SAP Rise negotiations

Top 15 Myths About RISE with SAP Contracts — Debunked

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Top 15 Myths About RISE with SAP Contracts — Debunked

Top 15 Myths About RISE with SAP Contracts — Debunked

As CIOs and procurement teams plan their first migration from SAP ECC to RISE with SAP, many misconceptions arise about the commercial and licensing terms of RISE contracts.

Below, we debunk the top 15 myths to help you confidently navigate the contractual realities.

Each myth is clarified with what customers assume, the truth, why it matters in negotiations, and a practical example or implication. Use this Gartner-style advisory to ensure your RISE with SAP deal is fully understood and optimized.

Myth #1: “RISE with SAP is just a technical upgrade, not a new license model.”

  • Customers often assume that RISE with SAP is merely a cloud technical migration of their SAP system, with licensing remaining just like their old ECC setup. They think they’re simply moving the same software to SAP’s cloud without changing how they pay for it.
  • Reality: RISE with SAP is a fundamentally different commercial model. It converts your on-premise perpetual licenses and annual maintenance into a single subscription contract. Licensing is measured in Full Usage Equivalents (FUEs) instead of traditional named users, and SAP becomes both your software provider and cloud infrastructure provider. In short, you stop being a license owner and become a subscriber (renter) of SAP software and services.
  • Why it matters for negotiation: This shift means you must renegotiate terms from scratch. Don’t assume previous licensing terms, discounts, or usage rights carry over. You must examine RISE contract details closely – how FUEs are calculated, what access rights you get, and what happens to your old licenses. If you approach RISE as “just another tech upgrade,” you may miss critical licensing implications that could lock you in or raise costs later.
  • Practical example: A CIO who treated RISE like a simple technical migration was surprised to find they had to give up their ECC perpetual licenses when signing RISE. The company hadn’t realized that SAP owned the software under RISE, and they only had use rights when the subscription lasted. This misunderstanding nearly led to an oversight in contract negotiations until procurement insisted on clarifying the licensing terms and securing provisions for a potential fallback strategy.

Myth #2: “RISE with SAP is all-inclusive – everything SAP offers is automatically covered.”

  • Customers often assume that by signing a RISE with SAP contract, they are buying a one-stop bundle that includes all SAP products and services they might need, from core ERP to every add-on, with nothing left out or extra to purchase.
  • Reality: RISE with SAP is not an unlimited buffet of SAP software. It bundles specific components (like S/4HANA Cloud licenses, basic cloud infrastructure, standard technical management, and some tools or credits), but many SAP offerings are not automatically included. For example, line-of-business cloud solutions (SuccessFactors, Ariba, Concur, etc.), advanced industry modules, and extensive SAP Business Technology Platform usage often require separate licenses or add-ons. Even within RISE’s scope, certain capacities are capped – you might get a starter pack (e.g. a limited number of Ariba network documents or some BTP credits), but beyond that, you pay extra.
  • Why it matters for negotiation: If you wrongly assume “it’s all included,” you could face scope gaps and surprise costs. During negotiation, explicitly confirm which SAP components are included in the subscription fee and which are not. This clarity lets you budget for additional licenses or ask SAP to bundle critical components. You may negotiate to include specific add-ons at better rates before signing, or at least avoid signing a deal that leaves out crucial functionality your business needs.
  • Practical example: A procurement team expected that by moving to RISE, analytics and HR modules would be part of the package. After signing, they discovered SAP SuccessFactors and Analytics Cloud were not included and required separate contracts. This led to unplanned spending mid-project. In hindsight, they realized they should have created a detailed checklist of included vs. excluded components during negotiation. For instance, they learned that the basic S/4HANA core was covered under RISE. However, travel management (Concur) and certain supply chain modules still needed standalone agreements, which they could have negotiated concurrently.

Myth #3: “RISE with SAP always costs less than on-premise – a cheaper deal.”

