SAP Private Cloud Bundle and Tier Changes in 2025

SAP Private Cloud Bundle/Tier Changes in 2025

SAP made significant changes to its cloud ERP licensing in mid-2025, restructuring the RISE with SAP private cloud offerings.

The Premium tier was rebranded as SAP Cloud ERP Private Edition, and the top-tier Premium Plus package was retired, with its advanced features (AI, analytics, sustainability) now sold à la carte.

These changes simplify the bundle choices but come with new pricing dynamics, including higher per-user costs in some cases, meaning CIOs must adjust negotiation strategies to control costs while leveraging the expanded base package value.

RISE with SAP’s Tiered Model (Before 2025)

For context, RISE with SAP was introduced in early 2021 as an all-in-one subscription model to help enterprises move from legacy SAP ECC to S/4HANA Cloud.

Under RISE, SAP bundled the S/4HANA Cloud software, infrastructure (cloud hosting), and managed services into a single contract, aiming to simplify cloud transitions for CIOs.

There were originally three package tiers for RISE with SAP S/4HANA Cloud, private edition: Base, Premium, and Premium Plus.

All tiers included the core S/4HANA ERP and standard cloud hosting, but higher tiers added more tools and support:

• Base – a basic offering with minimal extras, just the core ERP and standard infrastructure/support. It lacked transformation tools (e.g., no Signavio or BTP credits included) and was suited for straightforward technical migrations.
• Premium – the most popular tier, bundling in business process transformation tools (SAP Signavio), a chunk of SAP Business Technology Platform (BTP) credits for building extensions, and extended cloud services (e.g., integration to SAP Business Network) on top of the Base package. Premium gave enterprises value-added capabilities to reinvent processes and became the default choice for large firms.
• Premium Plus – an advanced tier (introduced later) that included everything in Premium, plus cutting-edge features: AI-driven tools (the SAP Joule generative AI assistant), advanced financial analytics, sustainability management (“green ledger”), a data warehouse (SAP Datasphere), and more. Premium Plus was aimed at customers wanting the latest innovations bundled in.

This tiered model lets organizations choose how much they want “baked in” their RISE deal. However, it also meant complex pricing and the risk of paying for unused components.

By mid-2025, SAP began moving away from this three-tier system in favor of a single enhanced package.

Mid-2025 Rebrand: From RISE Tiers to SAP Cloud ERP Private

In July 2025, SAP overhauled its private cloud packages, retiring the RISE with SAP name for specific SKUs and consolidating offerings into one primary bundle.

The Premium tier was rebranded as the SAP Cloud ERP, Private Edition package, which is now the main (and essentially only) option for private cloud S/4HANA service.

The Premium Plus tier was discontinued entirely, eliminating the three-tier structure (SAP now positions “RISE with SAP” as a broad program concept, not a particular product level).

Key aspects of this 2025 packaging change include:

• Consolidation of Bundles: Rather than multiple tiers, SAP offers a single comprehensive Cloud ERP Private package (with only niche “Base” deals in rare cases). This simplifies choices but puts more onus on one bundle to fit all needs. SAP quietly started phasing out the low-end Base package as well, except in limited markets where a stripped-down private option is still needed. Most new customers must now take the full-featured private edition or go with SAP’s multi-tenant SaaS option.
• More Components Included: SAP added several previously separate tools into the standard private cloud package to “add value.” Notably, SAP LeanIX (an enterprise architecture analysis tool acquired by SAP) is now bundled, helping customers map their system landscape for cloud transition. The SAP Business Network supplier portal (for supplier collaboration) and some Taulia financial solutions are also now included by default. SAP effectively doubled the number of included SKUs in the package, folding in tools that were either add-ons or only in Premium Plus before. Master Data Governance (MDG) licenses, often needed during S/4HANA migrations, are now part of the base bundle as well (previously, these had to be bought separately).
• Unbundling of High-End Features: At the same time, SAP removed some advanced features that had been bundled in the old top tier. The integrated data analytics warehouse (SAP Datasphere) is no longer included by default. The SAP Joule AI assistant and Sustainability/Green Ledger tools, once part of Premium Plus, are now only available as optional add-ons for an extra cost. These were excluded from the new base package to keep it “lean” – SAP positions this as giving customers flexibility to choose if they need these extras. In effect, the cool innovations (AI, advanced planning, ESG tracking) were carved out to separate licenses, whereas some pragmatic tools (e.g., LeanIX, supplier portal) were bundled in.

