SAP Private Cloud and BTP Credits Under RISE with SAP
SAP’s RISE with SAP private cloud offering bundles S/4HANA Cloud (private edition) with SAP Business Technology Platform (BTP) credits under one contract.
These BTP credits – essentially pre-paid cloud consumption funds – hold significant innovation potential.
However, many CIOs and procurement leaders underutilize or even ignore the included credits, leaving paid-for value on the table.
This article explains how BTP credits work in SAP private cloud deals and provides strategies to maximize their value, manage costs, and avoid wasted spend.
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SAP Private Cloud and BTP Credits Overview
RISE with SAP (Private Edition) is SAP’s all-in-one subscription model for ERP in the cloud. It includes S/4HANA (private cloud edition), infrastructure, support services, and consumption credits for SAP BTP in a single contract.
In effect, SAP’s private cloud customers get an embedded “starter pack” of BTP credits as part of their RISE bundle. This gives organizations an immediate ability to build extensions, integrations, or analytics on SAP’s platform without a separate purchase.
The inclusion of BTP credits is SAP’s way of encouraging customers to leverage its broader cloud ecosystem (integration tools, development environments, etc.) alongside the core ERP.
For CIOs and CTOs, this means any RISE with SAP private cloud deal inherently comes with platform capability. Still, it also introduces a responsibility to manage and utilize those credits effectively to get full value from the contract.
Importantly, RISE with SAP is offered in tiered packages (Base, Premium, etc.), but all private edition packages include some amount of BTP consumption credits.
SAP positions this as part of delivering “Business-Transformation-as-a-Service,” enabling customers to extend and optimize their ERP processes with cloud services.
In practice, the BTP credit portion is relatively small compared to the total contract value – it’s a use-it-or-lose-it allowance dedicated to innovation on the SAP platform. Understanding how these credits work is critical to ensuring they don’t go unused.
What Are SAP BTP Credits?
SAP BTP credits are prepaid cloud credits that function as a currency for consuming services on the SAP Business Technology Platform.
Instead of buying individual licenses for integration, database, or AI services, a company can draw from a pool of BTP credits to use any services they need on the platform.
Typically, one credit is roughly equivalent to $1 USD of service consumption at list price (though enterprise discounts may apply).
These credits give IT teams flexibility – they can spin up an SAP Integration Suite, develop a custom app with SAP Build, or run analytics on SAP Datasphere, all paid from the same credit pool.
Under the hood, SAP’s BTP operates on a consumption-based model (also known as CPEA – Cloud Platform Enterprise Agreement).
You commit to a certain spend (credits) and can allocate them across whatever BTP services you require.
Key attributes of BTP credits include:
- Flexible Usage: Credits can be spent on any mix of BTP services (integration, extension, data management, etc.) as needs evolve. This avoids needing separate contracts for each service.
- Prepaid and Tracked: Credits are purchased upfront (or included via RISE) and then consumed as services are used. SAP provides usage reports so you can monitor how many credits are used by which services.
- Expiration: BTP credits typically expire if not used within the contract period (usually annually). Unused credits do not roll over to the next year – if you don’t use them, you lose them.
- Overage Costs: If you consume more services than your credits cover, you will incur charges beyond the prepaid amount (often at higher, non-discounted rates). This makes tracking and planning usage important to avoid surprise bills.
In essence, SAP BTP credits work much like a cloud gift card or prepaid balance for SAP’s tech platform.
They offer tremendous flexibility to innovate, but they require management oversight to ensure they are fully utilized and aligned to actual needs.
BTP Credits in a RISE with SAP Contract
When an enterprise signs a RISE with SAP S/4HANA Private Cloud contract, SAP includes a set amount of BTP credits as part of the deal. The value of these credits is usually proportional to the overall ERP subscription value.
In standard RISE private cloud agreements, the included BTP credits are roughly 1% of the annual contract value, with typical minimum and maximum caps (e.g., a floor of around €10,000 and a cap of about €20,000 in credits per year, depending on the deal size).
This means even a midsize RISE contract will come with at least a five-figure amount of BTP credit annually.
For example, a €1 million/year RISE subscription might include about €10k in BTP credits each year, while a very large €5M/year deal might still be capped around €20k in credits.
