Top 15 Strategies to Use Cloud Alternatives as Leverage in SAP RISE Negotiations
Negotiating a RISE with an SAP contract is not just about accepting SAP’s first offer—it’s about using every option to secure the best commercial terms. CIOs and procurement leaders, whether in large enterprises or mid-sized firms across any industry, should remember that they have alternatives.
SAP RISE bundles software, cloud infrastructure, and services into one subscription, but you can run SAP on other clouds or even delay moving to RISE. You create competitive tension and gain bargaining power by strategically leveraging these cloud alternatives during negotiations.
The following 15 strategies outline how to use alternative options as a powerful lever for better pricing and contract terms in your SAP RISE deal.
1. Benchmark RISE Against Self-Managed Cloud
What it is:
Compare SAP’s RISE offering to running S/4HANA on a public cloud (AWS, Azure, Google) without RISE. This means pricing out an equivalent environment using your licenses and a hyperscaler’s services (possibly with a third-party managed service provider). Sharing these benchmarks with SAP signals that you know the market value of cloud services and won’t overpay for convenience.
How to apply:
Start by obtaining cost estimates for infrastructure and management from cloud providers or partners. Break down SAP’s RISE quote into its components (software subscription vs. infrastructure vs. services) and compare those to market rates.
For example, if running SAP on Azure yourself would cost $X per year in cloud fees, and SAP charges significantly more for the infrastructure portion in RISE, you can press SAP to match or beat that benchmark. If SAP’s bundled price isn’t competitive, you’re prepared to go with the self-managed route.
Practical impact:
You shift the negotiation by showing SAP a credible alternative cost model. SAP often has room to adjust RISE pricing, especially on the infrastructure component, when they know you might otherwise host it directly.
For instance, one company calculated that managing S/4HANA on AWS internally would save 20% over SAP’s initial RISE price; when they presented this analysis, SAP responded with a deeper discount on the RISE subscription to close the gap. The result was a more realistic offer that reflected true market costs simply because the customer demonstrated they had a viable Plan B.
2. Run a Competitive RFP for Alternatives
What it is:
Treat your SAP transformation as a competitive sourcing event. Issue RFPs (Request for Proposals) to explore alternatives to a full RISE package. This could include proposals from systems integrators to host and manage S/4HANA in the cloud, bids from third-party cloud hosting providers, or evaluations of other ERP or best-of-breed solutions for certain functions. The goal is to have formal options to leverage in discussions with SAP.
How to apply:
Outline the scope of what SAP RISE would cover and ask other providers to quote equivalent services. For example, get a bid to run S/4HANA on Azure or a private cloud through a managed service provider, and perhaps look at SaaS alternatives for peripheral systems (CRM, HR, etc.).
When SAP’s sales team knows you are running a competitive process, they understand they’re not the only game in town. Be transparent when you compare SAP’s offer with others – without divulging specifics, you can hint that “others are coming in lower or offering more flexibility.”
Practical impact:
A competitive RFP creates pricing pressure on SAP. It introduces the possibility that you might choose an alternative path, which motivates SAP to improve its offer. In many cases, just the act of involving third parties can yield concessions. For example, a global manufacturer solicited proposals from two major cloud providers for hosting SAP and used those in conversations with SAP.
Confronted with credible alternative bids, SAP dropped its RISE subscription fee by a substantial margin and added extra services at no charge to win the business. The RFP process gave the CIO concrete leverage to negotiate a more favourable RISE deal.
3. Use Third-Party Support to Extend Your Legacy System
What it is:
One powerful negotiation lever is the option to delay moving to RISE altogether. Many organizations are still running SAP ECC (the older ERP system) and face SAP’s 2027 deadline for ending mainstream support.
By considering third-party support providers (such as Rimini Street or Spinnaker) or SAP’s extended maintenance, you can safely extend the life of your current system. This means you’re not dependent on SAP’s timeline – a fact that can pressure SAP to offer a better RISE deal now rather than risk you waiting.
