N 40.7128° W 74.0060° / TCO Modelling / IDX 2026.05 New York · London · Stockholm
Independent RISE Advisory
SAP RISE Negotiations
VER. 2026.05
DOC.ID / SVC.02
STATUS / LIVE
Home / Services / TCO Modelling
Service 02 / TCO Modelling

The seven year RISE TCO model the SAP account team will not build for you.

Independent total cost of ownership modelling across brownfield S/4HANA, RISE with SAP Cloud Private Edition, and hybrid scenarios. Built by buyer side analysts, audited by buyer finance, owned by the buyer organisation. No SAP fees. No hyperscaler kickbacks. No reseller spreadsheets.

Service Profile
Horizon7 Years
Scenarios3 Minimum
Cost Lines220+
Duration4 to 8 wks
Avg Reduction68%
Engagements500+
Audited ByBuyer Finance

Most RISE TCO models are built by the seller and stop at year three.

SAP account teams typically present a three year TCO model that compares RISE with a stylised on premise baseline. The model is short. The baseline is favourable to the RISE conclusion. The cost lines that hurt RISE most, such as overage charges in years five through seven, FUE growth assumptions, hyperscaler reserved capacity gaps, and exit transition costs, are either excluded or rolled into a single line called "operational".

The result is a deck that looks decisive but underprices RISE by between twenty and forty percent across the seven year horizon. Boards approve on the deck. Three years later, the year four true up arrives. By then the migration is complete, the brownfield estate is decommissioned, and the leverage to renegotiate is gone.

The buyer side answer is a parallel TCO model, owned by the buyer, built to a seven year horizon, with the cost lines SAP excludes brought back into the comparison. That is the work this service produces.

Nine cost domains modelled across three scenarios.

Every TCO engagement models three scenarios at minimum, which are brownfield S/4HANA, RISE with SAP Cloud Private Edition, and a hybrid model that keeps the brownfield core for headquarters and runs RISE for new entities or acquired businesses. Each scenario is built across nine cost domains.

DOM.01
SAP Licensing and FUE
Full User Equivalent growth assumptions, document volume bands, named user counts, and engine charges modelled across seven years with sensitivity bands.
DOM.02
Hyperscaler Infrastructure
AWS, Azure, and GCP reserved capacity, on demand bursting, storage, network egress, and disaster recovery for RISE workloads.
DOM.03
Implementation Cost
Greenfield, brownfield, and selective data conversion modelled across system integrators with realistic blended day rates.
DOM.04
Run and Operate
Internal SAP basis, security, and application team cost. RISE shifts some of this to SAP, but not all of it, and the residual matters.
DOM.05
Indirect and Digital Access
Document volume exposure under RISE, including EDI, integration platforms, and downstream consumers of SAP data.
DOM.06
BTP and Platform Services
Business Technology Platform consumption, RISE included credits, overage pricing, and the BTP extensions enterprises typically commission.
DOM.07
Renewal and Uplift
RISE renewal pricing pattern, contractual uplift caps, FUE growth pricing, and the renegotiation cost in year five and year seven.
DOM.08
Exit and Reversal
Data egress, parallel run windows, knowledge rebuild, and the actual cost of leaving RISE if the seven year decision turns out wrong.
DOM.09
Risk Adjusted Value
Probability weighted scenarios, sensitivity bands, and Monte Carlo style ranges for boards that need decision intervals, not point estimates.

The four phase TCO build.

Each phase produces a written artefact. The artefacts are owned by the buyer, not the firm. At the end of the engagement, the buyer has a working model they can rerun against future RISE proposals without further engagement.

01
Baseline
Current SAP estate, contract entitlements, hyperscaler position, integration map, and historic spend reconstructed from primary sources.
02
Model
Three scenarios built in parallel. Brownfield, RISE, hybrid. Each cost domain populated with documented assumptions and sensitivity bands.
03
Stress Test
FUE growth, hyperscaler price moves, renewal uplift, indirect access exposure stressed against optimistic and pessimistic bands.
04
Decide
Board pack, executive summary, and decision frame produced. The model becomes the negotiation reference document for the RISE deal.

What the buyer receives.

The deliverable is not a slide deck. It is a working model the buyer organisation owns and can rerun. Side by side comparison of what the seller usually provides against what this engagement produces.

Dimension Typical Vendor Model This Engagement
Horizon3 years7 years
ScenariosRISE vs. straw manBrownfield vs. RISE vs. Hybrid
Cost lines~40220+
Sensitivity bandsNoneP10, P50, P90
Exit cost modelledNoYes
Renewal pricing modelledNoYears 5 and 7
Indirect access includedExcludedMapped and priced
Model ownershipVendorBuyer
Source documentedPartialEvery line

Where TCO modelling fits in the RISE engagement.

TCO modelling is rarely a standalone purchase. It is the analytical backbone underneath every RISE with SAP negotiation, brownfield comparison, and contract review.

RISE Negotiation Brief

TCO benchmarks and RISE pricing intelligence, sent only when it moves.

Quarter end campaigns, hyperscaler reserved pricing changes, FUE pricing shifts. Sent when SAP makes a move, not on a schedule.

Need help on a live RISE deal?

Our SAP RISE negotiation services run buyer side only. Five hundred engagements behind the bench, sixty eight percent average reduction against the first SAP proposal, and one hundred eighty million dollars in client savings delivered. Each engagement opens with a working session, not a sales pitch.

Open a working session Contact Us