  • Customers often assume that moving to RISE will save money because they consolidate costs and eliminate on-premise expenses. There’s a belief that SAP’s cloud subscription (which rolls up infrastructure, licenses, and support) will naturally have a lower Total Cost of Ownership (TCO) than continuing with traditional licenses and self-managed infrastructure.
  • Reality: The cost equation of RISE with SAP is highly case-specific. While SAP may offer initial incentives (such as credits for your existing maintenance or promotional discounts), the subscription can become more expensive over the long term. You are committing to multi-year operational expenditure and may pay a premium for SAP handling infrastructure and updates. On-premise environments incur capital costs and separate support fees, but RISE’s bundled fee might surpass that, especially after introductory discounts expire. Without careful analysis, you might find RISE costs equal to or higher than your current model over a 5-10 year horizon. In essence, RISE shifts costs to an ongoing subscription – it isn’t guaranteed cheaper; it’s just packaged differently.
  • Why it matters for negotiation: Do not take cost savings for granted. Perform a detailed TCO analysis comparing your status quo with the RISE proposal. Scrutinize assumptions like growth in user count, data volume, and annual price escalations. Use these insights to negotiate the price: insist on fair credit for your existing licenses/maintenance, cap yearly price increases, and align subscription fees with expected business value. If SAP knows you’ve done the math, you’re in a stronger position to secure an economically sound deal (or walk away if it’s not).
  • Practical example: One large enterprise found that SAP’s initial RISE quote was 20% higher per year than their combined current maintenance, hardware, and support costs. The CIO’s team returned to SAP with a detailed cost breakdown and evidence of cheaper internal hosting. SAP responded by improving the discount and giving credit for the remaining years of pre-paid maintenance, bringing the subscription cost down into a viable range. Without this due diligence, the company might have signed an overpriced contract, eroding the business case for the move to S/4HANA.

Myth #4: “RISE contract terms are standard and non-negotiable – SAP won’t budge.”

  • Customers often assume that SAP’s RISE with SAP offering is a fixed package with standard terms and conditions that every customer must accept. They believe there is little or no room to negotiate pricing, contract duration, service levels, or other clauses since SAP positions RISE as a subscription service “as-is.”
  • Reality: Almost everything in a RISE deal is negotiable if you have leverage and knowledge. While SAP provides a standard contract template, enterprise customers regularly negotiate better discounts, more favourable terms, and specific concessions. You can negotiate the subscription fee, earn-out credits for old licenses, contract length (e.g., 3, 5, or more years), renewal terms, price increase caps, included services, data centre location, and more. SAP sales teams are pressured to sign RISE deals, especially for large customers, so they have flexibility. The key is that SAP may not advertise this flexibility – you must push for it.
  • Why it matters for negotiation: Assuming “no negotiation” is a fast path to overpaying or accepting risky terms. Treating the RISE contract like any major software agreement opens the door to improving the deal. For example, you should negotiate to retain certain usage rights, secure better SLAs or support terms, and incorporate any specific needs (like a contractual exit clause or extended migration timelines) into the contract. Bringing in independent licensing experts like Redress Compliance can help uncover non-obvious negotiation points and benchmark what other companies have achieved. In short, not negotiating leaves value on the table; smart negotiation aligns the contract with your enterprise’s interests.
  • Practical example: A procurement team initially thought SAP’s RISE proposal was “take it or leave it.” However, they realized they could request modifications after engaging an independent advisor. They negotiated a 10% higher discount, added a clause for flexible growth (extra FUEs at the same discounted rate), and obtained a commitment that they’d get co-term, coterminous end dates and capped price increases for any additional SAP cloud products they adopt. SAP also agreed to include a one-time license swap credit for their shelved ECC licenses. These changes significantly improved the value of the contract. This outcome proved that even a seemingly standard RISE contract can be tailored when you come prepared to negotiate.

Myth #5: “RISE gives us one simple contract and one throat to choke, so vendor management is trivial.”