To illustrate, here’s a sample of BTP credit entitlements by contract size in a private cloud deal:
Annual RISE Contract Value (Private Cloud) | Included BTP Credits per Year (approx.) |
---|---|
€500,000 (small deal) | €10,000 (minimum allotment) |
€1,000,000 | €10,000 (1% of ACV) |
€2,000,000 | €20,000 (1% of ACV) |
€5,000,000+ | €20,000 (capped maximum in standard bundle) |
Note: ACV = Annual Contract Value. (These figures are illustrative; actual contracts may vary slightly.)
SAP sometimes also bundles specific BTP services (for example, certain integration or automation tools) or offers promotional credits as incentives.
Notably, SAP has run cloud migration incentive programs – for instance, in 2024, SAP offered extra BTP cloud credits equal to a large percentage of first-year fees for customers migrating from on-premise to RISE.
(On private cloud moves, some customers received credits worth up to 60% of their first-year contract value, and even 100% for those choosing public cloud SaaS, to be used within two years.)
These aggressive incentives underscore SAP’s push to get customers onto BTP, but they are time-bound offers.
For most RISE with SAP private edition customers, the reality is that you have a modest but meaningful pot of BTP credits each year included in your subscription.
It’s essentially “free” capacity (in the sense that it’s built into the price) to encourage you to extend your SAP environment.
If you need more than the included amount, you would either pay for additional credits or upgrade to a larger BTP commitment. Conversely, if you do not use the included credits, that portion of your subscription delivers no return – a wasted investment.
Many organizations don’t initially realize the value of what’s included or lack a plan to utilize it. As a result, maximizing these credits should be a priority from day one of your contract.
Challenges: Underutilization and Credit Expiry
Caption: Many companies invest in SAP BTP credits, similar to a gym membership they pay for but never use, incurring cost with no benefit.
Unfortunately, a significant number of SAP customers let their BTP credits go unused.
SAP reported that roughly 25% of all BTP credits allocated to customers remain unconsumed, amounting to hundreds of millions of dollars in value left on the table each year.
This underutilization often stems from a combination of planning gaps and organizational issues.
Common reasons why BTP credits in RISE contracts go unused include:
- No BTP Strategy: The company adopted RISE for ERP but never developed a clear plan for using BTP services. Without identified use cases (e.g., integrations or extensions), the credits sit idle.
- Lack of Skills or Bandwidth: The IT team may be unfamiliar with BTP or too busy with the core S/4HANA implementation to start new development projects. Without expertise or resources to launch BTP initiatives, credits remain untouched.
- Uncertainty in Tracking: Some organizations are unsure how to monitor BTP credit consumption. If you’re not actively tracking usage through SAP’s tools, it’s easy to lose sight of the credits until they expire.
- Over-Allotment: In some contracts, the included BTP credits exceed the customer’s immediate needs. For example, a company might have $20k/year in credits but only find uses for half of that initially. The remainder then expires unused if not reallocated to new projects in time.
The “use it or lose it” nature of BTP credits is a critical point. These credits typically expire at the end of each year (or contract period). There is no rollover.
This is analogous to airline miles or a gym membership – if you don’t use the paid-for capacity, it simply vanishes.
From a financial perspective, unused credits mean you’ve effectively paid SAP for services you never consumed, reducing the overall ROI of your RISE investment. From an innovation perspective, it means missed opportunities to improve processes, integrate systems, or drive analytics that could benefit the business.
There is also a risk of complacency: some organizations delay exploring BTP until “later in the project,” only to find that later never comes before the credits expire.
In other cases, companies intend to use BTP but start too late in the year to fully burn down the credits. Any unspent portion at year-end is forfeited. All these scenarios underscore the importance of proactive planning and execution around BTP usage.
Maximizing Value from BTP Credits: Use Cases and Strategies
To avoid waste, companies should treat BTP credits as a strategic asset and incorporate their use into project roadmaps.
There are two angles to maximizing value: deploying credits on high-impact use cases and managing consumption strategically throughout the year.
Leverage High-Value Use Cases: Identify projects where BTP can deliver quick wins or significant business benefits.
Some prime examples include:
- Integration of Systems: Use BTP’s Integration Suite to connect your S/4HANA private cloud with other key systems (CRM, e-commerce, legacy databases). For instance, integrating SAP with Salesforce or MS Dynamics can streamline data flow, and your included credits can cover the message traffic and connectors needed.
- Extension & Custom Applications: Develop lightweight custom apps or extensions using SAP Build or the Extension Suite. Instead of customizing the S/4 core (which is discouraged), you can build side-by-side extensions on BTP (for example, a supplier portal or a field service mobile app that pulls ERP data). This “clean core” approach keeps your ERP standard while still delivering needed functionality – and it productively consumes your credits.
