SAP ERP Private Cloud Pricing – Benchmark Discounts and Cost Drivers

SAP ERP Private Cloud Pricing

RISE with SAP (Private Cloud Edition) has quickly become a go-to option for enterprises moving their core ERP to the cloud.

Yet negotiating a RISE Private Cloud deal can feel like flying blind. SAP doesn’t publish clear list prices for this bundled offering, making it hard to know if you’re getting a fair deal. Read our overview of SAP RISE Deployment Options.

Prices vary hugely depending on how many users you have, what’s included in your scope, and the fine print of your contract. To avoid overpaying, buyers need solid benchmarks for pricing and a clear understanding of the key cost drivers.

This blog, written from an SAP licensing expert’s perspective, breaks down typical discount ranges, hidden cost factors, and negotiation tips to help you confidently evaluate RISE with SAP Private Cloud pricing.

RISE Private Cloud List Pricing Context

RISE with SAP Private Cloud is sold via a subscription model measured in Full User Equivalents (FUEs).

Instead of buying individual named-user licenses up front, you subscribe to a certain number of FUEs per year.

The FUE metric aggregates different user types into one bundle – for example, one “advanced” user might count as 1.0 FUE, while more occasional users count as a fraction of an FUE.

This allows flexibility in assigning heavy vs. light users, but it also complicates pricing since you’re dealing with an abstract usage metric rather than a simple seat license.

Pricing per FUE is tiered: the more FUEs you buy, the lower the per-unit cost. SAP’s internal price list (which isn’t public) has steep volume breakpoints.

For instance, a small customer with 50 users might have a very high per-FUE rate (hundreds of dollars per FUE per month), whereas a large enterprise with thousands of users will see that drop to a fraction of the cost per FUE.

In one example, a few hundred FUEs could be quoted at around $300 per user per month, while a deal for several thousand users might have list rates well under $100 per user per month, thanks to volume tiers.

The catch: because SAP doesn’t publish these list prices, customers rely on SAP’s quote and their own benchmarking to gauge the starting point.

Key takeaway: Volume matters – crossing certain FUE thresholds can dramatically reduce the effective rate, so savvy buyers model different scenarios to hit the next discount tier if possible.

It’s also important to clarify what’s bundled in a RISE Private Cloud subscription and what incurs extra fees.

A standard RISE with SAP private cloud package includes the S/4HANA software licenses for your users, the underlying infrastructure (hosting on a hyperscaler like AWS, Azure, or Google Cloud, managed by SAP), and SAP’s support & maintenance for the software.

It typically also bundles some extras aimed at “digital transformation” – for example, a starter pack of SAP Business Technology Platform (BTP) credits, basic SAP Business Network access, and perhaps limited use of Signavio process analysis tools. However, not everything is unlimited.

Each RISE contract will include a fixed amount of system resources and services:

• Systems/Environments: You get production and at least one non-production environment (e.g,. a test or development system). If you need additional sandbox systems or training environments beyond what’s included, those usually cost extra.
• Storage: The subscription comes with a certain amount of data storage capacity for your ERP system. If your database grows beyond that allotment, you’ll need to pay for additional storage (often at premium rates if not negotiated upfront).
• BTP and other services: The included BTP credits (for building extensions or integrations) are often modest in value. Heavy use of BTP beyond the included credits will incur overage fees. Similarly, additional SAP Cloud ALM services, extra disaster recovery setups, or specialized add-on functions (for example, Central Finance or industry-specific components) can increase the cost.

In summary, RISE with SAP Private Cloud pricing is a combination of a per-user (FUE) subscription fee and various included services.

The lack of a public price list means your initial quote could be anywhere on the map. That’s why understanding typical benchmarks – especially on discounts – is critical.

Let’s look at what kinds of discounts buyers are actually seeing.

Read more about the risks, SAP Private Cloud Contract Risks – Exit Clauses, Audits & Compliance Safeguards.

Benchmark Discount Ranges for RISE Deals

One of the first questions any buyer has is, “What discount off list price is reasonable for a RISE with SAP deal of my size?” Since no one pays the full list price, negotiating the discount is where the action is.

