GROW with SAP Licensing Explained – Model, Pricing, and Adoption Guide

GROW with SAP Licensing Explained – Model, Pricing, and Adoption Guide

Introduction – Why GROW with SAP Matters Now

GROW with SAP is SAP’s newest cloud ERP offering aimed squarely at midsize enterprises. Launched in 2023 as SAP’s answer to the SME cloud ERP market, it packages SAP’s flagship S/4HANA Cloud ERP in a simplified bundle.

This is a big deal now because midsize companies face the same pressures as large firms – needing modern, agile systems – but often lack clarity on how SAP’s licensing works or how to get a good deal.

GROW with SAP is designed to simplify adoption with prepackaged best practices and fixed scopes for faster deployment.

For CIOs and CFOs evaluating cloud ERP, understanding GROW’s licensing model and pricing is crucial.

Midmarket buyers want to know: Is this offering truly simpler and cheaper? How does it compare to RISE with SAP (SAP’s more enterprise-focused bundle)?

And importantly, how can we negotiate the best terms?

This guide, written in the voice of a SAP licensing negotiation expert, will demystify GROW with SAP’s model, pricing, and key considerations, so you can decide if it fits your business and leverage its introduction to your advantage.

What is GROW with SAP?

GROW with SAP is essentially a packaged SaaS ERP solution built around SAP S/4HANA Cloud, public edition.

Think of it as a cloud ERP starter kit for midsize companies. It includes the core S/4HANA Cloud ERP software, pre-configured industry best practices, and a defined scope of processes – all delivered as a multi-tenant SaaS (public cloud) service managed by SAP.

The idea is to get customers up and running quickly, with minimal customization, by using standard SAP processes out of the box.

In other words, GROW with SAP is like a “lightweight RISE” – it offers the essentials of SAP’s cloud ERP without the complexity that large enterprises might need. It’s tailored for speed, predictability, and lower total cost of ownership (TCO).

This offering is targeted at midsize firms (for example, companies with roughly 1,000-1,500 employees or those outgrowing entry-level systems). These are organizations that want the robustness of SAP’s ERP but don’t have massive IT teams or the appetite for a years-long implementation. GROW with SAP gives them a more streamlined path.

By focusing on standardized processes and cloud delivery, SAP aims to reduce the barriers to adoption – you get SAP’s proven financials, supply chain, and other modules, but in a pre-packaged form.

The trade-off is that you have less flexibility for deep customization, which, for many midmarket companies, is acceptable if it means a faster go-live and simpler maintenance.

In short, GROW with SAP is SAP’s way of saying: “We have a cloud ERP that midmarket businesses can implement quickly and run with minimal fuss.”

It’s an acknowledgment that not every company needs the full complexity of a large enterprise ERP project. For those who just want reliable cloud ERP functionality with best practices, GROW is positioned as a right-sized solution.

Licensing Model

GROW with SAP uses a subscription-based licensing model. Instead of buying licenses upfront, customers pay a recurring subscription fee (typically annually or quarterly) for the software and services.

The licensing is primarily per user, typically measured in SAP’s standard metric, Full User Equivalents (FUEs).

In practical terms, you’ll purchase a certain number of user subscriptions that cover your use of the S/4HANA Cloud system. SAP has simplified this for GROW by bundling users and modules into a few predefined packages.

How it’s bundled:

There are generally two editions of GROW with SAP – often referred to as a Base edition and a Premium edition. The Base edition covers the core ERP modules (e.g., Finance, Procurement, Inventory, Sales) and requires a minimum commitment (e.g., 15 FUEs to start).

The Premium edition includes everything in the Base edition, plus additional SAP cloud components, such as planning and analytics tools or CRM add-ons (for instance, some bundles include SAP Analytics Cloud for planning, SAP Sales Cloud for CRM capabilities, or Concur for expense management).

The Premium bundle typically has a slightly higher minimum user requirement (e.g., 25 FUEs). These minimums essentially set the floor price for GROW contracts – you can’t go below that user count, so even if you have, say, 10 users, you’d likely still need to pay for 15 at minimum in the Base package.