  • Customers often assume that with RISE, SAP becomes the sole party responsible for everything (software, infrastructure, support). They expect to sign a single contract with SAP that cleanly covers all aspects, with a unified SLA and a single point of accountability. This myth suggests that vendor management will be greatly simplified—just SAP instead of juggling multiple providers.
  • Reality: RISE with SAP is marketed as a “single hand to shake, ” but it involves multiple agreements and nuanced responsibilities behind the scenes. In practice, you will sign SAP’s cloud subscription agreement (covering software and services) and related documents (like a specific order form and perhaps a cloud infrastructure rider). SAP, in turn, contracts with a hyperscaler (Azure, AWS, or GCP) on your behalf. While you don’t deal directly with the hyperscaler for billing, the relationship is indirect – you rely on SAP to manage it. You do have one contract vehicle, but not everything is magically unified. For example, the SLA for uptime is defined by SAP (and may mirror what SAP gets from the hyperscaler), and certain support issues might be routed internally within SAP or to partners. Also, some ancillary terms (like data connectivity or disaster recovery setup) might involve separate arrangements or costs.
  • Why it matters for negotiation: You need to understand each piece of the bundle and ensure the contract doesn’t expose you. Clarify service level agreements (SLAs) for each element – application support, cloud uptime, response times – and ensure they meet your needs (e.g., is 99.7% uptime enough, or do you need 99.9% with an extra cost?). Check if disaster recovery, backup, and network connectivity are included or require additional contracts. Moreover, realize that while SAP manages the hyperscaler, if you later want to change cloud settings or even switch providers, you are constrained by SAP’s contract terms with that provider. Negotiating flexibility (for scaling infrastructure or relocating if needed) can be important. Having one throat to choke is convenient, but only if that throat is contractually accountable for the right things.
  • Practical example: A CIO anticipated an easier life with “one vendor” after RISE. However, when a network latency issue arose, they discovered that the corporate network connection to SAP’s data center was the customer’s responsibility and was not covered in SAP’s contract. Meanwhile, improving the cloud infrastructure required going through SAP’s approval rather than directly tuning an AWS setting. The company learned to detail these responsibilities upfront. Before signing their RISE agreement, they negotiated an addendum that SAP would quickly coordinate any needed infrastructure changes with the hyperscaler, and they arranged a separate contract for a high-speed direct connection to the data centre. The lesson was that a single contract doesn’t mean you ignore the moving parts – you must manage them through SAP via clear terms.

Myth #6: “RISE lets us scale up or down freely like any cloud service – we can adjust usage anytime.”

  • Customers often assume that because RISE with SAP is a cloud subscription, it offers the same elasticity as other cloud services—add or remove users and capacity on demand and pay accordingly. In particular, they assume that if their user count or workload decreases, the cost can scale down mid-term, or if they grow, they can increase capacity and only pay the incremental difference.
  • Reality: RISE contracts typically require a committed quantity (in FUEs and infrastructure size) for the full contract term. You will agree to a certain number of users (or FUEs) and system size upfront, which becomes your minimum bill. Scaling up is usually possible (you can buy more FUEs or extra system capacity if needed), but scaling down is not allowed until renewal. In other words, if you over-estimate your needs, you’ll still pay for that higher commitment throughout the contract (often 3 to 5 years). The cloud infrastructure included is sized according to that commitment, and while technically it can expand, you can’t drop below your contracted size even if your usage declines. SAP’s model is more like a subscription floor with optional growth, not a pure pay-per-use utility.
  • Why it matters for negotiation: Getting the numbers right is crucial. You should forecast conservatively but realistically when committing to FUEs and infrastructure, and consider negotiating a flexible growth clause. For example, you might negotiate to start with a lower committed volume and have pre-negotiated tiers or options to increase later at the same discount rate. Also, plan for future growth in the contract (e.g., include an expected annual user growth so that SAP can price it in without needing a fresh contract each time). Assuming you can trim the contract later, you could be overpaying for unused capacity. Ensure you also understand any charges for bursting above the contract (if you temporarily need more resources, how is that billed?). All these should be clarified to avoid nasty surprises.
  • Practical example: A global manufacturer entered a 5-year RISE deal, assuming they could decrease users if a division were sold off. When that happened, they discovered the contract minimums were fixed – they kept paying for those users even after they left the company. In contrast, another company anticipated fluctuating needs and negotiated upfront an annual opportunity to adjust FUEs within a small range (with notice). While SAP doesn’t commonly allow decreases, this company built in a term that if their business divested a unit, they could replace those users with another usage or, if not possible, get a slight fee reduction. The key takeaway is to treat RISE commitments like any long-term capacity lease. Once signed, you pay for it, so negotiate and size prudently.

Myth #7: “We can revert to our old SAP licenses if RISE doesn’t work out.”

