SAP Rise negotiations

Top 15 Strategies to Negotiate SAP RISE Pricing and Discounts

Top 15 Strategies to Negotiate SAP RISE Pricing and Discounts

Top 15 Strategies to Negotiate SAP RISE Pricing and Discounts

Negotiating a favourable deal for RISE with SAP can be challenging, especially for CIOs and procurement leaders new to SAP’s cloud offering. RISE with SAP is a comprehensive subscription bundle (including S/4HANA Cloud, infrastructure, and services) often involving large multi-year contracts.

It’s crucial to approach SAP RISE negotiations with a clear strategy to ensure your organization gets maximum value and avoids overpaying.

Below are the top 15 strategies – presented in a Gartner-style advisory format – to help you secure better pricing and discounts on your SAP RISE agreement.

These tactics range from benchmarking prices and leveraging SAP’s sales incentives to structuring the deal in alignment with your business needs. Use these insights as a checklist to confidently navigate and negotiate your enterprise SAP RISE deal.

1. Benchmark SAP’s Cloud Pricing Against the Market

Don’t enter negotiations blindly. Benchmark SAP’s proposed RISE pricing against industry standards and alternative options. RISE bundles software licenses, cloud infrastructure, and support into one fee – ask SAP to break down the costs (e.g., application vs. infrastructure vs. services).

Research what other companies are paying for similar cloud ERP deals or compare SAP’s prices to the cost of running S/4HANA on a public cloud yourself.

This data tells you if SAP’s offer is fair or inflated, giving you a factual basis to challenge pricing.

  • Example: A CIO compared SAP’s RISE quote with the cost of deploying S/4HANA on AWS with third-party management. They discovered SAP’s infrastructure component was 25% higher than market rates. By presenting these benchmark figures, the company convinced SAP to significantly reduce the RISE subscription price to stay competitive.

2. Take Advantage of Tiered Discount Levels

SAP’s cloud pricing often uses tiered volume discounts – the more users or capacity you commit to, the lower the per-unit cost. Don’t accept the first quote at face value. Ask for transparency into all volume tiers and pricing brackets for RISE.

This means seeing what price per user (or per Full User Equivalent, SAP’s RISE user metric) you’d get at higher levels of commitment.

Sometimes, buying a slightly higher volume or bundling additional users can bump you into a better discount tier, resulting in net savings.

Use this to your advantage in negotiations.

  • Example: An enterprise initially planned for 900 users in RISE. SAP quoted a rate based on the 1,000-user tier. The procurement team requested pricing for 1,200 users and found the per-user cost dropped substantially at that higher tier. By committing to 1,200 users (knowing their workforce would grow into it), they secured a much lower unit price, saving hundreds of thousands of dollars over the term.

3. Commit to Multi-Year Contracts for Better Rates

Multi-year commitments can be a powerful lever for discounts. SAP often rewards longer contract terms (e.g., 5-year agreements) with larger upfront discounts or incentives because they lock your business in longer. Consider a longer subscription term for a better rate when negotiating RISE, but do so carefully.

A longer term (5 years instead of 3) might yield a higher discount percentage on annual fees or even extra services included.

Ensure that the pricing over the full term is attractive enough to justify the lock-in and that you have protective clauses (like renewal caps or adjustment options) in place.

  • Example: A company debating a 3-year vs. 5-year RISE deal found that SAP would offer an additional 15% discount on the annual price if they signed for five years. In the final deal, they chose the 5-year term at the lower rate, translating to millions in savings. However, they also built a mid-term review clause to retain flexibility in case business needs changed despite the longer commitment.

4. Secure Renewal Caps for Long-Term Savings

One potential pitfall in subscription deals is a steep price increase at renewal time. Negotiate price protections for renewals upfront.

This can include capping the annual price increase (for example, no more than 3–5% per year, or tying increases to a standard inflation index) or securing the right to renew the RISE contract at the same discount level you received initially.

Setting these caps in your agreement prevents SAP from undoing your hard-won discount with a big hike after the first term. Long-term cost predictability is just as important as the initial price.

