Top 15 Timing and Benchmarking Tactics for RISE with SAP Negotiations

Top 15 Timing and Benchmarking Tactics for RISE with SAP Negotiations

Introduction: RISE with SAP is SAP’s all-in-one cloud offering (software, infrastructure, and services bundled into a single subscription) aimed at helping enterprises transition to S/4HANA.

For CIOs and procurement leaders, negotiating a RISE contract is a high-stakes endeavour. It’s not just about getting a good price today but also about managing long-term costs and risk.

Below are the top 15 timing and benchmarking tactics for reducing costs and securing favourable terms in RISE with SAP negotiations.

Each tactic includes a summary, actionable advice, practical examples, and the expected business impact. Use these insights to navigate your RISE deal like a pro and drive a better outcome for your organization.

1. Align with SAP’s Fiscal Year-End Deadlines

Summary: Leverage SAP’s quarterly and year-end sales push to secure better discounts. SAP account teams face intense pressure to close deals by the end of the quarter or the fiscal year-end, often making them more flexible on pricing and terms during these crunch times.

Actionable Tips:

• Plan Your Timeline: Schedule your negotiation and approval process so your final decision can coincide with SAP’s quarter-end (especially Q4, SAP’s fiscal year-end).
• Signal Readiness: Let SAP know you can move quickly if the offer meets your requirements. Being ready to sign at quarter-end gives you negotiating power.
• Stay Patient: If SAP’s offer isn’t compelling yet, consider waiting until the end of the quarter. The deal may improve as the deadline nears. Just ensure you don’t compromise requirements solely to meet their timeline.
  Example: One enterprise aligned its RISE deal closure with SAP’s fiscal year-end in Q4. In the final week, SAP sweetened the deal with an extra 15% discount on subscription fees to hit its sales target. The client had prepared everything internally to sign quickly, which SAP knew, and that timing leverage directly translated into savings.
  Business Impact: Timing your negotiations with SAP’s sales cycle can result in significantly higher discounts or concessions. This tactic can trim your RISE subscription costs by double-digit percentages, potentially saving millions of dollars over the contract term without changing scope or requirements.

2. Exploit SAP’s Cloud Adoption Push (ECC 2027 Deadline)

Summary: SAP is highly motivated to migrate customers to the cloud (RISE) before support for ECC ends in 2027. They have aggressive cloud revenue goals and want success stories. Use this to your advantage.

Make SAP earn your business by reminding them you have options, including staying on ECC a bit longer or exploring other solutions, unless the RISE deal is very attractive.
Actionable Tips:

• Highlight Your Alternatives: In discussions, mention that you evaluate S/4HANA outside of RISE or even consider delaying migration. This subtly tells SAP that signing RISE is not your only path.
• Leverage the Deadline: SAP knows customers must move off ECC by 2027 (or pay extended maintenance). Indicate that you know the timeline but are willing to wait if needed. This can spur SAP to offer incentives for you to move now rather than later.
• Ask for Strategic Incentives: Because SAP benefits from your cloud conversion (both financially and for market perception), request additional perks – e.g., extra services or larger credits (see Tactic 9) – in recognition of being an early mover ahead of the deadline.
  Example: A manufacturing company informed SAP that they had a viable plan to remain on-premises for two more years and only then consider a cloud move. Concerned about losing a cloud win, SAP responded with a more aggressive offer (larger credits and a deeper discount) to convince the customer to choose RISE immediately rather than waiting. The customer ultimately signed RISE with far better terms than initially proposed.
  Business Impact: Playing on SAP’s strategic need for cloud deals can yield substantial financial incentives and improved terms. To secure your commitment, SAP may concede more (price cuts, free add-ons, flexible terms). The result is a more favourable cost structure for you and reduced risk since SAP effectively shares the move’s value to hit its targets.

3. Start Early and Plan the Negotiation Timeline

Summary: Treat a RISE negotiation as a major project – start well in advance to control the timeline rather than scrambling to meet SAP’s deadlines. Early preparation gives you time to gather data, iterate on proposals, and involve all stakeholders (IT, finance, legal) without rushing. It also allows you to take negotiations to the optimal time (as noted in Tactic 1) instead of signing under duress.
Actionable Tips:

• Begin Preparation 12+ Months Out: If possible, initiate internal discussions and requirements mapping a year before your desired contract starts. This is especially important if you are facing a 2027 deadline—don’t wait until late 2026.
• Set Internal Deadlines: Create a negotiation calendar with milestones (RFPs or initial quote by X date, internal review, counter by Y date, etc.). This keeps the process moving and prevents last-minute crunches.
• Allow Multiple Rounds: Give yourself the calendar space for at least a few rounds of back-and-forth with SAP. Assume that SAP’s first offer won’t be their best – you’ll want time to counteroffer and escalate as needed.
  Example: An energy company started engaging SAP about RISE options 18 months before their planned go-live. This early start meant they had the luxury of time to do a full cost analysis, consult independent experts, and negotiate in stages. When SAP tried to rush the deal in Q3 for their numbers, the customer was prepared but not pressured – they waited until Q4 and ended up with a 20% better overall price than the initial quote. In contrast, a peer company that waited late had far less leverage and accepted higher fees under time pressure.
  Business Impact: Early and proactive negotiation planning leads to better outcomes and fewer compromises. You avoid the risk of accepting subpar terms just to meet a deadline. Instead, you can align the deal with your schedule (and favourable market timing), resulting in more thoroughly vetted, cost-effective, and risk-mitigated contract terms.

