Top 15 Internal Preparation Steps for SAP RISE Negotiations: Building Your Team and Requirements

Top 15 Internal Preparation Steps for SAP RISE Negotiations: Building Your Team and Requirements

Large midsize organizations planning to negotiate a RISE with SAP contract must be thoroughly prepared on the commercial and licensing front. RISE is SAP’s all-in-one subscription offering for S/4HANA and related services, representing a significant shift from traditional licensing.

Before negotiating, companies should build the right team, gather critical data, and define clear requirements and objectives. The following are the top 15 internal preparation steps to ensure you engage SAP from a position of strength and confidence. Each step outlines what to do, key considerations, and the practical impact on your negotiation outcomes.

1. Form a Cross-Functional Negotiation Team

• What to do: Assemble a cross-functional team with representatives from all key departments. Include IT leaders (for system and usage insight), Procurement (for negotiation tactics and vendor management), Legal (to review contract terms and protect your interests), and Finance (for budget and cost oversight). Assign clear roles and responsibilities to each member. For example, procurement might lead the negotiation discussions, IT provides usage data, and legal ensures contract compliance with your policies.
• Considerations: Ensure every relevant perspective is covered. If you’re migrating from ECC to RISE, involve someone who understands the current SAP usage deeply. Consider appointing an executive sponsor (such as the CIO or CFO) to back the initiative and make high-level decisions. Be cautious of silos—decisions shouldn’t be made by IT alone or procurement alone. Also, decide early on who will be the primary point of contact with SAP to present a unified front (typically a procurement lead or CIO). If needed, include an independent SAP licensing advisor as part of the team for specialized expertise (e.g., a firm like Redress Compliance can offer insight without vendor bias).
• Practical impact: A well-rounded team ensures no aspect of the deal is overlooked. This unified approach prevents SAP from exploiting gaps (for instance, sales reps sometimes bypass IT and go to business executives; a cohesive team with executive alignment stops that). By having procurement, legal, IT, and finance at the table, you’ll address cost, contract language, technical needs, and compliance. If you skip this step, you risk missing critical issues (such as legal loopholes or unrealistic usage commitments) and may present an inconsistent stance to SAP. Organizations with cross-functional negotiation teams are far more likely to secure favourable terms because they leverage combined expertise and speak to SAP with one voice.

2. Educate Your Team on RISE and Its Licensing Model

• What to do: Make sure the entire team fully understands what “RISE with SAP” entails and how its licensing model works. Conduct internal briefings on the components of RISE (for example, it bundles S/4HANA Cloud software, required infrastructure, SAP support services, SAP Business Technology Platform (BTP) credits, and other tools under one subscription). Highlight how this differs from your current licensing—RISE uses a subscription model with metrics like Full User Equivalents (FUE) instead of traditional named user licenses. Educate the team on standard RISE contract terms, service level agreements (SLAs), and any known limitations or included perks (such as a starter pack for SAP Business Network services).
• Considerations: Consider the differences between RISE and your existing SAP setup. For example, under RISE, you won’t own perpetual licenses; instead, you pay for a service—this has implications for long-term flexibility and exit options. Discuss what giving up perpetual license rights means and ensure everyone understands the trade-off. If you have been an on-premise ECC customer, explain how maintenance fees convert into subscription value (SAP may offer incentives or credits for switching, but you relinquish your old license rights). Also, consider any new concepts in RISE, such as how SAP provides cloud infrastructure on hyperscalers of your choice and the division of responsibilities between your team and SAP. Encourage team members to ask questions and clarify jargon so that all stakeholders are literate in RISE terms during negotiations.
• Practical impact: An educated team is less likely to be misled by sales tactics or to overlook critical components. When SAP’s proposal arrives, your team can immediately decipher what’s included or missing. For instance, knowing that RISE includes a certain amount of BTP credits will prompt you to verify if that amount meets your needs (instead of discovering later that you must pay extra). Without this step, you could agree to terms or pricing without grasping their full implications, such as assuming something is included when it isn’t or misunderstanding how user counts are calculated. Teams that invest time learning the RISE model will negotiate with clarity and avoid costly surprises, whereas an unprepared team might concede points simply out of unfamiliarity.

3. Inventory Your Existing SAP Licenses and Contracts

• What to do: Gather a complete inventory of your organization’s current SAP agreements and entitlements. This includes your SAP license contracts, order forms, appendices outlining what licenses you own (by type and quantity), and any active SAP cloud subscriptions. Document all the details: number of licenses per user category (Professional, Limited, Employee, etc., if on ECC), any engine or package licenses (like SAP ERP modules that are metric-based), along with their metrics and usage rights. Also, compile maintenance agreements, renewal dates, and the fees you pay. Essentially, create a contract inventory spreadsheet or repository that gives your team a clear view of your SAP assets and contractual commitments.
• Considerations: Ensure you include licenses obtained through all channels – some organizations might have acquired additional SAP products via acquisitions or region-specific deals. Look for any relevant non-standard contract terms (for example, special discounts, dedicated support agreements, or conditions for termination). If you’re already partially on S/4HANA or other SAP cloud products, note those contracts, too. Understanding your contract exit clauses and renewal notice periods is important; if you plan to migrate to RISE, you’ll need to manage the retirement of existing contracts (e.g., discontinuing maintenance on old licenses once you switch). Be meticulous: even shelfware licenses (unused licenses you bought) should be listed, as they represent potential bargaining chips or cost savings (you might drop them if not needed).
• Practical impact: This license and contract inventory form the factual foundation of your negotiation. Firstly, it tells you what value you’ve already invested in SAP. SAP will often consider your existing licenses when crafting a RISE deal (sometimes offering credit), so you must know your numbers to ensure you get the proper value. Secondly, it prevents oversights, such as paying for something in RISE that you already have a right to use. For example, if you have licenses for a specific SAP module you plan to retire, you wouldn’t want to pay for it again inside the RISE subscription. You might double-pay or lose leverage if you don’t inventory your contracts. Conversely, a comprehensive inventory allows you to approach SAP, saying, “We know exactly what we own and what we currently spend, and we expect any RISE offer to account for that.” This command of your entitlements puts you in a stronger bargaining position and reduces the chance of unfavourable terms or redundant costs.