Simplicity vs Complexity:

Compared to traditional enterprise SAP licensing, GROW’s model is more straightforward. Midmarket customers don’t have to pick and choose à la carte licenses for dozens of different modules; instead, SAP has predefined what’s included to make pricing predictable.

However, don’t let “predefined bundle” give a false sense of total simplicity – you should still pay close attention to the contract details. Ensure you understand exactly which modules and services are included.

For example, does the subscription include things like standard support, integration tools, or reporting add-ons, or are those extra?

In GROW, standard SAP support is generally included in the subscription by default, as is the cloud infrastructure (since it’s a SaaS public cloud). But if you anticipate needing premium support or additional storage/capacity beyond normal operations, those might incur extra fees – clarify this upfront.

The licensing is subscription-based, but it is often sold as a multi-year contract. A typical GROW with SAP deal might require a 3-year commitment (which is common in enterprise SaaS). Committing to a multi-year term can actually help in negotiations – SAP often provides better discounts for longer commitments (and it gives them a predictable customer for a few years).

On the flip side, be mindful of what happens after that term. As part of the licensing model, negotiate the renewal terms. You’ll want to cap any uplift (price increase) at renewal.

It’s not uncommon for contracts to include a clause like “prices can increase by up to X% each year” – try to get that X to a reasonable number (for example, 3-5% max annually, or tied to an inflation index). The goal is to avoid a nasty surprise after three years, when your costs jump significantly.

Negotiation advice on licensing: Even though GROW is sold as a simplified bundle, buyers should negotiate just as diligently as with any SAP deal.

Confirm all the inclusions in writing – for instance, ensure that any integration you need (connecting your e-commerce site, CRM, or a third-party system) is allowed without extra “indirect access” fees.

One benefit of subscription models like GROW is that indirect usage is typically covered (you’re paying for overall system use, not each connection), but it’s wise to have SAP explicitly confirm that the user licenses cover your expected integrations.

Additionally, discuss flexibility: if you need to add users later, can you do so at the same discounted rate? If you end up not using all your subscriptions, is there any way to reduce the count, or are you locked in?

Usually, you’re committing to several users for the term. Still, smart negotiation can sometimes incorporate a bit of flexibility (such as the ability to true-up annually at the same rate for additional users).

In summary, treat the GROW contract with the same care as a larger enterprise contract – understand the metrics, lock in protections, and ensure you’re only paying for what you need.

Features Included in GROW

The GROW with SAP package includes a solid set of features to run a midsize company’s operations, but it’s not the entire universe of SAP products (by design).

Here’s what you typically get:

• Core S/4HANA Cloud Modules: At the heart of GROW is SAP S/4HANA Cloud (public edition). This covers standard ERP functionality – for example, Financials (GL, AP/AR, financial reporting), Procurement and Purchasing, Sales Order management, basic Supply Chain and Inventory, and Manufacturing/Production Planning (if relevant to your industry). Essentially, the foundational modules that almost any business needs to manage finances, customers, suppliers, and products are included. These come pre-configured with SAP’s best practice processes. That means out-of-the-box, the system has a lot of processes ready to go (based on SAP’s experience with industry standards). You can tweak configurations (like chart of accounts, org structure, etc.), but you won’t be doing heavy custom coding.
• Predefined Scope and Limited Customization: GROW’s philosophy is “keep the core clean.” Because it’s a multi-tenant cloud, you cannot modify the underlying code or do extensive modifications as was common in on-premise SAP. Instead, you get a set scope of processes. For example, you might have a standard quote-to-cash process, procure-to-pay process, etc., that you adopt as-is. You can still extend SAP via the Business Technology Platform (BTP) for custom apps or use SAP’s low-code tools (like SAP Build) to create small extensions, but these are side-by-side extensions, not core modifications. The Premium edition of GROW often comes with a chunk of BTP credits – meaning SAP gives you some capacity to use their platform services for integrations or small enhancements. However, heavy customization or bespoke development is not the intent here. If your business needs highly unique processes or extensive add-ons, GROW might feel restrictive (and that’s where a more flexible offering like a RISE private cloud or on-prem might be needed).
• Additional Cloud Services in Premium: If you opt for the Premium bundle of GROW with SAP, SAP sweetens the deal by including some popular cloud services. This can include SAP Analytics Cloud (Planning) for your budgeting, forecasting, and analytics needs (so you can do integrated planning right on top of your ERP data). It might also bundle a CRM component, such as SAP Sales Cloud (providing a basic CRM capability for your sales team), and Concur Expense for travel and expense management. These extras make the Premium package more of an “all-in-one” business suite for a growing company – you get not just ERP, but some surrounding tools a growing company often needs. The idea is to avoid needing separate vendors for those functions. Keep in mind, though, the inclusion of these services will affect the price (the premium costs more than the base). Ensure you actually need them; if not, the Base edition may be sufficient and more cost-effective.
• Cloud Infrastructure and Updates: As a SaaS/public cloud solution, SAP takes care of the infrastructure for you. This means your subscription covers the hosting on SAP’s chosen cloud (it could be SAP’s own data centers or a hyperscaler like AWS/Azure/GCP behind the scenes, but that’s abstracted away). SAP handles the regular updates and upgrades of the software. You’ll be on a quarterly release cycle, for example, where new features and fixes get applied. Part of the GROW concept is you don’t have to worry about major upgrade projects – you’re always on the latest version (SAP manages that, though you still need to test new updates with your processes). This is a big contrast to on-premise, where upgrades were major undertakings. It also contrasts with RISE in the private cloud, where customers have more say on the timing of upgrades – in GROW’s multi-tenant environment, you’re on SAP’s standard schedule. Standard support is usually included to help with issues, and SAP’s Cloud ALM (Application Lifecycle Management) tools are available for things like monitoring and managing the cloud solution.
• What’s not included: To set expectations, note that GROW with SAP does not include some advanced or enterprise-scale tools that come with RISE. For instance, RISE (especially aimed at large transformations) often includes features such as SAP Business Process Intelligence/Signavio for process mining or a SAP Business Network Starter Pack (which provides connections to the Ariba Network for suppliers, among other benefits). GROW assumes a relatively straightforward implementation, so such transformation extras are not part of the base package. If you require extensive process analysis or a complex migration service, these are handled separately (likely by a partner or additional SAP services at an additional cost). Also, industry-specific solutions (like specialized modules for, say, automotive manufacturing or retail merchandising) might not be in scope for GROW’s standard package. Mid-sized companies with highly industry-specific needs should verify whether the standard S/4HANA Cloud public edition can support those processes.

In summary, the features with GROW are ample for a standard midmarket company’s ERP needs: finance, logistics, sales, and so forth – delivered in a ready-to-run fashion.

It’s a trade-off of breadth vs. flexibility. You gain a quicker start and simpler system management, at the cost of some flexibility and choice.

If your requirements align well with SAP’s prepackaged capabilities, GROW with SAP can cover them with minimal fuss.

Why SAP Introduced GROW

SAP introduced GROW with SAP for a combination of strategic reasons, largely to capture the midmarket segment that was increasingly gravitating towards cloud-native ERP solutions from competitors.

Here are the key motivations:

• Competing with Midmarket Rivals: In the cloud ERP space, companies like Oracle NetSuite, Microsoft Dynamics 365, and even Workday (for finance/HR) have been courting midsize businesses aggressively. SAP historically dominated enterprise (Fortune 500) ERP, but smaller firms often found SAP’s offerings too complex or expensive. SAP Business One and Business ByDesign were SAP’s earlier SMB solutions, but they have limited scope or mixed success. With GROW, SAP is effectively saying, “We have a competitive SaaS solution for midsize companies, too.” It’s designed to be SAP’s answer to NetSuite’s simplicity and quick deployment. SAP doesn’t want to lose growing companies to other platforms – they’d rather offer a right-sized solution and keep them in the SAP family as they grow.
• Broadening the Cloud Customer Base: SAP has a looming timeline – by 2027, mainstream support for the old SAP ECC (ERP Central Component) on-premise system ends (with an optional extended maintenance to 2030 for some customers). This creates urgency for many SAP customers to move to S/4HANA (the new generation ERP). GROW with SAP is a way to entice those who haven’t moved yet – especially smaller SAP ERP customers or even new customers – to jump to S/4HANA Cloud now. By lowering the complexity and cost barrier, SAP hopes more companies will transition before those deadlines. Essentially, GROW helps SAP expand its cloud ERP market share quickly in the midmarket segment, which is crucial for SAP’s growth targets and narrative to investors that it can win cloud business at all levels.
• Focus on Speed and Predictability: SAP recognized that one reason midsize firms shy away from SAP is the fear of long, costly implementations. RISE with SAP (launched 2021) was positioned as a “business transformation as a service” and appealed to larger, often existing customers with complex migrations. GROW, launched in 2023, has a different focus: fast time-to-value. SAP introduced GROW to show that an S/4HANA Cloud system can be live in weeks or a few months, not years. It’s about giving midmarket executives confidence that adopting SAP won’t be a multi-year saga. By packaging preconfigured processes and even offering some fixed-fee deployment services, SAP drastically simplifies the project for these customers. Why now? Because the market expectation is set, if a competitor can promise a go-live in 6 months, SAP needs to match or beat that to win deals. GROW is structured to do exactly that.
• Winning New Logos with Flexible Pricing: SAP is also likely more flexible on pricing with GROW deals than they historically have been with large enterprise deals. The rationale is to acquire new logos (customers) in the midmarket. SAP’s enterprise customer base is huge but largely saturated; growth will come from either big companies shifting to S/4 or new midsize customers adopting SAP for the first time. SAP introduced GROW to attract new customers. Internally, SAP sales teams know they need references and success stories in the midmarket, so they are motivated to make deals attractive. That means as a buyer, you might find SAP more willing to negotiate on price for GROW than they would on a traditional deal – they want to build momentum in this space. The introduction of GROW also gives SAP a more competitive list price structure (with those tiered prices) that can counter the SaaS subscription prices of competitors. In negotiations, you can leverage this context: SAP really wants GROW to succeed, so use their eagerness to get the best possible terms (discounts, extras, flexibility).

In essence, SAP introduced GROW with SAP to fill a gap: provide midsize companies a clear, cloud-based path to run on S/4HANA, faster and simpler than before, and thus prevent those customers from choosing a non-SAP solution.

It’s as much a defensive move to keep market share as it is an offensive move to capture new growth engines. For customers, this is good news – it means more choice and bargaining power when evaluating ERP solutions.

Adoption Considerations

GROW with SAP is not a one-size-fits-all panacea; it shines for certain scenarios and falls short for others.

Here are key considerations when evaluating if GROW is the right fit for your organization:

• Ideal Profile for GROW: GROW with SAP is best suited for small to mid-sized enterprises that have relatively standard business processes and limited IT resources. If your company is, say, under ~1,500 employees, doesn’t have a huge in-house IT department, and is looking to modernize quickly, GROW is tailored for you. It’s particularly attractive to firms that may be outgrowing entry-level systems (like QuickBooks, or a patchwork of smaller ERP/CRM tools) and need a robust ERP but without the heavy lifting of a big SAP project. Companies that want fast deployment and “good enough” best-practice processes (versus highly differentiated processes) will appreciate GROW’s approach. Industries with fairly common processes (wholesale distribution, standard manufacturing, professional services, etc.) tend to fit well in the GROW model since the preconfigured content will meet a lot of their needs.
• Not Ideal For: On the other hand, enterprises with deep customization needs or highly complex processes might find GROW too restrictive. Suppose your business model demands significant customization of the ERP system or you rely on specialized industry solutions that SAP’s standard public cloud doesn’t include. In that case, you may hit the limits of GROW quickly. For example, a large manufacturer requiring intricate production planning or a bank with unique regulatory reporting needs might require more flexibility than GROW allows. Also, if you foresee requiring a private cloud deployment (due to data residency, custom extension, or regulatory reasons), GROW won’t support that – it’s public cloud only. Those cases might push you toward RISE with SAP (which can offer private cloud S/4HANA) or even on-prem S/4HANA in some situations. Essentially, if you’re an enterprise that views ERP as a competitive differentiator where you heavily tailor the system, GROW’s standardized approach might not suffice.
• Resource and Change Management: For midmarket firms choosing GROW, one consideration is how ready your organization is to adopt SAP’s best practices. Since GROW projects emphasize using the system as delivered, business users will need to adapt some of their existing processes to fit the system (rather than customizing the system to accommodate every quirk of their processes). This is generally a good thing – it forces alignment to proven practices – but it requires change management and executive buy-in. The success of a GROW adoption often depends on leadership saying, “We are going to use standard SAP processes unless there’s a really compelling reason not to.” If your teams are on board with that, the project will go much smoothly and faster. If every department expects the software to adapt to them, then a “preconfigured” approach could cause friction.
• Fast Deployment Expectations: SAP markets GROW with promises of quick deployment (potentially live in 4-6 weeks for the technical go-live). In reality, a full implementation including data migration, testing, training, and change management might take a few months, but it’s still far faster than traditional SAP projects. To take advantage of this, be prepared to stick to the standard scope and avoid scope creep. SAP and its partners typically employ an “Activate” methodology for these cloud projects, which utilizes templates and accelerators. As a customer, commit the necessary internal resources (key users, project manager) to work closely with the implementation team in that accelerated timeline. If you have limited IT staff, consider using an SAP partner or SAP services to fill in the gaps – just ensure those costs are factored in when you evaluate the project. GROW might simplify licensing and software delivery, but you still need a solid plan for the implementation effort (data migration from your old systems, user training, etc., are still required).
• Negotiation Leverage – Use SAP’s Eagerness: If your company falls into the midmarket sweet spot that GROW targets, recognize the leverage you have. SAP is very keen to get these GROW wins under its belt, which means you might have more room to negotiate favorable terms. We’ll discuss pricing in the next section, but consider also asking SAP for additional benefits, such as migration assistance, funding, extended payment terms, or the inclusion of extra licenses (perhaps a bit of extra SAP Analytics Cloud capacity or a few more users at no charge to start). SAP often offers incentive programs for new cloud customers – for example, they sometimes provide free trial periods or complimentary access to the “SAP Learning Hub” for your team. Don’t be shy about asking; the worst they can say is no, and often the sales team has some flexibility if they know you are seriously considering competitors. Also, suppose you are an existing SAP ECC customer eligible for GROW. In that case, you should definitely explore conversion incentives – SAP might offer credit for your existing licenses or a discount if you migrate by a certain date. GROW’s introduction means SAP has targets to meet in the midmarket, and you can use that to ensure your adoption is as cost-effective and smooth as possible.

In summary, adoption of GROW with SAP makes the most sense when you’re looking for a rapid, standard solution and your company can live with vanilla processes.

It’s less about reinventing your business via ERP and more about getting modern capabilities in place quickly.

Do a fit-gap analysis: if GROW’s standard scope covers 90% of what you need, it’s likely a strong match. If only 50% is covered and the rest requires workarounds, you may need to reconsider your approach (perhaps a more flexible SAP offering or another product).

Licensing & Pricing Insights

Now, let’s talk about the dollars and cents (or dirhams and cents, as the case may be). How is GROW with SAP priced, and how can you ensure you’re getting a fair deal?

Here are some key insights and tips:

Subscription Pricing Model:

GROW with SAP uses a subscription pricing model that is often described as “per user, per month”. However, SAP typically presents it as an annual fee (e.g., $X per year for Y users), as contracts are usually annual or multi-year.

The pricing is tiered based on the number of users. SAP actually has a price list for GROW packages, which means there are published (or at least internally standardized) rates for certain bands of users.

The more users you have, the lower the cost per user tends to be, due to volume discounts. For example, a small deployment might have a list price of a few hundred dollars per user per month, whereas a larger deployment’s unit cost might drop to a couple of hundred or even under a hundred for very large numbers.

To illustrate, if a company only needs, say, 20 users, the list price might be in the ballpark of $500+ per user/month (since that’s a low volume).

If that same company grows to 200-300 users, the per-user cost could drop significantly (perhaps into the $200-300 per user/month range or even less) once volume discounts kick in. These numbers can vary, but the point is: there are economies of scale.

Always ask SAP to show you how the price scales if you add more users, as it might make sense to anticipate growth now to get into a better pricing tier.