4. Keep Alternative Options on the Table

Summary: Maintain credible alternatives to signing a RISE deal – and make sure SAP knows it. Whether extending your current system, migrating to S/4HANA in-house on a hyperscaler, or even considering other ERP competitors for certain capabilities, having a Plan B gives you leverage. SAP will negotiate more earnestly if they believe you’re not afraid to walk away.
Actionable Advice:

• Conduct a Parallel Evaluation: While negotiating RISE, evaluate the feasibility and cost of an alternative, such as “Bring Your Own License” on cloud (licensing S/4 and using AWS/Azure), or staying on ECC a bit longer with extended support. Obtain rough proposals or cost estimates for these options.
• Communicate Your Position: Without overtly threatening, let SAP sense that you are weighing other options. For example, discuss how you’re also talking to systems integrators about non-RISE S/4HANA migrations. This keeps SAP unsure if the deal is theirs to lose.
• Don’t Show Your Hand Too Early: While you should hint at alternatives, keep SAP engaged in improving its offer. If they think you’ve decided against RISE, your leverage is lost – so balance the message: you want to do RISE with SAP, but only if the terms make business sense compared to your other routes.
  Example: A global retailer negotiating RISE said they had also received a proposal from a cloud hosting partner to run S/4HANA on Azure independently. They shared enough details (like projected 5-year TCO) to demonstrate a viable fallback plan. This prompted SAP to match certain cost levels and include additional services to ensure RISE was more appealing. The result was a much stronger RISE deal, achieved by orchestrating a polite “competition” for their business.
  Business Impact: You pressure SAP to put its best foot forward by keeping alternatives open. This tactic can lead to lower costs or better terms as SAP tries to outshine your other options. Importantly, it also safeguards your organization – if SAP’s best offer isn’t good enough, you have a backup plan ready. Either way, you avoid being cornered into a bad deal.

5. Come Armed with Data and Benchmarks

Summary: Knowledge is power in SAP negotiations. Before you sit down with SAP’s sales team, gather benchmark data on what other companies are paying for RISE and what discounts or terms are considered competitive.

If you can confidently say, “We know peers of our size got a 50% discount and a price cap at renewal,” it changes the dynamic. SAP realizes you have a factual basis for your requests and will be less able to claim that your asks are unreasonable.
Actionable Tips:

• Research Industry Averages: Use independent licensing experts or industry forums to learn typical RISE subscription rates per user (or per FUE) in your region/industry. Understand what a good discount off SAP’s price list looks like (often, it’s well above 30-40% for large deals).
• Benchmark Contract Terms: Don’t just benchmark price—also inquire what concessions others achieved (e.g., did they get a renewal cap, how long of a dual-use period, or are there any free services?). This gives you a checklist of items to negotiate.
• Leverage Third-Party Advisors: Independent SAP advisors (such as Redress Compliance and others) often maintain anonymized benchmark databases. Engaging them or citing their published insights can lend weight to your case. For example, “Our advisors have seen similar companies negotiate mid-double-digit discounts – we expect to be in that range.”
  Example: The CIO of a finance company approached RISE talks with a clear benchmark: they knew from a user group that a similar-sized firm negotiated a 45% discount off the list price for the RISE private cloud edition. Armed with this knowledge, they pushed SAP’s team, who initially offered 25%, to nearly match the 45% by providing data points and gently asking SAP to meet the market. Additionally, they asked for a standard 5% cap on renewal increase because they’d heard it was “common in recent deals.” Realizing the customer was well-informed, SAP conceded on both the price and renewal cap to close the deal.
  Business Impact: Coming to the table with solid benchmarks can prevent overpayment and save you 10-20% or more in costs. It also helps you negotiate contract terms that are in line with market best practices, reducing risk. Overall, data-driven negotiations level the playing field and ensure you’re getting a deal on par with or better than your peers—a crucial win for any CIO or CPO accountable for a major SAP investment.

6. Insist on Cost Transparency (Break Down the Bundle)

Summary: RISE with SAP bundles software licenses, cloud infrastructure, and certain services into one price. For negotiation purposes, you’ll want to decompose that bundle.

If SAP gives you a single lump-sum figure, politely insist on a breakdown of the components – for instance, application subscription, database, infrastructure (IaaS), SAP BTP platform credits, etc.

