RISE with SAP vs On-Premise: 2026 Enterprise Guidance

What Changed in SAP Licensing in 2025 That Affects Your 2026 Decision

The SAP licensing landscape shifted materially in 2025 in ways that directly affect your RISE vs on-premise decision. Understanding these changes is critical to avoiding costly missteps.

SAP's Increased Audit Intensity

In 2025, SAP audit activity reached record levels. Independent advisors tracked 52% of mid-market and enterprise accounts audited at least once in the last 18 months. More concerning: repeat audits (second audit within 12 months) are now common, particularly targeting enterprises in transition states or those with RISE cloud environments.

This matters because RISE contracts include specific audit rights that differ from on-premise licensing. The cloud environment creates new measurement touchpoints, and SAP is actively using these to identify indirect access exposure. Enterprises moving to RISE in 2026 should expect audit activity to accelerate post-signature.

Digital Access Measurement Methodology Updates

SAP introduced a new digital access measurement approach in Q2 2025 for RISE cloud deployments. This methodology captures "transactional touches" differently than legacy on-premise measurement. The practical effect: enterprises deploying to RISE are seeing higher indirect access exposure calculations than they expected based on on-premise models.

This is not a compliance violation. This is a remeasurement methodology. But it increases post-migration cost risk. Enterprises should request a detailed indirect access forecast as part of any RISE negotiation in 2026.

BTP Pricing Model Changes

SAP Business Technology Platform (BTP) bundling in RISE has shifted. The credit model used to calculate included platform services is now consumption-based in 2026. This means:

• Your BTP allocation in year 1 may not match year 2-3 needs
• Overages are priced at retail rates, not discount rates
• New services launched by SAP are not automatically included

Request detailed BTP sizing and cost models in any RISE proposal. This component alone can drive 8-12% variance in total cost of ownership.

GROW with SAP as Mid-Market Disruptor

SAP launched GROW with SAP in 2024-2025 targeting mid-market (500-2000 user) deployments. GROW pricing is 25-40% lower than RISE for comparable deployments in this segment. For mid-market enterprises, GROW is often a better RISE alternative than full RISE. This has also compressed RISE pricing for traditional mid-market accounts.

ECC Extended Maintenance at Premium Cost

SAP's extended maintenance option (available through 2030) increased 35% in 2025. This option is expensive but provides flexibility. Many enterprises are now using extended maintenance strategically—buying 3-5 years of decision time rather than committing to RISE immediately.

The ECC End-of-Maintenance Reality in 2026

Let's be direct about what the ECC deadline means. Mainstream maintenance for ECC ends December 31, 2027. That is your constraint. But it is not a cliff, and understanding the nuance is critical.

What "End of Mainstream Maintenance" Actually Means

Mainstream maintenance ending means:

• SAP stops publishing patches and critical updates for ECC
• SAP support moves to extended maintenance pricing (higher rates, limited scope)
• Your security risk and compliance exposure increases over time
• Most enterprise policies require upgrading within 18-24 months of EOL

End of mainstream maintenance does NOT mean:

• Your systems stop working (they don't)
• You must migrate to RISE (you have alternatives)
• You lose all SAP support (extended maintenance is available)
• You have zero negotiating leverage (your deadline is 12 months away; SAP has targets to hit this quarter)

Your Real Options in 2026

Option 1: RISE with SAP - SAP's cloud platform. Best for clean landscapes. Requires 18-24 month migration planning. Higher operational change but modern platform.

Option 2: S/4HANA On-Premise - On-premise upgrade. Lower migration risk than RISE for complex landscapes. Requires hyperscaler infrastructure (AWS, Azure, Google Cloud). Often cheapest over 5 years for large deployments.

Option 3: Extended SAP Maintenance - Buy time (3-5 additional years). Expensive, but buys decision time. Strategic choice if your roadmap is uncertain.

