RISE with SAP vs GROW with SAP: Pricing and Licensing Comparison

RISE with SAP vs GROW

Executive Summary:

SAP offers two distinct cloud ERP packages – RISE with SAP and GROW with SAP – aimed at different enterprise needs.

RISE with SAP is a comprehensive, customizable subscription bundle suited for large enterprises (often existing SAP customers) embarking on major digital transformations.

In contrast, GROW with SAP is a streamlined, fixed-scope offering designed for smaller and mid-sized organizations new to SAP, delivering rapid deployment with standard best practices and lower initial costs.

This article compares their scope, pricing models, and licensing considerations, providing CIOs and procurement leaders with guidance on choosing and negotiating the right option.

Cloud ERP Transformation Paths: RISE vs. GROW with SAP

SAP’s cloud strategy provides two pathways to adopt SAP S/4HANA Cloud ERP.

RISE with SAP (launched 2021) is positioned as a “business transformation as a service” – a full-suite subscription that bundles the S/4HANA Cloud software (public or private edition) with infrastructure (hosting on SAP’s chosen cloud platform), technical services, and support.

It was built primarily for existing SAP ERP customers moving from on-premises to cloud or for very complex new implementations.

In contrast, GROW with SAP (introduced in 2023) targets net-new SAP customers, especially small and mid-sized businesses (SMBs), by offering a ready-to-run cloud ERP with preconfigured processes.

GROW with SAP leverages S/4HANA Cloud public edition (multi-tenant SaaS) and emphasizes simplicity, enabling companies with no prior SAP experience to get up and running quickly with standard best practices.

Both programs share the same core S/4HANA Cloud technology. Still, their approach and flexibility differ markedly: RISE is a tailored journey for complex needs, whereas GROW is a turnkey solution for faster value.

Target Audiences and Use Cases: When to Choose GROW vs. RISE

GROW with SAP is designed for smaller organizations or first-time SAP adopters who want an out-of-the-box ERP with minimal complexity.

Typical use cases for GROW include a mid-market company replacing legacy accounting software or a fast-growing firm implementing its first integrated ERP system.

These companies often have straightforward processes and limited IT resources – they benefit from GROW’s pre-configured industry best practices and guided implementation.

GROW with SAP promises go-live timelines in a matter of weeks or a few months, making it attractive if you need quick results and a predictable scope.

It’s also budget-friendly: the package is leaner, with a clearly defined scope, which helps organizations with measured budgets avoid the cost overrun risks of large custom projects.

RISE with SAP, on the other hand, targets mid-sized to large enterprises, especially those that already run SAP ERP (ECC or SAP Business Suite) or have complex, multi-national operations.

It is ideal when a company aims for a comprehensive digital transformation, possibly converting a highly customized on-prem SAP system into a cloud environment.

Enterprises with complex process requirements, industry-specific needs, or multiple system landscapes will find RISE more suitable because it allows greater flexibility and customization.

RISE supports hybrid and two-tier deployment (for example, a large corporation using RISE for a division or subsidiary, integrating with a central on-prem system).

In scenarios where an organization wants a tailor-made cloud solution (including custom extensions, integrations, and choice of public vs. private cloud deployment), RISE with SAP is the recommended path.

In summary: choose GROW if you’re a new SAP customer looking for a quick, standard cloud ERP start; choose RISE if you’re an existing SAP user (or a large new customer) needing a flexible, full-service transformation.

Scope of Offering: What’s Included in RISE with SAP vs. GROW with SAP

Both offerings provide the core SAP S/4HANA Cloud ERP functionality, but the surrounding services and included extras differ:

• GROW with SAP centers on SAP S/4HANA Cloud (Public Edition) plus essential tools to accelerate adoption. It includes SAP’s Activate methodology and preconfigured best practice processes for finance, sales, procurement, etc., allowing a faster setup. GROW customers gain access to the SAP community and learning resources to help self-enable. Notably, SAP has two GROW packages: Base Edition and Premium Edition. The Base Edition is an affordable entry point for smaller businesses – it provides the S/4HANA Cloud ERP and basic extras like limited SAP BTP (Business Technology Platform) usage, core finance capabilities, and basic SAP Ariba Buying features for procurement. The Premium Edition (aimed at midsize organizations) builds on this by adding more modules and cloud products: for example, Premium includes expanded financial management tools, SAP Analytics Cloud (Planning) for budgeting and forecasting, SAP Sales Cloud (CRM capabilities), and Concur Expense Professional for travel and expense management. In essence, GROW Premium bundles ERP + some SAP Line-of-Business cloud applications to offer a more complete suite for growing companies. Both GROW editions also come with a chunk of SAP BTP credits (via a Cloud Platform Enterprise Agreement) and access to SAP’s low-code Build tools – enabling some level of custom app development or extensions if needed (within a limited scope). What GROW does not include are the more advanced transformation tools – it assumes a relatively standard implementation, so heavy process mining, custom integration, or extensive third-party add-ons are outside the base package.
• RISE with SAP is a broader bundle often described as offering “business transformation as a service.” In a RISE contract, SAP bundles the S/4HANA Cloud software, the underlying infrastructure (server, storage, network on a hyperscaler), and a variety of tools and services under one subscription fee. Key included components usually are: SAP S/4HANA Cloud (which can be either Public Edition or Private Edition) as the ERP core; technical migration tools and services (to facilitate moving data and custom code from old systems); SAP Business Process Intelligence (e.g. process analysis tools from the Signavio acquisition, helping optimize and re-engineer processes during the migration); and the SAP Business Network Starter Pack (which gives a starter number of connections to SAP’s supplier network, assets network, or logistics network – helping collaborate with partners). RISE also includes some SAP BTP usage credits and SAP Cloud ALM (application lifecycle management for cloud) to support operations. All of this is delivered under a single contract with SAP as the provider, meaning SAP takes primary responsibility for running the system (either in SAP’s datacenter or on a chosen hyperscaler like AWS/Azure/GCP, depending on region and preference). Unlike GROW, which is limited to public cloud, RISE allows Private Cloud deployments (single-tenant, dedicated systems) for companies that require greater control over upgrades, customizations, or regulatory compliance. RISE customers can extensively customize S/4HANA (especially in the private edition) and integrate other SAP or third-party systems as needed – SAP’s support in RISE covers these scenarios (though custom development is still the customer’s responsibility, the environment supports it). RISE contracts are often unique to each enterprise – for example, one company’s RISE deal might also bundle additional SAP cloud services (like SAP SuccessFactors for HR or additional licenses for SAP Ariba or others) if negotiated, whereas GROW’s scope is more fixed. To summarize, RISE with SAP is a comprehensive, all-in-one solution (ERP + cloud infrastructure + tools + support), whereas GROW with SAP is a focused ERP package with just the core essentials (and an option to add more via the Premium edition).

Key Differences at a Glance:

Below is a side-by-side comparison of GROW vs. RISE across major aspects of scope, licensing, and deployment:

Licensing and Pricing: How RISE and GROW Are Sold

From a licensing perspective, both RISE and GROW use a subscription model (SaaS) rather than traditional upfront licenses.

This means customers pay annual (or quarterly) subscription fees for the software and services for the duration of the contract.

The fundamental unit for licensing S/4HANA Cloud is the “Full User Equivalent” (FUE). This metric aggregates users based on their roles (for instance, one power user might count as 1.0 FUE, whereas a light user or self-service user might count as 0.1 FUE; SAP uses these to measure consumption in a standardized way).

Both GROW and RISE subscriptions are ultimately priced according to the number of FUEs your organization needs.

However, the pricing models differ in complexity and what’s included:

• GROW with SAP Pricing: SAP provides standard price lists for GROW packages, making costs relatively predictable. Pricing is tiered based on volume – the per-user (per FUE) price decreases at higher user counts. For example, a small deployment of ~15–20 users might be priced around $500–$600 per user per month at list price. In contrast, a larger deployment of say 500 users could see rates drop to a few hundred dollars per user/month (and very large deployments above 2,000 users can push the unit price well below $100/month/user thanks to volume discounts). Illustrative benchmark: An SMB starting with 50 FUE on GROW (Base edition) might have a list price on the order of $300K per year for the subscription (roughly $500 per user/month). In contrast, if that company grows to 300 users, the annual cost might scale to roughly $1.2M (with volume discounts bringing the per-user rate down to about $330/month). These figures are before any additional discounts – SAP and its partners often grant promotional discounts or negotiate lower rates, especially to win new customers. GROW subscriptions typically require a minimum 3-year contract commitment (common in enterprise SaaS deals) and have built-in provisions for annual price increases (often tied to an inflation index or capped at a certain percentage, e.g., 3% per year – it’s important to check this in the contract). One point to note: GROW’s pricing covers the software subscription and standard cloud hosting, but support services may be separate. Basic support is included (for cloud, SAP provides standard support), but many SMB customers work with an implementation partner for go-live. They may purchase managed services or premium support as an add-on. All in all, GROW’s licensing is straightforward: you pay for the number of users and any extra modules (like if you opt for the
  Premium edition, which will have a higher per-user rate since it includes more functionality). There are no additional infrastructure fees visible to the customer – unlike on-premise licensing, you don’t need to size or pay for database licenses or servers separately; that’s all handled by SAP in the background of the subscription.
• RISE with SAP Pricing: RISE is sold as a bundled contract, so you won’t find a public price list with per-user figures in the same way. The cost components under the hood include: the S/4HANA software subscription (similar to above, based on FUE count), the cloud infrastructure and management (SAP effectively resells you the needed AWS/Azure/Google resources plus their Basis management services), and the value of included tools (e.g. Signavio process intelligence, etc.). SAP rolls these up into a single annual subscription fee. For negotiation purposes, enterprise buyers often ask SAP to break down the costs – e.g. what portion is for software vs. infrastructure vs. services – to ensure the quote is competitive. In many cases, SAP’s initial quotes for RISE can be higher than expected if you compare them to a DIY approach (licensing S/4 separately and hosting it yourself). For instance, companies have found that SAP’s embedded infrastructure charges could be 20–30% above direct market rates. The trade-off is you get a single throat to choke and the convenience of SAP handling it all, but it’s crucial to benchmark. Real-world pricing for RISE varies widely, but to illustrate: A global enterprise needing about 1,000 FUEs on S/4HANA Cloud (Private Edition) via RISE might receive an initial quote around $2–3 million per year for a 3-year term. This might cover the ERP, hosting on a hyperscaler, and various extras. With negotiation (volume commitments, multi-year term, etc.), that cost could potentially be brought down – large RISE deals often end up with significant discounts (30% or more off list) as SAP is eager to transition customers to cloud. Another scenario: a company converting its existing SAP ECC license to RISE might leverage SAP’s conversion credits – SAP has offered programs where your prior investment in on-prem licenses and maintenance can be credited to reduce the RISE subscription price. This can make RISE appealing financially, as you’re not double-paying for software you already own; instead, you essentially trade your perpetual license for a cloud subscription at favorable terms. Contract length for RISE is typically 3 to 5 years, and because of the high value, negotiating renewal protections is key (you don’t want a sudden price hike after the term ends). In summary, RISE pricing is individually negotiated and can bundle many elements, making it more complex, but it aims to cover all your needs in one fee. Enterprise buyers should scrutinize what is (and isn’t) included (e.g., are there limits on data storage, extra cost for additional environments, etc.) and maintain flexibility for future growth (such as including provisions to add more users at predetermined rates).

Read SAP Private Cloud RISE FAQs.

Table: Example Annual Subscription Costs (Illustrative) –

The table below provides rough examples to compare GROW vs. RISE costs for different scenarios.

Actual prices will vary, but these estimates illustrate typical magnitudes (at full list price before any discounts):

Note: The above figures are illustrative list prices to compare relative scale. Enterprises often negotiate substantial discounts.

For GROW, smaller customers might achieve ~10-20% off, whereas RISE mega-deals can see 30-50% off list, depending on timing and competitive pressure.

Always consider the total cost of ownership: RISE’s higher sticker price includes things you’d otherwise pay separately (hardware, database licenses, technical staff), while GROW’s lean pricing means you get the basics and might need to budget for partner implementation services or additional support.