This transparency lets you benchmark each piece and identify areas to reduce or adjust.
Actionable Advice:

• Request a Detailed Bill of Materials (BOM): Ask SAP to itemize what exactly you are paying for. How many Full User Equivalents (FUEs)? What size and cost of infrastructure? Are there any additional services or add-ons? This information is critical to understanding the deal.
• Evaluate Each Component: Once broken down, evaluate whether each line item’s cost is fair. For example, compare the infrastructure cost to what it would cost on AWS/Azure directly. If SAP’s markup is high, use that in negotiation (“This infrastructure cost seems high relative to the market—can we reduce it or adjust the sizing?”).
• Spot Unnecessary Items: Sometimes, the bundle includes things you might not need or can phase out later (such as extra SAP Business Network starter packs or certain tools). Identify these and discuss removing them for cost savings. You can add them later if needed, but removing them now can trim fat from the deal.
  Example: A consumer goods company received a RISE proposal totaling $5M/year. They asked for a cost breakdown and discovered that about $1.5M was allocated to the cloud infrastructure SAP would manage. Their cloud architects analyzed this and found that the infrastructure was oversized for their usage patterns. The company returned to SAP with data, showing that a smaller configuration would suffice. SAP agreed to adjust the infrastructure assumptions, knocking off $300k per year from the price. Without that breakdown, the customer would never have known to challenge the infrastructure cost.
  Business Impact: Demanding cost transparency often uncovers savings opportunities in the 5-15% range by right-sizing components and removing unnecessary elements. It transforms the negotiation from “blind” package haggling to an informed discussion on each value element. The outcome is a more cost-efficient contract where you pay for what you need and have confidence that each bundle piece is reasonably priced.

7. Right-Size Your RISE Scope (Avoid Shelfware)

Summary: In the RISE bundle, only pay for what you truly need. SAP might propose user counts or include modules that overshoot your requirements, resulting in expensive shelfware (capabilities or capacity you don’t use).

By right-sizing the scope—in terms of users, modules, and services—you ensure the subscription is aligned to your business and nothing more. This avoids waste and keeps costs under control.
Actionable Tips:

• Audit Current Usage: Before finalizing numbers with SAP, audit current SAP users and usage internally. How many active users do you have? What functionality do they use? Use this to validate the FUE count SAP proposes.
• Project Future Needs Conservatively: While you should account for growth, be realistic. Don’t vastly overestimate users or volume “just in case” – remember, you can often scale up later. Start at a reasonable baseline that covers you, and negotiate terms for adding more if needed (see Tactic 12).
• Scrutinize Included Products: If RISE comes with extra components (analytics, integrations, etc.), decide if you need them on Day 1. It might be cheaper to exclude or downgrade certain components now and add them when ready rather than pay for everything upfront.
  Example: A retailer was offered RISE with 1,000 FUEs (Full User Equivalents) because they had roughly 1,000 named users on their old system. But a closer look showed only ~800 active concurrent users in peak periods. They negotiated the contract for 800 FUEs to start, with an option to add more at the same discount rate if usage grew. This immediately saved 20% of the cost. Additionally, they noticed SAP had bundled a procurement network access that their procurement team didn’t plan to use in the first year. By removing that component from the package, they saved another chunk of cost and avoided paying for a capability until they were ready to use it.
  Business Impact: Right-sizing your RISE scope prevents overspending on idle resources. It can reduce your initial subscription fees significantly (often by tens of percent) and improve the value realization of the contract. Essentially, every dollar you spend is productive, funding users and services that drive business outcomes, instead of sitting on unused licenses or capacity. This boosts the ROI of your SAP investment and helps sell the deal internally, as there’s a clear alignment between cost and actual need.

8. Leverage Existing Investments (License & Maintenance Credits)

Summary: Many enterprises moving to RISE have a history of SAP investments – perpetual licenses bought in the past and annual maintenance fees paid for years. When you sign a RISE agreement, those traditional licenses are usually retired in favour of the new subscription.

Don’t leave that value on the table. A crucial tactic is negotiating credits for the licenses and maintenance you’ve already paid to offset RISE costs.

Essentially, you’re asking SAP to “buy back” or recognize the value of your existing licenses as part of the new deal.
Actionable Tips:

• Calculate Your License Book Value: Determine your SAP licenses’ book value or remaining depreciation value. If they’re fully depreciated, focus on maintenance; if not, you have a case where unused value remains.
• Negotiate a License Trade-In: Ask SAP how they will handle your existing licenses when you move to RISE. Typically, they may offer a contract conversion credit – push for this. For example, if you have $5M of licenses, negotiate a significant credit to your RISE fees to reflect that asset.
• Include Maintenance Leftovers: If you prepaid maintenance or are mid-year in a maintenance contract, ensure a prorated refund or credit goes into the RISE deal. You’ve paid for support; if RISE replaces that, you should get credit for the unused portion.
  Example: A large automotive firm invested heavily in SAP ERP licenses over the last decade and paid $3M annually in maintenance. In their RISE negotiation, they successfully argued for a “license value credit” of $4M to offset their subscription fees over the first two years, reflecting the residual value of their on-prem licenses. Additionally, because they were halfway through a support year, SAP provided a maintenance credit of about $1.5M (the unused half-year) applied against the initial RISE invoice. Together, these credits dramatically improved the cost of moving to RISE, giving the company a head start in savings for the first years.
  Business Impact: By leveraging your sunk costs, you reduce the net new spend required for RISE. This tactic can significantly shave off your transition cost-effectively, protecting the value of prior investments. It also prevents “double paying” for software (once when you bought it on-prem and again as a subscription). The financial impact is a lower TCO for the RISE migration and an easier justification for the project since past expenditures are acknowledged and not wasted.