- Analytics & Data Management: Utilize credits on analytics tools like SAP Datasphere or SAP Analytics Cloud to unify data and generate actionable insights. If you have data sitting in S/4 and other sources, you can use BTP credits to set up a data warehouse or run AI/ML services that provide business intelligence. The business gains real-time analytics, and you utilize the credits for valuable outcomes.
- Process Automation: Try out SAP’s process automation or robotic process automation (RPA) services available on BTP to automate repetitive tasks. For example, you might build an automated invoice matching workflow or an RPA bot for data entry using the credits. Even small automations can yield efficiency gains and demonstrate the value of BTP.
- Legacy Data Access or Archive: Some companies use BTP-based solutions to access legacy system data (as referenced by some SAP partners). If you migrated to S/4HANA and left historical data in an older system or archive, you could use a BTP service to fetch and report on that data on demand – essentially putting credits to work to avoid maintaining a full legacy environment.
By pursuing such use cases, you ensure the credits directly support business objectives (improving integration, agility, insight, etc.). It turns the abstract “cloud credits” into tangible outcomes like faster workflows or better analytics.
Strategic Consumption Management: Alongside choosing use cases, it’s vital to manage the credits actively:
- Plan Early: Don’t wait until Q4 to start using BTP. In the first year of your RISE contract, map out which quarters will see which BTP projects. For example, plan an integration pilot in Q1–Q2, a small extension app in Q3, and so on. Early planning helps evenly spread usage so you’re not scrambling to use credits at year-end.
- Monitor Usage Regularly: Use the SAP BTP cockpit and monthly consumption reports to track credit usage. Treat the credits like a budget – monitor how fast you’re burning through them or if you’re underutilizing. This visibility allows course correction. If by mid-year you’ve only used 20% of your credits, that’s a red flag to initiate additional projects or scale up usage so you don’t waste the remainder. Conversely, if you see rapid consumption, you can manage the pace or secure additional credits to avoid overruns.
- Assign Ownership: Have a person or team responsible for maximizing BTP credit utilization. This could be an enterprise architect or an innovation lead who regularly evaluates, “What else can we do on BTP with our remaining credits?” Having clear ownership prevents the credits from falling through the cracks amid larger ERP activities.
- Engage Experts if Needed: If your team lacks BTP expertise, consider engaging SAP or a partner to help identify opportunities and quickly deploy solutions on BTP. Sometimes, a few days of a solution architect’s time can uncover a use for credits that pays back much more in business value. It’s worth a small investment to avoid a large amount of credit value expiring unused.
- Treat Credits as Dollars: Internally, frame the credits in monetary terms to get business buy-in. For example, remind stakeholders, “We have $15,000 worth of cloud services this year that we’ve already paid for. How can we use them to improve operations?” This often spurs ideas from business units (like automating a report or integrating a niche system) that IT can implement via BTP.
By actively using and managing the credits, you not only avoid waste but also accelerate your digital transformation.
Every credit consumed is essentially extra capability gained without increasing your spend.
Companies that weave BTP projects into their RISE adoption roadmap tend to realize much greater value from SAP’s ecosystem, as opposed to those who focus only on the ERP and ignore the platform.
Contract Negotiation Considerations for BTP Credits
Managing BTP credits isn’t just a post-contract exercise – it starts during contract negotiation with SAP.
Procurement leaders should address BTP usage and credits as part of any RISE with SAP deal-making or renewal:
- Ensure Credits Are Included: First, verify that your RISE contract includes the standard BTP credit entitlement. This should be clearly outlined in the contract (in value or credits). Most offers will include it by default, but you want it in writing and visible. It’s a part of the value proposition you’re paying for.
- Align Credit Amount with Needs: The default included amount (e.g., ~1% of ACV) might not be sufficient if you already anticipate significant integration or extension work. If your digital strategy heavily leans on building on BTP, negotiate for additional BTP credits as part of the deal. SAP sales teams often have flexibility here, especially if you make a case for needing more platform capacity to support your project. It’s not uncommon for savvy buyers to secure a higher credit pool or specific BTP services at discounted rates. For example, one company moving to RISE realized the standard €10–20k/year credit wouldn’t cover their planned initiatives – they negotiated an extra $50,000 in BTP credits at a significant discount, ensuring their first year of BTP usage was fully funded without extra cost.
