RISE with SAP Licensing (S/4HANA Cloud): Strategic Considerations for Enterprises

RISE with SAP Licensing (S/4HANA Cloud)

Introduction

RISE with SAP is SAP’s flagship cloud offering introduced in 2021 to accelerate customer transitions to SAP S/4HANA Cloud. Unlike a traditional on-premises SAP license model, RISE with SAP repackages existing products and services into a single subscription contract​.

SAP positions RISE as a “business transformation as a service” bundle, which includes the S/4HANA Cloud ERP and related tools, all managed by SAP under a single agreement.

For CIOs and IT procurement leaders, this model has profound implications on licensing, costs, and vendor strategy.

This article provides an independent, strategic analysis of RISE with SAP licensing, covering its components, how it differs from traditional SAP licensing, and key considerations, including cost, flexibility, lock-in, and compliance.

SAP’s end of mainstream support for ECC in 2027 has added urgency to S/4HANA migration plans. RISE with SAP is a major part of SAP’s cloud-first push, but enterprises must carefully evaluate whether RISE aligns with their long-term interests.

What is RISE with SAP? – Overview

RISE with SAP is essentially a subscription-based offering that bundles SAP’s ERP software with cloud infrastructure and services into a single contract. It is not a new SAP product per se, but rather a packaging of S/4HANA Cloud and surrounding services​.

The goal is to simplify a customer’s move to S/4HANA by providing one contract, one set of SLAs, and SAP-managed cloud operations instead of the customer running the system on-premises.

Key characteristics of RISE with SAP:

• All-in-One Subscription: Customers no longer purchase perpetual licenses. Instead, they pay a recurring subscription fee that includes the S/4HANA software usage rights, infrastructure hosting, and SAP’s technical management services​. This means SAP (and its chosen cloud partner) takes over tasks like system provisioning, patches, and updates under a service-level agreement (SLA).
• Cloud Infrastructure Managed by SAP: The ERP system is hosted either in SAP’s data centers or on hyperscalers (AWS, Azure, GCP) of the customer’s choice, but the contract and relationship for infrastructure are managed through SAP. Customers get cloud flexibility, such as not managing hardware, although they don’t directly control the cloud contract.
• S/4HANA Cloud Focus (Private or Public): RISE covers SAP S/4HANA Cloud in two flavours – a Private Cloud Edition (dedicated instance, allowing more customization) and a Public Cloud Edition (standardized SaaS, less customizable)​. The private edition under RISE is most common for medium and large enterprises transitioning existing systems, whereas the public edition (recently marketed as “GROW with SAP” for new midmarket customers) is multi-tenant and more restrictive on modifications.
• Bundle of SAP Services: Beyond the core ERP, RISE includes access to several SAP cloud services and tools as part of the package: business process intelligence tools, a starter pack of SAP Business Technology Platform (for integrations and extensions), and limited access to SAP’s Business Network trading hubs (e.g. a small number of Ariba document transactions). These are intended to support migration and digital transformation (e.g., using Signavio for process analysis and Ariba Network for procurement collaboration).
• SAP-Managed Updates: In the RISE public cloud, SAP automatically updates the system on a regular schedule (keeping all customers on the latest version)​. In the private cloud edition, SAP handles technical updates and patches, but customers are still responsible for major version upgrades and ensuring custom code is compatible. This “clean core” principle is encouraged – i.e., minimize modifications to the S/4HANA core and use BTP for extensions – to ease future updates​.

In summary, RISE with SAP shifts much of the operational burden to SAP and provides a cloud-based subscription model for S/4HANA.

Enterprises get a single point of contact (SAP for both software and infrastructure issues) and potentially faster time to value in the cloud. However, this convenience comes with trade-offs in terms of flexibility, control, and long-term costs, which we will explore in detail.

Components Included in a RISE with SAP Contract

A RISE with an SAP subscription typically bundles the following core components and entitlements:

• SAP S/4HANA Cloud (ERP Software): The digital core ERP is the centrepiece. RISE covers the licenses for S/4HANA Cloud – either Private Edition (customer-specific instance, based on S/4HANA edition that closely mirrors on-prem capabilities) or Public Edition (standard SaaS ERP with SAP’s predefined best practices)​. The choice affects the degree of customization possible and the deployment model (private can be on a chosen hyperscaler or SAP data centre; the public is only in SAP’s cloud environment).
• Cloud Infrastructure & Technical Services: Hosting for the S/4HANA system is included. Customers choose a preferred cloud provider (e.g., Azure, AWS, GCP) or SAP’s data centre, and SAP provisions and manages the environment​. The included infrastructure size (often specified by “T-shirt sizes” like Small, Medium, etc.) is tied to the subscribed license capacity (e.g., number of users/FUEs)​. SAP also provides technical managed services such as system monitoring, regular patches, back-ups, and ensuring availability​ as part of the subscription.
• SAP Business Technology Platform (BTP): RISE bundles a certain amount of SAP BTP resources or credits since SAP encourages using BTP for any custom extensions or integrations (to keep the core S/4 system “clean”). BTP acts as the platform for building apps, interfaces, or reports outside the core ERP. Note: The RISE base subscription includes a limited BTP consumption quota (credits), and additional usage beyond that is charged separately on a consumption basis. Enterprises should monitor BTP usage carefully, as heavy use of BTP services (e.g., for analytics or heavy custom apps) can lead to extra costs beyond the RISE package.
• SAP Business Network Starter Pack: To enhance supply chain and procurement processes, RISE includes starter access to SAP’s Business Networks. For example, a standard RISE contract might include 2,000 Ariba Network documents (transactions) for supplier collaboration. This gives a flavour to SAP’s procurement network. Still, additional document volume or advanced Ariba capabilities would require purchasing extra capacity. Similarly, access to other networks (like Logistics Business Network or Asset Intelligence Network) may be included in a limited fashion.
• Business Process Intelligence (BPI): RISE customers receive tools from SAP’s BPI portfolio (primarily SAP Signavio) to analyze and optimize processes. This typically includes process discovery/analysis reports and modelling tools to help identify process improvements pre- and post-migration​. These tools assist in mapping existing ECC processes and redesigning them for S/4HANA, which can be valuable in planning the transformation.
• Service Level Agreements (SLA): The contract defines SLAs for system availability and performance, often tiered by edition or industry. For example, a standard uptime guarantee (e.g., 99.7% or 99.9%) is included, potentially with higher SLA or disaster recovery options at extra cost for industries like banking. SAP takes on liability via service credits if SLA targets aren’t met (though typically limited to credits, not full damages). Enterprises must review if the SLA meets their needs and what remedies are offered if SAP falls short.