9. Maximize SAP’s Migration Incentives

Summary: SAP periodically offers special incentives to encourage customers to move to RISE, especially those from ECC or those who already own S/4HANA licenses.

These incentives include migration funding, service credits, discounted add-ons, or extended use rights.

A savvy negotiator will ask about and fully utilize any such programs, effectively sweetening the deal beyond standard discounts. Timing plays a role here, too—SAP may have limited-time promotions in certain quarters.
Actionable Tips:

• Ask About Current Programs: Explicitly ask your SAP account team, “What incentive programs or promotions are available if we sign up for RISE now?” This might reveal offers like credits for transformation projects, free training, or temporary discounts.
• Migration Credits: One common incentive has been migration credits – e.g. SAP providing a credit equal to a percentage of first-year RISE fees to fund services (like data migration, implementation, or consulting). Negotiate to get the highest possible credit if you qualify.
• Extended Dual-Use Periods: Another incentive could be allowing you to run your old and the new RISE systems in parallel for a period (without extra charge). This “dual-use” can be vital for a smooth transition. If SAP doesn’t volunteer it, consider requesting a few months of overlap as part of the deal.
  Example: In 2024, SAP rolled out a program where customers moving to RISE could get up to 50-60% of their first-year subscription value back as credits to spend on SAP services (e.g., cloud platform credits, consulting, or even other SAP software). A telecom company negotiating RISE capitalized on this – their first-year RISE fee was $5M, and SAP granted a $2.5M credit that the company then used to pay for data migration and process redesign services from SAP. Essentially, SAP funded a large portion of the migration project. Additionally, SAP agreed to a 6-month dual-use period so the company could run ECC and S/4HANA in parallel during cutover, greatly reducing go-live risk. These extras were gained simply because the customer asked and qualified for available incentives.
  Business Impact: Tapping into SAP’s incentive programs can significantly reduce the transition cost and add value to your project. Credits and free services directly lower out-of-pocket expenses, while extended use periods reduce operational risk (which has an indirect financial benefit by avoiding disruption). In many cases, these incentives can be the difference that makes the RISE deal financially viable and palatable to executive leadership, so this tactic not only saves money but also improves the investment’s overall risk/reward profile.

10. Negotiate Aggressively on Initial Pricing

Summary: Never accept SAP’s first offer on RISE. It might sound obvious, but some organizations treat that quote as fixed or only nibble around the edges. However, SAP expects negotiations – their first proposal often includes plenty of wiggle room for additional discounts or better terms.

You can substantially improve the initial price by negotiating assertively (armed with your benchmarks, leverage, and internal goals). Think of the first quote as the opening bid. Your job is to confidently counter and drive it closer to your target.
Actionable Advice:

• Set a Target Price/Discount: Before negotiating, define success (e.g., “We need at least 40% off the list” or “We budgeted $X total—we must hit that”). Use this as your North Star.
• Counteroffer with Justification: If SAP offers, say, a 25% discount, respond with a higher ask (e.g., “We’re looking for 45% off”) and back it up: reference your budget limitations, competitive offers (if any), or the fact that your current costs plus migration effort require a better deal.
• Engage Higher-Level SAP if Needed: Don’t hesitate to involve SAP senior management or even executives if the field sales team’s authority seems limited. Large concessions often need approval from higher-ups – show that you’re serious and that the deal size or strategic value warrants executive attention. Sometimes, a CIO-to-SAP EVP conversation can unlock a stalled negotiation.
  Example: A global manufacturer received a RISE proposal at €10 million per year. Based on budget and alternate scenarios, their internal goal was €8 million. They countered firmly at €8M, explaining that otherwise, the RISE TCO wouldn’t beat their on-prem option. SAP’s team initially came down to € 9 M. The customer didn’t settle – they escalated the discussion, involving their CIO and SAP’s regional GM in a call. After reviewing the account’s strategic value, SAP agreed to €8.5M per year with some extra conditions. The company then leveraged one more round at quarter-end (Tactic 1), eventually sealing the contract at roughly € 8.2 M. This was an 18% improvement on the original price – a multimillion euro saving annually – achieved by assertive negotiation and not being afraid to push back multiple times.
  Business Impact: Hard bargaining on the upfront price directly lowers your cost baseline for the entire contract. Every percentage point gained from the discount is money saved year after year. Over a typical 3-5 year term, an extra 10-20% discount can equate to a significant budget freed for other initiatives. Moreover, demonstrating to SAP that you negotiate rigorously can set the tone for a more respectful vendor relationship in the future. In short, tough negotiation at the start yields a far better deal and shows stakeholders that you’re extracting maximum value for the company.