While every deal is unique, there are some benchmark ranges you can use as a guide:

• Small Deals (≈ 50 FUEs or fewer): Expect around 20–30% off the list price in many cases. Smaller companies or divisions with limited users won’t get the deepest cuts, especially if it’s a straightforward S/4HANA scope. SAP might start you off with a token discount (even 0–15% if you don’t push back), but savvy negotiators in this tier often land in the 20–30% range by showing competitive alternatives or timing the deal at year-end.
• Mid-sized Deals (≈ 100–300 FUEs): A typical achievable discount is in the 35–45% off range. At this scale, you have more leverage – the deal is valuable enough for SAP to invest in winning it. It’s common for SAP’s initial proposal for a mid-sized enterprise to come in around 25–35% off the list; with informed negotiation, many have pushed the price into the high 30s or low 40s. For example, a company contracting 300 FUEs over 3 years might initially get a 30% discount offer. Still, after multiple rounds (and perhaps hinting at delaying the project or considering another vendor) they could improve that to around 45% off, even securing an extra sandbox system at no charge as a sweetener.
• Large Deals (≈ 500+ FUEs): Big enterprises investing in RISE Private Cloud can typically negotiate 50–60% off or more. These large-volume deals benefit not only from volume-tier pricing but also from SAP’s desire to land marquee wins. 50% off is a common target for a large deal, and it’s often exceeded. In some competitive situations or “must-win” global rollouts, customers have reported discounts in the 60–70% off list range. SAP will rarely offer this level of discount upfront – it might start at approximately 40% – but if the customer is a significant prospect (such as moving an entire international business to S/4HANA). SAP is facing competition or an approaching quarterly quota, the final agreed discount can be surprisingly steep.

It’s worth noting that “discount” on a cloud subscription can also come in forms beyond a lower unit price. Sometimes, SAP maintains a higher nominal price but includes additional value – e.g., free extra months, extra resources, or service credits (for implementation or BTP) – which effectively increases the discount. Always evaluate the net effect. For instance, a 3-year contract with 1 year free is essentially a ~33% discount even if the per-FUE rate didn’t change.

Mega-deals and special cases: In truly large or strategic deals (multi-million dollar contracts, or where SAP really wants to showcase a win), discount percentages can break the usual ceiling.

We’ve seen scenarios where SAP’s first quote of ~35% off grew to 60% off by the final offer after intense negotiation.

SAP has also run incentive programs (especially to encourage on-premise customers to migrate to the cloud) that offer additional one-time discounts or credits. As an extreme example, a few years ago, SAP had a program for “digital access” licensing that gave 90% off list price for certain add-on licenses to drive adoption.

While you won’t get 90% off your core RISE subscription, the lesson is that SAP has flexibility when properly motivated. If you’re a big enough client or have Oracle/Microsoft as a viable alternative, SAP might bend further than you’d expect.

Always test the limits – you might be pleasantly surprised by how much better the deal can get with the right leverage.

Key Cost Drivers in RISE Private Cloud Pricing

Beyond user count and discount percentages, what really drives the cost of a RISE private cloud deal? Understanding the cost drivers will help you focus your negotiations on the areas that move the needle.

Here are the major factors:

• Number of FUEs (User Count): This is the primary cost driver. The subscription fee is directly tied to how many Full User Equivalents you need. Volume is double-edged: more users mean a higher total cost, but as discussed, larger volumes qualify for lower unit prices. Negotiation angle: push for tiered volume discounts. If you’re near a pricing tier breakpoint, ask SAP to price just above that tier (or apply the better rate for all your users). Ensure that as you grow your user count, the same discounted rate or tier pricing applies so you don’t pay full freight for expansions.
• Contract Duration: The length of your contract (3-year vs. 5-year) influences pricing. SAP often rewards longer commitments with slightly better rates or one-time incentives. A 5-year term might lower the annual cost compared to a 3-year term, since SAP locks in your business for longer. Negotiation angle: leverage the term for the rate. If you’re open to a longer term, ask for a lower annual price in return. However, be cautious: a long contract is a lock-in – make sure you also negotiate protections (like renewal price caps) if you go this route.
• Hyperscaler Choice & Infrastructure: RISE Private Cloud runs on third-party clouds (hyperscalers), but SAP bundles those costs into your price. The choice of cloud provider or region can have a subtle impact on cost. In theory, SAP should offer a similar price regardless of whether they host you on AWS, Azure, Google, or their own cloud, but in practice, their own costs and discounts with those providers might differ. Additionally, if you require your system in a specific region (especially one with higher cloud costs) or a sovereign cloud environment (for strict data residency), that can increase the price. Negotiation angle: ensure a level playing field. Ask SAP to align the infrastructure pricing across the available options – for example, if running in your preferred region is more expensive for them, push them to absorb or minimize that difference. If you’re concerned about data residency (EU customers, for example, might consider SAP’s “Sovereign Cloud” edition), go in knowing there’s a premium (~15% on average) for those requirements and aim to negotiate that down by highlighting only the necessary compliance costs.
• High Availability/Disaster Recovery (HA/DR) and SLAs: Your uptime and recovery needs can have a high impact on cost. The standard RISE offering might come with a certain SLA (e.g. ~99.7% uptime) and basic backup/recovery. If your business mandates higher availability (99.9%+ uptime), multi-zone failover, or a full disaster recovery environment on standby, expect significant additional costs. These features often require more infrastructure and services behind the scenes (like a secondary system copy in another data center). Negotiation angle: right-size your resilience. Don’t overpay for the absolute highest HA/DR tier if you don’t genuinely need it for all systems. Perhaps only critical systems need full redundancy, whereas others can use standard recovery. You can negotiate SLA credits or outline which systems/users require the top-tier availability, rather than a blanket approach.
• Add-Ons and Extra Services: This is a variable cost driver that can sneak up on you. Add-ons include features such as additional sandbox environments, extra storage capacity, extended BTP usage, and optional components like Central Finance and advanced analytics. Each of these can raise the price if not negotiated. For example, an extra sandbox system might be priced as an additional percentage of the subscription, or extra database storage might be quoted at a high per-GB rate. Negotiation angle: bundle and negotiate credits. It’s often wise to anticipate what add-ons you’ll need over the contract term and negotiate them upfront. If you think you’ll need a large sandbox for project testing, ask SAP to include it for free or at a discounted rate. Similarly, negotiate upfront pools for storage growth or BTP credits at a favorable rate, instead of paying expensive overage prices later. The more of these extras you identify and include in the initial deal (ideally at no or low cost), the fewer budget surprises down the road.

To summarize these factors and how they impact pricing, here’s a quick comparison table of RISE Private Cloud cost drivers and how you can address each:

Understanding these drivers helps you see where the money goes in a RISE deal. Next, let’s look at some negotiation benchmarks and real-world examples to illustrate how buyers have managed to get better pricing and terms.

Negotiation Benchmarks and Real-World Examples

It’s one thing to talk about theoretical discounts and cost levers; it’s another to see how they play out in actual deals.

Here are a couple of anonymized examples and scenarios that highlight negotiation outcomes for RISE with SAP Private Cloud:

• Example 1 – Mid-size Manufacturer (300 FUEs, 3-year term): The initial quote from SAP for a 3-year RISE private cloud subscription covering roughly 300 FUEs came in at around a 30% discount off list price. This included the core S/4HANA system and one development/test environment; however, the quote did not include extra storage or an additional sandbox system. The customer, armed with benchmarks, pushed back. Through multiple negotiation rounds, they achieved roughly a 45% discount off the original list value. Moreover, they managed to get SAP to include a free additional sandbox environment (a significant win, as that environment would have otherwise added cost) and a commitment for an extra chunk of storage at no extra charge to cover projected data growth. The final deal for this mid-sized firm not only had a significantly improved unit price, but also included those extras – effectively saving them hundreds of thousands of dollars over the contract term compared to the initial offer.
• Example 2 – Global Retailer (600+ FUEs, 5-year global deal): A large retail company negotiating a 5-year RISE private cloud deal insisted on creative structuring to maximize value. They knew their user count might grow from about 600 FUEs to over 800 during the term due to expansion. In negotiations, they secured a tiered pricing agreement – the per-FUE price would actually decrease once they crossed 750 FUEs, and SAP locked in that lower rate for any additional users. Essentially, they pre-negotiated the pricing for growth to avoid paying a higher rate for new users in the long term. This retailer was also very sensitive to ongoing costs, so they negotiated a cap on renewal increases: SAP agreed that at the 5-year renewal point, the subscription cost wouldn’t jump by more than a single-digit percentage (in fact, they got a commitment for at most a 5% increase, aligning roughly with inflation). Additionally, because the customer was evaluating a possible cloud choice between SAP and a competing finance system, SAP threw in some perks: the deal included migration support credits (funds to help pay the SI/consulting costs of moving to S/4HANA) and an option to convert some of their legacy SAP licenses into the RISE subscription value (so they weren’t “losing” the investment in on-prem licenses). In the end, this large deal achieved about 55% off list pricing when all was said and done, and came with protections that set them up for smoother renewals.
• Sovereign Cloud Scenario – Public Sector Example: A European public sector organization had strict data residency needs and opted for RISE with SAP Sovereign Cloud (a special version of private cloud hosted in-country with enhanced data controls). SAP’s initial pricing for the sovereign option included roughly a 15% premium on the subscription fees compared to standard RISE pricing. Knowing that sovereign hosting typically costs more, the customer still negotiated that premium down to about 10% by questioning what was driving the extra cost. They highlighted that while extra compliance and local infrastructure might justify some increase, anything beyond was seen as a margin. By leveraging the fact that SAP was keen to get government references on Sovereign Cloud, they reduced the uplift. Insight: If you need a sovereign edition (common in EU and regulated industries), be prepared for a cost increase, but don’t take the add-on fee at face value – it’s negotiable.

These examples highlight a few key points: almost everything is negotiable, and informed customers can significantly enhance the deal. It’s common for SAP’s first offer to be nowhere near its best offer. By bringing up peer benchmarks (“we know similar companies got around 50% off”), creating a bit of competition or doubt (“we are also considering other solutions/keeping our current system longer”), and timing the deal strategically (e.g., end of SAP’s quarter or fiscal year), you can unlock major concessions.

Also, notice how non-price terms are part of the negotiation: free environments, fixed future pricing, credits, and caps can all be as valuable as the headline discount.

Aim not only to cut costs but also to reduce future risk.

Hidden Costs to Manage in a RISE Private Cloud Deal

Signing a RISE with SAP contract is not just about the subscription fee. There are several hidden costs and potential budget traps that customers should proactively address during negotiations to ensure a more informed decision.

If you ignore these, you might get unpleasant surprises later. Here are the big ones to watch:

• SAP BTP (Business Technology Platform) Usage: As mentioned, RISE deals include a certain amount of BTP credits – essentially cloud platform resources for building extensions, integrations, or using SAP’s platform services. The included quota, however, is often quite small relative to what a large enterprise might use if it builds many Fiori apps, integrations, or analytics on BTP. If you exceed the included credits, overage charges can pile up quickly (and SAP’s à la carte cloud rates aren’t cheap). Negotiation tip: If you plan on using BTP heavily, negotiate an increase in included BTP credits or a pre-discounted rate for additional consumption. You might, for example, ask for double the standard BTP allotment at no extra cost, or a fixed discount on any BTP usage beyond the included amount.
• Storage and Data Growth: ERP databases tend to grow over time (transaction data, documents, attachments, etc.). RISE contracts typically come with a certain TB of storage. If you go beyond that, SAP will charge for extra GB/TB, often at a high rate if it wasn’t locked in. We’ve heard of customers shocked by large bills when their data footprint expanded due to business growth or acquisitions. Negotiation tip: Secure extra storage now at a better rate. Estimate your 3-5 year data growth and ensure the contract covers that amount. You can ask for, say, an additional X TB of storage included or priced at a marginal rate that’s significantly lower than the list. It’s far easier to negotiate this upfront than to beg for price relief after you’ve exceeded your limit.
• Migration and Dual-Use Costs: Moving from your old SAP ECC system (on-premise) to S/4HANA in the cloud is a complex project. During the migration, you may need to run both systems in parallel (for testing, data validation, or phased go-lives). Without careful planning, this could mean you’re paying for RISE while still paying maintenance on your old system – effectively double-paying for a period. SAP has policies and programs to avoid this (often called dual-use rights or temporary extended use), but you need to make sure they’re in your contract. Negotiation tip: Ensure a clear dual-use period is granted. For example, negotiate the right to run your legacy SAP ERP for up to 12 months alongside RISE at no additional cost. This should cover both licensing (so you’re not non-compliant or charged for extra users) and possibly support (some customers negotiate a maintenance fee waiver for the overlap period). Additionally, consider migration cost credits: SAP may be willing to provide some credit or funding that you can use toward the system integrator or migration tools, especially if you highlight the cost barrier of moving. Don’t assume the subscription fee covers migration – it doesn’t – so try to offset those costs via negotiation.
• Indirect Access and Third-Party Integration: One tricky aspect of SAP licensing is indirect access (digital access). When non-SAP systems or external users interact with SAP data, SAP sometimes requires extra licenses (e.g., document-based licenses). Moving to RISE doesn’t automatically eliminate that concern. If you have a lot of interfaces (say, an e-commerce site or a data warehouse pulling info from S/4HANA), you’ll want to clarify how those use cases are covered. Negotiation tip: Get explicit in the contract about indirect/digital access. Ideally, have SAP include some level of Digital Access License or specify that your known third-party interfaces are allowed without extra fees. The last thing you want is a compliance audit in the cloud that finds you owe money for documents created by a non-SAP app. Put those concerns to bed during negotiation by getting the rules in writing.
• Overage Rates and Volume Flexibility: Beyond users and storage, think about other resources – memory, compute capacity, integration calls, etc. If your business grows or your usage pattern spikes (more transactions, more API calls), could there be hidden fees? Often, yes. For instance, heavy usage of certain SAP Cloud services beyond a cap could incur charges. Negotiation tip: Growth plan. Either negotiate some headroom (e.g., contract for a bit more FUEs or storage than you need initially) or get a clause that any additional capacity you need will be provided at the same discounted rate as the initial purchase. If you expect to need, say, another 100 FUEs in year 3, don’t leave the price for those undefined – lock it in now (even if you don’t pay until you actually add them). The goal is to prevent any scenario where an unplanned expansion results in paying list price because it wasn’t covered in the original agreement.

In short, identify all potential extra costs in your RISE landscape – and address each one upfront. It’s much easier to negotiate these before signing when SAP is eager to close the deal, rather than after, when you have no leverage.

By managing these hidden costs, you ensure the “great price” you negotiated doesn’t quietly inflate later.

Renewal and Risk Factors to Consider

Signing the contract is just the beginning; you also have to think about the long-term: what happens at renewal time, and what risks lurk down the road?

Here are some key considerations:

• Renewal Uplifts: A standard tactic in cloud deals is for the vendor to raise the price at renewal if there’s no cap. If you sign a 3-year RISE subscription, when that term is up, SAP might come back with a renewal price that is, say, 10-20% higher per year (especially if you’re essentially “all-in” with them by then). You don’t want your hard-won discount to vanish with a big jump in year 4 or 6. Negotiation tip: Cap the renewal increase. Negotiate a clause that limits any subscription price increase at renewal to a certain percentage – commonly, customers aim for something like no more than 5% or tied to an inflation index (e.g., Consumer Price Index). The lower, the better; some have even locked in flat renewal pricing for one additional term. The key is to remove SAP’s ability to suddenly jack up the cost once you’re dependent on the service.
• True-Ups / Usage Exceeding Contract: We touched on this in hidden costs – if you end up using more than you contracted (more users, more storage, etc.), you’ll have to true-up, usually at full list price unless otherwise stated. If your business unexpectedly grows and you need 20% more FUEs, this could become very expensive if not handled. Mitigation: Negotiate a pre-defined price for additional FUEs or other resources. Also, implement internal monitoring so you know if you’re nearing your limits and can address it proactively (perhaps by negotiating an add-on package mid-term instead of incurring automatic charges). Some contracts allow you to exceed a bit and then adjust (with retroactive charges). Understand the mechanism: do you pay monthly if you exceed, or is it an annual reconciliation? Knowing this helps avoid surprise invoices.
• Compliance and Audit Risk: Just because you’re on RISE doesn’t mean you’re free from all compliance concerns. We already mentioned indirect access licensing. Another area is how certain modules or legacy licenses are handled. If you converted some on-prem licenses to RISE, ensure your old systems are decommissioned or used only as allowed (to avoid an audit claim that you’re using software not covered by the new subscription). Clarify any third-party access, developer licenses, etc., in the contract. Essentially, nail down what happens if SAP audits you in the cloud context. Also, keep an eye on user classifications – under the FUE model, you might have allocated some users as “self-service” or “core” users (lower impact on FUE count). If your usage drifts (e.g., lots of self-service users start doing advanced tasks), SAP could argue you’re exceeding the scope. While such scenarios are rare, it’s about having clear definitions to avoid arguments later.
• Lock-In and Exit Strategy: A big risk factor is vendor lock-in. With RISE Private Cloud, SAP becomes not just your software provider but also your cloud host and operations provider. If, after the contract, you wanted to switch to another solution or even bring SAP back on-prem, it’s not simple. There’s no perpetual license you own – if you stop paying, you lose access. This gives SAP tremendous leverage at renewal. Mitigation: During initial negotiation, at least discuss or insert provisions that ease a transition. While SAP may not agree to much here, some enterprises negotiate data export rights, assistance with offboarding, or even a pricing glide path if they choose not to renew (for example, an option to extend for 6 months at a known rate to facilitate a smooth transition off). Additionally, retain leverage by not putting all your eggs in one basket if possible – e.g., keeping some non-SAP systems or at least having a plan B can psychologically help when renewal comes. And of course, those renewal caps and any competitive benchmarking you can do before renewal will be crucial.
• Contractual Pitfalls: Pay attention to clauses around things like service level credits (what do you get if SAP misses uptime SLAs?), data protection (especially in EU – ensure the contract has the needed provisions for GDPR and that you know where your data is hosted), and change management (if SAP changes a service or discontinues something, what are your rights?). These may not immediately affect the price, but they do impact the value and risk. For example, if the contract doesn’t explicitly say so, SAP might have the right to move your workloads to a different data center or region – which could be a risk for you. Or they might upgrade you to a new product edition later. While these specifics go beyond pricing, they’re part of the overall deal quality.

In essence, think long-term when you negotiate RISE. Don’t just get a good first-year price – set yourself up so that years 4, 5, 6 are not a rude awakening. Limit SAP’s ability to surprise you, and maintain some leverage wherever you can.

RISE Private Cloud Negotiation Checklist

Preparing for a RISE with SAP Private Cloud negotiation? Use this quick checklist of actions and targets to maximize your savings and minimize risk:

• ✅ Target a Deep Discount: For any sizeable deal (e.g., 300+ FUEs), aim for at least 40–50% off the list price. Don’t settle for the initial offer. Even smaller deals should offer discounts of 20% or more. Use industry benchmarks to justify your counter-offers.
• ✅ Bundle in Sandboxes/Environments: Ensure the contract includes the necessary non-production systems. Negotiate at least one extra sandbox or QA environment if you’ll need it, at no additional cost. This avoids having to pay later for a test system or training system that you could foresee needing.
• ✅ Secure Storage and Capacity Upfront: If you expect significant data growth or high-performance needs, negotiate extra storage capacity and any additional compute/memory capacity now. It’s often much cheaper as part of the initial deal (or even free as a throw-in) than as an add-on later. Lock in the price for any additional capacity you might need.
• ✅ Cap Renewal Uplifts: Insist on a cap for renewal pricing. Ideally, get a clause that renewal pricing can’t increase more than a small percentage (for example, 5% or tied to inflation). This protects you from steep hikes after the initial term.
• ✅ Ask for Migration and Implementation Credits: Moving to RISE can be costly (consultants, reimplementation, etc.). As part of the deal, ask SAP for service credits or funding that can be used towards your migration or related services. SAP often has programs or flexibility here, especially if the migration cost is a sticking point for you.
• ✅ Address HA/DR and SLA needs: Discuss your requirements for high availability and disaster recovery. If you require a higher service level, negotiate it now and understand the associated costs. Conversely, if the standard offering is fine, make sure you’re not inadvertently paying for premium HA you don’t need. Clarify the uptime SLA and what happens if it’s not met.
• ✅ Clarify Indirect Use and Compliance: Get explicit contract language on things like indirect access (digital documents) and any other compliance concerns. If you expect heavy third-party integration, ensure it’s clear you’re covered license-wise. Essentially, remove ambiguity that could lead to an audit dispute.
• ✅ Lock in Flexibility for Growth: If you anticipate adding more users or significantly increasing usage during the term, negotiate those terms now. For example, additional FUEs at the same discount rate or a preset price. Also, if there’s any chance you might reduce usage (less common, but maybe divestitures), see if any flexibility is possible (usually reductions aren’t allowed mid-term, but you might negotiate some adjustment options at renewal).
• ✅ Understand Sovereign or Localization Needs: If you require a special local hosting (sovereign cloud) or other specific compliance setup, factor that in. Negotiate the premium for sovereign cloud down and ensure support terms meet local requirements. Don’t accept a huge markup without question.
• ✅ Get Everything in Writing: Finally, once you’ve verbally agreed on terms, ensure all negotiated points are documented in the contract/order form. This includes discounts, included extras (such as sandboxes, storage, and credits), the renewal cap, dual-use periods, and more. Don’t rely on promises or side emails – it must be in the contract to protect you later.