4. Audit Current Usage and License Compliance

• What to do: Conduct an internal SAP usage audit to understand how your organization uses your SAP software today. This means measuring the user footprint and consumption of SAP systems. Run SAP’s license administration reports (such as LAW – License Administration Workbench – on ECC) or other analysis tools to get data on active users, their license classifications, and the transactions or modules they use. Check how many users are active vs. the number of licenses you own for each category, and compile statistics on module usage (for instance, how heavily each SAP component is utilized). At the same time, assess license compliance: determine if you are underusing (having more licenses than needed) or overusing (any unlicensed usage or indirect access). Essentially, validate whether your actual usage aligns with your entitlements.
• Considerations: This step may require coordination with your SAP basis team or administrators to extract the right data. Plan to look at a representative period (the last year of usage) to account for seasonal peaks. Consider potential indirect usage – scenarios where third-party applications connect to SAP and retrieve or input data. In traditional models, licensing questions are often raised (SAP’s “Digital Access” license). Knowing if you have an indirect access exposure is important; moving to RISE might mitigate some of that risk by shifting to a subscription. However, you’ll still want to clarify it during negotiation. Also, identify any compliance gaps now rather than have SAP’s team discover them. If you have more named users allocated than actively needed, note that (it indicates some licenses could be freed or are unnecessary to carry into RISE). Conversely, if usage exceeds licenses in some area, be ready to address that (possibly by cleaning it up or planning for it in the new contract to avoid a surprise bill).
• Practical impact: A thorough usage audit arms you with facts. When SAP proposes several subscriptions or FUEs for RISE, you can cross-verify it against your observed usage. For example, if SAP suggests a FUE count equivalent to 1,000 users, but your audit shows only 800 active users, you have grounds to negotiate a lower base or question their assumptions. This can save significant costs. Understanding compliance status is equally crucial: SAP might use that as leverage if you are out of compliance in any area today (“You’re 100 users over your license – buying RISE now would solve that problem”). By knowing this first, you control the narrative – you can proactively address it or ensure the RISE deal explicitly resolves any compliance issues without an exorbitant uplift. If you skip the usage audit, you’re effectively negotiating blind. You might accept SAP’s word on how much you need (which will likely err on the higher side) or miss an opportunity to eliminate licenses you don’t use. Companies that base their negotiations on real usage data tend to negotiate more appropriate contract sizes and avoid costly over-provisioning or compliance surprises.

5. Identify and Reclaim Unused Licenses (Shelfware)

• What to do: As an extension of your usage audit, pinpoint all the unused or under-utilized SAP licenses – often called “shelfware” – in your current environment. These are licenses or subscriptions you’ve paid for but aren’t actively using (or not using to their full capacity). Once identified, take steps to reclaim value from them. For example, you might reassign licenses from former employees to new ones instead of buying more, or decide to terminate maintenance on certain modules that your business no longer needs. The document that licenses could potentially be dropped or reduced if existing agreements do not bind you. This exercise effectively “right-sizes” your license footprint before you negotiate.
• Considerations: Be realistic when determining if something is truly unnecessary. Sometimes, business units hold onto licenses “just in case” of future use – engage in discussions to confirm whether those modules or extra user allocations have any planned use. If not, they become negotiation leverage (SAP would prefer you convert them to something under RISE rather than cancel them). Check your contract terms to see when and how you can terminate or reduce licenses; some contracts might allow reductions at renewal periods or require notice. If your maintenance renewal is approaching and you have identified shelfware, you could strategically notify SAP of dropping those licenses – this sets the stage that you won’t keep paying for unused software, which can pressure SAP to offer a better deal via RISE to “save” that revenue. However, be careful to coordinate this with your overall negotiation timeline. Also, consider the value of shelfware as a trade-in: even if you keep paying maintenance now, SAP may give credit in a RISE deal for those licenses (especially if you highlight that they’re not used and you’re willing to drop them).
• Practical impact: Cleaning up shelfware ensures that your RISE contract – if you sign one – is not bloated with users or products you won’t use. This can directly reduce the subscription cost. It also strengthens your negotiating hand: showing SAP that you are prepared to cut waste sends a message that you will not over-buy. Organizations that trim unused licenses before renewal or negotiation have saved money immediately or leveraged the move to get better pricing (SAP would rather migrate you to RISE at a discount than lose your maintenance revenue entirely). Failing to address shelfware means you might carry over inefficiencies into the new agreement, effectively paying for the same idle licenses in a new form.
  Additionally, not highlighting unused licenses leaves money on the table – SAP’s initial proposals might assume you need to cover all existing licenses. In contrast, your internal analysis shows you could do with far less. Proactively tackling this ensures your requirements (and spending) are lean and justified.