  • Customers often assume that if RISE with SAP isn’t meeting expectations, they can simply fall back on their previous ECC licenses or another on-premise solution. They believe that the move to RISE is reversible and that their legacy perpetual licenses remain an insurance policy they can revive later if needed.
  • Reality: In most new RISE deals, customers must convert or terminate their existing SAP licenses as part of the agreement. SAP typically provides incentives for this conversion (for example, waiving certain fees or granting credits) because those on-premise licenses can no longer be used in production. You “turn off” or shelf your ECC entitlements when you start RISE. After a couple of years on RISE, if you decide to drop it, you will not have a valid current license to run SAP ERP unless you maintain a parallel contract. You would likely have to re-purchase licenses or negotiate a new deal to continue using SAP. In addition, any custom pricing or grandfathered terms you had on ECC won’t automatically be honoured if you revert. In short, there is no easy rollback – RISE is a strategic commitment that can’t be undone without significant cost and effort.
  • Why it matters for negotiation: It’s critical to acknowledge the lock-in and plan accordingly. Knowing you can’t just revert, you should negotiate the RISE contract with a long-term view and appropriate safeguards. For instance, ensure there are exit provisions at the end of the term (like assistance to transition off if needed) or even discuss what a conversion back to on-prem would entail (though SAP may not formally include a “reverse gear”). At a minimum, understand the status of your old licenses: are they terminated or put in a hibernation state? Some customers negotiate a right to use the last available on-prem version for a limited time if the contract terminates without renewal – essentially a contingency, but SAP’s willingness varies. What’s important is not to go in thinking you have a guaranteed fallback; instead, make RISE work for you or be prepared for a costly change of course.
  • Practical example: A financial services company was unhappy with RISE’s performance after 2 years and considered dropping it. They assumed they could dust off ECC and run it in-house again. They then realized their ECC maintenance agreement had been ended, and the licenses were no longer legally usable for production once RISE began (this was in the fine print of their contract). Ultimately, they had to either stick with RISE through the term or pay for brand-new S/4HANA on-premise licenses – a huge, unexpected cost. This hard lesson underlined why their peers who negotiated RISE deals tried to secure strong performance commitments and remedies up front: leaving RISE mid-stream wasn’t an option, so success had to come from improving it, not abandoning it.

Myth #8: “Indirect access won’t be an issue under RISE – our integrations are automatically covered.”

  • Customers often assume that moving to RISE’s subscription model will eliminate the classic headache of indirect access (digital access) licensing for SAP. They think any third-party systems or non-SAP applications that connect to SAP (for example, CRM tools, e-commerce platforms, or IoT devices creating SAP transactions) are freely permitted under the RISE contract without extra licensing.
  • Reality: RISE with SAP does not automatically eliminate indirect usage licensing requirements. SAP still expects customers to license indirect access to the S/4HANA digital core – typically via the Digital Access Document model or equivalent. The base RISE subscription often excludes unlimited document licensing; you may need to purchase a certain document pack or volume if you have heavy third-party integration usage. The contract should specify what indirect usage (via APIs or intermediaries) is permitted. If you ignore it, you could still face compliance issues: SAP can measure documents (like sales orders and invoices) created by external systems in S/4 and charge for them. So, while RISE simplifies some aspects of licensing, indirect access is still alive and must be dealt with as part of your licensing scope.
  • Why it matters for negotiation: It’s important to proactively address digital access in your RISE deal. Don’t assume your current indirect use rights roll over; quantify your document volumes or external user interactions and discuss with SAP how to include them. You might negotiate several digital access documents as part of the subscription or secure special pricing for any overage. Additionally, ensure the contract language clearly defines what types of indirect use are allowed under your subscription. This prevents future audit surprises or additional bills. If SAP is pushing a separate “Digital Access” license besides RISE, compare the cost of that vs. potentially re-architecting some integrations to reduce usage. The goal is to avoid a scenario where you move to RISE only to be hit with a licensing audit for your non-SAP software interactions.
  • Practical example: During a RISE negotiation, a retailer realized that many online orders flow into SAP. They worked with an independent licensing consultant to estimate the number of Sales Order documents created by their e-commerce platform. Armed with this data, they negotiated into the contract an allowance for a certain volume of documents per year at no extra charge. In contrast, another company neglected indirect usage: a year into their RISE term, SAP informed them that their third-party logistics system’s interactions generated millions of document records, exceeding the tiny amount included. They had to buy an add-on digital access package mid-term, straining their IT budget. This demonstrates that indirect access needs to be tackled upfront in any RISE deal.

Myth #9: “SAP Business Technology Platform (BTP) and other tools are fully included with RISE.”