11. Secure Renewal Price Protections

Summary: One of the biggest risks in any SaaS agreement (RISE included) is the renewal. After your initial term (say 3 or 5 years), SAP could raise prices when you’re deeply invested in their platform.

Negotiate price protections for renewals while you have leverage to manage this contractual risk. The goal is to cap any future price increases or set ground rules so you’re not blindsided by a huge jump in cost later.
Actionable Tips:

• Cap the Increase: Include a clause like “any renewal price increase shall not exceed X% of the previous term’s fees.” Many customers aim for something like 5% (per year) cap or a one-time cap (e.g., no more than 10% increase at renewal). If you have strong leverage, you might even negotiate for zero increase (same price at renewal), though SAP may resist.
• Tie to an Index: If SAP balks at a fixed cap, a compromise is to tie increases to an inflation index (CPI) or similar. This at least grounds increases in some rationale rather than arbitrary numbers.
• Lock in Discounts for Add-ons: Ensure that any additional users or components you add later will carry the same discount percentage as the initial purchase. Otherwise, you could pay the list price for expansions. Write it so that the pricing for extra FUEs (or added modules) will be per the original rate card or discount structure.
• Advance Notice: Include a requirement that SAP give you written notice of renewal pricing well in advance (e.g., 6-12 months before renewal). This gives you time to react—either budget for the increase, negotiate it, or consider alternatives.
  Example: A services company negotiated its RISE contract to include a renewal cap of 7%. Without this, SAP’s standard terms might allow a much larger hike (some firms have seen proposals for 20-30% increases at renewal if not pre-negotiated). By capping at 7%, the company ensured that year-4 costs would only be marginally higher even in the worst case. Additionally, they built in a clause that if they renewed for a second term, they could extend the contract an additional year at the same rate if they gave notice, effectively locking the price for potentially 5+1 years. When renewal came, they had cost predictability and leverage – SAP couldn’t simply dictate a new high price.
  Business Impact: Renewal protections guard your long-term IT spending. They prevent budget shocks and give you negotiating leverage in the future. From a financial planning perspective, a cap or lock on renewal can save millions in the later years (for example, avoiding a jump from $10M to $13M/year is a $3M saving annually). It also strengthens your position at renewal – you have a contractual footing from which to negotiate rather than starting from scratch under time pressure. Essentially, this tactic buys you insurance against opportunistic pricing down the road.

12. Build in Flexibility for Changing Needs

Summary: Businesses are dynamic – over a 3-5 year RISE contract, you might acquire companies, divest a division, launch new products, or face economic downturns. Your SAP needs could increase or decrease.

Negotiating flexibility into the contract is critical so you’re not rigidly stuck with a one-size-fits-all commitment. Flexibility comes in forms like scaling rights, the ability to swap out components, or the ability to adjust user counts at certain intervals.

While SAP’s standard approach is to lock in a set number of FUEs and services, you can often introduce provisions to accommodate change.
Actionable Tips:

• Volume Tiering: If you anticipate growth, negotiate predetermined pricing for additional FUEs in bulk. For instance, “if we exceed X users, the next Y users are at Z% discount” – this avoids renegotiating pricing mid-term from a weak position.
• Downward Flexibility: It’s tougher, but try to discuss scenarios like divestitures or downsizing. Perhaps negotiate a one-time reduction option at renewal or rights to reduce a certain volume percentage without penalty if business contraction occurs.
• Swap Rights: Ask for “swap” or conversion rights – the ability to repurpose part of your investment into other SAP products. Example: if you decide to move HR to SuccessFactors (another SAP cloud) mid-way, you could swap some RISE scope for equivalent value in that product. SAP might not readily agree, but even a limited swap clause can help.
• True-Up Periods: At a minimum, ensure you can true-up licenses annually. That means if you add users during the year, you pay pro-rated, and if you over-estimated, you might claw back (or at least not be forced to pay immediately for overage until renewal).
  Example: A tech company negotiated a flexible use clause in their RISE contract. It stated that they could reallocate up to 10% of their subscribed FUEs to different SAP cloud services once a year. In year 2, they acquired a small company and needed more CRM users but fewer ERP users – this clause allowed them to shift some of their RISE investment over to SAP’s CRM cloud, keeping the total spend the same but adjusting the allocation. They also ensured any new users added beyond their initial count would get the same discount rather than paying the full rate. This flexibility saved them money (no need to buy a separate full-priced CRM subscription) and avoided paying for unused ERP users.
  Business Impact: Contractual flexibility means your SAP agreement can adapt to your business, preventing scenarios where you’re either overpaying for unused capacity or unable to pursue new initiatives because your contract is too rigid. Financially, it can save costs in downturns by not overcommitting and in growth scenarios by locking in favourable rates for expansion. Strategically, it ensures IT isn’t a blocker to business change. The impact is a more resilient, efficient use of your SAP investment over time.