What’s Not Included: It’s essential to note that RISE with SAP does not include the consulting and application management services required to implement or run S/4HANA for the business.

Implementation services for initial setup, configuration, data migration from ECC, and any process re-engineering must be contracted separately (often with a systems integrator or SAP services arm).

Likewise, Application Management Services (AMS) – ongoing support for customizations, module configuration, and end-user support – are not part of RISE and would either remain an internal responsibility or be outsourced to a partner​.

In short, RISE provides the software, infrastructure, and technical platform, but project execution and functional support are left to the customer’s chosen implementation partners or internal teams.

Understanding exactly what is included (and what is not) in the RISE bundle is crucial. Misinterpretations can lead to assuming something is covered by SAP when it requires a separate contract​.

Enterprises should delineate responsibilities – for instance, SAP handles basic-level tasks and cloud uptime. In contrast, the customer (or their system integrator) handles data migration, custom development, testing, and user support.

This clarity will inform a more accurate total cost estimate and avoid surprises down the road.

RISE Subscription Licensing vs Traditional SAP Licensing

RISE with SAP represents a fundamental shift from SAP’s traditional licensing model.

Below, we compare key dimensions of RISE’s subscription licensing versus traditional on-premises SAP licensing:

Licensing Model & Ownership:

Traditionally, SAP software was sold as a perpetual license – the company buys the software rights upfront and can use them indefinitely, with optional annual maintenance.

Under RISE, the model is subscription-based: you pay for the right to use the software during the subscription term, and there is no perpetual right to use S/4HANA outside the subscription period. SAP has signaled that new S/4HANA capabilities are only available via subscription (cloud), meaning you typically cannot buy new perpetual S/4 licenses for a RISE-covered environment.

This difference impacts ownership – in a traditional model, you own the licensed asset and can continue using the software even if you stop paying maintenance, although without support. In RISE, if you stop your subscription, you will lose access to the software entirely, so continuous payment (or migration to S/4HANA) is required to continue using S/4HANA.

Infrastructure & Hosting:

In on-prem licensing, the customer is responsible for provisioning hardware or cloud infrastructure and running the system themselves or via a hosting partner. With RISE, infrastructure is bundled – SAP provides and manages the hosting environment as part of the subscription.

This means less effort for the customer in managing servers or negotiating separate cloud contracts, but it also means less direct control. For example, under RISE, the customer doesn’t have a direct contract with the cloud provider; any changes to infrastructure (scaling, region changes) must go through SAP’s agreement. Traditional deployments gave more flexibility to switch infrastructure providers or adjust infrastructure independently of SAP.

Support & Maintenance:

In the traditional model, support is an add-on, typically accounting for around 20–22% of the license price per year, which grants access to updates and SAP support. RISE includes support services in the subscription fee – SAP provides standard support and continuous updates as part of the package. This simplifies budgeting (no separate maintenance bill) and ensures you’re entitled to the latest upgrades.

However, it also means you cannot opt out of support or seek third-party support for a lower cost, as some on-prem customers do. All support and maintenance in RISE is through SAP by design. The trade-off is between convenience and flexibility: on-premises customers could drop SAP maintenance (to save costs, possibly switching to third-party support like Rimini Street) at the expense of not receiving updates, but RISE customers have no such option since support is inseparable from subscriptions.

Upgrades & Customizations: 

Traditionally, customers control when to upgrade their SAP system (e.g., moving from ECC enhancement packs to S/4HANA version updates on their schedule). This allows flexibility but can result in running outdated versions.

In RISE, upgrade management depends on the edition you are using. In the public cloud SaaS, SAP applies quarterly upgrades automatically, which means customers must adapt to new features on SAP’s schedule (and deep modifications are not possible).

In the private cloud edition, SAP handles minor upgrades and system patches. However, major version upgrades (e.g., moving to the next S/4 release) still need customer involvement and testing, especially if the system is heavily customized​.

SAP encourages RISE customers to minimize custom code and instead use BTP extensions to ensure smoother upgrades​. In a traditional environment, customers often have extensive ABAP customizations and modifications – these can all be brought into a RISE private cloud. However, the more you customize, the more effort you’ll need for future upgrades (RISE doesn’t magically eliminate that)​.

The public cloud (GROW with SAP) prohibits most custom ABAP code, enforcing standard processes while ensuring effortless upgrades. Thus, RISE offers more standardized, up-to-date systems at the potential cost of limiting how much you tailor the system. In contrast, on-prem allows full customization and control over upgrade timing.

Pricing Structure (CapEx vs. OpEx):

Traditional licensing typically involves a large upfront cost for perpetual licenses (CapEx) plus annual maintenance fees (OpEx) and your infrastructure costs. With RISE, the cost is a flat, often quarterly or annual, subscription fee (100% OpEx) that covers both software and hosting.

This can be appealing for budgeting as it turns ERP into a predictable operational expense. SAP often claims that RISE can reduce the total cost of ownership by up to 20% compared to on-premises solutions in some cases, especially when factoring in the elimination of hardware refreshes and IT overhead.

However, whether RISE is cheaper depends on many factors: your existing license investments, data centre costs, and the discounts SAP offers.

Some organizations might find RISE more costly over time if they already have a well-tuned on-prem environment. It’s crucial to run a multi-year TCO analysis rather than assuming subscription will automatically be cheaper. (We will discuss TCO in detail in the next section.)

Contract Term and Renewals:

A key difference is the concept of the term. On-prem licenses are perpetual, so technically, no “renewal” of the license is needed – only maintenance renewals each year, which you could choose to discontinue (the software wouldn’t stop working; you’d lose support and updates). RISE contracts, on the other hand, are typically committed for a multi-year term, such as 3 or 5 years.

During this term, you are locked into paying for the subscribed capacity, with no early termination without a significant penalty​. Once the term is up, you must renew the subscription to continue using the software, at which point SAP can renegotiate pricing. This places more risk on renewal – if you don’t negotiate price protections upfront, you might face cost increases to stay on RISE.

Traditional customers had more leverage in that they at least owned the license and could theoretically use an older system indefinitely or seek alternative support. In contrast, a RISE customer who is unhappy at renewal has the unappealing option of losing their ERP system if they choose to walk away. We will later cover strategies for handling renewal negotiations for RISE, such as capping price increases.

Indirect Access and Additional Usage:

Indirect usage (accessing SAP indirectly via third-party applications or automation) has been a thorny issue in SAP licensing.

In traditional licensing, SAP introduced the Digital Access model (document-based licensing) for indirect use. Under RISE, indirect digital access is not automatically included – customers still need to license it (usually via the same document-based model) in addition to the base RISE package.