  • Customers often assume that the RISE with SAP subscription includes generous access to the SAP Business Technology Platform (for building extensions, integrations, and analytics), plus other transformation tools (like Signavio for process analysis or SAP Business Network capabilities) as a bundled benefit. Essentially, they expect all these modern cloud tools to be part of the package without separate fees.
  • Reality: RISE contracts usually include some BTP entitlements or credits, but not unlimited usage. Typically, SAP provides some Cloud Platform Enterprise Agreement (CPEA) credits or a starter tier of BTP services to support extension development and integrations. However, you will incur additional charges if you consume beyond that threshold – for example, developing multiple new apps or running high-volume processes on BTP. Similarly, tools like SAP Signavio (for process modelling) and a Business Network starter pack (like a small number of Ariba or Logistics Business Network transactions) can be included in premium RISE editions but are limited in scope. Full-scale use of these systems often requires upgrading your package or buying more licenses. In short, RISE gives you a taste of SAP’s cloud ecosystem, but substantial use of BTP, advanced analytics, AI, or extensive business network transactions will cost extra.
  • Why it matters for negotiation: If your digital strategy relies heavily on BTP or related services, you must factor that into the RISE deal. You might negotiate to include higher BTP credits or certain critical services (for example, an integration suite or SAP Analytics Cloud license). Ensure the contract spells out what happens if you exceed the included consumption – what are the rates, and can you get a discount on those? If SAP’s standard RISE edition doesn’t meet your needs, consider negotiating a custom RISE package or an add-on bundle for those platform services. The worst outcome is thinking, “We have BTP covered,” and later finding out your budget has been blown due to high usage charges. By handling this up front, you can align your contract with your expected use of SAP’s broader cloud platform.
  • Practical example: A consumer goods company planned to build numerous extensions using SAP BTP as part of their S/4HANA transformation. In the initial RISE offer, SAP included some BTP credits (e.g., enough for basic workflows and a small app). The IT architects estimated this would only cover about 30% of their planned usage. During negotiations, the company secured a larger BTP allowance and a fixed unit price for additional credits beyond the included amount. In another case, a customer didn’t pay attention to BTP limits; a year later, they were hit with a significant bill for exceeding BTP usage because they moved a lot of custom code to the cloud platform. This highlights how important it is to align the RISE contract with your anticipated BTP and tool usage, especially as SAP encourages a “clean core” (i.e., doing custom work on BTP) – that encouragement comes with a cost unless managed.

Myth #10: “All future SAP innovations we need will be included in our RISE subscription.”

  • Customers often assume that once they’re on RISE, if SAP releases new features, modules, or even entirely new products related to S/4HANA, those will be included as part of the subscription they’re already paying. The thinking is that RISE is SAP’s flagship offering, so it will future-proof the customer for whatever SAP rolls out, whether it’s AI features, industry cloud solutions, or new integrations, without requiring new licenses.
  • Reality: RISE with SAP gives you access to the products and services defined in your contract – nothing more unless you add to it. When SAP introduces new offerings (for example, a new AI-driven module, a specialized industry cloud service, or perhaps Joule AI capabilities for S/4), those are not automatically granted to existing RISE customers for free. You would need to license or incorporate them separately at your next renewal or as an add-on (possibly at additional cost). Your RISE subscription will entitle you to ongoing updates of the products you’ve licensed (so you get new S/4HANA version upgrades and improvements in those modules you have). Still, it won’t suddenly expand to cover new domains of functionality. SAP, like any vendor, will charge for major new product areas. In short, RISE is not a blanket “all future SAP stuff included” insurance policy – it covers a defined scope.
  • Why it matters for negotiation: Planning for future needs during your initial RISE negotiation is wise. If you anticipate wanting specific upcoming innovations (say, advanced ML capabilities or a planned industry cloud solution), discuss how they could be added later and if you can secure pre-agreed pricing or terms for them. At a minimum, ensure your contract does not prevent you from adopting new technology on reasonable terms. You might also negotiate a right to swap certain unused elements for new ones of equivalent value if SAP’s portfolio changes (though SAP’s flexibility on this varies). You’ll remember to allocate a budget for future additions by dispelling the myth of automatic inclusion. Also, keep an eye on SAP’s roadmap and maintain leverage by periodically evaluating alternatives – just because you’re in RISE doesn’t mean you have to take every new SAP offering; you can negotiate each on its mown erit.
  • Practical example: An automotive manufacturer on RISE wanted to leverage SAP’s new sustainability tracking tools and some AI-driven forecasting that SAP launched two years into their contract. Initially, they assumed these would come as part of their annual updates, but they learned these were separately licensed cloud services. Fortunately, when signing the RISE deal, their procurement team had the foresight to include a clause that any new SAP cloud modules integrated with S/4HANA would be offered to them at a pre-negotiated discount. This gave them cost predictability for adopting these innovations. Another company without such foresight was scrambling for budget approval when SAP introduced a new trade promotion management module not covered by its RISE scope. The lesson: expect innovation, but don’t assume it’s free – bake flexibility into your contract if you can.