Comparing GROW vs RISE Pricing:

Generally, GROW is cheaper than RISE on an equivalent per-user basis, because RISE with SAP includes more components (infrastructure, broader services) and is aimed at larger deals. GROW’s pricing is more transparent and software-centric.

However, remember that GROW might not include some costs that you will incur externally (for example, a partner for implementation services).

RISE is a more comprehensive bundle (software + infrastructure + some tools), which is why its cost structure is higher and more complex. If you are a midmarket firm, you should find that GROW’s simplified subscription comes out with a lower total cost for the scope you need.

One reason is that public cloud (multi-tenant) is inherently more cost-efficient than private cloud (which RISE can include).

So SAP passes some of that efficiency in the form of a lower price to GROW customers. Yes, GROW is typically cheaper than RISE, but that’s in line with its narrower scope – you get what you need and not a lot of extras.

Negotiation Tip – Multi-Year Protections:

When discussing price, it’s not just about the Year 1 subscription fee. Look at the total cost of ownership over the entire term. Negotiate multi-year pricing protection. SAP often fixes the price for the initial term (e.g., a 3-year flat annual fee). But what about after that? Ensure your contract has a cap on renewal increases.

For instance, try to get language like “upon renewal, the price per user will increase no more than 5%” or “renewal will be at the same pricing as the initial term, provided the user volume remains the same” – something that protects you from a steep hike.

Many customers have been burned by signing a sweet 3-year deal only to find the renewal quote is 20% higher because the initial discounts expired.

Negotiate that upfront when you have leverage (before signing). Also, consider negotiating the ability to renew early or extend the term at locked-in pricing if you’re happy with the service – basically, options to continue without renegotiation at a huge premium.

Negotiation Tip – Bundle Services and Extras:

Pricing isn’t just about the software licenses. You should also think about the implementation and support costs that come along. Often, midsize firms will use an SAP implementation partner to help deploy GROW with SAP.

Those services are paid separately to the partner (or to SAP if you go with SAP’s services). Try to use SAP’s desire to win your business to get some of these costs offset. For example, you can request SAP-funded migration support – sometimes SAP has programs or incentives where they give a credit or a voucher for services if you buy now.

Or SAP might include a certain number of hours of consulting or free training for your users. These things might not show up on the price quote by default, but savvy negotiators ask for them. One practical ask: “Can SAP include the ‘starter pack’ of data migration or integration services as part of this deal at no extra cost?”

Even if it’s something like SAP providing some technical guidance or tools, it reduces your out-of-pocket expenses with third parties. Also, clarify support: GROW comes with standard support (typically SAP Enterprise Support, cloud edition).

If you feel you need enhanced support (like SAP Preferred Success or MaxAttention for Cloud), see if that can be bundled in at a discount in the deal instead of being added later for full price.

Leverage Competitive Quotes:

If you’re also evaluating other ERPs (which most prudent buyers do), use those as leverage in pricing discussions. SAP knows exactly who the main competitors are in this space – for a midmarket cloud ERP, likely Oracle NetSuite, Microsoft Dynamics 365, maybe Oracle Fusion Cloud for bigger midmarket, and even players like Infor or Sage in some cases.

Don’t be afraid to let the SAP rep know that, for example, “NetSuite quoted us roughly $X for Y users” or “Dynamics 365 would cost us Z over 3 years.” If those alternatives are cheaper, SAP will often work to match or at least come closer, especially if functionality is comparable.

Be sure the comparisons are apples-to-apples (including software + necessary add-ons). SAP will emphasize its solution’s breadth and scalability, but at the end of the day, it knows price is a factor.

Even Workday (if you’re mainly looking for finance/HR) could be a benchmark.

The midmarket is a battleground, and SAP has entered it anew with GROW – that means as a buyer, you have a choice, and choice translates to negotiating power.

Volume and Scalability Considerations:

Another pricing insight – think about not just your initial user count but your projected growth. It might sound counterintuitive, but sometimes buying a bit more upfront can save money in the long run if you expect to scale.

SAP’s tiered pricing means if you commit to say 50 users now instead of 40, the per-user price might drop enough to actually make the total not much more.