How to apply:
Evaluate the cost and feasibility of using third-party support for your existing SAP ECC or S/4HANA environment. These providers can provide updates and support at a fraction of SAP’s cost, buying you time beyond 2027 without migrating.
When negotiating, clarify that “if the RISE proposal isn’t compelling, we are prepared to stay on our current system longer.” SAP’s sales team knows that many customers haven’t transitioned yet – indeed, most of SAP’s client base is still on legacy systems. Use that knowledge: you are not obligated to move now, and alternatives exist to keep you operational.
Practical impact:
This strategy injects a healthy fear of loss on SAP’s side. They are eager to convert their on-premise customers to cloud subscriptions to meet internal targets. If you demonstrate that you have no problem postponing the move (because you have support coverage or interim solutions), SAP is more likely to sweeten the deal to entice you now.
For example, a mid-sized retailer openly discussed with SAP that they might use third-party support and hold off migration for 2-3 years. In response, SAP offered an aggressive discount and additional migration credits for RISE, essentially “pulling forward” benefits to dissuade the retailer from waiting. By having patience and a backup plan, you encourage SAP to make RISE worth your time today.
4. Leverage SAP’s Quarter-End and Year-End Pressure
What it is:
Timing can be your ally. Like many vendors, SAP has strong incentives to close deals by quarter-end, especially by fiscal year-end. Their sales teams face quotas and Wall Street expectations for cloud revenue. You can increase your leverage by aligning your negotiation timeline with these critical dates. Essentially, you’re saying: “We know you need this deal booked now – how much are you willing to concede to get our signature by your deadline?”
How to apply:
Plan your negotiation so that your final decision point coincides with SAP’s end-of-quarter or year-end rush. Let SAP know that while you have a target to move forward, you won’t sign until the terms meet your requirements. This might mean strategically slowing the negotiation until late in the quarter or simply being ready to execute quickly if SAP meets your price and terms at the last minute.
Stay firm on your must-haves, and be willing to walk away if they aren’t met – SAP’s urgency will likely bring them back to the table. Also, communicate (subtly) that you have a fixed budget or alternative plans if the deal slips, underscoring that they need the deal more than you do now.
Practical impact:
Companies that manage to time it right often see significantly better offers emerge in the eleventh hour. For example, one enterprise aligned its SAP RISE negotiation with SAP’s fiscal year-end. It secured an additional 15% discount beyond the initial offer because SAP was eager to hit its cloud sales target before the year closed.
We often see last-minute additions (like extra licenses or extended services thrown in) when SAP knows a quarter-end signing is at stake. The key is not to show your hand too early: holding out until SAP feels the clock ticking, you gain concessions that would otherwise be off the table.
5. Demand a Transparent Cost Breakdown of RISE
What it is:
SAP RISE is a bundle—it bundles software licenses, infrastructure, and services into one price. To negotiate effectively, peel back that bundle. SAP should provide a transparent breakdown of the components: the fee for the S/4HANA software vs. the cloud infrastructure vs. managed services.
This information allows you to compare each part against alternative sources. If any component looks overpriced (for instance, infrastructure costs higher than a direct cloud quote), you can use that as leverage for a reduction.
How to apply:
During negotiations, explicitly request a line-item or at least an internal breakdown of the RISE costs. SAP might resist giving an official breakdown in the contract, but you can still discuss ballpark figures. Let them know you need this clarity to justify the spending. If applicable, your internal stakeholders (or even regulators) must understand the cost structure.
Once you have those insights, benchmark each component:
- Software Subscription: Compare the cost to a traditional license + maintenance over the same term. Ensure the subscription doesn’t charge a premium that outweighs the benefits.
- Cloud Infrastructure: Get quotes from your cloud provider (or check your existing enterprise agreement rates) for equivalent servers, storage, networking, etc. If SAP’s embedded infrastructure cost is 30% above market, ask them to adjust or credit the difference.
- Services/Management: Consider the cost of having a third-party or internal team manage the system. If SAP’s bundling includes expensive managed services you don’t need, push to remove or discount them.
