SAP Private Cloud Tiers and Bundles

SAP Private Cloud Tiers and Bundles

SAP’s private cloud offering for S/4HANA – historically known as RISE with SAP S/4HANA Cloud, Private Edition – is sold in tiered bundles (Base, Premium, and Premium Plus packages).

Each tier bundles the S/4HANA software license with cloud infrastructure and SAP services.

CIOs and procurement leaders must carefully understand these tiers, what’s included (and not), and recent 2025 packaging changes to optimize costs and negotiate favorable contracts.

SAP Private Cloud Overview

SAP S/4HANA Private Cloud Edition is an all-in-one subscription model that moves your core ERP to a private cloud environment under a single contract.

Unlike traditional on-premise licensing (where you buy perpetual licenses and manage infrastructure separately), this model bundles the software, the underlying cloud infrastructure (hosted by SAP or a hyperscaler), and ongoing technical management services into one subscription fee.

Contracts are typically 3 to 5-year subscriptions, with SAP handling system uptime, updates, and patches while you focus on using the software. For CIOs, this promises a faster path to the cloud with less upfront infrastructure cost, but it also means locking into SAP’s pricing and cloud terms.

This private cloud approach offers more flexibility and customization than SAP’s multi-tenant public cloud (S/4HANA Cloud, public edition), because you get your own isolated system (allowing certain customizations and integrations).

SAP intends to provide a “RISE with SAP” bundle that simplifies the move to S/4HANA: one contract, one hand to shake.

However, that simplification comes with complex licensing metrics and pre-defined bundles of SAP tools, which we explore by examining the tiered packages.

Tiered Packages: Base, Premium, Premium Plus

SAP initially introduced three tiered packages for its private cloud edition – Base, Premium, and Premium Plus to fit different customer needs and budgets.

Each tier builds on the previous, adding more bundled features (and cost):

• Base Edition: A stripped-down package aimed at less complex or cost-sensitive organizations. It provides the core S/4HANA Private Cloud system with standard functionalities. Base includes a basic SAP Build Work Zone (enterprise portal) and core financial reporting (e.g., Group Reporting) but omits many add-ons. It comes with no or very limited extra entitlements, like process mining tools or platform credits. Base was also constrained in scope – for example, it was typically offered only for smaller deployments (roughly up to ~500 Full User Equivalents) and often hosted in SAP’s data centers. In short, Base gives you the essential ERP in the cloud at the lowest price point, but anything beyond the basics costs extra.
• Premium Edition: The most popular tier, designed for the average enterprise. Premium includes everything in Base plus a range of additional SAP tools and services to enable business transformation. Key bundled components in Premium were: SAP Signavio process intelligence tools (for process mining and optimization insights), a starter pack for SAP Business Network (typically a limited number of Ariba procurement documents for supplier collaboration), SAP Business Technology Platform (BTP) credits for extensions (commonly around 1% of the subscription value in cloud credits), and SAP Build tools for workflow automation and low-code apps. Premium essentially provides the full “RISE” value proposition – combining ERP with process redesign tools and integration capabilities – in one bundle. In exchange, the subscription fee is higher: SAP indicated the Premium package carries roughly 30% higher cost than the Base due to these extra inclusions (though every deal is negotiated individually). For most mid-size and large customers, Premium was the go-to option to get a well-rounded set of capabilities with their S/4HANA cloud transition.
• Premium Plus Edition: Introduced in late 2023, Premium Plus was a top-tier package for early adopters needing advanced features and innovations bundled in. It included everything in Premium, and more. Premium Plus stacked on cutting-edge extras such as generative AI and advanced analytics (e.g. SAP’s new AI assistant “Joule” with some AI usage credits, and SAP Datasphere for enterprise data warehousing), sustainability management tools (carbon footprint tracking and “green ledger” reporting integrated with ERP), a supplier collaboration portal (an enhanced SAP Business Network portal for deeper vendor integration beyond the basic Ariba documents), and extended financial management features (enhanced cash management, receivables, and planning tools beyond the standard finance capabilities). In essence, Premium Plus was aimed at organizations that wanted to future-proof and leverage the latest AI, ESG, and data innovations out of the box. Naturally, this came at a significantly higher cost, often making it the most expensive option. CIOs had to carefully consider if those extras would be utilized enough to justify the spend. Notably, as of mid-2025, SAP retired the Premium Plus tier for new customers, as we’ll discuss later, folding some elements into the main package and making others optional.

Table: Key Features by Package Tier (before 2025 changes)

Base package often was limited to smaller “T-shirt” infrastructure sizes (suitable for lower user counts).
All tiers included SAP’s standard technical support, but Premium Plus customers often received additional onboarding guidance and check-ins as part of the package.

As the table shows, higher tiers bundled a broader set of SAP’s software portfolio into the subscription.

Bundling can be beneficial – for example, getting process mining and automation tools included means you don’t have to purchase those separately. However, it also means you might pay for capabilities you won’t fully use.

Each included component has its own limits and terms (e.g., a set number of Signavio users or a fixed amount of BTP credit per year), so the value depends on your usage.

Crucially, not everything is covered by these bundles; for instance, indirect access (external systems using SAP via APIs) was not automatically included and might require separate licensing or add-ons. CIOs should review which processes and integrations fall outside the bundle to avoid surprises.

Pricing Model and FUE Metrics

SAP Private Cloud subscriptions are priced based on a metric called Full User Equivalents (FUE). Rather than simply counting named users, SAP assigns each user a weighted value depending on their usage level.