6. Assess Your Current SAP Spending and Total Cost of Ownership (TCO)

• What to do: Develop a clear picture of your current SAP spend and total cost of ownership. This includes the obvious direct costs like annual maintenance fees for your SAP licenses and recurring cloud subscription fees. But it should also encompass related costs: what you spend on infrastructure (servers, storage, cloud hosting fees if you’re on the cloud already) to run SAP, the internal personnel costs or outsourcing costs to support and manage the system, and other support costs (for example, third-party support contracts, consulting, or SAP premium support services if any). Calculate the annual run rate of these costs and, if possible, project them over the next few years (considering any planned growth or inflationary increases in maintenance). Know how much “running SAP” costs your company today, every year, and over a typical contract term.
• Considerations: Break down the costs into categories: licensing (maintenance) vs infrastructure vs operations. This helps identify which of those would be replaced or absorbed by RISE. For instance, under RISE, SAP provides the infrastructure and basic technical management, so your current data centre or cloud hosting costs for SAP may drop off, and some basic support effort might be reduced. However, some costs remain (you’ll still need internal folks to manage configurations or a partner for implementation outside the RISE subscription). Be careful to account for those post-migration costs separately in your planning. Another consideration is any upcoming cost changes if you don’t move to RISE: for example, SAP maintenance on ECC might increase after 2027, or custom support could be expensive; hardware might need upgrades, etc. Understanding these future costs of staying put will inform how much value a RISE move would bring financially. Ensure Finance validates these numbers – having the CFO’s team agree on the baseline makes your negotiation positions solid internally.
• Practical impact: Knowing your current TCO sets a baseline for negotiation. When SAP provides a RISE quote (say a subscription of $X million over 5 years), you can compare that against what you would likely spend over the same period continuing as is. This tells you if the offer is financially attractive or not. For example, if you project a $5M cost over 5 years with the status quo and SAP’s RISE offer is $8M, you know it’s not automatically a great deal unless the extra $3M brings significant qualitative benefits, which means you’d push back on price or scope. On the other hand, if RISE is priced lower, you can recognize it as a stronger value (though still negotiate, of course). Without understanding your current spending, you might be swayed by SAP’s arguments that RISE “lowers TCO” without evidence, or conversely, you might underestimate the hidden costs you’ll avoid. Companies that go into negotiations with a firm grasp of their financial baseline can better demand a deal that at least beats or justifies itself against that baseline. In contrast, those who skip this homework risk committing to a long-term subscription that strains their budget or fails to deliver value because they have no yardstick to measure it by during the negotiation.

7. Build a Business Case and Value Assessment

• What to do: Develop an internal business case for the move to SAP RISE that you can use to guide decision-making and justify the initiative. This isn’t something you present to SAP but rather an internal document and consensus on RISE’s value, costs, and expected benefits for your organization. In this business case, combine the financial analysis from the previous step with the strategic and operational benefits: for example, highlight that RISE could enable faster innovation (by always being on the latest S/4HANA version), reduce hardware obsolescence risk, and shift your spend from CapEx to OpEx. Quantify benefits where possible (e.g., “we expect 15% lower infrastructure cost, or avoidance of a costly ECC extended support fee in 2028”). Also, enumerate qualitative benefits (improved flexibility, vendor-managed infrastructure, etc.). Finally, the business case defines what a “good deal” looks like – e.g., the maximum acceptable cost and minimum expected benefit. This creates a value threshold for your negotiation: you know what you must achieve for RISE to make sense.
• Considerations: Ensure that the business case is reviewed and approved by senior stakeholders (CIO, CFO, business unit leaders) to carry weight. It should reflect not just IT’s perspective but also business outcomes (like the ability to support growth, improved user experience, etc., under RISE). Part of the business case might involve comparing alternatives: RISE vs. self-managing S/4HANA on the cloud vs. staying on ECC longer. Even if you intend to go with RISE, understanding the alternative scenarios helps clarify the benefits and costs unique to RISE. Be wary of overly optimistic assumptions – SAP will market RISE as solving many problems, but validate those claims for your context. For example, if one selling point is reduced downtime due to SAP handling operations, consider your current performance: if you already run SAP reliably, that benefit might be minor. Align the business case timeline with the expected contract term (e.g., a five-year subscription) and consider the long-term implications, such as what happens after the term (will costs jump, what are the exit options – more on that later).
• Practical impact: A solid business case functions as your North Star during negotiations. It keeps the team focused on the big picture: you’re not just haggling over numbers but ensuring the deal delivers real value. Suppose SAP’s offers or terms deviate from the assumptions in your business case (say, the cost is higher without additional benefits). In that case, you have a clear rationale to push back or reconsider. The business case also ensures you have internal backing – when negotiation concessions or hard lines need approval, having pre-agreed on what’s acceptable means faster decisions and no last-minute stakeholder derailments. Skipping the business case can lead to trouble: you might end up with a deal that your finance or business leadership doesn’t support or one that sounded good in theory but doesn’t hold up under scrutiny, leading to regret. Organizations that invest time in a thorough value assessment can clearly articulate, “We are willing to do RISE if it achieves X outcome at Y cost. Otherwise, it’s not worth it,” which is a powerful position to take. It also means that once a satisfactory deal is on the table, you can confidently proceed, knowing it aligns with your strategic and financial goals.