13. Ensure Comprehensive Scope and Clarity

Summary: RISE with SAP is marketed as a comprehensive bundle, but never assume everything you need is automatically included. One common pitfall is unclear scope, where certain services or components are not explicitly stated and later result in surprise fees.

This tactic is about nailing down every aspect of scope and responsibility in writing. If it’s important to your success, get it listed in the contract or acknowledged in the proposal. Clarity now prevents disputes and extra charges later.
Actionable Advice:

• List Environments and Services: Ensure the contract specifies how many system environments (DEV, QA, Prod, etc.) are included. One production environment and one non-prod might often be standard—if you need more, negotiate them. Also, clarify if disaster recovery, backup, and restore services are part of the base fee.
• Define Responsibilities: RISE means SAP handles a lot, but your team still has roles. Delineate who is responsible for what – for example, SAP might handle system updates and backups, but do they handle data migration? Testing support? Integration monitoring? Spell it out to avoid “I thought you would do that” situations.
• Identify Exclusions and Get Quotes: If something is not included (e.g., data migration, extensive training, custom code remediation), ask SAP for an estimate or service offering for it now. You can then negotiate it into the deal or handle it separately. The key is you won’t be surprised mid-project by a needed service that wasn’t covered.
• Document All Assumptions: If the pricing assumes a certain transaction volume or user count, ensure those assumptions are in the contract or an addendum. That way, SAP can’t later say you exceeded some hidden limit and owe more.
  Example: An aerospace company took a detailed approach to scope definition in their RISE contract. They created a Responsibilities Matrix – a table listing tasks (like application management, data migration, user support, custom development, etc.) and indicated whether SAP, the customer, or a partner was responsible. During negotiation, it was flushed out that data migration was not included in SAP’s standard RISE scope. Armed with that knowledge, they negotiated a one-time fixed fee for SAP to assist with migration as part of the contract. They also clarified that three system landscapes (Dev, QA, Prod) were included and got agreement on a disaster recovery environment at a secondary site at no extra cost. Later, when an issue arose about a minor component, both sides referred to the contract’s detailed scope to resolve it without argument or additional charges.
  Business Impact: Comprehensive scope clarity ensures no surprise costs or gaps in service during your SAP journey. While it might not always change the upfront price, it saves you potentially huge amounts in avoided “scope creep” expenses (e.g., suddenly having to pay hundreds of thousands for a necessary service that wasn’t covered). It also keeps the project on track – knowing exactly who does what means less finger-pointing and delay. For CIOs, this is risk mitigation at its finest: the contract becomes a reliable guidebook rather than a source of uncertainty.

14. Address Indirect Use and Compliance Upfront

Summary: Indirect use (digital access) is when third-party applications or external users indirectly access SAP data (for example, a web portal creating a sales order in SAP). In traditional SAP licensing, indirect use has caused compliance audits and hefty fees for some customers.

With RISE, you might assume those worries go away since it’s a subscription, but it’s important to clarify this in the contract. Also, SAP will host your system, giving them more visibility into your usage.

Thus, negotiating audit terms and compliance safeguards upfront is wise to avoid any compliance surprises later.
Actionable Tips:

• Include Digital Access in the Deal: SAP now has a model for digital access (document-based licensing). When moving to RISE, discuss converting to that model or explicitly include an allowance for indirect use. In plain terms, ensure the contract says that your subscription covers your typical documents (orders, invoices, etc., from external systems) and won’t trigger extra fees.
• Limit Audit Rights: Standard SAP contracts allow audits. Try to insert some reasonable limits: e.g., “no audits in the first year” (during stabilization), or “audits not more than once every X years with Y days’ notice.” Given that SAP will have operational control, consider asking for periodic license usage reports instead of formal audits so you can self-correct any overuse.
• Clarify Metric Definitions: Ensure all metrics (like what counts as an FUE, how users are classified, etc.) are crystal clear to avoid differing interpretations later. If you have any unique indirect scenarios (like a third-party logistics system interfacing with SAP), document how those are licensed under your RISE agreement.
  Example: A global distribution company’s complex web storefront created sales orders in SAP ECC. They were concerned that after moving to RISE (S/4HANA), this indirect scenario could become a compliance issue. During negotiations, they brought this up, and SAP agreed to include a digital access license for a set number of documents per year as part of the RISE subscription. Additionally, they negotiated that SAP would not audit them for license compliance until after two years of go-live, and even then, any findings would first be discussed for resolution rather than immediate penalties. The company avoided the classic “indirect use trap.” Indeed, a year later, SAP released a new usage report, and because everything was agreed upon upfront, there were no surprise charges – all usage was within the pre-licensed allowances.
  Business Impact: Tackling compliance topics protects your organization from future financial risk. It’s hard to put a number on avoided penalties. Still, in the past, indirect access claims have reached millions for large enterprises, so you are averting a potential bombshell. Moreover, you gain peace of mind that your focus can remain on implementation and operations, not defending against audits. This tactic ensures unforeseen compliance costs don’t undermine your RISE investment and that SAP can’t leverage audits to extract more revenue later.