Practical impact:
By dissecting the bundle, you prevent SAP from hiding margins in complexity. This often leads to immediate savings. For example, a company discovered that the infrastructure portion of their RISE quote was significantly higher than their negotiated AWS rates. They confronted SAP with this, and SAP responded by either lowering the overall price or increasing the software discount to compensate.
In other cases, asking for a breakdown signals SAP that you’re an informed buyer, making them more cautious when padding the quote. Ultimately, transparency gives you the data to challenge any deal component and ensure you’re only paying fair market value for each piece of the RISE package.
6. Secure Credits for Existing Licenses and Maintenance
What it is:
Over the years of using SAP, your organization has likely invested heavily in licenses and annual maintenance. When moving to RISE (a subscription model), you shouldn’t lose the value of those investments.
One major leverage point is negotiating credits or trade-in value for your existing licenses and prepaid maintenance. Essentially, SAP can apply a credit to your RISE subscription fees to account for the money you’ve already spent on software, ensuring you’re not paying twice for the same product.
How to apply: During your RISE negotiations, take inventory of your current SAP entitlements:
- How much did you originally pay for your SAP ERP licenses?
- What is your annual maintenance fee, and how many years of maintenance have you paid?
- Do you have unused (shelfware) licenses or already paid support that extends into the future?
Armed with these figures, demand a conversion credit. SAP has programs (often called contract conversion or “RISE credits”) to offset costs. For example, if you have a significant maintenance renewal, negotiate that a portion of your RISE subscription in the first year be credited by the maintenance amount you would have paid.
Also, ensure any “dual use” period is cost-free. During migration, you might need to run your old and new RISE systems in parallel. Make sure SAP allows you to do so without double licensing costs (this is a common concession, but you must ask for it).
Practical impact:
Properly valuing your legacy investment can result in substantial savings in the new deal. For instance, a large enterprise moving to RISE had $2 million worth of undepreciated license value and prepaid maintenance. By negotiating aggressively, they secured a credit of 60% of their first-year RISE fees applied as a discount, effectively recognizing their past spending. Another company ensured they could operate ECC and S/4HANA (under RISE) concurrently for six months with no extra charge, avoiding operational risk and extra cost during the transition.
These credits and terms directly reduce the total cost of RISE and make SAP acknowledge that the switch to the cloud should not wipe out the customer’s prior investments. Suppose SAP is unwilling to recognize your sunk costs.
In that case, you have the leverage to question the deal’s fairness and consider staying on your existing licenses longer (tying back to strategy #3). Usually, SAP will relent and offer a reasonable credit rather than lose the RISE opportunity entirely.
7. Consider Partial or Phased Adoption (Don’t Put All Eggs in One Basket)
What it is:
SAP will often push for an all-encompassing RISE deal – moving your entire SAP estate into this one subscription. However, you can use a selective adoption strategy as leverage. This means considering moving only part of your environment to RISE or doing it in phases while keeping other systems or modules on alternative paths.
By signalling that not everything automatically goes into RISE, you make SAP work harder to earn each piece of your business.
How to apply:
Identify which parts of your SAP landscape are critical to move to S/4HANA now and which might remain on legacy systems or be migrated later.
Also, pinpoint if other solutions could potentially replace any SAP modules:
- Perhaps you’ll move core ERP finance and logistics to RISE now but keep your SAP HR on the old system (or consider a cloud HR solution like Workday as an alternative).
- Or you might move one division or region to RISE as a pilot and only expand globally if the commercial terms remain attractive.
- Maybe your development/test environments could stay on cheaper infrastructure managed in-house, with only production in RISE.
When negotiating, let SAP know that RISE is not “all or nothing.” You might say, “We’re evaluating a phased approach – if the RISE proposal isn’t compelling for our entire landscape, we may limit it to certain systems and handle others differently.” This puts SAP in a position to ask, “What can we do to get the rest of your estate onto RISE?” – which is exactly the leverage you want.
Practical impact:
Using partial adoption as a bargaining chip often sharpens SAP’s pencil. If they fear that only a portion of your business will come over, they will likely improve pricing or terms to capture the whole.