8. Forecast Future License Demand and Growth

• What to do: Project your future SAP usage and requirements over the anticipated term of the RISE contract. Most RISE agreements will span several years, so think about how your business will evolve. Estimate the growth in the number of users (e.g., due to company growth, acquisitions, or new departments adopting SAP). Identify any new SAP modules or products you plan to implement that are not currently in use – for example, if you plan to roll out SAP modules for new business functions (like adding CRM, HR, or analytics solutions) or increase usage of existing ones. Also factor in any planned expansions (new geographies, higher transaction volumes, etc.), which might require more system capacity. Essentially, create a demand forecast: “Today we use X, but in 3 years we expect to use Y.” Use input from business unit leaders and strategic plans to inform these numbers.
• Considerations: Growth is rarely uniform, so consider different scenarios (conservative, moderate, aggressive growth) and identify what that means for license needs. For example, if your company’s headcount is projected to increase 5% annually, user counts might do the same, but also consider efficiency improvements or changes in how roles use SAP. Moving to S/4HANA might allow consolidation of some processes, and certain user types may be downgraded; on the other hand, new functionality might attract new users. Also, consider the type of licenses or subscriptions in the future: RISE uses the FUE metric, which offers some flexibility in mixing roles, but if you anticipate a major change (like adding a whole new SAP component), ensure that it’s accounted for. Don’t forget cloud service entitlements included with RISE: for instance, if RISE provides a set amount of BTP consumption or Ariba network transactions, estimate if your future usage will exceed those because that would mean extra costs later. Engage your enterprise architects or IT strategists who know the roadmap. If, say, the plan is to double the usage of SAP in certain plants or to integrate many IoT devices (which might drive indirect access), those things should influence your forecast.
• Practical impact: A forward-looking demand forecast ensures that you negotiate a contract that is right-sized for today and tomorrow. This has two benefits: cost avoidance and capacity assurance. On cost, if you know you’ll need, for example, 20% more users in two years, you might negotiate pricing for that expansion now (or lock in a discounted rate for additional users) rather than face high costs later when you’re locked in. On capacity, you can ensure the contract (and underlying infrastructure SAP provides) can handle your growth – you don’t want to sign a deal that is perfect for day one but becomes a bottleneck or financial strain mid-term. If you present SAP with your growth expectations, they are more likely to craft a solution that scales (and you can get commitments on how scaling is priced). Without a demand forecast, you risk two extremes: either overbuying (taking a larger RISE package “just in case” which costs more than needed), or underbuying and then scrambling (and paying premium rates) to add capacity or users later. Neither is ideal. Companies that forecast their needs can also strategize on contract length – for instance, if massive growth is expected in 5 years, maybe a shorter 3-year contract is better so you can renegotiate when you’re much larger, rather than locking in constraints. In summary, anticipating future needs means your RISE deal will be aligned with your organization’s trajectory, providing room to grow without breaking the bank.

9. Define Your RISE Scope and Requirements

• What to do: Clearly define what you need from SAP RISE before entering negotiations. This is essentially a requirements checklist covering all RISE offering elements you expect to utilize. Start with the core: identify which SAP applications and modules you want included (for example, S/4HANA modules like Finance, Supply Chain, Sales, etc., any industry-specific solutions you use, and so on). Specify the number of users or FUEs you require based on your current usage and future forecast. Outline the environment needs – how many system landscapes (Dev, Test, Production, training environment, etc.) and any high availability or disaster recovery provisions required (RISE can include these at additional cost, so they should be spelled out if needed). Include platform services: If you intend to leverage the SAP Business Technology Platform for extensions or integrations, determine if the standard credits included are sufficient or need more. Also, list any integration requirements with other systems that might require additional connectors or licenses (ensuring that connecting non-SAP systems won’t breach terms or incur extra fees). Imagine you are writing the statement of work for what the RISE subscription must cover to fully support your business.
• Considerations: Be as specific as possible with requirements to avoid ambiguity. For instance, if you need a sandbox environment separate from QA, state that upfront – SAP can include additional environments, but only if asked (standard RISE might only include a limited number). Consider any geographic or regulatory needs (e.g., data centres in certain locations for compliance – ensure SAP RISE can accommodate that). If you currently use specific custom add-ons or third-party solutions that interface with SAP, clarify if they will remain outside RISE or if you expect SAP to support any aspect of them. Remember that RISE bundles many components by default – use that to your advantage by ensuring you get everything you would have otherwise needed to purchase separately. On the flip side, if there are components in RISE you don’t need, note that too; you might not be able to remove them for a cheaper price (as RISE is a bundle), but it’s worth knowing your “nice-to-haves” versus “must-haves.” Prioritize requirements as well – know which are non-negotiable (for example, “we must have at least X hours of monthly downtime allowed in SLA” or “we require Y performance level for our database size”) versus flexible things. Engage your IT architecture team to validate that the scope you’re defining will meet technical needs, but keep the conversation focused on commercial inclusion (you don’t need to design the system now; ensure all necessary pieces will be contractually covered).
• Practical impact: Defining scope internally means that when you approach SAP, you hand them your requirements document rather than letting SAP dictate the scope. This flips the script: SAP’s initial offers often include assumptions that might not match your needs (either missing something or including extras you don’t prioritize). By stating, “This is what we need in RISE,” you reduce the back-and-forth and help SAP craft a more relevant proposal. It also uncovers early if there are any gaps – for example, if you assumed a certain tool or service is included but SAP’s team says it’s not part of standard RISE, you now know to negotiate it in or plan around it. With a well-defined scope, you can also consistently compare the RISE proposal to alternative solutions. If you neglect to define this upfront, you might react to SAP’s offer and discover late in the game that something critical isn’t included (like sufficient BTP capacity or a crucial add-on). That can lead to last-minute changes, costs, or even stalling the negotiation. Moreover, a documented scope helps your internal sign-off process; everyone understands exactly what we’re buying. Companies that walk into negotiations with a firm grasp of their requirements are more likely to secure a contract that fits like a glove, whereas those who “figure it out as we go” often either overspend on unneeded components or have to pay extra later for overlooked items.