- Leverage Timing and Alternatives: SAP is more willing to grant generous credit packages when they have an incentive to close the deal. Timing your negotiation before quarter or year-end, when SAP is eager to hit targets, can result in better concessions (like a bigger credit bundle or freebies). Additionally, suppose you mention evaluating alternative platforms (e.g., using AWS/Azure services or a third-party integration tool instead of SAP BTP). In that case, it can pressure SAP to sweeten the pot to keep everything in-house, possibly via more credits or add-on services.
- Clarify Expiry and Terms: During negotiations, clarify the rules on the credits: confirm the expiration period (usually aligned to annual periods). If your project timeline means you won’t use many credits in the very first months, see if SAP will agree to some flexibility (for instance, starting the credit count when the system goes live, or allowing a one-time carryover). SAP may or may not budge on this, but it’s worth asking – especially if there are known delays in when you can begin using BTP.
- Plan for Growth or Overages: If you suspect your BTP needs will grow, discuss upfront how additional consumption will be handled. Negotiating a pre-agreed rate for extra credits or the ability to true-up at discounted pricing can save you from paying full list price if you blow through the included credits. It’s better to have those provisions in the contract than to face an unexpected bill later. On the flip side, if you think the included credits are more than you’ll ever use, you could attempt to trade some value, e.g., maybe opt for a specific needed BTP service subscription equivalent, or other SAP cloud services, instead of excess generic credits. The key is to tailor the contract to your likely usage pattern.
In summary, treat BTP credits as an important element of the RISE deal. They have monetary value and utility. Negotiate them just as you would negotiate a discount or an extra module. SAP’s goal is to drive adoption of BTP, so use that to your advantage.
By securing the right amount of credits (or specific BTP entitlements) at the outset, you set your organization up to fully leverage the SAP platform without overspending. And by ironing out the terms, you avoid unpleasant surprises down the road.
Read SAP Private Cloud Bundle and Tier Changes in 2025.
Recommendations
In conclusion, SAP private cloud customers should proactively manage BTP credits to maximize value.
Here are key recommendations for CIOs, CTOs, and procurement heads:
- Develop a BTP usage plan before signing your RISE contract. Identify which projects (integrations, extensions, analytics, etc.) will use the credits so you know how much to negotiate and how to deploy them.
- Quantify and negotiate the credit amount to match your needs. Don’t hesitate to ask SAP for additional BTP credits or specific services in your RISE package, especially if your roadmap requires more than the standard allotment.
- Treat included credits as real money. Socialize internally that, for example, “€15k of BTP services annually” is part of the deal. This perspective helps drive urgency to utilize the credits on beneficial projects rather than ignoring them.
- Monitor credit consumption monthly. Assign a team member to track BTP usage in the SAP cockpit. Early detection of underuse (or overuse) allows you to adjust, by launching new initiatives or curbing consumption, well before year-end.
- Use credits for quick wins. Prioritize initiatives that can be executed relatively quickly on BTP to start drawing down the credits (e.g., integrating a key application, automating a report, building a small workflow). Early wins not only ensure usage but also demonstrate business value from the platform.
- Avoid end-of-year scrambles. Don’t procrastinate on using BTP. Aim to consume credits evenly throughout the year. A rushed attempt in Q4 to “use whatever’s left” can result in suboptimal projects or simply failing to use it all.
- Train or partner for BTP expertise. If your team lacks experience with SAP BTP, consider investing in training or engaging a certified SAP partner. Skilled resources can quickly spin up solutions that utilize the credits effectively, whereas an untrained team might let them lapse due to uncertainty.
- Plan for the long term. If your initial BTP credits prove valuable, be ready to negotiate future needs. Before your contract renews or the credit promo period ends, assess how much you used and prepare to secure a sustainable commercial model (additional credits, a larger enterprise agreement, or a pay-go plan) for continued BTP usage.
- Leverage SAP’s eagerness to get cloud business. Use timing and competitive options as bargaining chips when discussing BTP credits. You can often get better terms (more credits or flexibility) if SAP believes it will clinch or grow the deal – they would rather you use BTP than alternative platforms, so use that to your advantage.
- Align BTP projects with business outcomes. Always tie the use of credits to tangible business improvements (faster integration, improved insights, cost savings from automation). This not only justifies the effort but also secures executive buy-in to continue funding and focusing on these areas once the “free” credits are spent.
By following these practices, enterprises can ensure that the SAP BTP credits included with S/4HANA Private Cloud are fully utilized for meaningful initiatives.
The end result is a higher return on the SAP investment, faster innovation, and a smoother path to realizing the benefits of both the core ERP and the surrounding cloud platform.
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