For example, a multinational conglomerate told SAP that it might only move its smaller European operations to RISE and leave its larger North American systems on-premise. In response, SAP offered a better volume discount and flexible contract terms that would apply if and when the North America systems joined RISE, effectively making the deal so attractive that the company decided to migrate more systems sooner.
The key benefit of this strategy is that it keeps your options open. You’re not committing everything up front, which maintains competitive tension – SAP knows that if they don’t deliver value, you’ll exercise other options for the remainder.
Even if you ultimately plan to move all systems to RISE, letting SAP think it’s uncertain can get you a better enterprise-wide deal.
8. Keep Multi-Cloud and Hybrid Options Open
What it is:
RISE with SAP is delivered on a hyperscaler of your choice (SAP manages the contract, but technically, it runs on AWS, Azure, etc.). However, that doesn’t mean you must let SAP dictate all cloud choices.
By maintaining a multi-cloud or hybrid cloud stance, you preserve leverage. This could mean running some SAP workloads on RISE and others on a different cloud environment (outside of RISE) or maintaining an on-premises hybrid setup for certain systems.
The idea is to avoid being seen as completely reliant on one SAP-controlled cloud solution. If SAP knows you’re flexible and willing to use other clouds, they’ll be more inclined to offer favourable terms to keep as much of your workload with them as possible.
How to apply:
In discussions, emphasize that your company’s cloud strategy is about “the right workload on the right platform.” Perhaps your policy is multi-cloud for resilience or cost optimization. Convey that while you’re open to RISE, you also have robust capabilities directly with AWS or Azure.
You might note, “We want the freedom to deploy certain satellite systems or integrations on other clouds and possibly connect them to the core SAP system.” Negotiate contractual flexibility – for instance, the ability to choose or change RISE’s underlying hyperscaler or carve out specific components (like analytics or web front-ends) to run elsewhere. Even if you don’t exercise these options, having them stipulated means SAP can’t assume they have locked 100% of your cloud footprint.
Practical impact:
An organization that keeps multi-cloud options open effectively tells SAP, “We have alternatives at any given time.” This posture often earns respect in negotiation.
SAP may respond by ensuring their offer is as convenient and cost-effective as possible to dissuade you from splitting environments (since, from SAP’s perspective, they want everything under RISE for simplicity and revenue).
For example, one company negotiated the right to shift their RISE environment from one hyperscaler to another if needed (ensuring they wouldn’t be stuck with a subpar platform or pricing), and SAP agreed to include this in the contract along with a guarantee to match any major price drops in cloud costs over time.
By not being dependent on a single vendor solution throughout your contract, you compel SAP to keep RISE competitive with the broader cloud market. In essence, embracing a multi-cloud mindset serves as insurance and leverage—SAP knows that any lapse in value or service on their part could result in you moving elsewhere.
9. Retain a Perpetual License Fallback (Don’t Surrender All Rights)
What it is:
Many customers convert their existing SAP licenses into subscriptions when transitioning to RISE. This sometimes means giving up perpetual licenses or putting them on hold.
A savvy strategy is to retain a fallback option: maintain the right (contractually or practically) to revert to an on-premises deployment if necessary.
This might involve keeping a portion of your licenses active (not fully terminating your old agreement until you’re certain) or negotiating a clause to allow the reactivation of on-prem licenses if the RISE arrangement ends.
By having this fallback, you signal to SAP that you are not entirely captive – if the relationship or pricing turns sour, you could go back to running SAP on your own.
How to apply:
Discuss with SAP how license conversion will work. Often, they’ll push a complete conversion where your old contract is terminated.
Instead, explore options like:
- Trial Periods: Perhaps treat the first year or two of RISE as a subscription trial, after which you can revert to perpetual licensing for S/4HANA (maybe with a fee or conversion, but the option exists).
- Partial Retention: To technically retain usage rights, keep some non-critical environments (e.g., development systems) on your old license for a while.
- Contractual Clause: If you must terminate your old licenses, ask for a clause stating that upon RISE termination, you have the right to obtain a new perpetual license for S/4HANA on reasonable terms (so you’re not left high and dry).