10. Set Clear Negotiation Objectives and Priorities

• What to do: Establish your negotiation objectives and rank your priorities before you start the formal give-and-take with SAP. This means deciding on the outcomes you need, the targets you aspire to, and the areas where you have flexibility. Key objectives often include a maximum acceptable cost or a target discount percentage off SAP’s list prices, specific contract terms (for instance, a cap on annual price increases, favourable payment terms, or termination rights), and service level or performance guarantees. Write down what a “win” looks like for your organization – for example, “overall 5-year TCO not to exceed X,” “include at least 20% more BTP credits than standard,” “90% uptime SLA with penalties,” etc. Additionally, identify your non-negotiables and the things you will not compromise on (e.g., you might insist on the right to reduce users at renewal if your business shrinks, or you might need a particular legal term due to compliance). At the same time, list areas where you can be flexible – perhaps contract length (would you accept 5 years instead of 3 if other terms are good?) or the mix of services (maybe you could live without a minor component if the budget is tight). Ensure the entire team and relevant executives agree on these objectives and their priority order.
• Considerations: Not all goals are equal; knowing your must-haves vs. nice-to-haves is important. For instance, is a lower price more important than a flexible contract? Different stakeholders may have different views: procurement might prioritize cost savings, legal might prioritize liability clauses, and IT might prioritize scope completeness. Facilitate an internal discussion to reconcile these, perhaps even score or weight them. Remember the business case: any deal you agree on should meet your established basic value proposition. Also, consider SAP’s objectives (likely a longer commitment and a certain deal size); understanding their motivations can help you align your asks so they can concede. It can also be useful to set a walk-away point – define the scenario in which you would say “no deal” and pursue alternatives (for example, if SAP refuses to meet a critical requirement or if the cost is above a threshold). Knowing this in advance prevents emotional or pressured decisions later. Document these objectives to be referenced during negotiation to keep everyone on track.
• Practical impact: Clear objectives act as a compass during negotiations. When SAP presents an offer or counteroffer, you can evaluate it systematically against your pre-set criteria rather than reacting impulsively. For example, if you’ve decided internally that a 5-year term is acceptable only if there’s a customer-friendly exit clause, and SAP offers 5 years without such an exit, you know to keep pushing. Objectives also enable internal unity – if SAP tries to divide the team (say, by telling IT, “This feature is more important than the legal clause you’re asking for”), your team members will stand firm because you’ve all agreed on what’s paramount. Without predefined priorities, negotiations can drift or be driven by whoever speaks loudest. Teams might fixate on a minor issue and trade away something more important. Or they might accept an offer that superficially looks good (like a big discount) but fails on a less obvious objective (like flexibility or future cost protection). Companies that walk in knowing exactly what they want (and in what order of importance) are far less likely to settle for a suboptimal deal. Instead, they can focus on the areas that matter most and achieve a contract aligned with their strategic needs.

11. Develop a Negotiation Strategy and Leverage Plan

• What to do: Formulate a strategy for negotiating with SAP and identify the levers you can pull to strengthen your position. This step is about the tactics and process rather than the content (which you covered by setting objectives). Decide on your approach: Will you negotiate directly one-on-one with SAP’s account team, issue an RFP, or involve competitive bidding somehow? (For instance, some organizations entertain proposals from SAP RISE and a third-party hosting/SI solution for S/4HANA to compare.) Plan how to create and maintain leverage: one classic method is to keep SAP unsure whether you might choose an alternative path. Even if RISE is your preferred option, you might, for example, discuss a “traditional” migration (buying S/4 licenses and hiring a cloud provider yourself) or evaluate other ERP competitors for certain functions and let SAP know you’re exploring these routes. Internally, outline your BATNA (Best Alternative To a Negotiated Agreement) – what will you do if the RISE deal doesn’t meet your needs? Perhaps it’s extending ECC a couple more years or going with a different vendor for some modules; whatever it is, know it and prepare for it. Additionally, strategize on timing and concessions: identify when you might get the best offers in SAP’s sales quarter or year (SAP often provides its strongest discounts at quarter-end or year-end pushes). Plan the negotiation sequence – For
  example, you might aim to resolve pricing last after ensuring the scope and terms are right, or vice versa. Assign roles for the negotiation meetings (who speaks on which topics) to present a coordinated negotiation front.
• Considerations: Research and intelligence can inform your strategy. If you know of other companies (peers or from advisors) who negotiated with SAP recently, what leverage worked for them? Perhaps threatening to delay the project until next year to get a discount or considering a competing solution like Oracle or Workday in certain areas made SAP more flexible. Be cautious with bluffing – you should be prepared to follow through on any leverage you claim to have, at least to some extent. For example, don’t claim you will stick with ECC until 2030 unless you truly have a plan to do so; otherwise, SAP might call that bluff. Consider SAP’s sales rep motivations: they likely have quotas and want to book your RISE deal for certain periods – use that to your advantage by not showing urgency on your side. Also, decide on your communication strategy: how much will you reveal about your budget or timeline? Often, it’s wise not to volunteer too much information (like “we must sign by next month” or “we have $X budget approved”) as that can weaken your position. Another consideration is whether to involve SAP’s leadership early (e.g., invite SAP’s cloud specialist or an executive to initial meetings) or hold that in reserve if talks stall – sometimes escalating to higher-ups can unlock better terms, but you want to use that judiciously.
• Practical impact: A well-thought-out strategy and leverage plan lets you control the negotiation process. Instead of reacting to SAP’s sales tactics, you’ll have your playbook. For instance, if SAP tries the classic “This offer is only good until the quarter ends” pressure, your strategy (backed by your BATNA) might be to say, “We’re prepared to wait if needed; our decision isn’t driven by your quarter.” That immediately tells SAP you won’t be easily pressured. By considering alternatives and perhaps even talking to other providers, you create competitive tension – SAP is aware they are competing for your business, even if, in reality, it’s theirs to lose. This often leads them to sharpen their pencil and be more accommodating on terms. Without a clear strategy, you might inadvertently show your hand (e.g., revealing you have no choice but to go to RISE, resulting in a poorer offer since SAP knows you’re stuck). You might also get cornered into SAP’s timeline, signing hastily to meet their deadline rather than on your terms.In contrast, executing a good negotiation plan means SAP’s team will recognize you as a savvy customer: they will see that you have options and are well-prepared to walk away or delay, and therefore, they will likely present more reasonable proposals earlier. Your leverage plan—
  alternative solutions, delaying tactics, or splitting the deal into parts—can significantly improve the concessions and discounts SAP is willing to give. Ultimately, this step ensures you’re negotiating proactively and strategically, not reactively.