Option 4: Third-Party Maintenance - Rimini Street, Spinnaker, and others provide certified SAP support at 40-60% below SAP's extended rates. Often paired with on-premise infrastructure for significant savings.

Why Enterprises That "Wait" May Actually Win

There is psychological pressure to move now because "everyone is migrating." This is false. Many enterprises are delaying decisions intentionally. Here's the calculus:

• RISE pricing is declining (SAP needs to win deals to hit targets)
• S/4HANA on-premise licensing is now bundled with hyperscaler discounts
• Extended maintenance is expensive, but you're not using it for 5 years
• Deferring 12-18 months gives you better information and more leverage

The enterprises winning in 2026 are not those who moved fastest. They are those who moved strategically—with independent advice, clear TCO models, and realistic timelines.

The 5 Enterprise Archetypes and Which Path Makes Sense in 2026

Not all enterprises are the same, and your path forward depends on your specific situation. We've identified five archetypes. Find yours.

The 2026 SAP Negotiating Calendar — When to Move

SAP's business cycle creates predictable leverage windows. Understanding these windows is critical to negotiating better RISE terms in 2026.

Q1 (January-March): Slowest SAP Quarter - This is the worst time to negotiate RISE. SAP teams are resetting targets. Discounts are minimal. If you initiate negotiations in January, SAP will delay through March to establish leverage. Recommendation: Avoid starting formal RFPs in Q1.

Q2 (April-June): SAP Pipeline Building - Moderate leverage. SAP teams are building their mid-year pipeline. They need some wins but are not desperate. This is suitable for RFPs if you've done internal analysis first. Recommendation: Issue RFP in April/May if you're ready.

Q3 (July-September): Q3 Close Pressure - Strong leverage window. SAP teams have Q3 targets to hit (end of quarter is September 30). This is when SAP is most aggressive on pricing. Negotiations that stall through July suddenly move in August. Recommendation: This is a good quarter to negotiate if you're not in a rush. SAP will compress timelines.

Q4 (October-December): Best Leverage - This is SAP's most important quarter. Year-end targets drive aggressive discounts. Contract signature before December 31 often gets 10-15% better terms than earlier years. Recommendation: If possible, target Q4 negotiations. December is when SAP has maximum discount headroom.

Strategy Note: Best practice is to issue RFP in May/June (for Q2-Q3 negotiations) or August (for Q4 close). This gives you 4-6 months of proposal evaluation while maintaining leverage during SAP's target-driven quarters.

What Independent Advisors Are Seeing in 2026 RISE Proposals

We've reviewed 40+ RISE proposals in the last 6 months. Here are the patterns worth knowing.

List Price vs Achievable Negotiated Price

SAP's published RISE list pricing is disconnected from what enterprises actually pay. A typical enterprise receives:

• Initial proposal: List price to list minus 10%
• After pushback: List minus 20-25%
• After competitive benchmarking: List minus 35-45%

Most enterprises accept the second offer (list minus 20-25%). This is a 15-25 point margin left on the table. Structured negotiation—with independent TCO validation and competitive options—consistently achieves 35-45% discounts.

Common Contract Traps in 2026 RISE Order Forms

Trap 1: BTP Credit Inflation. BTP credits included in year 1 are priced at a certain value. Year 2-3 credit value inflates (SAP's term: "price adjustment"). Your effective support cost increases. Negotiate fixed BTP credit value for the contract term.

Trap 2: Infrastructure SLA Degradation. Newer RISE contracts offer 99.0% SLA (not 99.95%). Older contracts offered better terms. Negotiate back to 99.5% minimum if you depend on 24x7 uptime.

Trap 3: Digital Access Measurement Ambiguity. Contracts specify "measurement per SAP methodology." SAP has updated methodology multiple times in 2025. Request specific, fixed measurement rules. Do not accept "per SAP methodology" language.

Trap 4: Auto-Renewal at Non-Negotiated Rates. Many RISE contracts auto-renew at standard rates with minimal discount. Negotiate explicit renewal discount (suggest: 70-75% of current negotiated discount applied to renewal years).