Myth #11: “Under RISE, SAP handles everything for us – we won’t need internal resources or third-party support.”

  • Customers often assume that moving to RISE means SAP takes over all aspects of running and supporting the ERP system. Hence, the company’s need for internal IT staff or external support partners diminishes greatly. Given the “as-a-service” nature of the offering, they believe SAP will do everything from infrastructure management to application support, development, and even business process optimization.
  • Reality: RISE with SAP provides a managed environment for your S/4HANA system, but it’s a shared responsibility model – SAP doesn’t do it all. What SAP typically covers under RISE: keeping the system technically available (cloud infrastructure, basis operations like patching and upgrades, and standard support for the software). What SAP does not cover by default: your application-level needs, such as configuring business processes, managing customizations, handling day-to-day user administration, integration management, and any enhancements or developments specific to your business. Those still require your internal IT team or a systems integrator/managed services partner. Even technical tasks (like setting up network connectivity or security beyond the basic offering) involve the customer. If you assumed RISE is “SAP as your full IT department,” you’d be mistaken – it’s more like SAP is your data centre and base tech ops team, but you retain ownership of the business solution layer.
  • Why it matters for negotiation: It’s crucial to delineate who does what in the contract. Ensure the RISE Statement of Work or service description is clear on SAP’s responsibilities versus yours. Suppose you need additional help (for example, hypercare support during go-live or ongoing application management). In that case, you might negotiate those services into the RISE contract or plan them with a partner. This myth’s debunking affects cost, too: you may still need a budget for implementation partners and AMS (Application Management Services) post-migration. In negotiations, you could ask for SAP Safeguarding or premium support for the first year or credits to get advisory services if you feel gaps. Knowing SAP won’t cover everything helps you avoid under-resourcing your project and operations. It ensures you contract for or hire expertise to complement SAP’s scope.
  • Practical example: After signing RISE, a retailer assumed SAP would handle data migration and testing as part of “getting us to the cloud.” Those tasks were the customer’s responsibility (or that of their chosen integrator). The retailer had to quickly bring in a consulting partner to help with the migration – an unplanned expense. Another company negotiated upfront to include a SAP value-added service: SAP provided a technical account manager and some extended support for the first 6 months of go-live (for an extra fee built into the subscription). This helped because they knew their own IT staff was small. The difference was that the second company knew RISE wasn’t all-inclusive for support, so they planned and negotiated for the help needed, whereas the first company had to react later at a higher cost. The clear message is to understand the service responsibility split and proactively cover any gaps.

Myth #12: “We have to move everything to RISE in one go – it’s an all-or-nothing move.”

  • Customers often assume that adopting RISE means fully committing their entire SAP landscape at once—all ERP instances, all geographies, and all related components must switch to the RISE model in a single big bang. They might also think that if they choose RISE for S/4HANA, they can’t keep any SAP systems on-premise or in a different model.
  • Reality: While SAP would love for you to put all your systems into RISE, you can take a phased or hybrid approach. Many large enterprises start with a specific scope for RISE – for example, they move their main ECC system to S/4HANA under RISE, but some peripheral SAP systems or legacy ECC instances might remain on-premise temporarily. SAP generally allows a transition period: you can migrate in waves and decommission old licenses. There are also options like the RISE Tailored Option or Customer Data Center option, where certain large customers run RISE in their own data centre or stick to unique arrangements. Furthermore, you can still integrate RISE with on-premise systems. It’s not strictly all-or-nothing, though once an instance is converted to RISE, it is under the subscription model. You also don’t have to buy all SAP modules anew – you scope what you need in the RISE contract (e.g., maybe start with finance and logistics modules and add others later). SAP provides flexibility in your journey to the cloud if you move the contracted scope within agreed timelines.
  • Why it matters for negotiation: Knowing you can phase the move gives you leverage and realism. You might negotiate a ramp-up schedule in the contract. For instance, year 1 of the RISE subscription might cover your development and test systems while production is cut over later, potentially with some fee adjustments. You should also clarify the treatment of any SAP components you’re not moving immediately. Can you keep running them under your old license until they are ready, and is there a deadline for including them in RISE? By dispelling the all-or-nothing myth, you can structure the contract to minimize risk, perhaps through a pilot on RISE for a subset of operations before full deployment. Additionally, if there are parts of your SAP portfolio that you intend to sunset or replace with non-SAP solutions, you can exclude those from RISE instead of paying for something you won’t use. Negotiation is the time to define scope boundaries clearly.
  • Practical example: A global conglomerate with multiple ECC systems feared they’d have to sign one massive RISE deal and migrate all systems in a single program. Instead, they negotiated a contract that initially covered one major ECC instance (their largest division), with an option to add other systems later at similar discount terms. They maintained the remaining ECC systems in the interim. This phased approach was documented so SAP couldn’t penalize them for not moving everything on Day 1. Another company decided to move to RISE for S/4HANA but kept their SAP BW (Business Warehouse) on-premise on existing licenses for now because it wasn’t ready to transition – SAP accommodated this in the contract by allowing that BW to run standalone until a future decision. These cases show that a thoughtful, phased migration plan aligned with contract terms can reduce project complexity and risk rather than an “all-in” big bang.