12. Leverage Independent Licensing Experts

• What to do: Consider enlisting an independent SAP licensing and negotiation expert to support your preparation and negotiation process. These are third-party consultants or advisory firms specializing in SAP contracts and have insight into the tactics, benchmarks, and loopholes that ordinary buyers might not be aware of. If you choose to do so, engage them early enough that they can help analyze your current situation and SAP’s proposals. For example, independent experts (such as Redress Compliance, to name one) can perform a license audit, help calculate an optimal FUE count, and provide benchmark data on discount percentages other companies of similar size have achieved on RISE deals. They can also review contract drafts to spot any unfavourable clauses or missing protections and suggest language to include. Use their expertise to validate your strategy: they can often predict SAP’s moves or common sticking points and advise how to navigate them.
• Considerations: Ensure the advisor is truly independent and unbiased. This means they should not be resellers or implementation partners with SAP, as those entities might have conflicting interests (for instance, some large vendors might also resell RISE or get referral fees, which could influence their advice). Independent boutique firms or specialists working only for customers (not SAP) are ideal. There will be a cost to hiring such experts, but weigh this against the potential savings on a multi-million dollar negotiation – it’s usually a good investment if the deal is significant. Also, consider confidentiality and how to integrate the advisor with your team: you might have them work in the background or explicitly introduce them to SAP as your advisor (which can signal to SAP that you mean business and have knowledgeable backing). Some companies keep the advisor behind the scenes to maintain the appearance that all negotiations are internal; others openly include them in calls for their expertise. Decide what works best for your culture. Lastly, be receptive to their input – an expert might challenge some of your assumptions (for example, “you have more leverage than you think in this area” or “SAP is very unlikely to ever agree to that clause, but they might give you something else in return”). Use that knowledge to refine your approach.
• Practical impact: The right expert can tilt the playing field in your favour. SAP’s sales teams always negotiate contracts like this; for your organization, it might be the first (or only) such negotiation in a decade. Bringing in someone who does this day in and day out helps even out that experience gap. Concretely, independent advisors often help clients save substantial amounts (through better discounts or avoiding unnecessary costs) and secure safer contract terms (by adding clauses that protect you or removing ones that expose you). They also provide confidence – an advisor can provide that clarity when your team isn’t sure what’s “normal” or possible. If you forego expert help, you can still certainly succeed, especially if your team is experienced, but you may miss subtleties. Common pitfalls like indirect access clauses, restrictive renewal terms, or suboptimal discount levels might slip through. Even savvy procurement teams sometimes don’t have specific SAP market data that an expert would.In summary, leveraging independent expertise (and remember, independent means not tied to SAP’s agenda) acts as an insurance policy for your negotiation. It validates that your demands are reasonable and that the final deal you get is truly the best attainable. When explaining the negotiation outcome to your executives or board, note that you benchmarked it with an industry expert, which
  can give them extra assurance that the deal is sound.