The table below summarizes a few key feature differences before vs. after the 2025 changes:

(Table: Selected feature differences in SAP’s private cloud package before vs. after mid-2025 changes.)

From a CIO’s perspective, SAP essentially folded the mid-level and parts of the top-level offerings into one package, while monetizing other formerly included capabilities separately.

SAP’s spokespersons have framed the change as providing “more flexibility” and aligning with customer needs.

In practice, it allows SAP to keep the base package price attractive (since you’re not forced to pay for AI or advanced tools if you don’t use them) but gives SAP new upsell avenues – they can charge for those high-margin extras once you’re on the platform.

It’s a classic “less for the base price, pay-as-you-go for extras” strategy.

Importantly, if you had been budgeting under the old model, these changes could confuse you. For example, a year ago, you might have been quoted a Premium Plus RISE deal that assumed Datasphere and AI were included – now a new quote would omit those, potentially under-scoping your solution if you don’t catch it.

Conversely, you might find new items (like LeanIX or MDG) in your quote that you didn’t plan for but are now bundled “free” in the package (which SAP may use to justify a higher base price).

CIOs and CTOs need to review any proposals line-by-line to understand what is and isn’t included in 2025’s package.

Read SAP Private Cloud and BTP Credits Under RISE with SAP.

Pricing Impacts of the 2025 Changes

Though SAP’s Cloud ERP Private Edition replaces RISE Premium in name, there were subtle yet critical pricing changes accompanying the rebrand.

The subscription pricing remains based on Full User Equivalent (FUE) counts – a metric where various user types (e.g., Professional, Functional, Productivity users) are weighted and summed up to determine total consumption.

However, SAP adjusted its volume pricing tiers and user classifications in 2025, which can effectively increase costs for some customers:

• Higher List Prices at Scale: Gartner research noted that SAP “made changes to volume-based pricing tiers” for Cloud ERP Private. Some FUE volume ranges now carry a higher list price per FUE than under the old RISE Premium model. In other words, the bulk discounts aren’t as generous at certain thresholds, raising the unit price for larger customers. This means a company requiring thousands of users could see a higher baseline quote for the same number of FUEs compared to last year. SAP did not broadly publicize this, but customers have found that to get the same net price per FUE as before, they must now negotiate deeper discounts. Simply put, SAP has increased the “rack rates,” so procurement teams need to push harder on the discount percentage to avoid a cost increase.
• User License Reclassifications: Alongside the bundle change, SAP tweaked the FUE rules by reclassifying some user roles into more expensive categories. For example, certain activities that previously qualified as a cheaper “Functional” user might now require a full “Professional” user license. This stealth price increase forces the purchase of higher-cost user licenses for the same people. SAP claims it also moved some authorizations to lower-cost tiers and that only a few entries were “upgraded” to Professional, suggesting these were corrections of misclassified roles. Nonetheless, the net effect for some clients is a bump in counted FUEs or required license level, which directly drives costs up. CIOs should be alert to any changes in how their users are categorized in the new rules.
• Loss of “Free” AI Units: Under Premium Plus, SAP had included a certain allotment of AI or machine learning usage (for the embedded AI features). Now with Premium Plus gone, those AI capabilities are an extra charge. Companies that were piloting SAP’s AI (like Joule assistant or other ML features) must budget for those as separate services. SAP’s initial tactic of bundling some AI and charging only for overages has evolved – now all AI usage may be metered unless negotiated otherwise. This could significantly impact cost projections for organizations planning to leverage SAP’s AI offerings.
• Example – Cost Scenario: To illustrate the scale of costs, consider an enterprise needing 500 FUEs of Cloud ERP Private. If SAP’s going rate is around €2,000 per FUE annually for a full-featured package, the sticker price would be roughly €1 million per year. A larger deployment of 1,000 FUEs might list at €2 million. Under the new scheme, if SAP’s volume discount thresholds change, the same 1,000 FUE deal might now list at a higher price until a greater discount is applied. This underscores why negotiation on price per FUE is crucial – small differences in the per-FUE rate (e.g. €1,800 vs €2,000) multiply out to huge sums over a 3-5 year contract.

It’s worth noting that SAP insists the 2025 changes “do not mean a direct increase or decrease in cost” by themselves.

The company line is that you’re getting more value in the new bundle, and any cost impact depends on what your starting package was (e.g., new edition is pricier than old Premium, but cheaper than Premium Plus).