Myth #13: “RISE with SAP includes the migration and implementation services too.”

  • Customers often assume that the RISE offering is so comprehensive that SAP will also take care of the migration and implementation of S/4HANA as part of the deal. They think the service includes consultants who will perform data conversion, process redesign, and everything needed to go live on S/4HANA, given SAP’s marketing of RISE as “business transformation as a service.”
  • Reality: The standard RISE with SAP subscription does not cover the full project services to migrate from ECC to S/4HANA. It provides software licenses, cloud infrastructure, and technical tools (like readiness checks and perhaps SAP Signavio for process analysis and standard conversion tools). However, the actual work of migrating your data, customizing the new system, testing, and training users is not included. Those are typically delivered via a separate S/4HANA implementation project, either by SAP’s services arm or, more commonly, by a system integrator (SI) partner you hire. RISE accelerates some technical aspects (and SAP might bundle a limited number of consulting hours or vouchers in some deals), but it’s not a turn-key migration service. You will need a project team and likely a significant budget outside of the RISE subscription to execute the move.
  • Why it matters for negotiation: It’s crucial to plan and budget for implementation services separately. In negotiation, however, you can seek some helpful add-ons: for example, ask SAP for free or discounted advisory services, training credits, or fast-track programs as part of the RISE deal. Some customers negotiate a customer success partner from SAP to assist with enablement or include SAP’s “Active Attention” or premium support during migration. At the very least, ensure everyone in your organization understands that the RISE contract is about licensing and cloud operation, not the manpower to do the changeover. This distinction will help avoid mis-set expectations and ensure you contract the right SI. You can also coordinate the timelines – since you’ll be paying subscription fees possibly before you go live (once the contract starts), negotiate a start date or ramp-up that aligns with your project plan, so you’re not paying full price while still in implementation.
  • Practical example: A large enterprise signed RISE, thinking SAP would “handle the migration.” When the project kicked off, SAP provided software tools and a project checklist, but the customer was responsible for doing it (with a partner). The company had to quickly bring in a consulting firm, which was not in their initial budget. To avoid such surprises, another company negotiated as part of the RISE deal that SAP would assign a technical project manager to their migration and give them several hours of SAP consulting for data transformation. They also timed the contract so that subscription charges started upon production system provisioning, not at contract signing, giving them a few months of implementation runway. This coordination ensured the customer knew exactly what RISE covered versus what their SI needed to cover, leading to a smoother (and properly resourced) migration journey.

Myth #14: “We can rely entirely on SAP’s RISE proposal – no need for external review or expertise.”