And you have headroom to add users without additional purchase. Of course, you don’t want to over-buy licenses you won’t use (shelfware), but if growth is part of your plan, negotiate a deal that locks in pricing for those future users. Perhaps you sign for 40 now with an agreement that you can add the next 20 at the same per-user rate.

The key is to avoid a scenario where you grow and then have to pay a higher unit price for the new users because your initial discount was only for the first batch. SAP typically honors volume pricing if you negotiate it – but get it in writing. This way, your pricing scales predictably.

Watch for Hidden Costs:

While GROW’s pricing is simpler, pay attention to any limits or overage charges that could come into play.

Ask about things like: data storage limits (is there a maximum data volume and what if you exceed it?), API call limits (unlikely in standard ERP, but if you plan heavy integration, check if BTP usage covers it), or additional environments (do you get a sandbox/test system included or is that extra?).

Often in a public cloud, you get at least two systems (test and production) included. Ensure that’s the case. If you need a dedicated development tenant or extra test clients, there might be costs.

Also, clarify if the subscription covers all the users you need (sometimes professional vs productivity users are priced differently; SAP simplifies this with FUE count, but confirm that light users like executives who just run reports are counted appropriately and not each as a full user). These details ensure the price you agree on truly covers your needs without later surprises.

In conclusion, do your homework on pricing: know the list price ranges, get quotes from others, and negotiate both the initial price and the long-term terms.

The good news is that, with GROW, SAP has made pricing more transparent than it was in the old days of complex SAP licensing.

Use that transparency to your benefit – and don’t hesitate to push back or ask for concessions. SAP expects it, and in this midmarket arena, they’ve shown a willingness to be flexible to win the right deals.

GROW vs RISE: Key Differences in a Snapshot

To put GROW with SAP in context, it helps to compare it with RISE with SAP, which is SAP’s offering for larger-scale transformations.

Here’s a quick comparison table of GROW vs RISE across major aspects:

(Table: Key differences between GROW with SAP and RISE with SAP.)

FAQs

Is GROW with SAP cheaper than RISE? → Yes, typically, GROW with SAP has a lower price tag than RISE for a similar-sized deployment. The monthly per-user cost is generally less because GROW’s scope is narrower and it’s public-cloud only. However, remember that “cheaper” comes with the context that you are getting a standard package – RISE includes more services/infrastructure. For a midmarket firm that doesn’t need those extras, GROW ends up being a cost-effective choice.

Who should consider GROW with SAP? → Midmarket companies that need a cloud ERP solution without heavy customization. If your business can run on standard best-practice processes and you want a quicker, simpler implementation, GROW is aimed at you. This could be a growing midsize company currently on legacy systems, or even a smaller division of a larger company that wants to try SAP in a contained way. In short, if you’re looking for a modern ERP and have typical requirements (finance, procurement, sales, etc.), and you don’t have a massive IT department, GROW is worth considering.

Can GROW customers switch to RISE later? → Yes, SAP allows a path to transition from GROW with SAP to RISE with SAP if needed, but you should negotiate the framework for that up front. For example, if you think you might outgrow the public cloud limitations in a few years, have it written that you can upgrade to a private cloud or a larger RISE contract without punitive fees. In practice, many features of GROW and RISE are the same S/4HANA Cloud under the hood, so moving up is possible. Just ensure that any investments you make (such as your data and configurations) can be easily carried over. It’s wise to get clarity on how licensing would convert and what credits you’d get for what you’ve already paid.

Is GROW with SAP licensing really per user? → Yes, GROW is licensed primarily per user (using SAP’s FUE model behind the scenes). But you’re not buying individual module licenses – it’s a bundled user subscription that entitles the user to use the included modules. You typically purchase a package of users (e.g., 20, 50, 100 users, etc., depending on your needs). The licensing is simplified into those subscription bundles, which makes it easier to understand than the traditional SAP licensing of the past, where every component had its own metric. Just be aware that SAP might classify users by type (e.g., some might count as a full user, some as a fraction for lighter use). But the bottom line is, you’ll pay a flat subscription fee based on the number of users you sign up for, and that covers the use of the system.