This means if, for example, a non-SAP system creates sales orders in S/4HANA via an interface, those documents count toward digital access, and you may need a separate document pack license. Similarly, consuming SAP Business Technology Platform beyond the included credits will incur additional fees.

In both traditional and RISE models, usage beyond agreed-upon licenses (too many users, extra modules enabled, etc.) can trigger compliance issues. The difference is that in RISE, many metrics are simplified into the subscription (e.g., user count), while some remain consumption-based add-ons.

The bottom line is that RISE does not eliminate compliance management; it shifts it. Instead of managing a myriad of engine metrics, you’ll manage your FUE users and any additional consumptive services, such as BTP or digital access, outside of the core subscription.

The following table summarizes the comparison between Traditional SAP Licensing and RISE with SAP:

Table: Traditional SAP Licensing vs. RISE with SAP – Key Differences and Considerations

Cost Structure and Total Cost of Ownership (TCO)

One of the biggest questions for enterprises is how the cost of RISE with SAP compares to the traditional licensing and operating model. SAP markets RISE as a way to lower the total cost of ownership by consolidating expenses.

For example, SAP has stated that RISE can reduce TCO by up to 20% compared to an equivalent on-premises S/4HANA deployment, taking into account hardware, maintenance, and implementation costs​.

While this is an attractive proposition, CIOs should critically evaluate this claim with a detailed analysis of their situation.

Components of RISE Costs:

The RISE subscription fee is typically a packaged price based on metrics such as the number of Full User Equivalents (FUEs) and other included elements. This fee covers S/4HANA software usage, support, infrastructure (for the specified system size and environments), and the bundled cloud services (such as BTP credits, etc.).

It is usually a fixed annual amount over the contract term, with potential built-in escalators or increases each year, which should be specified in the contract.

Beyond this base fee, consider variable costs:

• Excess Usage Charges: If you exceed your contracted metrics (e.g., more users than FUEs, more digital documents, extra storage, or compute needs beyond the initial sizing), SAP will charge for the additional usage. For instance, heavy use of BTP beyond the included credits will be metered and billed​. Similarly, if your business growth requires more users, you’ll need to amend the contract (usually at an additional cost).
• Implementation and Migration Costs: These are one-time, but often significant, costs outside of the subscription. The effort to move from ECC to S/4HANA, including process redesign, data migration, testing, retraining users, and more, can be substantial, often costing large enterprises millions of dollars. RISE doesn’t eliminate these service costs; it might even add complexity because you need to coordinate with SAP’s cloud provisioning timeline.
• Integration and Third-Party Costs: If you have multiple integrations, you may need additional middleware or BTP services, which can incur costs. Also, any third-party software that connects to SAP may require adjustments or new licensing under a cloud setup. For example, legacy add-ons may need cloud-compatible versions. These costs may not be large in terms of licensing, but they add to the project’s total cost of ownership (TCO).
• Opportunity Cost of Existing Investments: If you have already invested in hardware or data centers for SAP, moving to RISE could leave those assets stranded. Conversely, if your infrastructure is due for a refresh, RISE’s cloud model might save you the capital expense of buying new hardware. Consider your current stage in the hardware lifecycle and depreciation cycle when calculating total cost of ownership (TCO).

TCO Analysis Over 5–10 Years: We strongly recommend modelling the total cost of RISE over a multi-year period (5, 7, or 10 years) and comparing it to a scenario of staying on-prem or a different cloud approach.

Include all relevant factors:

• Software Costs: For on-premises, include initial license purchase (amortized) and maintenance; for RISE, the subscription fees over time (including any contractually stated increases or a reasonable estimate of renewal costs).
• Infrastructure & Operations: On-prem will include data centre costs (power, cooling, admin staff) or cloud hosting fees if BYOL is on the cloud, plus basic support staff. RISE’s equivalent is embedded in the subscription, including infrastructure and SAP basis tasks. If your current infrastructure costs are high (or if you’d need to invest in new hardware soon), RISE could indeed show savings. If your infrastructure is efficient and low-cost, the delta may favour staying with your setup.
• Implementation/Upgrade Costs: For the RISE path, include the cost of the migration project. For staying on-premises, if you plan to move to S/4HANA anyway, you’ll incur a similar migration cost, so that may offset the cost. However, if you were not planning to migrate so soon, RISE accelerates that spending. Also consider ongoing costs: on-prem upgrades every few years versus continuous improvement under RISE.
• Personnel: RISE may allow reassigning or reducing some IT staff efforts (e.g., less time on patching or infrastructure management). However, you might still need those people for value-added work or to manage the SAP relationship. It’s not usually a 1:1 cost reduction in staff, but there can be some efficiency gains.
• Potential Soft Benefits: SAP will tout faster innovation (new features sooner), reduced downtime risk, and improved performance in RISE. While hard to quantify, you might weigh if being always up-to-date could bring business benefits (e.g., quicker rollout of SAP innovations or avoiding large upgrade projects). On the other hand, if your business prefers stability over constant change, that “always current” benefit might not carry much value and could even be a disruption cost.

Ultimately, whether RISE lowers your total cost of ownership (TCO) in practice depends on your starting point and the deal you negotiate. Some clients have reported that out-of-the-box RISE proposals were more expensive than their status quo, but with negotiation and right-sizing, they could make it competitive.

Careful sizing of user counts and system needs is vital, since RISE is priced per capacity; buying too much “headroom” can inflate costs. Remember that SAP’s RISE bundle combines many costs, which simplifies comparison on paper but can mask the premium.

For example, paying for named user licenses that aren’t fully utilized can be cost-efficient: SAP’s subscription is often based on authorizations (entitlements) rather than actual usage.

If you license 100 users and only 70 use it actively, you’re still paying for 100. Studies have found that such models can be 50–150% more expensive than true usage-based models if they are not optimized. The takeaway is to scrutinize the RISE bill of materials and eliminate any unnecessary spending (e.g., too many users or extra components that are not needed) before signing, to optimize costs.

In negotiations, don’t hesitate to ask SAP to demonstrate the promised TCO savings in your specific case. If SAP claims 20% savings, require them to show the math and validate it with your figures​.

Sometimes, an attractive first-year price can be offset by steep increases later. A thorough TCO projection gives you evidence to negotiate better terms or decide if RISE is financially right for you.

Commercial Flexibility, Renewals, and Scalability

Flexibility is a major concern when committing to a long-term enterprise agreement. Traditional SAP licensing, while complex, at least offered some flexibility – you had control over the licenses you purchased and could adjust the maintenance or support strategy over time.

With RISE, much of that flexibility needs to be pre-negotiated, as the default terms can be rigid.