Additionally, avoid selling back or nullifying licenses for which you might have other uses – sometimes, companies keep a small footprint of ECC for archival or non-production purposes, ensuring those licenses remain in their control.
Communicate to SAP that business continuity is paramount as much as you appreciate RISE’s value, and you need an exit path to self-manage if needed.
Practical impact:
By not burning the bridge to on-prem, you maintain negotiating power throughout the deal’s life. SAP will recognize that if they don’t perform or if they try to hike prices, you have the legal right and technical ability to leave.
Even if you never intend to return, the fact that you could is a potent deterrent against unfavourable treatment. We’ve seen companies successfully negotiate clauses to purchase a perpetual license at the contract end for a nominal fee, which meant SAP had to negotiate renewals in good faith rather than assuming a captive customer.
In one case, a mid-market firm explicitly kept its old SAP production system in read-only mode on a perpetual license while using RISE for live operations—this way, it could theoretically switch back if RISE faltered.
Knowing the client had this contingency, SAP’s sales team remained highly responsive and moderate in negotiations for renewal. The overall effect: retaining a fallback makes SAP work to keep your business, not assume it.
10. Limit the Initial Term Length to Retain Flexibility
What it is:
The length of your RISE subscription term (e.g., 3 years, 5 years) can be a leverage tool. A shorter contract term gives you an earlier opportunity to renegotiate or switch strategies if needed. SAP may offer a slightly better price for a longer commitment, which locks you in and reduces your leverage.
Opting for a more modest term (or at least having a break/renewal point sooner) keeps pressure on SAP to continuously earn your business. It also aligns with rapidly evolving cloud markets – you don’t want to be stuck if pricing models improve elsewhere.
How to apply:
When discussing contract duration, weigh the pros and cons. For example, SAP might propose a 5-year term. Consider countering with a 3-year term. Use the reasoning that technology and business needs change quickly, and your company’s policy is not to commit to long cloud contracts without flexibility.
If SAP insists on a longer term, negotiate break clauses or review points – perhaps a price review at year 3 or the ability to exit at that point with minimal penalty if certain conditions are not met.
Be willing to pay more annually for flexibility; that trade-off can be worth it. Also, ensure that renewal terms are well-defined (see strategy #11 on exit and #14 on renewal pricing), so you’re not risking a giant increase later.
Practical impact:
A shorter term puts you back in a position of leverage sooner. SAP knows that when your contract is up for renewal, you could take your business elsewhere (be it another cloud model or a competitor’s software).
This knowledge tends to make SAP more accommodating throughout the initial term – they’ll treat you as a customer they need to retain, not one that’s locked in for a decade. For instance, a large enterprise chose a 3-year RISE term instead of 5.
They did pay a slight premium (the discount was a bit lower than the 5-year quote), but they gained a significant advantage: at the 3-year mark, SAP had to re-compete for the business. That enterprise ended up negotiating even better pricing in the renewal because it had the option to pivot to a self-managed cloud or another vendor.
In summary, keeping the term reasonable ensures that SAP never gets too comfortable – they’ll continuously strive to provide value, knowing you have a decision point on the horizon.
11. Negotiate Strong Exit and Renewal Provisions
What it is:
In any cloud contract, exit terms are crucial, especially with something as mission-critical as SAP. Leverage here means ensuring you can leave RISE if needed without nightmare consequences.
This includes having clear rights to your data, support for transition, and safeguards against exorbitant renewal pricing. If SAP knows you have a well-planned exit strategy, they’ll be pressured to treat you fairly at renewal to avoid losing you. Essentially, you’re building an “escape hatch” that serves as leverage now and later.
How to apply:
When crafting the RISE contract, focus on clauses about end-of-term and renewal:
- Data Retrieval: Insist on language that guarantees you can export all your data in a usable format at the end of the contract. Also, perhaps a provision that SAP will provide a read-only access period or assist in data migration if you choose not to renew. Without this, SAP could hold your data hostage, which would kill your leverage.