  • Example: A global firm negotiated a clause that limited any RISE fee increase to 3% annually after the initial term. This meant that even at the 5-year renewal point, SAP couldn’t suddenly charge a much higher rate. The CIO noted this renewal cap was crucial for budgeting and ensured the savings from the original deal weren’t lost over time.

5. Bundle and Structure the Deal to Maximize Value

How you structure your SAP deal can greatly impact cost. Look for opportunities to bundle related needs into the negotiation for better discounts. For instance, if you plan to adopt other SAP cloud products (SuccessFactors, Ariba, Analytics Cloud, etc.) or additional S/4HANA modules, negotiate them together as a package.

A bundled deal increases your total contract value, giving you more leverage to demand higher discounts overall.

Additionally, consider aligning contract end dates (co-terming) so you negotiate everything at once rather than piecemeal—a larger, consolidated deal can yield more favourable terms and simplify management.

  • Example: When negotiating RISE, a manufacturer also knew it would need SAP Ariba and an analytics add-on in the next year. Instead of separate purchases, they negotiated a combined deal for RISE + Ariba + the analytics package. The larger deal size moved them into a higher discount bracket. SAP provided a bundled discount that made the add-ons significantly cheaper than if bought later on their own, and all services were synced under one contract for simplicity.

6. Bring in Competitive Bids and Alternatives

SAP is not the only game in town – reminding them of that is a classic negotiation tactic. Create competitive pressure by evaluating third-party alternatives and even obtaining bids or quotes. This could mean looking at other ERP vendors (like Oracle Cloud ERP or Microsoft Dynamics 365) or considering running S/4HANA differently (for example, hosting it yourself on a hyperscaler without RISE).

If SAP knows you are seriously considering viable alternatives, they will be more inclined to offer aggressive discounts or concessions to win (or keep) your business.

Even an internal plan to delay the project can be leveraged if SAP fears losing the deal.

  • Example: A retailer solicited a proposal from a competing cloud ERP vendor while in talks with SAP. Armed with a lower-cost quote from the competitor, they informed SAP that they had other options. In response, SAP’s team increased the discount on the RISE deal and added extra services at no charge to match the competitive offer. By showing they were ready to walk to another solution, the retailer drove SAP to significantly improve its pricing.

7. Time Negotiations with SAP’s Fiscal Year-End

Timing can be everything. SAP sales representatives have quarterly and annual targets, and end-of-quarter or year-end periods often put them under pressure to close deals. Plan your negotiation timeline to coincide with these crunch times.

Being ready to sign at the end of SAP’s fiscal year (typically December) or even the end of a quarter can motivate SAP to provide last-minute sweeteners, like an extra discount percentage, free upgrades, or more favourable terms, to book the deal in their current period.

Use this urgency to your advantage, but don’t rush so much that you miss important details.

  • Example: An organization deliberately timed its final RISE negotiations for late Q4. As SAP approached its year-end, the sales team offered an additional 10% discount if the customer could sign before December 31. The CIO had prepared well, so they could capitalize on this timing and lock in a better rate. The result: a substantially lower price than what was on the table just a month earlier.

8. Capitalize on SAP’s Cloud Adoption Goals

SAP has strategic business goals, one of which is driving cloud adoption and making RISE successful. Use SAP’s cloud adoption goals to your benefit. You may get special treatment if your project is high-profile or in an industry where SAP wants a big win. SAP may offer extra discounts or funding if you agree to serve as a reference, participate in a case study, or if your deal helps them reach an internal milestone.

Be aware of initiatives like SAP’s push to migrate customers before the 2027 ECC support deadline (the end-of-support date for SAP’s legacy ECC system) – SAP is very keen to sign RISE deals to meet these targets. Position your negotiation to align with what SAP wants (e.g., a success story or a new cloud reference).

In return, push for better pricing and terms as your reward for helping them achieve their goals.

  • Example: A large automotive firm knew SAP was eager to announce more RISE customers in its industry. During talks, the company hinted it would be willing to be a featured reference customer for SAP after a successful go-live. Sensing a marketing opportunity, SAP’s account team granted an unusually steep discount and included additional cloud credits. It became a win-win: the customer got a great price, and SAP gained a flagship reference for RISE in that sector.