13. Align Stakeholders and Executive Sponsorship

• What to do: Ensure all internal stakeholders are aligned and supportive of the negotiation strategy and goals. This involves communicating regularly with executive sponsors (like the CIO, CFO, or CEO if the deal is large enough) and key business unit leaders about your progress and sticking points. Before entering major negotiation rounds, brief these stakeholders on your objectives (from step 10) and strategy (step 11), and confirm you have their buy-in. It’s particularly important to have the CFO’s office aligned since they will ultimately sign off on the financials, and the legal team’s leadership aligned on any non-standard terms you plan to push. If any stakeholder has concerns (for example, a business leader worried about certain service levels or an executive uneasy about contract length), address those internally and come to a consensus. Synchronize the internal decision-makers so there are no last-minute surprises or disagreements when a deal is reached. Additionally, establish an executive sponsor role: one high-level executive committed to championing this negotiation. This person can lend authority during dealings with SAP (for instance, if negotiations stall, the sponsor might call an SAP executive to press for movement) and also keeps internal momentum.
• Considerations: Internal alignment often means balancing different interests. Be prepared to translate technical or contractual details into business language for non-technical executives. For instance, you might need to explain why a certain clause about data extraction rights at the contract end is crucial for business continuity so that Legal, the CIO, and the CFO all understand its importance. Also, be mindful of internal politics and communication: ensure everyone knows who can engage with SAP’s team. Often, SAP might try to engage senior executives through their executive channels to sway the deal; if your CEO or a VP gets a call from an SAP executive pushing the sale, they should be in the loop on your negotiation stance to avoid conflicting messages. It could be wise to designate that all vendor communication goes through the negotiation team to keep messaging consistent. Another aspect is to prepare a rapid internal approval process for the final agreement: inform stakeholders that when the negotiation is nearly done, they must be ready to review and approve quickly (especially if aligning with quarter deadlines). This might involve pencilling in board approvals or aligning procurement committees beforehand.
• Practical impact: When all stakeholders are aligned, your organization presents a united front to SAP. This significantly strengthens your position. SAP can sense when a customer team is fragmented—different voices asking for different things or internal debates spilling into negotiations, which often works to SAP’s advantage (it can delay decisions or enable SAP to play one interest against another). By contrast, if SAP receives a consistent message from your side, and when they try an end-run (like calling your CFO to evangelize RISE), the CFO responds with the same firm stance, SAP will realize they must address your requirements seriously. Internally, stakeholder alignment prevents costly U-turns. For example, without alignment, you might negotiate a certain term only for a legal executive to veto it late, forcing renegotiation or losing credibility with SAP. That can delay the project and potentially weaken your leverage. With strong executive sponsorship, you also gain negotiating power – SAP knows someone high up is watching this deal closely, making them more cautious about trying high-pressure tactics or shrugging off your asks. Moreover, an executive sponsor can expedite decisions on your side, keeping the negotiation on schedule. In short, internal consensus and support ensure that your negotiation team can move decisively and confidently and that once a deal is struck, it sails through to approval and execution without internal roadblocks.

14. Plan Your Negotiation Timeline and Milestones

• What to do: Create a timeline for the negotiation process, complete with key milestones and decision points. Start by determining your ideal end date – when do you want (or need) the RISE contract signed? This could be driven by internal project plans (e.g., needing to start migration by a certain date) or by wanting to leverage SAP’s quarter/year-end. Working backwards, set targets for each phase: when to finish internal prep (all the steps we’ve discussed), when to have the first meeting with SAP’s sales team, when to expect their initial proposal, how long to evaluate and respond, number of negotiation rounds anticipated, and so on. Include milestones such as “Executive review of interim offer by [date]” or “Legal review complete by [date]”. Map the flow from preparation to final agreement and assign owners to each milestone (who is responsible for ensuring that part stays on schedule).
• Considerations: Align your timeline with SAP’s fiscal calendar for optimal leverage. SAP’s fiscal year is the calendar year, and quarter ends (March 31, June 30, Sep 30, Dec 31) are often when they push hardest to close deals. If it suits your schedule, targeting an end-of-quarter signing can be advantageous (SAP may offer extra incentives to get it in under the wire). However, be careful: don’t let SAP’s timeline force you into rushing if you’re not ready. Your plan might, for instance, aim to have all internal approvals ready by mid-June so that you can tell SAP, “We can sign by the end of Q2 if our conditions are met” – a strategic timing play. Also, consider your internal deadlines: budget cycles, board meetings, etc. If your board only meets quarterly and must approve large expenditures, factor that in so you’re not trying to get approval at the last minute. Build in buffer time around critical tasks like legal review or solution validation, as these often take longer than expected. It’s also wise to set a mid-negotiation checkpoint to evaluate if you’re on track or the strategy needs adjusting. Communicate this timeline internally and with your SAP counterpart broadly (you might tell SAP your target signing date so they understand your pace, or sometimes not, depending on leverage strategy). Finally, the plan for the post-negotiation process includes steps like a final system order form review, signatures, and an internal kickoff for the project after signing to keep everything seamless.
• Practical impact: A structured timeline keeps the negotiation organized and goal-oriented. It helps prevent the process from dragging on indefinitely or, conversely, being rushed without due diligence. For example, if SAP knows you have a target date and you seem well-prepared to hit it, they will likely engage in earnest rather than stall. Conversely, if they try to stall, hoping you become anxious, your timeline buffer and clear milestones mean you won’t panic or skip steps. For your team, a timeline clarifies priorities at any moment (e.g., “This week, our goal is to gather feedback on SAP’s proposal; by next week, we need to counteroffer”). It also makes it easier to manage stakeholder expectations – executives know when they’ll be called to review or approve, which avoids scenarios like key approvers being on vacation when crunch time comes. Without a timeline, negotiations can lose momentum or become chaotic. Deadlines provide discipline: they encourage both sides to put forth their best offers promptly. An open-ended negotiation might slip past desired dates, potentially into less favourable timing (like missing a quarter-end opportunity or bumping into internal blackout periods for spending). Moreover, a plan helps coordinate with any external help (like if you have an advisor or need a legal opinion, you schedule it). In summary, planning the negotiation journey greatly increases the likelihood of reaching a satisfactory agreement efficiently. It ensures you maximize timing advantages and reduces the risk of last-minute scrambling, which can lead to mistakes or omissions under pressure.