Does GROW with SAP include support? → Yes, standard support is typically bundled with the GROW subscription. In an SAP cloud subscription, SAP Enterprise Support, cloud edition is usually included, meaning you get access to SAP support channels, quarterly updates, and the basic help resources. However, suppose you require enhanced support (such as a dedicated support manager, faster response SLAs, or proactive services). In that case, this may be a premium offering (for example, SAP offers a service called “Preferred Success” for cloud customers at an additional cost). It’s a good idea to confirm what level of support is included. For most mid-sized customers, the standard included support is sufficient to get started. Always clarify this in your contract so you know who to call and what response times to expect when you have an issue.

Five Expert Recommendations for Prospective GROW Customers

1. Know Exactly What’s in the Bundle: Don’t assume a module or feature is included – verify it. Get a detailed list of what processes and components come with GROW (especially if you’re looking at the Premium edition). For example, if manufacturing or warehouse management is critical for you, confirm that those sub-modules are part of the package and not an extra. This avoids scope surprises later. Essentially, read the fine print of the package and make sure all the functions you need are checked off, or accounted for via an add-on.
2. Leverage SAP-Funded Incentives: Push for SAP (or their partners) to include migration and training support as part of the deal. This could mean asking SAP to fund or credit some hours of a partner’s work to migrate your data from your old system, or to provide hands-on training workshops for your key users. SAP has been known to be flexible here, especially if you’re one of the early adopters of GROW in your region or industry. Even if not offered upfront, it’s negotiable – the worst outcome is they say no, but often you’ll get something. A smooth implementation is in SAP’s interest too, so don’t hesitate to ask for help in that journey as part of your licensing discussion.
3. Negotiate Multi-Year Caps on Cost Increases: One of the biggest risks in any subscription deal is the renewal price. As an expert tip, negotiate price protections for the future at the outset. For example, include a clause that caps annual price increases (e.g., no more than 3% per year, or tied to CPI inflation rate). If you sign a 3-year deal, try to also lock in an option for two more years at a known rate. This prevents “sticker shock” at renewal time. SAP’s goal is to attract long-term cloud customers, so they may agree to reasonable caps if it means securing your business. Make sure any cap or fixed renewal terms are explicitly written in the contract.
4. Benchmark Against Competitors: Before you finalize, compare GROW with SAP vs other options like Oracle NetSuite, Microsoft Dynamics 365, or others you’ve evaluated. Use these comparisons not only to negotiate price (as discussed) but also to gauge if the value is truly there for your business. Maybe NetSuite is a bit cheaper, but can it handle your growth? Maybe Dynamics is bundled with other Microsoft deals you have. Weigh those factors. And when negotiating, diplomatically let SAP know you have those comparisons. It often motivates them to sharpen their pencil and also to highlight where they genuinely offer more value. A well-informed customer usually gets a better deal.
5. Use SAP’s Push for Adoption as a Bargaining Chip: SAP has a strategic imperative to make GROW with SAP a success story. As a prospective customer, this is your golden bargaining chip. You can negotiate not just on price, but on contract terms, flexibility, and extras. For instance, maybe you want the ability to cancel after year 1 if certain value metrics aren’t met (it’s tough to get, but asking signals that you expect success). Or you want a clause that if a new functionality (say, a new AI feature or something) is released that would have been included had you waited, you get access without a price hike. These aren’t standard, but in some cases, SAP might accommodate special requests to win your business. At a minimum, use their eagerness to get a generous discount. It’s not uncommon to see double-digit percentage discounts off the list price for strategic deals. And remember non-monetary wins too: maybe SAP can feature your company as a reference or case study – this doesn’t save money, but it can give you some free press and a closer relationship with SAP. In negotiations, think broadly about value, not just the subscription fee.

By following these recommendations, you’ll approach GROW with SAP with eyes wide open and set your company up for a successful partnership with SAP on favorable terms.

Good luck with your ERP journey, and remember that in the cloud era, the power has shifted a bit more to customers – use that to ensure you get the right solution at the right price and conditions.

Related articles

• Negotiating GROW with SAP Contracts – Playbook for Midmarket Buyers
• RISE vs GROW with SAP – Licensing and Strategy Comparison
• GROW with SAP FAQs – Implementation, Add-Ons, and Compliance Considerations
• GROW with SAP Licensing Model – Subscription Pricing for SMBs

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