Key points to consider:

• Contract Term Lock-In: As noted, RISE contracts lock you in for the full term (typically 3-5 years). Unlike some cloud services, where you can scale down usage or cancel with notice, a RISE subscription is generally non-cancellable during the term, without paying the remainder or incurring heavy penalties​. Ensure the term length aligns with your strategy. If you commit to 5 years, you’re banking on SAP S/4HANA meeting your needs for that period. Some clients choose a shorter term to retain flexibility, but SAP may offer bigger discounts for longer terms. Balance the discount versus the risk of lock-in.
• Renewal Terms & Price Protection: How renewals are handled can make or break the long-term value of RISE. Under default conditions, after the initial term, you may face a significant price hike to renew, as switching off SAP becomes very difficult at that point. It is critical to negotiate renewal provisions upfront. Seek to cap the price increase at renewal – e.g., negotiate that the renewal price for the same capacity will not increase by more than X% (or even better, fix the renewal price now) ​if SAP is unwilling to fix a price that far out, at least secure a cap for the first renewal​. Also, negotiate the right to reduce or reallocate capacity at renewal. Perhaps your user count will drop if efficiency improves, so can you renew at a lower number of FUEs? SAP’s standard contract may not allow it, but this is a point worth discussing.
• Scaling During Term: In a dynamic business, you may need to adjust usage. RISE allows scaling up (you can always procure additional users or resources, usually at an added cost, and typically co-terminus with your contract). However, scaling down is not allowed until renewal. If you divest a business unit or find that you overestimated users, you’re generally stuck paying the originally contracted amount until the term ends. One strategy is to start with conservative numbers and add later as needed, though be mindful of any minimums SAP requires – SAP reportedly has a 35 FUE minimum for RISE, for example. Also, consider if your contract can include some buffer or elastic terms (rare but worth exploring). At a minimum, be aware that reducing cost mid-term is not feasible; all the more reason to right-size at the outset.
• Contractual Flexibility Clauses: There are certain clauses that enterprises should attempt to negotiate for flexibility:
  • Swap Rights: The ability to swap one product or service for another of equivalent value. For example, if you decide to adopt a new SAP cloud service and drop another, can you repurpose some of your spending? Standard RISE doesn’t allow swapping components easily, but you might be able to negotiate some degree of flexibility to exchange (for instance, trading unused Ariba document allocations towards more BTP credits, etc.).
  • Shelfware Protection: In traditional deals, customers sometimes negotiate the right to terminate maintenance on shelfware licenses. In RISE, you might negotiate that if certain users or modules go unused for a period, you can drop them in the next term or replace them with others. This isn’t standard, but expressing the concern may get SAP to agree to a mechanism for adjustments at renewal.
  • Mid-Term Adjustments for M&A or Divestitures: If your company is active in M&A, consider including clauses that allow for adjustments in the event of acquisitions or divestitures. For example, if you acquire a company and need to add 100 users, SAP might agree to a fixed price per user for those. Or if you divest a division, perhaps you can reduce the user count proportionally. These scenarios can be discussed so you’re not caught in a position of overpaying or being unable to accommodate business changes.
  • Future Technology Inclusion: SAP’s offerings will continue to evolve (e.g., new AI services). While you can’t predict the future, you might consider asking for a technology refresh clause – e.g., the ability to incorporate new SAP products into the deal with a pre-agreed discount or conditions. This keeps your contract a bit more future-proof, so you’re not stuck with yesterday’s bundle if SAP launches something new that you want to adopt under RISE.
• Hyperscaler Choice and Portability: RISE allows you to choose a hyperscaler at the start, but switching later can be complicated. If multi-cloud flexibility is important, clarify how (or if) you could move your RISE deployment from, say, Azure to AWS during the term or at renewal. It likely requires SAP’s involvement and possible reimplementation effort. Some enterprises prefer to contract directly with hyperscalers to keep that relationship separate, but RISE doesn’t give that option​. Thus, you’re tied to SAP’s arrangements. If you have special pricing or commitments with a cloud vendor, see if SAP can accommodate that in RISE pricing.

Bottom line: Approach RISE contracts as a long-term partnership with SAP, because that’s what they are. Given the limited flexibility inherent in use, use your negotiation leverage before signing to embed as much flexibility as possible.

If SAP’s initial proposal lacks provisions for renewal caps, downsizing, or other requirements, push back and propose your terms. Independent licensing advisors can be very helpful in this phase, as they bring benchmarks and know what terms SAP has conceded to other clients.

Remember, once the contract is signed, your ability to make changes is minimal until the next renewal cycle.

Vendor Lock-In Risks

RISE with SAP undoubtedly increases your dependency on SAP. By having SAP provide the software, infrastructure, and technical managed services all together, you are effectively “locking in” many layers of your IT stack with one vendor.

CIOs and procurement heads should carefully consider the implications of this consolidation:

• Bundled Ecosystem – Reduced Negotiating Leverage: In a traditional model, you could negotiate separately for databases, infrastructure, support services, etc., possibly even replacing one without changing the others. With RISE, all components are tied to SAP. It becomes difficult to negotiate, for example, a better price on cloud infrastructure or to switch support providers because those elements aren’t standalone – they’re baked into the RISE fee. If you become dissatisfied with any part of the service, your only recourse is to contact SAP or eventually exit RISE entirely (which, as discussed, can be challenging in the long term). This bundled dependency can lead to complacency on the vendor side; SAP knows that it’s cumbersome for you to shift away, which could reduce their incentive to be flexible or competitive after you’re onboard.
• Switching Costs: The cost and effort required to exit the RISE arrangement and switch to something else can be prohibitive. If, after a few years, you determine that RISE is not meeting expectations (or is too expensive), switching to another model means essentially a new migration – either migrating your S/4 system to a different hosting model or potentially even switching ERP vendors (in an extreme case). In either scenario, you would likely need to re-license the software. Remember, under RISE, you haven’t purchased S/4HANA licenses, so if you want to run S/4HANA on-premises or in a different cloud outside of RISE, you’ll need to purchase perpetual licenses or a different subscription from SAP. That’s a big cost hit after already paying for RISE for years​. Additionally, extracting your data and configurations from SAP’s cloud and importing them elsewhere is a major project, although technically feasible. This high switching cost is a classic example of vendor lock-in. It gives SAP strong leverage to dictate terms at renewal, knowing customers will be disinclined to endure a reimplementation elsewhere.
• Limited Exit Options: Unlike some cloud services that offer export tools or transition assistance as standard practice, SAP’s contracts require you to negotiate any helpful exit provisions. We will discuss the exit strategy in the next section, but it’s worth noting here that SAP is not incentivized to make leaving easy. If a customer asks, “What happens if we want out?” the honest answer is usually: you either migrate to another SAP offering or you stop using SAP – both come with pain. SAP generally does not allow a simple conversion of a RISE subscription into an on-premises license at the end of the term; they would rather you renew the subscription. There have been cases where, if a customer insists on leaving, SAP may offer to sell them perpetual licenses as a fallback, but this is likely to be at a hefty price, since the customer is in a weak position at that point.
• Dependency on SAP for Cloud and Support: With RISE, SAP is not only your software vendor but also your effective cloud provider and primary support team. This means any issue – performance, downtime, bugs – you are dependent on SAP to resolve it. If SAP has a service issue or if you have a dispute, you can’t go to an alternate provider for that service in the interim. For example, if you were running on a hyperscaler directly and had an issue, you could potentially engage that cloud provider separately. Under RISE, everything funnels through SAP’s support chain.
• Innovation and Integration Constraints: Vendor lock-in might also slow down the adoption of non-SAP innovations. SAP naturally will promote its extensions and ecosystem. If a new third-party solution emerges that could benefit your business, integrating it into a RISE environment may face more technical and contractual hurdles than if you had a more modular landscape. It doesn’t mean you can’t integrate third-party tools – you can, via APIs and BTP – but if that third-party overlaps with something SAP sells, you might feel pressure to consider SAP’s offering instead. In other words, lock-in can have strategic implications on your IT roadmap, nudging you to “stay in the family” for solutions.
• Financial Lock-In Effect: RISE’s subscription is a recurring commitment. Over time, you may pay multiples of what a perpetual license would have cost. While you do get continuous service for that money, the longer you stay, the more you have “sunk cost” invested in this model. Suppose the market evolves so that a different model (or competitor) becomes more attractive. In that case, you may find it hard to justify switching due to the cumulative investment already made in RISE. Companies must weigh the upfront savings against the long-term cost implications of this lock-in. Sometimes, what looks like a good deal in the first 3 years might become less attractive in years 4-6 if prices increase.