9. Ensure Internal Alignment on Requirements and Budget

Effective negotiation isn’t just about dealing with SAP – it’s also about getting your house in order. Align internally across IT, procurement, finance, and legal teams on what you need from the RISE deal and the maximum budget or concessions you require.

A unified stance means SAP hears one consistent message about your expectations and limits. Clearly define your business requirements (e.g., number of users, performance SLAs, required services) and identify your “walk-away” price before negotiating.

Internal commercial alignment ensures you won’t be divided and conquered by vendor tactics and have executive buy-in for the negotiation strategy.

  • Example: Before engaging SAP on pricing, a CIO worked with the CFO and procurement head to set a firm budget threshold for the RISE project and a list of non-negotiable terms (such as a certain uptime SLA and an exit clause). During negotiations, the team rejected any offer above that budget or that missed the key terms outright. This united front signalled to SAP that the customer was well-prepared and would only sign a deal that met their defined requirements, leading SAP to adjust their proposal to meet those exact targets.

10. Engage Independent Licensing Advisors

Negotiating SAP contracts can be complex, so consider getting expert help. Independent SAP licensing advisors (such as specialist firms like Redress Compliance) can provide valuable insights into SAP’s pricing tactics, typical discount ranges, and contract pitfalls.

These experts work for you (not for SAP) and can identify hidden costs or better alternatives in the offer.

They often know what discounts similar clients have achieved, strengthening your position. Importantly, choose truly independent advisors – for example, a firm like Redress that isn’t also trying to sell you implementation services.

Avoid relying solely on SAP’s partners or big integrators (e.g., not IBM or other vendors who have their own agendas), as they may not push as hard for the best price. Unbiased guidance can help you squeeze out extra savings and avoid costly mistakes.

  • Example: A mid-sized enterprise hired an independent SAP licensing consultant to support their RISE negotiations. The consultant analyzed SAP’s proposal and found several areas where the pricing was above market benchmarks. With this insight, the company confidently pushed back on those items and secured an additional 20% discount. Without the independent advisor, the team would not have known such a discount was achievable and might have accepted a higher price.

11. Negotiate Credits for Existing Licenses and Maintenance

If you’re an existing SAP customer moving to RISE, you likely have invested heavily in software licenses and annual maintenance fees over the years. Leverage those sunk investments in your negotiation. SAP often offers credits or transition incentives to “protect your existing investment.”

This might be a credit applied to your RISE subscription fee, a discounted first-year rate, or the ability to apply the value of unused on-premise licenses against the new contract.

Don’t hesitate to mention how much you’ve already paid to SAP – and insist that the new deal recognise your existing investment and loyalty.

  • Example: A company migrating from SAP ECC on-premise to RISE negotiated a sizable migration credit. SAP gave them a credit equivalent to nearly 50% of their first-year RISE fees, acknowledging the millions the customer had previously spent on licenses and maintenance. In practice, this credit significantly reduced the Year 1 cost and helped offset migration expenses. Additionally, the customer negotiated a “dual use” period allowing them to run their old system in parallel with RISE for a few months without extra charges, ensuring a smooth transition without double-paying.

12. Optimize Your User Licensing (FUE Counts and Usage)

RISE with SAP uses a metric called Full User Equivalents (FUE) to measure usage, a consolidated way SAP counts different types of users. Ensure that the user counts and classifications in SAP’s proposal accurately reflect your real needs – this is a big area for potential savings. Audit your current SAP usage and license assignments to avoid overestimating what you need in the cloud.

SAP’s initial quote sometimes assumes that more users or higher-tier user licenses are needed. Optimize the mix of user types (e.g., distinguishing between heavy “Advanced” users vs. lighter “Self-Service” users in FUE terms) to lower the total FUE count. In short, only pay for what you truly need and plan for efficient license utilization.