15. Prepare for Engagement and Communication

• What to do: Before you formally negotiate with SAP, ensure you have all your materials prepared and communication strategies in place. This includes creating a professional negotiation brief or package to share with SAP at the appropriate time, outlining your requirements (from step 9) and any initial questions or points for discussion. Have an internal FAQ or “playbook” ready: anticipate what questions SAP’s team might ask or what arguments they’ll make, and have your responses ready. (For example, be ready to answer “Why not just move to S/4HANA Cloud without RISE?” or “What is your budget?” in a way that doesn’t hurt your position.) Rehearse internally how the first few interactions will go – maybe even do a mock negotiation within the team to practice staying on message. Set clear communication protocols: decide who will speak on which topics in meetings, who will handle email communications, and ensure everyone knows not to divulge information outside the agreed scope. It’s also a good time to prepare any documentation of your current state to give SAP (like a sanitized summary of your usage and growth expectations) so they have data to work with – providing data can help steer the conversation, but be mindful only to share what strengthens your case.
• Considerations: First impressions matter. When you come to the table appearing organized, with a written list of requirements and thoughtful questions, SAP will recognize you as a well-prepared customer. So, polish your engagement materials – clarity and professionalism go a long way. Consider the tone you want to set: cooperative but firm is usually a good balance. You want to be seen as a partner looking for a win-win and who won’t be pushed around. Think through negotiation meeting logistics: will they be in-person or virtual? If in-person, who will attend from your side, and what is the seating strategy? (It might sound minor, but these things contribute to dynamics.) If virtual, ensure your team has a private channel (like a group chat) to coordinate during the call.
  Additionally, prepare to document everything: assign a note-taker for meetings and plan to follow up in writing to confirm understanding. Internally, be ready for quick turnaround communications – once negotiations start, SAP may respond with offers or questions that require prompt internal discussion; set up a way to huddle quickly (regular debrief meetings or an email alias that reaches the core team). Lastly, align on a media/announcement plan if needed. If this deal is big and might be publicized, know how you’ll handle any internal or external communications after signing (though that’s post-negotiation, it’s good to have in mind).
• Practical impact: Being fully prepared for engagement means the negotiation will proceed on your terms as much as possible. You’ll be able to drive the agenda of meetings (because you come with a clear agenda), and you’ll reduce the risk of miscommunication. For example, if your team has pre-agreed responses to common sales tactics, you won’t be caught off guard or say something unplanned when SAP inevitably tries those tactics. This consistency in communication reinforces your negotiation objectives at every turn. Also, by sharing a structured requirements document early, you help SAP’s team do their homework and respond more precisely – it can speed up the process and avoid misunderstandings about what’s needed. If you skip thorough engagement prep, you might stumble in initial meetings (e.g., not having an answer ready when SAP asks, “What if we price by 5-year term, is that acceptable?” leading to internal confusion on the call. Such moments can weaken your perceived control. Lack of protocol might also result in someone on your team inadvertently giving away leverage (“We need to sign this by next month,” said by the wrong person, can hurt your stance). On the contrary, a synchronized and prepared organization appears confident and not easily pressured. It sets a tone of mutual respect; SAP will realize you expect a professional process and will be more careful to respond kindly. In essence, this final preparation step is about execution excellence – you’ve done all the strategic thinking, now make sure you execute the negotiation with the same rigour and discipline, which maximizes the chances of getting the deal you want.

Conclusion: Preparing with Purpose for a Successful SAP RISE Deal

Negotiating a major SAP RISE contract is a high-stakes endeavour, but with these preparation steps, your organization can approach it in a structured and empowered way.

The common thread across these 15 steps is due diligence and proactive planning. Companies that succeed in such negotiations know their facts, define their needs clearly, build the right team, and have a game plan before the vendor ever makes an offer.

By gathering detailed internal data (users, usage, costs), forecasting future requirements, and aligning everyone on objectives, you turn what could be an intimidating negotiation into a manageable, even strategically advantageous, process.

Moreover, investing time in internal readiness – from stakeholder alignment to communication protocols – pays dividends when you’re in the thick of discussions, and decisions must be made swiftly and confidently.

These best practices help avoid common pitfalls like overbuying due to unclear requirements, agreeing to unfavourable terms out of haste or ignorance, or internal disputes undermining your position. Instead, you can enter negotiations with clarity and confidence, backed by solid analysis and a unified team.

The strategic outcomes of this preparation are significant: you’re more likely to achieve a RISE agreement that delivers the promised business value, stays within budget, and includes safeguards for your future interests (such as flexibility and exit options).

On the flip side, skipping these internal steps often leads to regret – whether it’s discovering hidden costs later, struggling with an inflexible contract, or realizing you didn’t get as good a deal as others in the market.

As countless licensing advisors and seasoned CIOs will attest, the deal is won or lost in the preparation phase. Following the comprehensive approach outlined above, your organization positions itself as an informed and strategic negotiator.

This advisor-style methodology, much like guidance from Gartner or other industry experts, ensures that when you finally sit down with SAP, you are negotiating the RISE contract on your terms, with your requirements at the forefront.

In summary, prepare with purpose, and you will negotiate with power, securing a SAP RISE outcome that advances your business objectives while protecting your interests. Good luck with your SAP RISE journey, and remember that thorough internal preparation is the cornerstone of a successful negotiation.