- Transition Assistance: Negotiate for a defined process if you exit RISE – for example, SAP providing technical cooperation to move your systems to an on-premises environment or another cloud. This might be an optional paid service, but having it stipulated means you can leave. Mention that this is a requirement for your risk management; it signals you’re seriously considering how to operate outside of RISE if needed.
- Renewal Caps: Very importantly, cap renewal price increases (e.g., no more than a certain percentage increase or tied to an inflation index). SAP could jack up the price in the next term without a cap when you’re deeply dependent on it. Use the threat of alternatives to justify this ask: “We need price protection, otherwise we’ll just plan to migrate off at the end of the term to avoid unknown costs.” Many customers negotiate a modest cap (say 5% per year or a fixed renewal rate) – and get it in writing.
- Notice Periods and Rights: Ensure you have the right to decide on renewal early enough. For instance, an option to extend the contract for another term at pre-agreed terms, or at least a first right of negotiation before SAP offers those cloud resources to someone else.
Practical impact:
A well-defined exit strategy ironically makes it less likely you’ll need to exit because SAP will be motivated to keep you happy. If SAP knows you can walk away cleanly, you gain leverage in every discussion.
Consider a scenario: a company negotiates upfront that at the 5-year term end, they can either renew at a capped 3% increase or export their entire system data and get a license to run S/4HANA on their own. During renewal time, if SAP tries to push a high increase, the company can say no and invoke the exit clause, which is a credible option. In one real example, a business secured contract terms that any renewal price would require mutual agreement, otherwise they could transition off with SAP’s help.
As a result, SAP’s account team proactively offered a fair renewal well in advance rather than risking a standoff. The leverage of a clean exit forced SAP to earn the renewal on merit, not lock-in. This means peace of mind for you: you’re entering RISE for its benefits, but you’re not trapped if things change.
12. Press for SLA and Performance Guarantees Comparable to Alternatives
What it is:
Service quality is a commercial issue, too. If you run SAP on a major public cloud, you might engineer high availability and performance tailored to your needs or get certain guarantees from a hosting provider. SAP’s standard RISE SLA (Service Level Agreement) might not meet those same standards automatically.
Use the fact that other cloud arrangements could offer better uptime or support as a bargaining chip to improve your RISE contract’s SLA and support terms. In other words, if SAP wants to be your cloud provider, they should match the service levels you could get elsewhere, or you’ll consider those alternatives.
How to apply:
Review SAP’s standard SLA for RISE (for example, uptime percentage, allowed downtime, response times for critical issues, etc.). Compare this to your business requirements and to what leading cloud providers promise. If, say, SAP offers 99.5% uptime, but your business needs 99.9% (which you could achieve with a direct cloud setup and redundancy), bring this up.
Negotiate for stronger SLA terms or remedies, such as:
- Higher uptime commitment or performance KPIs are crucial for your operations.
- Meaningful penalties or credits if SAP fails to meet those metrics (e.g., service credits or even the right to terminate if there are repeated serious SLA breaches).
- Faster support response for high-severity incidents, perhaps even a dedicated support channel, if that’s something you value and could arrange with premium support elsewhere.
Leverage comes from politely making clear: “We have internal SLAs to our business that we must meet. If SAP’s cloud service can’t align with them, we must explore other hosting options or support arrangements.” This puts the onus on SAP on the step-up.
Practical impact:
Often, SAP will accommodate reasonable SLA improvements rather than risk losing the deal, especially for large customers. You might not get everything, but even small concessions (like an uptime guarantee tweak or additional support provisions) can be valuable.
For example, a financial services firm negotiating RISE highlighted that its applications demand high availability, similar to what it already achieves on a different cloud. SAP agreed to include a 99.9% uptime clause and provided an extra month of service credit should any quarter fall below that threshold.
Additionally, they secured a clause for priority support with a one-hour response for critical issues, matching what they had with their previous provider. These changes cost SAP little but gave the customer confidence that RISE would meet their needs. They also set a precedent that SAP must maintain quality or face financial penalties.