Licensing experts observe that SAP Cloud ERP Private Edition’s base price tends to be higher than RISE Premium was, but lower than Premium Plus used to be.

If you were a Premium customer, you could expect to pay a bit more. For Premium Plus customers, you might pay slightly less now, but you’ll also have to pay for the extra features à la carte.

The bottom line is that the total cost of ownership can easily increase if you require many of the unbundled extras or if you don’t aggressively negotiate the subscription rate. Diligent cost modeling and line-item reviews are needed to avoid surprises.

Negotiating SAP Contracts Post-2025

In light of these mid-2025 changes, CIOs and procurement leaders should adapt their negotiation strategies when contracting or renewing with SAP.

The goal is to mitigate the risk of cost escalations hidden in the new packaging and ensure the deal aligns with your actual needs. Here are key strategies and considerations:

• Insist on a Detailed Bill of Materials: Don’t accept a lump-sum quote. Ask SAP to provide a clear breakdown of all components and their costs in your Cloud ERP Private package. Know exactly what licenses, infrastructure, and services are included (ERP software, database, cloud platform credits, third-party tools like Signavio/LeanIX, etc.) and what’s not. This transparency lets you spot if something you expected (e.g., a data warehouse or AI feature) is missing (now an add-on), and it equips you to question charges for items you may not need. It also helps if you want to compare a RISE quote to a traditional licensing model or competitor – you can see which pieces account for the cost.
• Leverage the Transition for Concessions: SAP is eager to transition customers into the new model and show market uptake. Use that as leverage. When negotiating a new contract now, reference the 2025 rebranding and position your company as an early adopter of the “enhanced” package. Push SAP for introductory incentives in return. For example, you might negotiate a higher discount than usual or ask for certain add-ons at no charge for a period. If AI features are important, request a bundle of free AI usage hours or a fixed-rate deal for AI services as part of signing. If sustainability reporting is on your roadmap, maybe SAP can include the ESG module for the first year. The key is to argue that since you’re losing some included features from the old bundle, you deserve a sweetener on the new deal.
• Anticipate Add-On Needs and Lock Prices Now: Take a forward-looking view of your requirements over the contract term. If you suspect that in a year or two you’ll need SAP Datasphere for analytics, more BTP capacity, or the Joule AI assistant, negotiate those now rather than later. It’s much easier to secure a good price (or at least a price cap) for an add-on before you’re 2 years into a contract and technically “locked in” with SAP. For instance, you could negotiate a clause that lets you activate the AI assistant at a fixed per-use rate, or pre-book a chunk of SAP Datasphere storage at a discounted fee. Having price protections for anticipated add-ons will prevent SAP from taking advantage of your need for that feature mid-stream.
• Push for More Discount to Offset List Increases: As noted, SAP’s pricing tweaks mean you likely need a better discount % just to stay even. Come armed with benchmark pricing data if possible (e.g., what other enterprises are paying per FUE) and press SAP to match competitive rates. Focus on the price per FUE as a key metric in negotiations. If SAP claims their list price went up because more is included, counter by highlighting any components you won’t use and arguing for a lower unit rate. For volume purchases, negotiate tiered discounts that improve as your FUE count grows, to counter the new tier pricing structure. The message to SAP should be: We understand your list pricing changed, but we expect the net deal to be equal or better than before, given our business.
• Address User Classification in the Contract: Given the FUE reclassification risk, it’s wise to seek contractual clarity on how user roles are counted. If possible, include in the contract the specific distribution of user types (Professional vs. Functional users, etc.) and consider an allowance that would allow you to adjust your license counts if SAP redefines user roles, or maintain the old definitions for pricing purposes. At minimum, be prepared to audit and adjust your user mappings post-deal. This proactive stance will help avoid a scenario where an audit finds you suddenly “under-licensed” due to SAP changing definitions. Monitoring your user licensing regularly (perhaps every quarter) is now essential.
• Consider Alternative Paths: SAP is pushing cloud subscriptions hard (especially with the 2027 ECC end-of-support looming), but remember you do have options. Some organizations still negotiate traditional on-premises licenses for S/4HANA and host it themselves or with a third party, albeit SAP makes this less attractive now. Others use third-party support firms to extend ECC’s life. While a full discussion of alternatives is beyond scope, simply reminding SAP that you have a Plan B can improve your leverage. If the Cloud ERP Private quote isn’t compelling, signal that you might just stick with your current system or look at the public cloud SaaS (which is often cheaper per user). SAP sales teams know they need to justify the premium for RISE, especially as not all customers are convinced. Use that to negotiate – either SAP meets your requirements cost-effectively, or you explore other avenues.
• Validate “Incentives” and Benchmark the Deal: SAP often presents discounts or incentives (“we’re giving you 30% off list” or “this includes free hosting for dev systems”) – don’t take these at face value. Always benchmark the total cost of the deal against industry data or third-party analysis. Engage independent advisors if needed to see if the offer truly is competitive. Also, clarify any one-time incentives: if SAP offers cloud credits or migration services funding, get it in writing and understand the conditions. Ensure any “Transformation credit” or special terms (SAP has programs to encourage cloud moves) are accounted for in your budget planning.