15. Leverage Independent Expertise

Summary: Negotiating with SAP can feel like David versus Goliath – they negotiate these deals daily, while your team does it infrequently. One way to level the field is to bring in independent licensing and negotiation experts who know SAP’s playbook.

These advisors can provide benchmark data, identify contract pitfalls, and directly support negotiation strategy and execution.

While engaging experts has a cost, the returns in cost savings and risk reduction often far exceed the fees.

The key is to use their knowledge to make your negotiation more informed and effective.
Actionable Advice:

• Consider Advisory Services: Firms specializing in SAP negotiations (such as independent licensing experts like Redress Compliance, UpperEdge, etc.) offer services ranging from behind-the-scenes coaching to front-line negotiation support. Decide what level of help you need – even a few hours of consultation for benchmarking can be valuable.
• Use Experts for Benchmarking: Third-party experts often have up-to-date data on the going rates and terms. Have them review SAP’s proposal to spot areas where you’re above market. They can quickly tell if, for example, your proposed cost per FUE is higher than that of peers or if important clauses are missing.
• Contract Review: Have an expert/licensing attorney review the draft contract. They know the typical “gotchas” in SAP agreements and can suggest language to better protect you. Their experience with other clients’ mistakes can save you from learning the hard way.
• Leverage Their Presence Carefully: Sometimes, letting SAP know you’re consulting experts signals that you’re serious and informed. However, gauge SAP’s attitude – sometimes keeping the expert in the background (feeding your team advice) avoids any confrontational vibe. Do what fits your style, but make sure you’re benefiting from their insights one way or another.
  Example: A healthcare company was faced with a complex RISE proposal. They engaged an independent SAP negotiation advisor who had done dozens of similar deals. The expert analyzed the proposal and found that the infrastructure component was overpriced and that SAP had omitted a standard performance SLA clause. Equipped with this information, the company’s negotiation team returned to SAP and achieved a $1M/year reduction, citing the infrastructure overcharge, and added an SLA for response times they wouldn’t have known to insist on. The cost of the advisor was a small fraction of these savings. In fact, during talks, the customer occasionally mentioned, “Our independent analysis shows X,” which made SAP more cautious about pushing unfavourable terms. Ultimately, the final contract was much stronger thanks to external expertise guiding the process.
  Business Impact: Independent experts can drive significant cost savings (often 10-30% off what you would have settled for) and help secure contract terms that prevent future expenses or issues. For executives, it’s a way to bring external validation to your negotiation stance (“according to market data…”) and to ensure no critical detail is overlooked. In dollars and sense, the advisory fees are typically paid back many times over through a better deal. In terms of risk, you gain confidence that the contract you sign is vetted and benchmarked, which is invaluable when your company’s digital transformation is on the line.

Executive Summary (Insights and Best Practices)

Negotiating RISE with SAP requires a strategic blend of timing, data-driven insight, and meticulous attention to contract detail.

From real-world advisory engagements and procurement experiences, successful CIOs and CPOs approach these negotiations not as a standard software purchase but as a comprehensive partnership and long-term investment.

Key insights include:

• Leverage Vendor Timeline & Incentives: Align your negotiation with SAP’s sales cycles and strategic objectives. Clients who timed deals around SAP’s quarter-end or took advantage of SAP’s cloud push (like the 2027 ECC deadline incentives) consistently achieved better upfront pricing and extras. In practice, SAP often grants larger discounts and credits when they have internal pressure to close – savvy negotiators use this to the company’s benefit.
• Benchmark and Challenge Everything: Going into talks armed with market benchmarks and alternative options dramatically shifts the power balance. Informed buyers who know what peers are paying and have calculated the cost of alternatives can confidently reject initial offers. The best outcomes were seen when teams said, “We know the market, and we have a Plan B,” compelling SAP to match competitive levels. Data-driven negotiations yielded material savings (often 15-30%) compared to accepting SAP’s first quote.
• Optimize Scope and Total Cost of Ownership: Top performers dissected and reconstructed it to fit their needs rather than blindly accepting the RISE bundle. They scrutinized user counts, infrastructure sizing, and included services to eliminate waste. The lesson from these engagements is clear: ensure you’re only paying for what delivers value, and insist on transparency to find hidden cost drivers. This TCO-focused mindset, looking at the full multi-year picture, often uncovers opportunities to save and avoid downstream costs that a short-term view would miss.
• Lock In Long-Term Protections: Negotiators who treated the contract as a living framework that needs to withstand business changes and future renewal events fared far better in the long run. They secured price increase caps, flexible terms for growth or contraction, and clarity on scope and exit options. This forward-thinking approach meant that there were no nasty surprises three or five years down the road: costs remained predictable, and the business retained leverage and choice. In contrast, deals cut without these safeguards often eroded ” savings over time, as unforeseen fees and renewal hikes hit unprepared customers.
• Utilize Expertise and Prepare Thoroughly: Finally, organizations that invest in preparation, whether through internal cross-functional task forces or external advisors, achieve the most balanced deals. They treat negotiation preparation as a project, do their homework on usage and requirements, and bring in specialized knowledge when needed. The payoff is evident in contracts that save money and align tightly with the organization’s objectives and risk tolerance. Simply put, a well-prepared team, sometimes augmented by independent experts, will always out-negotiate an ad-hoc effort.