  • Example: During negotiations, an international retailer scrutinized SAP’s FUE calculation and realized SAP had counted many users as “Advanced” (high-cost) that could be classified as “Core” or “Self-Service” users under RISE’s definitions. They provided SAP with a detailed breakdown of roles, showing fewer heavy users and more light users. This adjustment cut the FUE count by 20%. SAP recalculated the price based on the optimized user mix, immediately reducing the annual RISE cost while covering all the retailer’s operational needs.

13. Set a Clear Walk-Away Price Based on ROI

Know your numbers and define the maximum price you will pay for RISE before negotiations begin. This should be grounded in a solid business case or ROI (Return on Investment) analysis. Consider your current total cost of ownership (licenses, hardware, support, IT staff) and the expected benefits of RISE (such as eliminating infrastructure costs, faster innovation, etc.).

From this, a target price can be derived that makes the migration worthwhile. If SAP’s offers exceed that target, be prepared to walk away or delay the project. You can even communicate your budget limits to SAP (in general terms) so they understand that the deal must fit within your financial parameters.

Vendors often “find” additional discounts when they realise a customer has a firm walk-away point backed by a strong business rationale.

  • Example: A services company calculated that any RISE deal above $10M total over five years would erode the project’s ROI compared to staying on-prem. In negotiations, the procurement lead made it clear to SAP that $10M was the absolute ceiling approved by their board. Initially, SAP’s proposals came in higher. Still, when they saw the customer’s resolve, the SAP team restructured the deal (increasing discounts and removing some non-essential components) to meet the $10M target. The customer achieved their budget goal by sticking to a clearly defined walk-away price.

14. Negotiate a Phased Ramp-Up of Fees

Large RISE deployments may take time to roll out fully. If you won’t be using the full system capacity on day one, negotiate a ramp-up structure for the fees. Rather than paying 100% of the subscription cost from the start, ask to pay proportionately to deployment milestones or user onboarding.

For example, you might pay only 50% of the fee for the first 6 months while the project is in implementation, then ramp up to the full amount once you’re live. This ensures you’re not paying for resources and licenses before you actually use them. It also aligns costs with value delivery, which is a reasonable request in enterprise deals and can ease the burden on your budget during the transition period.

  • Example: An energy company planned a staggered migration of business units to RISE over 12 months. They negotiated the contract so that their RISE payments would start lower and increase in steps as each wave of users went live. This phased payment schedule meant their expenses matched the rollout, saving them money in the early months when only a portion of the system was in use. SAP agreed to this structure to secure the long-term deal, and it helped the customer avoid paying full price for months of partial utilization.

15. Request Additional Value-Added Incentives

If SAP reaches its limit on a direct discount percentage, you can still improve the deal by asking for value-added extras. These items may not reduce the subscription price on paper, but save you money or add significant value to your project.

Examples include extra SAP Business Technology Platform credits (for building extensions or integrations), free additional sandbox/test environments, enhanced support services or training packages at no charge, or even SAP consulting hours to assist with the migration.

Such perks can reduce overall project costs and make the RISE investment worthwhile. Don’t hesitate to request these sweeteners as part of the final deal-making.

  • Example: After tough price negotiations, a pharmaceutical company accepted SAP’s price but asked for additional perks to seal the deal. SAP agreed to include 1,000 hours of premium support, two extra non-production system environments for free, and a bundle of BTP usage credits. These extras would have cost the customer a significant amount if purchased separately. By including them, the company increased the deal’s total value without paying more, effectively boosting their overall “discount” in terms of value received.

Conclusion

Negotiating an SAP RISE contract is a complex endeavour, but by applying these strategies, CIOs and procurement professionals can drive a much more favourable outcome. In summary, do your homework (benchmark costs and assess your needs thoroughly), use leverage (volume, alternatives, timing, and prior investments), and structure the deal smartly (with the right term, bundle, and protections).

Always maintain a clear view of your business objectives and budget constraints.

By being proactive and firm on critical issues, you can turn SAP’s standard offer into a tailored agreement that delivers the cloud benefits you need at a price point that protects your organization’s interests. With the right preparation and negotiation approach, even beginner SAP RISE customers can secure enterprise-grade discounts and terms that set their transformation up for success.

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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