Mitigation: The best mitigation for lock-in is planning and negotiation. While you can’t remove all lock-in (by nature, ERP always has some switching costs), you can mitigate by:

• Negotiating exit clauses or assistance (see next section) to reduce the pain if you ever leave.
• Keeping data and interfaces as portable as possible (e.g., using standard APIs and maintaining good documentation of customizations) ensures that migration is at least technically feasible.
• Maintaining an open dialogue with SAP about the roadmap and ensuring changes do not blindside you.
• As a strategic check, some enterprises maintain a hybrid state (e.g., keeping some non-RISE SAP systems or other software) to avoid complete dependency. However, running a hybrid can also reduce the presumed benefits of RISE, so it’s a balancing act.

In summary, RISE increases vendor lock-in – that’s not a reason to reject it outright, but it is a reason to demand favourable terms and long-term safeguards. Go in with eyes open that SAP will have the upper hand once you’re in the RISE ecosystem, so use whatever leverage you have before signing to protect your interests.

Migration and Transition Challenges

Adopting RISE with SAP is not just a contractual switch – it usually involves a significant migration project. Enterprises need to transition from their current SAP ECC or on-premises S/4HANA environment to the new S/4HANA Cloud under RISE.

This transition presents several challenges and considerations:

• Complexity of Migration: Migrating an enterprise ERP system to S/4HANA, whether on-premises or in the cloud, is a major undertaking. It can take anywhere from several months to a few years, depending on the organization’s size and the complexity of its processes. RISE doesn’t inherently make the functional migration easier – you still must handle data conversion, process changes, custom code adaptation, testing, and go-live. Coordinating with SAP’s cloud provision adds another layer: you have to align your project timeline with SAP’s environment setup and any dependencies in the RISE contract (e.g., starting the subscription by a certain date). Many companies underestimate the effort; these migrations often cost tens of millions of dollars for large enterprises and carry risks of overruns. It’s crucial to have a solid business case and roadmap for the migration itself, independent of the licensing change.
• License Conversion & Legacy Assets: If you are an existing SAP customer, you likely have a significant investment in perpetual licenses and may have been paying maintenance for years. Transitioning to RISE raises the question: What happens to my existing licenses? In most cases, those on-prem licenses for ECC (and related components) will become redundant once you go live on RISE S/4HANA. SAP’s policy is typically that you cannot use old licenses for the same purposes covered by RISE simultaneously (to avoid “double dipping”). Often, SAP will require you to either terminate those licenses or put them in “shelf” status during the RISE term (meaning you agree not to use them productively). The good news is that SAP will usually offer some credit or trade-in value for your existing licenses and maintenance when you move to RISE. For example, if you have already paid for the year’s maintenance, that value may be applied toward the RISE subscription. Or if you have a lot of unused licenses, SAP might give a discount on RISE to account for the sunk cost of those. However, this is not a dollar-for-dollar credit; negotiation is key to maximizing it​. It’s important to time the transition carefully – ideally, align the RISE contract with the end of a maintenance period so you’re not paying for double support, and negotiate a fair value for any licenses you’re giving up. Also, clarify if you have the right to revert to those perpetual licenses if RISE ends; in many cases, you might not, or they may be outdated anyway.
• Dual-Use Period: During the migration, you may need to run both the old system and the new S/4HANA in parallel for testing, training, or a phased go-live by region. Ensure the contract permits this dual-use scenario. SAP often allows a temporary dual use (for example, 6 months of overlapping use of ECC and S/4) as part of the conversion arrangement, but it must be spelled out to avoid compliance issues. You don’t want SAP to come back and claim you were using two systems without a license. Usually, as long as it’s a non-production use of the old system after cutover (or production for a short overlap), it can be accommodated. Work with licensing experts to formalize this in the contract or an addendum.
• Data Migration and Integration: Moving to RISE can mean changes in how systems integrate. If you have multiple satellite systems, you will need to rebuild or adjust those integrations to work with the new cloud environment, often by leveraging SAP BTP or cloud connectors. Some third-party integration tools may require new licenses or versions that are compatible with S/4HANA Cloud. There is also the challenge of data volume – migrating years of historical data to the new system or deciding which data to archive can be a big task. SAP’s standard RISE contract may only include certain environments (e.g., 1 production, 2 non-production). If you want a separate sandbox or a long-running parallel system, you may need to pay extra. These technical details have cost implications and should be planned early.
• Change Management: From a business perspective, transitioning to S/4HANA (especially when adopting more standardized processes) is as much an organizational change as a technical one. The “transformation” aspect that SAP markets with RISE means you should take the opportunity to streamline processes, adopt best practices, and maybe even overhaul customizations. This requires stakeholder buy-in, user training, and possibly re-engineering business processes with the help of tools like Signavio. All of this can extend timelines and add to project costs if not managed well. Ensure you have executive alignment on the journey, as RISE is not a simple lift-and-shift of infrastructure; it’s often a reimplementation or significant upgrade of the ERP.
• Timeline and Resource Crunch (2025–2027): With the 2027 end-of-support for ECC looming, many companies are planning their S/4HANA migrations simultaneously. This raises a risk: a talent and partner resource crunch in the coming years​. If you plan to use SIs or consultants for the move, start early to secure experienced resources. Waiting too long could mean higher consulting rates or lower quality help due to demand. SAP’s RISE initiative has spurred many migrations, so competition for knowledgeable S/4 functional and technical experts is increasing. Factor this into your project scheduling – it might be strategic to start sooner rather than later to avoid the 2026-2027 rush.