A RISE with SAP negotiation is a complex dance of timing, information, and foresight. Those who succeed are the ones who start early, know their facts, exploit timing and competition, and meticulously craft a contract that safeguards their interests.

The result for these organizations is a significantly lower cost of ownership and a smoother digital transformation journey with SAP, having set the stage for a true partnership rather than a one-sided vendor relationship.

RISE Negotiation Preparation Checklist

Before entering negotiations for RISE with SAP, CIOs and procurement leaders should ensure they have fully prepared.

Use the following checklist to get your team ready and positioned for success:

• ✔️ Align Internal Stakeholders & Objectives: Bring together IT, finance, procurement, and executive sponsors to define clear goals for the RISE deal (cost savings targets, key contract terms, and strategic outcomes). A united front with agreed priorities strengthens your negotiating position.
• ✔️ Audit Current SAP Usage and Contracts: Inventory your existing SAP licenses, usage levels (users, processes), and the financials (license book value, annual maintenance). This data will inform user counts for RISE, highlight credits you should receive, and prevent overestimating needs.
• ✔️ Define Requirements and Scope: Clearly outline your organization’s needs from RISE. Which modules, how many users (FUEs), what performance or integration requirements, how many environments, etc. Knowing this in detail helps you avoid accepting a one-size-fits-all package that doesn’t fit.
• ✔️ Research SAP’s Fiscal Calendar & Incentives: Mark SAP’s quarter and year-end dates on your plan and inquire about current incentive programs (migration credits, promotional discounts). Timing your negotiations to align with these can unlock better offers.
• ✔️ Gather Benchmark Data: Collect information on what similar enterprises pay for RISE and typical contract terms. Use industry contacts, user groups, or independent advisors to benchmark pricing and discounts. This will set realistic targets and give you evidence to challenge SAP’s proposal.
• ✔️ Explore Alternative Scenarios: Develop at least a rough alternative to RISE – for example, the cost to stay on-prem or to implement S/4HANA on a hyperscaler yourself. Understand the pros/cons and costs of this Plan B. Having this in your back pocket (and being ready to present it) is key leverage.
• ✔️ Set a Negotiation Strategy & Walk-Away Point: Establish your negotiation game plan: the ideal outcome, your acceptable range, and what terms are non-negotiable. Equally, decide on a walk-away point (e.g., if SAP’s price or terms can’t meet X, you will postpone or pursue the alternative). This prevents decision paralysis under pressure.
• ✔️ Prepare a “Must-Haves” List for Contract Terms: List the critical protections you need in the contract (e.g., renewal cap of 5%, X months notice, Y months dual use, data ownership guarantees, SLA commitments, exit clause). Use this list in negotiations to ensure each item is addressed in writing.
• ✔️ Engage Independent Expertise (if needed): Consider hiring an independent SAP licensing/negotiation expert to review proposals or coach your team. Provide them with your data and get their input on pitfalls and benchmark positioning. Their insights can validate your approach and catch issues you might overlook.
• ✔️ Assemble a Strong Negotiation Team: Identify who will lead talks with SAP and include cross-functional support: technical leads to assess solution details, a financial analyst for cost modelling, and legal counsel for contract review. A well-rounded team can evaluate SAP’s offers from all angles in real-time.
• ✔️ Plan Communication and Escalation: Determine how you will communicate updates to executives and when to involve them. For instance, brief your CFO or CEO on the strategy and be ready to leverage their involvement (like a phone call to an SAP executive) if negotiations stall on major points.
• ✔️ Document Everything: Keep detailed notes of discussions, proposals, and promises. When SAP makes verbal commitments (e.g., “we’ll include that at no charge”), note them and ensure they appear in the written contract. A documented history prevents later misremembering and backs up your requests to formalize agreements.

You’ll enter your RISE with SAP negotiation informed, organized, and confident by checking off these preparation steps. This preparation boosts your chances of winning a favourable deal and demonstrates to SAP that your organization is professional and cannot be easily pressured into a suboptimal agreement. Good preparation is the foundation of a successful negotiation – and, ultimately, a successful partnership with SAP under the RISE framework.