete alternative quote.
• Beware of Unit Price Creep: Some customers who attempt to reduce their RISE footprint at renewal (e.g., drop some users or systems) have seen SAP counter by increasing the unit price so that the total contract value stays the same. This is a common vendor tactic to maintain revenue. Insight: Anticipate and address this head-on: negotiate a unit price protection. For instance, lock the FUE price so that if you renew with fewer FUEs, the rate per FUE doesn’t jump dramatically. Or ensure any volume tiering is fair. If SAP’s proposal shows a higher per-user cost for a smaller quantity, call it out and treat it as unacceptable unless justified. The best defense is to get pricing transparency in the contract – a rate card or clear pricing for additions/reductions. If you can’t, then when executing a reduction, consider doing it outside the renewal cycle (some enterprises plan to buy a smaller RISE contract for a subset of users separately, though this can get complex). The key point: guard against backend-loaded pricing that penalizes you for optimizing or rightsizing your use.
• Cloud Infrastructure Discounts and Pass-Throughs: With RISE, SAP essentially resells you hyperscaler infrastructure (for private edition) or includes it in the subscription. Large enterprises often spend substantial money on cloud services and might get volume discounts from AWS/Azure. SAP’s pricing may not reflect those (SAP adds a margin). In some cases, SAP has been willing to discuss aligning on infrastructure costs. For example, if a customer already has data center commitments, they might let the customer bring their cloud contract for part of the deal (this is uncommon, but not unheard of for very large deals). Insight: While you likely can’t get SAP to match your internal cloud discounts fully, you can push for efficiency – ensure that the sizing and pricing of infrastructure in the RISE bill is optimized (no over-provisioning). Ask SAP to demonstrate how the infrastructure cost is derived. If you find disparity, negotiate it or consider a “bring-your-own-cloud” in a future state as part of the exit. SAP also sometimes runs promotions with hyperscalers – keep an ear out, because if Microsoft is co-selling RISE on Azure, there might be extra incentives behind the scenes that you can tap into (like Azure credits). Use any partnerships to your advantage by mentioning your importance as a joint customer to SAP and the cloud provider.

In conclusion, enterprise IT buyers should approach RISE pricing with the same rigor as any major IT procurement. Nothing is set or fixed about these prices – they are highly negotiable, especially if you prepare well. Real deals have seen wide ranges, so your outcome will depend on the leverage you create.

Remember: SAP values the recurring revenue and the public success of RISE, so they often will find creative ways (credits, discounts, free add-ons) to keep a customer onboard rather than see a marquee client walk away.

You must surface those opportunities and negotiate hard. Bringing in an independent pricing advisor or using benchmarks from user groups can greatly strengthen your hand when discussing dollars with SAP’s account team.

6. Renewal Playbook & Recommendations for CIOs and Sourcing Leaders

Approaching a RISE renewal or potential exit requires methodical planning.

Below is a playbook of recommended steps and best practices, structured roughly in timeline order and focus areas, to help enterprise IT and sourcing leaders drive a successful outcome:

• 6–12 Months Before Renewal – Form Your Strategy Early: Don’t wait until the last minute. Initiate an internal “SAP Renewal” project team 6-12 months from contract end. This team should include IT leadership, procurement, finance, and key business stakeholders. Start by baselining your current usage and needs: perform a detailed assessment of your use of RISE. Count active users vs. contracted FUEs, analyze system performance and capacity, catalog which SAP components you leverage, and identify pain points (e.g., service issues or unmet needs). Also, review your original business case for RISE – have the expected benefits (cost savings, innovation, agility) materialized? This introspection will inform your objectives (e.g., “we need to reduce cost by 20%” or “we need better flexibility for customization”). Around 12 months is also the time to check contract terms for notice periods. If your contract auto-renews or requires a notice to terminate (often 3-6 months before end), diary that date and ensure leadership is aware that a decision must be made by then. Starting early gives you time to explore options without the pressure of a ticking clock.
• Conduct a 360° Options Analysis (Renewal vs. Exit): In parallel with assessing your current state, investigate the alternative scenarios. This means developing a high-level plan for exiting RISE and renewing with improvements, so you can compare and have leverage. For the exit option, outline what it entails: Will you go back on-premise or to a chosen cloud? Do you have the requisite infrastructure or would you need to invest? What about staffing – do you need to retrain or hire basis experts, or will you outsource to an MSP? Engage your enterprise architecture team to sketch a target architecture for “SAP outside RISE”. Also, estimate one-time costs (data migration, new hardware or cloud setup, any required reimplementation efforts) and recurring costs of this route. Simultaneously, project the scenario of renewing RISE: what would you need from SAP to make it worthwhile (e.g., X% cost reduction, Y improvements in SLA, inclusion of certain services, etc.). This analysis might involve soliciting outside input: for example, you could issue a Request for Information (RFI) or informal inquiry to potential MSPs or cloud hosting partners to get ballpark figures. Many enterprises also consult independent SAP advisors at this stage, who can provide benchmark data on costs and identify hidden considerations. The outcome should be an internal report or presentation: Option 1: Renew RISE (pros, cons, likely cost), Option 2: Exit to ___ (pros, cons, cost). This clarity arms the CIO and CFO with facts to make an informed call and negotiate hard with SAP. It also ensures you’re not defaulting into a renewal due to ignorance of alternatives.
• Engage SAP Account Team – and Maintain Competitive Tension: Around 6 months (or more) out, it’s wise to open a dialogue with SAP about the upcoming renewal. Signal that you are evaluating all options (renewal and otherwise). This is important – if SAP assumes you will renew, you lose leverage. Even if you are leaning towards renewing, let them believe that exit is on the table unless they deliver a compelling offer. Ask SAP to provide an early proposal or at least key terms for renewal, under NDA if needed. Often, SAP will try to delay detailed pricing discussions, but push for at least a framework (e.g., “we will likely propose a 3-year renewal at current capacity with X% increase” or whatever their stance is). Share (at a high level) your requirements: for example, “We need to see improved pricing and certain terms (list them) for a renewal to be viable for us – otherwise we have to consider other routes.” This sets the tone that it’s not a rubber stamp renewal. Internally, consider if you want to run a formal RFP for alternatives.
  In some cases, companies issue an RFP to MSPs or even consider other ERP vendors (this latter is a massive undertaking, but some use it as a negotiation tactic). The existence of an RFP can be communicated to SAP as proof that you are serious about evaluating alternatives. Even without a formal RFP, keep the “competition” alive: continue conversations with cloud providers or integrators about how they’d help if you left RISE. The objective is to create a competitive environment where SAP has to fight to retain your business.
• Leverage Independent Advisors and Benchmarks: Independent SAP licensing and cloud negotiation advisors can be invaluable. Engage one early, such as a firm specializing in SAP contract optimization (e.g., Redress Compliance or others). They can provide several services: (a) Benchmarking – telling you what discount percentages, pricing metrics, and terms similar enterprises have achieved in recent deals. This helps you set realistic yet ambitious targets. (b) License optimization – analyzing whether you can reduce costs by adjusting license types or usage. For instance, an advisor might find you have a lot of inactive users and could reduce your FUE count by 200, saving millions (this scenario has played out in real audits). (c) Negotiation strategy – these experts know SAP’s playbook and can coach your team on when to escalate, how to counter common arguments, and what concessions are possible. Often, their fee is a fraction of the savings they help achieve, and their presence signals to SAP that you won’t overlook tricky licensing details. Have them review SAP’s proposal; they can spot a missing clause (e.g., no renewal cap, vague SLA, etc.) and suggest improvements. In negotiations, you can even have the advisor directly interface or be on calls – some companies introduce them as “consultants on our side”. SAP prefers to deal directly, but they know these firms and will recognize that you are coming prepared. The bottom line is that you shouldn’t go into a multi-million-dollar renewal negotiation without expert backup. SAP certainly has experts on its side.
• Evaluate SAP’s Renewal Offer vs. Your TCO Model: When SAP delivers a formal renewal proposal (usually 3-4 months before renewal, but try to get it earlier), analyze it rigorously against your alternative TCO model. Break down the costs: software subscription, infrastructure, and new items. Compare the proposed 3-5 year spend to what it would cost you to run SAP outside (from your earlier analysis). Include all extras: if SAP’s offer includes, say, some free services or credits, quantify them; similarly, include potential migration costs on the exit side. This is where you must present a clear financial and risk comparison to top management. If SAP’s offer is significantly higher in cost, you have a strong case to push back. If it’s surprisingly competitive, then you can focus on fine-tuning terms. Also consider soft factors: risk of downtime during migration (exit scenario) versus risk of vendor complacency and cost creep (renewal scenario). If possible, build a scenario-based business case: e.g., “Renewing with SAP at $X million over 3 years yields Y% ROI based on business benefits, whereas exiting costs $X1 upfront but saves $Y1 by year 5.” Having this quantified view will guide your negotiation stance. Be ready to share parts of this with SAP to justify requests: for instance, “Our analysis shows running on Azure ourselves would cost us $5M/year versus the $6M/year in your quote – we need you to close that gap or we cannot justify internally staying on RISE.” Concrete numbers move the conversation from sales rhetoric to facts.