Mitigation: To address migration challenges:

• Develop a detailed migration plan with your implementation partner that aligns with the start date of the RISE contract. Include buffer time for unforeseen delays.
• Inventory your current SAP licenses and work with an independent expert to optimize conversion – for instance, identify shelfware licenses that can bolster your argument for credits and ensure you’re not over-subscribing in RISE.
• Negotiate an adequate dual operation period in the contract to ensure a safe transition.
• Budget not just for technical migration but also for process improvement and change management – RISE’s value is maximized if you transform how you use SAP, not just lift the system as-is.
• Consider a phased go-live approach (e.g., migrating one business unit at a time or going live with core functionality first) to spread out the risk and cost. In a RISE context, you might start with a smaller user count and ramp up as you bring on more users, if SAP allows phased subscription increases. Ensure the contract is clear on adding users mid-term and how pricing will work (hopefully at the same pro-rata rate and not at a premium).
• Keep your ECC support active until you’re confident in S/4HANA. If your ECC support contract lapses in 2027 and you’re not live yet, you may consider third-party support to bridge the gap. Ideally, the RISE migration is timed to avoid this.

In essence, treat the move to RISE as you would any major ERP migration – the licensing change is just one facet. Success requires technical excellence in migration and strong project governance.

RISE can provide tools and incentives, but execution is up to you and your partners. Plan thoroughly, and don’t underestimate the effort.

Exit Strategy and Contract Termination Considerations

One often overlooked area in the rush to adopt RISE is planning an exit strategy. While no one signs a deal expecting it to fail, prudent CIOs will have a contingency plan in place for what happens if RISE no longer makes sense after a few years.

Because RISE is a subscription with no perpetual rights, you must be even more careful when negotiating and preparing for the end of the contract term.

Here are strategic considerations regarding exit:

• Data Ownership and Retrieval: Ensure that your contract explicitly states your right to retrieve all your data in a usable format upon termination of the contract. This includes transactional data, master data, and any custom configurations or development objects that you have created in the S/4HANA system. SAP should provide (or at least not obstruct) a full data extract if you choose to leave RISE​. Negotiating data export assistance is wise, for example, having SAP agree to provide a full database dump or API-based extraction within a certain timeframe after termination. Also, consider data in connected cloud services (BTP, Ariba network transactions, etc.) and how to export those.
• Transition Assistance: Discuss and document what support SAP would provide if you decide to transition off RISE. While SAP may not offer a formal off-boarding service by default, you can negotiate a termination assistance clause. This might cover things like SAP cooperating with a new provider (if you migrate to a different hosting or on-prem) or providing extended access to the system for a brief period after the contract ends to facilitate the transition. It’s better to have at least a brief grace period after the contract ends, during which you can still access the system for read-only purposes or to verify data exports, rather than the system being shut off immediately upon expiration. Try to negotiate a window of 30-60 days post-termination for a transition, if possible, and have it written into the contract.
• Reversion Options (On-Premise or Other Cloud): If your exit plan is to bring the system back in-house or to a different cloud under your existing licenses, you need to plan the licensing aspect. As mentioned, you likely have no usable S/4HANA license outside RISE unless you kept your old ones (which wouldn’t cover S/4HANA unless you never fully migrated). You may need to purchase new licenses to continue operating S/4HANA outside of RISE, which is a big cost. One strategy is to negotiate a contingent conversion – perhaps an agreement that if you leave RISE, SAP will allow you to buy perpetual licenses for S/4HANA at a discount, considering the subscription fees already paid. SAP may not readily agree to that in writing, but it’s worth the conversation. At least document internally what it would entail, e.g., the cost of licensing S/4 for your user count, and have that budgetary figure in mind as a “penalty” for leaving.
• Termination Triggers: Aside from the natural contract end, consider whether there are any conditions under which you would want to terminate early. For instance, if SAP consistently fails to meet SLAs or if there is a major material breach. Standard SAP contracts are light on allowing customers out for service issues (they usually offer service credits for SLA misses). However, you could attempt to negotiate a termination for cause clause, e.g., “if availability drops below X for Y consecutive quarters, the customer may terminate without penalty.” SAP might resist, but it doesn’t hurt to ask, especially if uptime is critical to your mission. Another angle is regulatory change – if laws or regulations in your industry change, making it impossible for you to remain on a public cloud, you might need to revert to on-premises; having a way out in such cases would be ideal.
• Notice Period for Non-Renewal: Check the notice period you need to give if you decide not to renew RISE at the end of the term. Some contracts auto-renew or require notice 3-6 months in advance if you plan to exit. Mark these dates clearly in your contract management system so you don’t accidentally roll into an unwanted renewal. If you miss a notice window, you might get stuck for another term.
• Effect on Connected SAP Products: If you have other SAP cloud products (SuccessFactors, Ariba, etc.) integrated via the RISE environment, plan how those would operate if you left RISE. They might be fine as standalone subscriptions, but the integration and single sign-on might need reworking. Also, if you had any bundled discounts (SAP sometimes gives better rates if you buy multiple solutions together), those could change if one piece (RISE) is removed.
• Exit to “Different SAP Offering”: It’s possible that in the future SAP could offer new deployment models. The contract might allow moving from RISE Private to RISE Public or a future service, but it would likely require a new contract. Keep an eye on SAP’s roadmap; if they introduce, say, a more modular cloud offering or something like “RISE 2.0”, you might want the flexibility to shift over. No contract will explicitly cover products that don’t exist yet, but having a mindset of adaptability helps – you can negotiate that during the term, if SAP launches a generally better offering, you should be able to pivot without financial penalty (again, not easy to get, but puts the idea on the table).

Ultimately, the best “exit strategy” is to plan not to need to exit, meaning you negotiate RISE in such a way that it continues to be a good solution. However, circumstances change (mergers, strategy shifts, etc.).