Beyond the direct benefits, pushing on SLA signals that you will hold SAP accountable just as you would any vendor. It reminds them that you have alternatives where quality is equal or better, reinforcing that SAP must deliver top-notch service to keep your business.
13. Showcase Internal Cloud Expertise (or Trusted Partners)
What it is:
SAP often positions RISE as valuable because it reduces your need for deep technical expertise in managing SAP infrastructure. However, let SAP know if you already have a strong internal cloud team or a trusted partner.
This effectively says, “We can do this ourselves (or with help from others) – we’re choosing RISE only if it’s commercially attractive.” Demonstrating your capability to self-manage or use other integrators diminishes SAP’s leverage of being indispensable and increases yours.
How to apply:
In conversations, highlight your organization’s cloud accomplishments. For instance, mention that you have certified SAP-based experts and cloud architects or have run large workloads on AWS/Azure for years. If you’ve successfully handled other major systems in the cloud, bring that up.
You might say, “Our team has migrated and managed high-volume applications in the cloud; running SAP there is well within our wheelhouse.” If you’re working with a systems integrator or outsourcing firm that could set up S/4HANA outside of RISE, mention that as well: “We are also in discussions with [Partner X] who can manage SAP for us on AWS if we don’t go with RISE.” The key is to politely toot your own horn about capability. This isn’t to threaten SAP but to make clear that RISE is a convenience, not a necessity, for you.
Practical impact:
The dynamic changes when SAP’s team realizes you’re not a cloud novice reliant on them. They’ll likely shift to selling RISE on its commercial merits (cost savings, simplicity) rather than fear of complexity, which is exactly where you want to negotiate, on the numbers.
It can lead to SAP offering better pricing or extra support to justify RISE’s value-add. For example, an automotive company’s CIO made it known that their IT department had successfully managed SAP on Azure in a test environment and had automation tools in place for cloud operations.
Sensing that the customer could execute without them, SAP conceded a larger discount on the RISE deal “in recognition of the customer’s existing infrastructure investment,” essentially lowering the price to account for services the customer might not heavily use. In another case, a company got SAP to include additional training and support hours for their staff as part of RISE since they emphasized wanting to keep their team sharp (implying they could take over if needed).
By showcasing competence, you ensure SAP competes on price and quality, not exploiting a skills gap. This strategy reinforces that you have the upper hand: RISE must be worth it, otherwise your skilled team has other ways to achieve the same ends.
14. Present a Multi-Year TCO Analysis as Your Negotiation Anchor
What it is:
Instead of focusing only on upfront discounts, take a page from the CIO playbook: negotiate based on Total Cost of Ownership (TCO) over several years. Build a detailed business case comparing the multi-year cost of RISE vs. your best alternative (be it staying on-prem, moving to a hyperscaler without RISE, etc.).
By presenting this analysis to SAP, you effectively set the target they need to meet or beat. It’s a form of leverage because it shifts the conversation to value over time and shows SAP that you will walk away if the numbers don’t make sense in the long run.
How to apply:
Gather all cost elements for a, say, 5-year period:
- For RISE: include subscription fees, projected increases, any one-time migration costs, and any extras you might need that aren’t included.
- For the alternative: include license maintenance (or subscription if you convert without RISE), cloud infrastructure costs, third-party services, staffing, etc.
Make sure to also account for any SAP incentives (like migration credits, free trial periods, and implementation services) on the RISE side and any realistic efficiency gains on the alternative side. Once you have apples-to-apples TCO, identify the breakeven point or delta. For instance, maybe RISE is 10% more expensive than doing it yourself, or vice versa. Take this to SAP and have a frank discussion: “Our analysis shows that with your current offer, the 5-year TCO of RISE is higher than our alternative by $X million. We need to close that gap or add value to justify RISE.” This approach is factual, not antagonistic, and steers the negotiation towards problem-solving: how to make the deal a win-win financially.
Practical impact:
By leading with TCO, you often get SAP to engage in a more consultative manner, sometimes bringing in their value engineering team to prove RISE’s worth. Importantly, it can result in additional concessions: SAP might use extras to reduce your other costs (like free SAP BTP credits, implementation assistance, or extended payment terms) or simply reduce the RISE price to make the math work.