• Prepare for Exit Readiness (Contingency Planning): Even if you hope to renew, you must prepare a contingency exit plan in case negotiations fail or terms aren’t acceptable. This plan should be detailed around 3-4 months before the contract ends (so you can execute it if needed). Key elements: The technical migration plan outlines how to extract data and spin up a new SAP environment (perhaps using backups or requesting SAP’s help). Identify any tools or partners to assist with data migration. License acquisition – have a path to procure S/4HANA licenses if you don’t have them (you might even open preliminary discussions with SAP’s licensing team on what a perpetual license sale would look like, without committing – sometimes separate SAP groups handle that). Infrastructure setup – ensure a cloud environment or hardware sizing plan is ready. Resource plan – who will do the work? Line up a trusted SAP systems integrator or internal task force to execute the cutover. Timelines – estimate how long you need for the exit migration and work backwards to a “go/no-go” decision date. Also, crucially, data and system access: communicate with SAP about how you’d get your data if you leave. If you’ve negotiated a clause for data export, invoke it; if not, you can still coordinate with them to get a final backup. Maintain professional communications – you may be negotiating hard on renewal, but in parallel, discuss with your SAP technical account managers about “in case we choose not to renew, we will need support on data extraction”. This dual-track approach is delicate, but a necessary insurance. The benefit of robust exit planning: it’s not only a safety net, but also a psychological edge – your team and executives gain confidence that “we can leave if we have to”. That confidence tends to translate into a stronger negotiating position. SAP is far more likely to concede points if they know you are prepared to execute Plan B.
• Negotiate in Depth – Beyond Price: As you enter final negotiations (likely in the last 2-3 months before renewal, though you should have been negotiating terms), treat this like negotiating a brand-new contract. Go line by line through critical terms (using the checklist from Section 4 above as a guide). Price is paramount, but sometimes there are trade-offs – for instance, you might accept a slightly higher price if SAP adds an exit clause or extra service that saves you money elsewhere. Use the leverage of timing: SAP’s sales teams have quarterly and yearly targets. If your renewal is near Q4 or year-end, they will be eager to book it. Use that to push for last-minute sweeteners: “We can sign by the end of the quarter, but only if you include 1000 hours of SAP services free for our migration, and cap year-2 increase at 0%.” Ensure all verbal promises are captured in writing. It’s common for sales to promise “we’ll make sure you get X next year” – instead, get X as a contract clause or an amendment. Also, be wary of any new commitments SAP tries to roll in. Often at renewal, SAP might propose that you expand to additional cloud products (e.g., “RISE + Signavio + Datasphere in one package”). Evaluate these on their own merits; don’t agree just to appease them unless it fits your strategy. It’s okay to keep the renewal focused – you can say those are interesting, but let’s handle them separately later, unless they truly provide a discount for bundling now.
• Internal Sign-offs and Governance: As you approach the decision, ensure all internal stakeholders are in alignment. If the expenditure is large, get early buy-in from the CFO and possibly the board. No executive likes a surprise request for millions at the last minute. Present the findings of your renewal vs exit analysis to the relevant approvers well in advance, so that when you finalize the negotiation, everyone is prepared to authorize the chosen path. Als,o plan communications: if you decide to leave RISE, that’s a significant internal project – you’ll need to rally the IT staff and communicate to business units about any changes or freeze periods during migration. If you renew, especially at better terms, it can be a positive message – “we negotiated a great deal that ensures stability and innovation for the next X years.” Either way, have a communication plan to key stakeholders (IT team, end-users, maybe even external partners) about the decision and what it means for them.
• Execute and Document: Once a deal is reached or a decision to exit is confirmed, execute promptly. If renewing, don’t let paperwork drag past the deadline – coordinate with legal and procurement to review the final contract thoroughly, checking that every negotiated point is correctly reflected (it’s not unusual for a detail to be missed in the final draft – double-check things like the exact numeric caps, the wording of any special clauses, etc.). Sign the contract before the current one expires to avoid any lapse in service. If exiting, issue the non-renewal notice to SAP formally (and get acknowledgment), and kick off the migration project with full force according to your plan. In either case, keep records of the negotiation and final terms. It’s wise to create a brief “contract summary” document highlighting all important elements – when the next renewal is, what the prices and caps are, what special rights you secured (e.g., ability to reduce users), etc. This will be incredibly helpful 3-5 years later, when perhaps new team members are handling the next renewal. Institutional memory can fade, so document lessons learned as well: what worked well in this negotiation, what you’d do differently next time.

By following this playbook, CIOs and sourcing leaders can approach the RISE renewal with a structured plan rather than anxiety. The key themes are starting early, digging into details, building leverage through alternatives, and negotiating holistically.

Many enterprises that have gone through this process report that early preparation (especially baseline and alternative analysis) was the biggest factor in achieving a great outcome.

A RISE renewal or exit is essentially a major transformation project in its own right – treat it with that level of importance. With diligent planning and execution, you can either secure a renewal that delivers cloud benefits on much more favorable terms or execute an exit that puts your SAP landscape on a better footing long-term. Either way, your organization controls its SAP destiny, rather than being swept along by SAP’s agenda.