By considering your exit in your initial negotiation, you avoid being completely at SAP’s mercy later. As Redress Compliance aptly advises, consider an exit strategy: SAP may not let you easily revert to on-premise, but you can still plan for moving away – ensure data export and cooperation are agreed upon for the end of the term​.

Having this plan will also give you confidence during renewal negotiations; SAP will know you have a viable alternative (even if it’s painful), and that may curb excessive price increases if they want to keep your business.

Audit and Compliance Considerations under RISE

One might think that moving to a SaaS-like model such as RISE would eliminate traditional SAP license audits – after all, everything is a subscription, right? In reality, license compliance remains an important area to manage, even with RISE.

The nature of audits and compliance under RISE does change in some ways:

• SAP’s Audit Rights: The RISE contract will include provisions that allow SAP to audit your usage of the cloud service to ensure you haven’t exceeded the contracted metrics. SAP typically retains the right to access your systems or records (with notice) for audit purposes, similar to on-prem agreements. However, since SAP hosts the system, they technically have more direct insight into usage (they could potentially monitor users, documents, etc., via the service). Whether they formally “audit” or report your usage, the effect is the same – if you are using more than you paid for, you’ll be asked to upgrade (or stop using the excess).
• User Counts (FUE) Compliance: RISE’s user licensing uses the Full User Equivalent (FUE) model – a pool of units consumed by different user types (e.g., 1 FUE for an advanced user, 0.2 FUE for a core user, etc.)​. You contract for a certain number of FUEs. It’s critical to regularly review the number of named users and their types to ensure you stay within your FUE allotment. SAP may not hard-stop you from creating more users than contracted (the system likely allows it), but you’ll end up out of compliance. A good practice is to implement internal controls, for example, if you have 500 FUEs contracted, set up monitoring in identity management to flag when you create users that would exceed that limit. Also, remember to adjust the user roles if people leave or change jobs – the flexibility of FUE is that you can reallocate between user types, but that also means if you don’t manage it, you could waste FUEs on misassigned roles. Conduct periodic license true-ups internally, such as quarterly, to compare actual usage with your contract.
• Indirect/Digital Access Compliance: As mentioned, indirect access is not automatically covered by RISE​. If your system is accessed by non-SAP applications (through APIs, etc.), you need to have the appropriate digital access licenses, typically measured in documents. In an on-premises ECC world, SAP would audit and count documents, such as the number of sales orders created by Salesforce or similar systems. In a RISE world, the same principle applies. The difference is that SAP could have telemetry on document creation. They might know how many documents are created in your system. Ensure that if you have such interfaces, you discuss how they’re licensed. You could possibly purchase a Digital Access Document Pack as part of the RISE deal to cover the expected volume. If you don’t, and SAP audits later, it could present a hefty compliance bill. Include the right stakeholders (application owners of non-SAP systems that integrate) in compliance discussions.
• Engine/Module Usage: RISE simplifies many metrics into a single user metric, but if you subscribe to additional Line of Business (LoB) solutions or engines (such as treasury management or extended warehouse), ensure you understand their usage limitations. Some might be bundled, while others may be add-ons with specific metrics. For instance, if you use SAP’s industry packages or certain cloud services, such as SAP Analytics Cloud or Group Reporting, these may have separate user counts or capacity limits. Running them without proper inclusion in the contract could violate terms. The RISE contract should list all your entitled SAP products – anything not listed likely isn’t included.
• BTP Consumption: With BTP, SAP typically provides a certain amount of credits in RISE, but if you exceed that, it’s effectively an overage situation. While not a license compliance violation per se (since you either pay for what you use or the service might stop if you hit a cap), it can lead to unexpected charges. It’s similar to how a cloud provider might charge you for extra usage. It’s prudent to treat BTP usage like another compliance item: monitor your consumption of BTP services monthly against what’s included. If you see a trend that will exceed, either curb usage or proactively talk to SAP about increasing your subscription to cover it (possibly at a better rate than the pay-as-you-go rate). Also, note that using certain BTP services may require you to have proper entitlements. The credit model covers most, but some services may require separate subscriptions if they are not included in your edition.
• Audit Process and Etiquette: Even under RISE, you can negotiate audit clauses for reasonableness. For example, stipulate that SAP must give 30 days’ notice and that audits should minimize disruption. Given that SAP already has system access, you might ask that any audit first try to use system-generated logs or reports (instead of fishing through your other records). Essentially, try to contain the scope of audits. Another angle: since RISE is a cloud service, some customers negotiate that if SAP has not enforced or pointed out overuse within a certain period, they cannot be retroactively charged beyond that look-back period. (For example, if you were 10% over user count for a year and SAP never said anything, perhaps they shouldn’t back-bill for that whole year. This is not standard, but it’s a fair argument to make – cloud services often charge for overages in years, not years later.
• Compliance Risk Shift: Ultimately, compliance in RISE is more about commercial compliance (not exceeding what you purchased) rather than dealing with a complex license audit of engines and user classification. You don’t have to worry about the old classic “Are these Professional users or Limited users?” – FUE covers that mix in a simplified way. But you do have to worry about usage creep. The ease of adding a new user in the cloud or spinning up an extra test system (if allowed) means you could inadvertently use more than you are entitled to. If you’re not paying attention, SAP will eventually catch it and charge you (or demand an upgrade to your contract). The best defence is regular internal compliance checks. Treat it as a monthly task for your SAP basis or security team to run user counts, document counts, and other relevant metrics, and compare them to entitlements.

Audit and compliance summary: While RISE reduces some of the traditional pain of SAP license compliance (fewer SKU metrics to track), it introduces a regime where you must stay vigilant about subscription limits. SAP’s audit clause will still be there​, and they will enforce the contract.

The cost of non-compliance in RISE is usually an unbudgeted bill or a forced subscription increase. Avoid surprises by monitoring and by making compliance a continuous discipline.

Many enterprises engage independent licensing experts periodically to audit themselves – this can be done with RISE, too, to ensure you’re in line and to help prepare for any SAP audit.

As always, transparency and proactiveness in managing your usage will turn audits into non-events.