This checklist can serve as your cheat sheet when sitting across the table (or Zoom) from SAP’s sales team. Check off each item to make sure you’re covering the bases of cost and risk.

FAQs on RISE with SAP Private Cloud Pricing

Q1: Is RISE with SAP Private Cloud always more expensive than staying on-premises?
A: Not necessarily in the short run, but it can be over a long timeline. RISE with SAP is subscription-based, so you avoid the big upfront license purchase and hardware investments of on-prem. Over, say, a 3-5 year span, many companies find the total cost of RISE can be comparable or even a bit lower than doing an on-prem upgrade (especially when you factor in that RISE includes infrastructure hosting, support, and some extras). SAP often touts RISE as having ~20% lower TCO in the first few years. However, if you extend the horizon to 7-10 years, those subscription fees keep accumulating and can surpass what an owned license + annual maintenance might have cost. Essentially, it’s like renting vs buying a home: renting (subscription) is often cheaper early on and includes maintenance, but over a very long period, you might pay more than if you bought. Each case is different – if you value the included services and lower upfront spend, RISE’s premium might be worth it. Just go in with eyes open that after the initial term, you’ll be continuing to pay, so negotiating good renewal terms is key to managing long-term cost.

Q2: Can RISE with SAP be priced like a commodity cloud service (e.g., like buying raw AWS/Azure)?
A: To an extent, you can push it in that direction, but remember that SAP’s ERP is not a commodity – you’re essentially negotiating a package that includes proprietary software licenses. Infrastructure providers have more transparent commodity pricing; SAP does not. That said, SAP knows that customers are comparing the cost of RISE to the cost of running SAP on their own cloud infrastructure. You can use that in negotiations: ask for clarity on the infrastructure portion, and push for a competitive rate. You won’t get an AWS-level price breakdown. Still, you can certainly negotiate the overall RISE price down by creating competitive tension (for example, indicating you might just stick with on-prem or consider a different solution). In practice, we’ve seen RISE discounts reflect some commodity-like pricing when customers make it clear they have alternatives. So, treat parts of it (like the hosting component) as negotiable commodity elements. However, be aware that SAP also offers unique value (an integrated package with a single point of support), for which they will charge a premium. You’re aiming to minimize that premium through savvy negotiation.

Q3: What happens if my user count or workloads expand mid-term? Will SAP charge more?
A: In a subscription model, your contract is for a fixed number of FUEs (and certain resources). If you exceed those – say you add more employees who need access, or your consumption of resources goes up – you will need to true-up. Typically, SAP will charge for additional FUEs or extra capacity in line with your contract terms. If you didn’t negotiate those terms, they might charge the list price for the extras (which is bad). That’s why we strongly advise negotiating additional units at the same discount. For example, have an agreement that any extra FUEs you need can be purchased at the same % discount as your initial batch. In some cases, customers even pre-negotiate pricing tiers for expansion, so they know “if we go over 500 FUEs, the next 100 are priced at $X each,” which aligns with the volume discount. The key is no surprises: clarify how and at what price expansions are handled. Conversely, suppose you overestimated and bought too many FUEs. In that case, you generally can’t reduce mid-term (you’re committed for the term), so be a bit conservative in what you lock in, and then add if needed with the protections mentioned.