For example, an energy company showed SAP that over 5 years, their internal cloud plan would cost $50M vs. RISE at $60M as quoted.
SAP then offered a combination of a price cut and $5M in consulting services credits to tilt the equation in RISE’s favour, effectively matching the $50M TCO target. The CIO in that negotiation set a clear bar, and SAP stepped up once they saw the decision hinged on concrete financials.
The lesson: use data to drive the deal. When SAP sees that you have a well-substantiated business case (and presumably a board or CFO who will back you in choosing the cheaper path), they are far more likely to adjust their proposal. You’re not just haggling; you’re asking them to justify their value. And if they can’t, you’ve signalled you’re ready to pursue the alternative – a stance that will only strengthen your credibility in their eyes.
15. Engage Independent Expertise and Benchmarking
What it is:
Knowledge is power in negotiations. Independent licensing advisors or cloud cost experts (for example, specialist firms like Redress Compliance, UpperEdge, or others) can provide insights into realistic concessions and what other clients are achieving in their SAP deals.
By involving an independent expert – or at least leveraging benchmark data from the market – you equip yourself with an external leverage point. You can reference industry benchmarks or advice to support your asks, and SAP will realize that standard playbook tactics won’t work on you because you’re well-informed.
How to apply:
Consider bringing on a third-party advisor with experience with SAP contracts and RISE negotiations. These experts can analyze your situation, help identify negotiable areas, and share anonymized data on discounts and terms that similar organizations obtained. Even if you don’t formally hire someone, do your research via peer networks or procurement user groups.
During negotiations, judiciously use this information: “We understand from the market that companies of our size often secure around a 40-50% discount off SAP’s list price for cloud deals,” or “Independent analysis suggests we should secure a cap on renewal increases – many others have that in place.”
Be careful not to reveal confidential info, but letting SAP know you’ve benchmarked their offer externally puts pressure on them to be reasonable. They know that you can sniff out a bad deal. Additionally, an independent expert can interfere in negotiations, asking tough questions and validating the fine print, which signals to SAP that sales tactics won’t easily sway you.
Practical impact:
Companies that leverage outside expertise often achieve materially better outcomes. SAP’s initial offers might dramatically improve when they realize they’re being measured against broader standards. For instance, a healthcare company used a licensing consultant who provided data on recent RISE contracts. Armed with that, they challenged a low discount rate and ended up doubling the discount, saving millions.
In another case, an advisor helped uncover a clause in the draft that would have limited future license flexibility; removing it preserved the client’s options (a hidden win).
The vendor-neutral, independent perspective adds credibility to your stance – it’s not just you asking in a vacuum; it’s backed by industry practice. Moreover, independent experts ensure you don’t overlook any leverage points.
They might suggest, for example, negotiating a specific metric or an incentive you weren’t aware of. You effectively level the playing field against SAP’s well-trained sales negotiators by engaging these resources. The outcome is a more balanced contract that reflects what SAP wants to sell and what the market knows you should receive as a savvy customer.
Conclusion
Negotiating SAP RISE is a high-stakes endeavour, but with the right strategies, CIOs and procurement leaders can tilt the balance in their favour. The common thread across these 15 strategies is choice: always remind SAP that you have choices – in timing, in technology approaches, in partners, and in walking away.
By leveraging cloud alternatives and savvy contractual tactics, you force SAP to compete for your business on your terms. The result will be a RISE agreement with better pricing, stronger protections, and greater flexibility for your organization.
Remember, the goal is not necessarily to avoid RISE (it can indeed deliver value and simplicity) but to ensure that it’s on the best possible commercial terms if you opt in. Approach the negotiation with solid data, clear requirements, and the nerve to invoke alternatives. In doing so, you’ll secure a deal that supports your digital transformation without compromising your financial and strategic interests.
Enjoy the confidence of knowing that, thanks to these leverage points, you have driven a hard bargain that your executives, board, and stakeholders will applaud as a smart and independent decision.