By negotiating shrewdly in this new environment, you can contain costs and even turn the 2025 changes to your advantage.

For example, one CIO negotiated a RISE renewal where, in exchange for moving to the new package, SAP provided additional training licenses and a temporary increase in BTP credits at no extra cost – effectively offsetting the loss of a discontinued feature.

The key is to approach SAP with a clear view of your must-haves and nice-to-haves, and a willingness to question any element of the proposal that doesn’t add value to your business.

Recommendations

Finally, here is a concise list of recommendations for CIOs/CTOs and procurement leaders navigating SAP’s private cloud licensing changes in 2025:

• Align Package to Actual Needs: Don’t blindly accept the full bundle – analyze which included components you will use. If there are extras you won’t leverage, use them to negotiate a better price. Conversely, if the Base (legacy RISE Base) option is still available and fits your needs, consider it to save cost (before it disappears).
• Budget for Add-Ons (AI, Analytics): Plan and budget as if advanced features will not be included. Assume line-item costs for things like AI services, advanced analytics (Datasphere), or sustainability apps. Build a buffer in your budget and negotiate volume pricing or caps for these to avoid surprise bills.
• Secure Flexible Terms: In contracts, bake in flexibility – e.g., the right to scale users down in later years, or swap one cloud service for another if priorities change. Given the pace of SAP’s changes, having an option to adjust your mix of services (or an exit strategy) is critical. Also, ensure you have clarity on renewal terms now, so SAP doesn’t have free rein to hike prices after the initial term.
• Exploit SAP’s 2025 Transition Eagerness: Use the current period of change as leverage. SAP is keen to show success for Cloud ERP Private Edition – you might get extra incentives now that won’t be offered later. Ask for migration support, extra sandbox systems, or contractual safeguards as part of signing on to the new model.
• Monitor and Audit License Usage: Set up a governance process to track your SAP usage against entitlements. With more components bundled and FUE rules changing, it’s easy to fall out of compliance or overpay. Regularly review user roles, BTP consumption, and included tool usage. This not only prevents audit issues but helps you utilize what you’re paying for (reducing “shelfware”).
• Benchmark Total Cost of Ownership: Evaluate the full 5-year TCO of the SAP cloud deal (subscription fees plus implementation costs, integration, etc.) and compare it to running SAP on-prem or other options. Use this analysis in negotiations – if the business case is borderline, SAP may improve the offer to tip the scales. Make sure the value (in process improvements, IT simplification, etc.) is commensurate with the cost.
• Engage Expert Help if Needed: Don’t hesitate to bring in third-party experts (licensing advisors or consultants) who specialize in SAP contracts. The 2025 changes have introduced complexity and potential gotchas. An experienced negotiator or SAP licensing analyst can identify hidden costs or opportunities (like knowing SAP’s typical discount ranges, or upcoming product roadmaps that could be leveraged). This can easily pay for itself in a better contract outcome.
• Keep SAP Accountable to Outcomes: Tie your negotiations to business outcomes. For example, if SAP is selling you on this package’s ability to enable faster financial closes or supply chain improvements, include success criteria or extra support in the agreement. This keeps the discussion focused on value delivery rather than just license metrics, and gives you footing to request remedies (like extra help or credits) if the delivered solution falls short.

By following these recommendations, organizations can navigate SAP’s private cloud bundle changes in 2025 with greater confidence.

The key is to remain vigilant and proactive, understanding SAP’s shifting licensing landscape, holding SAP to transparent pricing, and crafting a contract that safeguards your interests now and in the future.

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