Q4: Can we switch the underlying cloud (hyperscaler) or move from SAP’s cloud to our own later if needed?
A: Not easily, and certainly not within the same contract term. When you sign up for RISE Private Cloud, SAP chooses (or you indicate a preference for) a hyperscaler and region to host your system. That becomes part of the managed service. Halfway through, if you said “I want to switch from AWS to Azure” (for example), it would require a migration of your entire system to a new data center – essentially a reimplementation of the infrastructure. SAP typically wouldn’t allow that without a new contract (and it would be complex and costly to execute). At the end of your term, theoretically, you could negotiate to renew on a different hyperscaler, but again, it’s not a flick of a switch. In short, assume that the choice you make at the start is what you’ll have for the duration of the contract. If multi-cloud flexibility is important to you, bring it up during negotiation (maybe SAP could accommodate a DR site on a different cloud, or some contingency), but it’s uncommon. The RISE model is built on SA,P handling the cloud for you – and they are going to optimize their side of that, which means not moving you around unless necessary. So choose your preferred hosting partner/region carefully at the outset. And if down the road you truly wanted to leave SAP’s cloud, you’d likely have to plan an exit at contract end and a migration to either on-prem or another solution entirely.

Five Expert Recommendations for RISE with SAP Negotiations

To wrap up, here are five concise pieces of advice from SAP negotiation experts to help you in your RISE Private Cloud deal-making:

1. Never accept SAP’s first RISE quote – it’s almost always inflated. SAP expects savvy customers to counter. Treat the initial quote as a starting point; there is significant wiggle room, especially in terms of price and extras.
2. Use the ECC 2027 deadline as leverage – SAP knows many customers face an end-of-support deadline for older ERP systems. But that pressure cuts both ways. You can say, “We still have options (like third-party support or delaying) if the RISE offer isn’t compelling.” If SAP wants you to transition sooner rather than later, they may offer a better deal now. Make SAP work to win your business; don’t feel you have no choice – create the perception that you’re willing to walk away or wait.
3. Push for extras (sandbox, storage, BTP credits) in the initial deal – It’s much easier to get these included upfront when SAP is trying to close the sale. Ask for that extra sandbox environment, ample storage headroom, and sufficient BTP and network access credits without additional cost. These have real value. If they say “those aren’t included,” use it as a bargaining chip – for example, you might accept a slightly higher FUE price if they include $X worth of BTP or a sandbox. Often, SAP would rather give you “free” resources than cut the price further, so leverage that.
4. Cap those renewal increases – We can’t stress this enough. A great initial price means little if your costs balloon later due to uncapped renewals. Negotiate a tight cap on renewal uplift (5% or less, ideally) or a right to renew at the same rate for at least one extension term. Additionally, try to align renewal terms with your strategic plans (e.g., if you think you might consider alternatives in 5 years, don’t get stuck in a longer auto-renewal). The goal is to prevent sticker shock when it’s time to renew.
5. Treat FUE volume as a negotiable tier, not a fixed number – Don’t just take the number of FUEs and price as given. If you anticipate growth, negotiate it. If you think the number is inflated, challenge it. You can negotiate a volume band rather than a single figure. For instance, a contract for “up to 500 FUEs” is priced in tiers, rather than exactly 500. This way, you’re not overpaying for unused users, and any additional users are pre-priced. Be creative: consider starting with a lower committed volume, with the option to ramp up at the same discount. SAP often prefers a bigger commitment, but you can turn that into a tiered deal that gives you flexibility. The point is, the FUE count and pricing structure can be tailored – you don’t have to accept the flat structure they first present.

By following these recommendations, you’ll approach your RISE with SAP Private Cloud negotiation with a strategic mindset. Remember, knowledge is power: understand SAP’s motivations, know your benchmarks, and don’t be afraid to ask for what you need.

With preparation and a firm stance, you can secure a RISE deal that truly supports your business goals without breaking the bank.

Read about our Rise with SAP Services

Do you want to know more about our SAP Services?

Please enable JavaScript in your browser to complete this form.

Name *

First

Last

Email *

Company

Message *

Submit