Strategic Recommendations for Enterprises Considering RISE

For CIOs and IT procurement leaders evaluating RISE with SAP, here are key strategic recommendations to ensure an informed decision and a favourable outcome:

1. Conduct a Comprehensive License and Usage Assessment: Before committing to RISE, analyze your current SAP license usage and needs. Inventory how many users you have active, what modules are in use, and identify any shelfware (unused licenses). This “baseline” will help you right-size the RISE contract. Many companies find that they can contract for fewer users (FUEs) than their nominal license count by eliminating inactive users, which saves costs. For example, a company that analyzed its usage reduced the required FUE count by 227, yielding significant savings. Use this analysis as a basis for negotiating the RISE quantity and price – don’t just take SAP’s word for what you need.
2. Engage Independent SAP Licensing Experts: The complexity of SAP contracts and the one-time nature of a RISE migration make it crucial to get experienced help on your side. Engage an independent licensing advisor (such as Redress Compliance or similar firms) who is not tied to SAP’s sales incentives. They can provide an objective view, help identify contractual pitfalls, and benchmark your deal against industry standards. These experts can also drive or support negotiations to secure better terms and ensure you’re not missing anything. For example, involving a specialist during negotiation and implementation can catch issues and reduce lock-in surprises. Their fees are often small compared to the potential savings and risk avoidance (e.g., preventing a costly compliance issue or securing a better discount).
3. Model the TCO over at Least 5–10 Years: Develop a detailed Total Cost of Ownership (TCO) model comparing RISE with staying on current infrastructure (or alternative approaches) over the long term. Include assumptions about growth (more users, data), likely maintenance cost increases, cloud operational costs, etc. Make sure to factor in renewal periods – what happens after the initial term. This model will help you determine if SAP’s financial promises hold water. If the model shows RISE becoming more expensive in later years, you can use that to negotiate price protections or reconsider the deal. Don’t forget to incorporate migration project costs into the ROI analysis. If the business case for RISE is marginal, you might explore other options, such as a more gradual modernization or third-party support to extend ECC’s life while evaluating alternatives.
4. Negotiate Contractual Safeguards Aggressively: Given the long-term lock-in, ensure the contract has as many customer-friendly terms as possible:
   • Cap on Price Increases: Negotiate limits on annual subscription fee increases and renewal uplifts. Aim for a clause that renewal pricing will not exceed, say, a 5% increase, or is pegged to an index. If you have to give on something, maybe allow CPI-based adjustments, but avoid open-ended pricing.
   • Renewal Flexibility: Try to get options to adjust scope at renewal (e.g., reduce users if needed or swap certain components). Even if SAP doesn’t grant full flexibility, any written allowance helps your position later.
   • Termination and Exit Terms: As discussed, include data export assistance, a short extension option for transition, and clarity on what happens if you choose not to renew. If possible, include a clause that allows SAP to offer perpetual licenses for purchase if requested at the end of the term. (This might be optimistic, but even noting it as a possibility is useful leverage.)
   • SLA and Remedies: Verify that the SLA meets your needs and negotiate improvements if necessary (higher uptime, quicker response times). Also, ensure that if the SLA is breached significantly, you have a remedy beyond tiny service credits – possibly a right to terminate due to repeated failures. It sets the expectation that SAP must perform.
   • Audit and Compliance: Add language to govern audits (notice periods, confidentiality, dispute resolution for findings)​. Clarify any ambiguous definitions (such as what constitutes a user or how digital access is measured in your context) to avoid conflicts later. A well-defined contract prevents SAP from overreaching in an audit claim.
5. Consider Phased or Partial Adoption: RISE doesn’t have to be an all-or-nothing Big Bang. Strategically, you could move a part of your landscape to RISE (for example, a specific ERP instance or region) as a pilot while keeping others on-prem to mitigate risk. Some enterprises opt for a hybrid approach – perhaps core ECC stays on-premises a bit longer, while a new division goes live on S/4 via RISE. This can provide learning and prove value before full commitment. However, note that SAP’s best financial incentives often come if you go “all in” on RISE. Still, it’s worth exploring a phased migration in contract terms (ensure the contract allows for the ramp-up of users over time, rather than paying for everything on day one if you don’t use it all at once).
6. Plan for the Long Haul (Governance): Treat the RISE agreement as a living thing that needs active management. Establish a governance team that continually oversees:
   • Usage and Cost Monitoring: Have a dashboard for your FUE consumption, BTP credits usage, etc. Review it quarterly with IT finance and adjust usage or contract as needed.
   • Relationship Management: Keep communication with SAP open. Schedule regular business reviews with SAP to discuss satisfaction, roadmaps, and any issues that may arise. Document any promises or statements SAP makes (and ideally get them in writing or attached to contract amendments). Good vendor management can preempt problems.
   • Stay informed about the SAP Roadmap: Ensure you know what new services or changes SAP is rolling out. For example, if SAP changes the FUE model or introduces new bundles, such as GROW, which was recently introduced, check if these changes impact your deal or present new opportunities. SAP may offer incentive programs, such as credits or discounts, for adopting new features – leverage them if they are beneficial.
   • Periodic Health Checks: Maybe once a year, conduct a mini “audit” of your own or through a third party to ensure compliance and determine if you need to make adjustments or can optimize. Also, revisit your contract in years 2 or 3 and identify which points you want to address at renewal – start planning your negotiation well before the term ends.
7. Evaluate Alternatives and Timing: Finally, remember that RISE is one path to S/4HANA. It may be the right one for many, but not for all. Consider where your organization values flexibility vs. convenience:
   • Suppose you have a highly customized environment and a strong internal IT capability. In that case, you might compare RISE with simply doing a private cloud or on-prem S/4HANA conversion and running it yourself (or with a hosting partner). That might give you more control and possibly lower costs if done efficiently.
   • If you are not ready to move by 2027, consider interim steps: for instance, third-party support for ECC to buy time (Rimini Street and others offer this, which can extend the life of ECC beyond SAP’s support window while saving maintenance fees). This is a tactical move, not permanent, but it can relieve the time pressure to make a RISE decision.
   • SAP will continue to push RISE, but ultimately, you should decide on your timeline and terms. Do not rush due to sales pressure; a rushed project can backfire. It’s better to negotiate an extension or alternative than to sign up unprepared.
8. Leverage Peer Insights: Speak with other CIOs or IT leaders who have gone through RISE migrations. Gartner-like research notes or user groups can provide real-world lessons. For example, some peers might share how they negotiated a specific clause or how the actual migration compared to expected benefits turned out. This kind of information is invaluable in setting realistic expectations and negotiating with SAP. For example, if you know another company received a 15% discount beyond SAP’s initial offer, you can cite that.

In conclusion, RISE with SAP can be a powerful enabler of digital transformation to S/4HANA Cloud – but it is not a simple, one-size-fits-all solution. Enterprises must approach it strategically: do their homework, negotiate hard, and plan for all stages— entry, operation, and exit.

By following the above recommendations, CIOs and procurement leaders can better ensure that if they embrace RISE, they do so on terms that maximize value and minimize risk for their organization.

The key is to remain in the driver’s seat of your SAP roadmap, with RISE as an option, rather than being driven by SAP’s agenda without safeguards.

With diligent planning and independent guidance, you can achieve the promised benefits of RISE while avoiding potential pitfalls on the journey to the cloud.