Trap 5: Audit Rights Overly Broad. RISE contracts include SAP audit rights that can be triggered quarterly. Negotiate audit frequency down to annual, and get explicit caps on audit scope.

Infrastructure Delivery SLA Changes

SAP's infrastructure SLA has degraded in 2026 contracts vs 2024-2025 agreements. Be specific in RFPs about uptime requirements, recovery time objectives (RTO), and recovery point objectives (RPO). Do not accept SAP's standard default—negotiate based on your business requirements.

Digital Access Measurement Cost Risk

This is the highest post-signature risk. Enterprises are experiencing 15-25% cost increases post-migration due to remeasurement. Request:

• A pre-signature indirect access assessment using SAP's 2026 methodology
• A cost reconciliation clause: if actual post-migration indirect access exceeds forecast by >10%, dispute resolution process is triggered
• Explicit cap on year 1-2 cost escalation from remeasurement

BTP Credit Pricing Inflation

Year 1 BTP credits are bundled at a stated value. In subsequent years, SAP applies "price adjustments" that inflate credit costs. This is not a compliance issue; it's a cost structure issue. Negotiate fixed BTP credit value for the entire contract term. This prevents surprise cost escalation in years 2-3.

The 5 Things Every Enterprise CIO Needs to Do Before Mid-2026

If you haven't made your RISE vs on-premise decision yet, here are five concrete actions to take before mid-2026.

1. Run USMM and LAW to Establish Your Current ELP

You cannot negotiate RISE terms or build a realistic TCO model without knowing your current Enterprise License Arrangement (ELP). Run the Usage Status Monthly Metrics (USMM) report and License Assessment Workbench (LAW) in your current system. These tools map your current licensing posture.

Why this matters: Your RISE proposal will include a new ELP based on forecasted usage. If you don't know your baseline, you cannot validate SAP's forecast. Independent advisors use USMM/LAW output to challenge RISE sizing. Get this done before SAP's sales engagement.

2. Get an Independent TCO Comparison: RISE vs On-Premise vs Third-Party Maintenance

Build three scenarios:

• Scenario A: RISE with SAP (5-year cost including migration, support, infrastructure)
• Scenario B: S/4HANA on-premise + hyperscaler (5-year cost including licensing, infrastructure, support)
• Scenario C: Extended SAP maintenance + third-party support (3-year hold, then reassess)

Your internal team likely doesn't have the RISE-specific cost data needed for this. Get independent advisors to build these scenarios. The difference in outcome often exceeds €5-10M over 5 years.

3. Identify Your Indirect Access Exposure in Current Landscape

RISE contract costs are directly tied to indirect access measurement. You need to know your current indirect access exposure before SAP quotes you. Run an independent indirect access assessment. Map:

• Portal access points
• Third-party application integrations
• API-based touchpoints
• Reporting and analytics access

SAP will measure all of these in RISE. Knowing your baseline prevents post-migration surprises (and cost overruns).

4. Determine Your Migration Complexity and Realistic Timeline

Do not trust SAP's timeline estimates. Get an independent technical assessment of your landscape. Questions to answer:

• How much custom ABAP code requires rework?
• What is your fit-to-standard scope?
• What integrations must be rebuilt?
• What is your realistic 24/7 cutover window?

This drives migration cost (€5-25M variance) and dictates whether RISE is even feasible. Get this mapped before you commit to RISE.

5. Engage Independent Advisors, Not System Integrators with SAP Commercial Relationships

Your current SI implementation partner may be financially incentivized to recommend RISE (they make implementation fees). Your auditor may not have RISE-specific cost modeling. Get independent SAP licensing advisors who:

• Have no commercial relationship with SAP
• Have modeled 50+ RISE deals
• Can validate RISE sizing and pricing
• Can negotiate contract terms on your behalf

This is not a luxury. This is the difference between a good deal and a deal you regret by 2027.

Frequently Asked Questions