  • Customers often assume: SAP, being the vendor, will ensure the RISE contract is fair and comprehensive, so they don’t need independent advice. They may trust that SAP’s sales and solution teams have configured the deal optimally for their needs, and thus an external licensing expert or legal advisor would just slow things down or add cost.
  • Reality: However well-intentioned SAP’s account team may be, their primary goal is to close the deal in SAP’s favour. SAP drafts the RISE contract to protect its interests. Numerous nuances (from how FUEs are calculated to how future price increases work to specific rights you may be giving up) might not be obvious. Independent SAP licensing experts or third-party advisors exist because these contracts are complex and often tilted towards the vendor by default. A fresh pair of expert eyes can catch unfavourable terms, ensure the scope meets your business needs, and identify opportunities for better conditions. In almost all large SAP deals, including RISE, companies have found value in external benchmarks and advice, whether from specialized licensing consultancies (like Redress Compliance or others) or legal counsel experienced in SAP agreements. These experts work for you, not SAP, and thus focus on minimizing risk and cost for your enterprise.
  • Why it matters for negotiation: Independent review can save millions or prevent future pain. Advisors might uncover that the contract, for example, lacks a cap on renewal pricing (a potentially huge risk) or includes an ambiguous metric definition that could lead to an audit dispute. They also bring knowledge of what concessions SAP has given other customers (benchmarking). Engaging such experts doesn’t mean adversarial negotiations; it means you are fully informed. If believed, this myth often leads to “buyer’s remorse” when issues that could have been negotiated surface later. From a procurement best-practice standpoint, treat RISE like any major outsourcing or licensing contract run by specialists. It’s a small upfront effort for a potentially large contract clarity and value payoff.
  • Practical example: A multinational firm was about to sign a RISE contract, but their CIO engaged an independent licensing advisor for a quick review. The advisor spotted that the data volume growth wasn’t accounted for – at their current trajectory, they’d outgrow the included database size in 2 years and would face an expensive add-on purchase. With this insight, the firm negotiated a larger base database and a discounted rate for additional capacity blocks, avoiding a budget hit later. Another company skipped the outside review and later discovered their contract’s definition of “users” allowed SAP to count certain API service accounts as full users, consuming more FUEs – an interpretation they hadn’t anticipated. An independent expert likely would have flagged that. The clear takeaway: having qualified outside eyes review the RISE proposal can highlight blind spots and strengthen your negotiating position significantly.

Myth #15: “Signing a RISE contract now locks in favourable terms for the future automatically.”

  • Customers often assume: If they negotiate a decent initial RISE deal, they’re set for the long haul. They expect that by signing up now, they’ll essentially carry those favorable pricing and terms indefinitely – that renewals will be on the same terms, and SAP won’t have leverage to dramatically change the deal later. In other words, once the contract is in place, it’s smooth sailing in the future.
  • Reality: A RISE with SAP contract is typically a 3-5 year term agreement (could be longer for large deals). After that term, you usually must renew to continue the subscription, and at renewal time, all bets are off unless you’ve safeguarded yourself. SAP could increase the price, or if you’re locked in (remember, you gave up your old licenses), you might feel pressure to accept unfavourable renewal terms. Also, some terms in the initial contract (like incentives or credits) might be one-time and not carry over. If you don’t negotiate price protection, you might face significant price increases.
    Furthermore, your business might change (you may need more capacity, or different modules) and that triggers contract adjustments. So, the initial contract is just the first chapter. Without explicit clauses, those “favourable terms” are not guaranteed beyond the initial period. SAP will certainly look to improve its revenue at renewal if the customer has limited alternatives by then.
  • Why it matters for negotiation: It’s crucial to bake in future protections now. Negotiate things like a cap on renewal price increases (for example, the renewal price shall not increase by more than X% or remain at the same discount level as the initial), or even set multi-term pricing upfront. Some customers negotiate an option for an extension at predetermined rates. Also, clarify that any concessions (like converted license credits or special discounts) will also apply to renewals, not just the first term. While you cannot predict everything, acknowledging renewal as a re-negotiation point helps you avoid complacency. It might also affect your strategy – for instance, if SAP doesn’t give on renewal protections, you know you must maintain leverage, perhaps by keeping competitive options open or not moving 100% of your landscape such that SAP has all the power. In summary, treat renewal as a critical part of the lifecycle and use your initial negotiation to set the ground rules for it.
  • Practical example: A company negotiated a great 3-year RISE deal. During renewal, SAP proposed a 20% price increase for the next term, citing increased infrastructure costs and general price adjustments. The customer was shocked, but their contract had no cap or commitment for renewal rates, and moving off RISE at that point was impractical. In contrast, another enterprise had smartly included a clause that the year-4 price would be identical to year-3 plus at most a standard inflationary uplift (e.g., CPI). That company’s renewal was smooth and predictable. This contrast shows why considering the “contract after this one” is vital. The best time to negotiate renewal fairness is when you sign the first contract, when SAP is keen to win your business.

Conclusion: Migrating to RISE with SAP is as much a commercial transformation as a technical one. By debunking these common myths, we see that success lies in understanding the true contract terms, negotiating shrewdly, and planning.

Every myth dispelled above is based on hard-won lessons from real enterprise SAP negotiations. These insights reflect commonly validated industry practices and advisory experiences, ensuring that your organization can approach a new RISE with an SAP contract with eyes wide open and a strategy to secure the best possible outcome.

With the right preparation and mindset, CIOs and procurement leaders can turn the RISE with SAP deal into a balanced partnership rather than a leap of faith.

Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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