Implementation & Customization: Standardization in GROW vs. Flexibility in RISE

Another major difference between GROW and RISE is how implementations are executed and how much you can tailor the system:

• GROW with SAP favors standardization and speed. The whole philosophy of GROW is “keep the core clean” – adopt SAP’s pre-built best practice processes with minimal deviation. When you purchase GROW, you’re guided to use the SAP Model Company processes (templates for various industries), which drastically reduce the need for blueprinting from scratch. The implementation is typically run by an SAP partner or consulting team following the SAP Activate methodology’s accelerated path: fit-to-standard workshops (where you map your business to SAP’s processes rather than heavily customizing SAP to your old way), minimal custom coding, and rapid data migration. Because of this approach, a GROW project can often go live in a few months. The trade-off is limited flexibility: if your business process is very unique and not supported by standard S/4HANA functionality, under GRO,W you’d likely need to adapt your process to the software, not vice versa. Development of custom extensions is possible via SAP BTP (and GROW does include some BTP credits and SAP Build tools), but the idea is to use those sparingly for small enhancements or integrations. This approach reduces implementation risk and helps ensure you can take SAP’s quarterly cloud updates without issues (since you haven’t broken the standard solution with mods). Companies choosing GROW should be ready for change management – adopting standard SAP processes might require adjusting some legacy ways of working.
• RISE with SAP allows deep customization and longer transformations. With RISE (particularly if using the Private Cloud Edition of S/4HANA), you have much more leeway to modify the system. You can carry over certain existing custom ABAP programs, you can tailor data structures, and you can install approved add-ons (including some industry solutions) that might not be available in the public multi-tenant environment. Essentially, RISE in a private cloud gives you similar flexibility to on-premise (although SAP still encourages keeping modifications minimal, you aren’t as constrained by the “no modification” rule of multi-tenant SaaS). This is crucial for large enterprises that have competitive differentiators built into their processes. The implementation of RISE can be a full-scale ERP transformation project, often involving a system conversion (bringing over data and configurations from an old SAP ECC system) or a greenfield implementation with significant process redesign. Project timelines here are correspondingly longer. It’s not uncommon for a RISE project to take 9-18 months (or more for very large programs with phased rollouts across business units). During this time, SAP (or a partner) will use tools like Custom Code Analyzer, Readiness Check, and SAP Signavio to analyze the current state and plan the migration. The flexibility also means you must manage complexity: testing is critical since customizations can introduce issues, and future upgrades (while managed by SAP) need to be checked against your custom code. The benefit is a solution finely tuned to your needs – you don’t have to sacrifice unique requirements.
  Additionally, because RISE can include hybrid deployment options, some enterprises use RISE to run a two-tier model (e.g., headquarters on a private cloud instance, smaller subsidiaries on the public cloud edition, all under the RISE program). This would be impossible under the GROW package. In summary, GROW = fast standard deployment, RISE = flexible tailored deployment. Organizations must assess whether they can run on SAP’s standard model – if yes, GROW saves time and money; if not, RISE provides the needed freedom.

Contract Considerations and Risks

When negotiating either GROW or RISE contracts, CIOs and procurement leads should pay attention to certain contractual and licensing nuances to avoid pitfalls:

• Minimum Commitments: Both offerings usually have minimum purchase commitments. GROW requires a minimum of 15 FUEs (Base) or 25 FUEs (Premium) to start, effectively setting a floor on the annual cost. RISE contracts will similarly specify a minimum user count or consumption level. Ensure that your contract’s user count aligns with your actual needs; if you overestimate, you’ll be paying for shelfware (unused licenses). It’s often wise to start with what you truly need and include flexibility to add more users later at the same per-unit rate locked in – negotiate that upfront.
• Contract Term and Renewal: Multi-year terms (3 years being common, 5 years for better rates) are standard. In exchange, SAP often gives better upfront discounts for longer terms. However, watch the renewal clauses. A big risk is facing a steep price increase after the initial term. It is critical to negotiate a cap on renewal price increases – for example, at most a 3-5% increase per year in subscription fees, or an agreement that you can renew at the same discount level you initially received. Without a cap, you could see a large jump in cost once you’re deeply invested in the platform. For RISE, also clarify any mid-term price adjustments: if you divest part of your business or don’t onboard all divisions as planned, can you reduce the user count? Conversely, if you grow, how will added users be priced? Getting these terms clear provides cost predictability.
• Bundled Infrastructure & Performance (RISE-specific): In a RISE deal, since SAP is providing the infrastructure, ensure the service level agreements (SLAs) for system performance and uptime are acceptable. The contract should spell out uptime percentages, support response times, and remedies (credits or penalties) if the SLA is not met. Additionally, ask SAP to specify the general size/configuration of the system they are providing (e.g., what database size or memory is included, any limit on transactions, etc.). Some RISE contracts might have “fair use” clauses or limits beyond which you have to buy additional capacity. Understanding these prevents surprises later (for example, if your data volume grows significantly, will the cost increase?).
• Scope of Included Services: Particularly in RISE, clarify which services are included versus which are chargeable extras. Data migration services, custom code remediation, training, and ongoing application management – these may not all be included in the base RISE fee. Often, the RISE bundle covers the software, infrastructure, and standard support, but project implementation and specialized consulting are separate (either with SAP or a partner, with their costs). With GROW, SAP provides a guided framework, but you will likely hire a partner for the actual implementation assistance – budget for that. In any case, have a detailed Statement of Work that outlines who is responsible for each aspect (SAP, partner, or your internal team). For instance, if you expect SAP to handle all system upgrades, ensure the contract says so (SAP does manage cloud upgrades, but in private edition, you might coordinate timing). If you’re an SAP ECC customer converting to RISE, negotiate credits for unused maintenance and a clear plan for the retirement of your old licenses (e.g., they may be terminated or put in suspension during the subscription).
• Indirect Access and Licensing Compliance: In the past, SAP customers worried about “indirect access” fees (for scenarios where non-SAP systems or devices access SAP data). One advantage of cloud subscriptions like RISE and GROW is that indirect/digital access is typically included – you pay for the overall use of the system, not each external connection. Nonetheless, confirm this in your agreement. Ensure that APIs or third-party apps connecting to S/4HANA do not trigger extra license requirements. The contract should define what usage is allowed. Generally, moving to a subscription simplifies compliance because everything is usage-based, but don’t assume – have SAP put in writing that your planned integrations (e.g., e-commerce platform pulling orders into S/4) are covered under the user subscription. This will protect you in the event of an audit.
• Future Flexibility: If you choose GROW with SAP now (perhaps because it fits your current size), consider how you can expand or upgrade later. Make sure the contract allows you to move to a larger edition or even to RISE if needed, without heavy penalties. SAP would be happy to upskill you, but you’ll want to carry forward any investments. Similarly, with RISE, you might want to incorporate new SAP products in the future (like adding SuccessFactors, Ariba, etc.). While those aren’t automatically in a RISE deal, you can often co-term and negotiate bundle discounts. A forward-looking contract might include framework discounts for adding other SAP Cloud services later. At minimum, maintain the right to revisit and adjust the scope if your business changes (e.g., mergers, acquisitions, or divestitures affecting user counts).
• Benchmarking and Outsourcing Clause: In a large RISE contract, consider including a benchmarking clause – the right to benchmark the service costs against market standards periodically. SAP doesn’t always accept this, but mentioning it can pressure them to offer competitive rates. Also, ensure you have the right to terminate for convenience or at least for cause if the service is subpar (with appropriate notice and perhaps a penalty). Although exercising is rare, having an exit option or clarity on data extraction if you ever leave the service is important. For GROW, contracts are smaller and simpler, but still, check what happens if you want to leave before the term. Typically, you’re locked in for the term, but knowing any termination fees or data handover process is wise.

Read SAP Private Cloud Pros and Cons.

Recommendations

In conclusion, both GROW and RISE with SAP can drive a successful move to cloud ERP, but they serve different needs.

Here are key recommendations for enterprises evaluating these options:

• Match the Package to Your Needs: Align your choice with your organization’s size and complexity. Use GROW with SAP if you are a smaller enterprise or new to SAP and can adopt standard processes with minimal customization. Choose RISE with SAP if you have complex requirements or an existing SAP footprint that needs a tailored migration and full-service support.
• Benchmark Total Cost of Ownership: Before signing, compare the total cost of a RISE subscription to alternative approaches. Price out a scenario of licensing S/4HANA Cloud directly, plus hiring a cloud hosting provider, versus the RISE bundled quote. This helps determine if the RISE premium for one-stop service is reasonable. Similarly, ensure GROW’s cost (which is software-only) plus partner implementation fees is still attractive against other ERP solutions.
• Leverage Volume and Commitment for Discounts: Both RISE and GROW pricing can be negotiated. Ask for tier-based discounts – e.g., what pricing if you commit to the next user tier. If you anticipate growth, consider committing slightly higher user counts now to secure a lower per-user price (as long as the cost trade-off makes sense). Also, opt for multi-year commitments (5-year instead of 3-year) if you’re confident in SAP; SAP often grants better discounts or incentives for longer terms because it secures your business for the long haul.
• Negotiate Renewal Caps and Flexibility: Don’t focus only on the upfront price – ensure the contract has caps on annual price increases and favorable renewal terms. For example, negotiate a clause that renewal will carry at most a 5% increase or will honor the same discount % off the then-current price list. This protects you from unwelcome cost jumps. Also, negotiate flexibility to reduce scope if needed (for instance, if in two years you find you only need 90% of the users, can you drop 10% at renewal? Conversely, adding more should carry the same discount rate).
• Understand What’s Included (and Not): Get a detailed list of components included in your subscription. For GROW, confirm which modules and add-ons come with Base vs Premium – for instance, does the Base edition include analytics or do you need Premium? For RISE, clarify if things like Sandbox systems, disaster-recovery environments, advanced support, or specific SAP tools (e.g., Solution Manager) are part of the package or extra. If something is not included, you may need to budget for it separately or negotiate it in. Avoid assumptions – explicitly ask SAP to document all entitlements.
• Optimize Your License Usage: Since both models use the FUE/user count, take a hard look at your user license type needs. Optimize the mix of user types – perhaps not all users need full “Professional” access; some could be “Self-Service” users (which count less towards FUE). By mapping roles carefully, you can often reduce the total FUE count. This is akin to rightsizing the license footprint and can significantly cut costs. SAP’s license guides can help determine how different roles consume FUEs. Implement governance to monitor user counts and avoid over-provisioning accounts.
• Plan for Implementation and Support: Choosing the right package is only half the battle – execution is next. For GROW with SAP, select an experienced implementation partner who has done rapid cloud deployments and can work within the standard model. Leverage SAP’s provided best practices to accelerate the project, but also ensure you have change management in place (your business users must adapt to standard SAP processes). For RISE projects, consider engaging an independent SAP advisor or licensing expert alongside the SI (systems integrator) to help manage scope and keep SAP accountable for the promised tools. Also decide who will provide ongoing support: under RISE, SAP handles technical cloud operations, but you might still need functional support or enhancements – this could be SAP MaxAttention (if purchased) or a third-party AMS (Application Management Services) provider. Include these plans in your overall budget.
• Exploit SAP’s Incentives: SAP is highly motivated to onboard customers to the cloud. Use this to your advantage. Time your negotiations around SAP’s quarter or fiscal year-end – end-of-year deals (especially Q4 of SAP’s fiscal, which is calendar Q4) often bring bigger discounts or freebies as sales teams push to meet targets. You can request sweeteners such as free additional months (e.g. start the contract now but payments begin next quarter), extra SAP BTP credits, or even trial periods for other SAP cloud products as part of the deal. With GROW, you might get promotional pricing for the first year to help “Grow” into the solution. With RISE, don’t hesitate to also get quotes from hyperscaler partners for hosting (for a self-managed approach) – even if you prefer RISE, showing SAP that you have alternative cost data can pressure them to improve their price.
• Ensure Exit and Data Portability Provisions: While you’re likely planning a long-term SAP relationship, make sure the contract addresses what happens if things don’t work out. You should have the right to retrieve your data in a usable format if the contract ends. Clarify who owns custom developments or configurations in a RISE scenario (generally, you do, but ensure access). It’s wise to have a contingency plan: for example, if in 5 years the pricing to renew RISE is untenable, could you take your system and host it yourself or switch to another SAP offering? Having these discussions now can avoid feeling locked in later. Often, just having the option improves your leverage in renewal negotiations down the line.

By considering the above factors and negotiating carefully, enterprises can maximize the value of whichever SAP offering they choose.

GROW with SAP vs. RISE with SAP is not a one-size-fits-all decision – it hinges on the company’s growth plans, IT strategy, and appetite for managing complexity versus preferring an all-in service.

With diligent planning and a clear contract, CIOs and CTOs can ensure a successful partnership with SAP on their cloud ERP journey.

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