For example, a heavy “Professional” user might count as 1.0 FUE, whereas a light self-service user could be 0.1 FUE (or 10 such users = 1 FUE). Developer users might count extra (e.g., 2 FUE each) given their higher system impact.

These FUE weights let SAP aggregate various user types into a single number that drives pricing.

Your contract’s price is essentially (Total FUE count) × (Rate per FUE), adjusted by any volume discount tiers. SAP defines pricing tiers based on FUE ranges; as your FUE count grows, the rate per FUE can decrease in steps (to reward larger volumes).

For instance, 60–550 FUEs might be one pricing band, 551–4000 FUEs a lower $/FUE band, and so on. In practice, SAP doesn’t publicly list these prices – they are negotiated case by case – but larger deals should attain lower unit pricing.

For illustration, an enterprise requiring 500 FUEs with a list price around €2,000 per FUE annually would see a starting cost of roughly €1 million per year for the subscription (before any discounts).

Negotiation can reduce that significantly: strong enterprise customers often push for aggressive discounts (20-50% off list or more) to meet budget targets.

It’s important to note that infrastructure sizing is tied to FUE as well. SAP will provision a certain size of hardware environment (“T-shirt size” like Small, Medium, etc.) based on your licensed FUE count.

The subscription covers that baseline infrastructure. If your usage grows or you require additional capacity (extra memory, additional test systems, etc.), those come as add-on charges.

CIOs should ensure the initial sizing is neither under-provisioned (causing performance issues) nor vastly over-provisioned (causing unnecessary cost).

Monitoring FUE and user types is a key governance task. If your user mix changes (say, more heavy users than planned), it could increase FUE consumption within the term. SAP has also adjusted the FUE rules over time – for example, reclassifying some activities into more expensive user categories in 2025, which can affect costs.

Always clarify how SAP is calculating your FUEs and lock down the definitions in the contract. The goal is to avoid situations where a change in definitions or user roles unexpectedly raises your cost mid-term.

2025 Packaging Changes (Rise Rebranded)

In mid-2025, SAP overhauled its private cloud packaging. The “RISE with SAP” name for specific SKUs was retired; now the primary offer is simply called SAP Cloud ERP, Private Edition.

This came with a consolidation of tiers and some adjustments in what’s included:

• Simplified Tiers: SAP moved away from the three-tier structure. Premium Plus was discontinued, and the standalone Base package is being phased out except in niche cases. Essentially, new customers choose the main Cloud ERP Private Edition package (comparable to the old Premium) as the default. In selective situations (certain smaller countries or very limited-scope projects), a stripped-down “base” variant may be allowed, but by and large, SAP wants to sell one comprehensive package.
• Modified Bundle Contents: The new single package was enriched with a few additional components. For example, SAP now includes tools like LeanIX (an enterprise architecture analysis tool from a recent acquisition) to help customers map their system landscape and plan transformations. Some previously added-on services were folded in – for instance, elements of the supplier portal from Business Network and certain working capital management tools (from Taulia) are now included by default to add more value. SAP also expanded some core entitlements (effectively doubling the number of included software line items in the bundle).
• Optional Advanced Features: Along with adding goodies, SAP removed some high-end features from the default bundle. Notably, the cutting-edge components that were part of Premium Plus, such as SAP Datasphere, the Joule AI assistant, and sustainability apps, are no longer bundled automatically. They’re available “à la carte” for extra fees. This means if you want enterprise AI or advanced analytics, you’ll have to purchase those on top of the base package. The rationale was to give customers more flexibility (since not everyone was ready to use those emerging tools), but it also means potential new cost elements in your project plan.
• Pricing Impact: The 2025 package change came with revised pricing tiers. SAP adjusted its volume-based pricing bands, and early analyses (e.g. by Gartner) noted that list prices per FUE increased for certain volume ranges. In other words, the new “Cloud ERP Private” package could carry a higher sticker price than the old Premium at the same FUE count. (On the flip side, it’s still cheaper than what Premium Plus was.) SAP’s official line is that the overall value is higher now, since more products are included in the base package. For example, many customers need process mining and master data governance capabilities during an S/4HANA migration – those are now often included. In contrast, previously, a RISE Premium customer might have bought them separately. So, whether the new package is “more expensive” depends on your perspective: if you would have bought those extras anyway, the bundle may save money; if not, you might be paying for things you don’t intend to use.
• Contractual Clarity: With these changes, CIOs are advised to revisit any prior RISE quotes or contracts. The Bill of Materials and the included components have shifted. Something that was included last year might now be an extra line item (or vice versa). For example, if your earlier plan assumed SAP Datasphere was bundled (under Premium Plus), you need to update that assumption because now it’s not included by default. Likewise, ensure new quotes explicitly list everything you’re getting. The simplification to one package might reduce decision fatigue, but it places more burden on understanding the fine print of what’s in that one package.

SAP’s strategy behind these moves is partly to streamline offerings, but also to enable more flexible upselling.

By not bundling the fanciest innovations automatically, SAP can keep the base price palatable, then charge for high-margin add-ons (AI, advanced analytics) when the customer is ready. This places even more importance on negotiating those extras proactively.

Contract and Negotiation Considerations

For executives overseeing SAP contracts, the tiered bundle model and its evolution present several challenges and opportunities.

Key considerations include:

• Bundling vs. Needs: Evaluate which bundle components genuinely add value to your organization. With so many products included, there’s a risk you’re paying for unused features. For instance, if you’re not planning on doing major process mining efforts, the Signavio tools included in Premium might sit on the shelf. On the other hand, if you do need them, having them bundled is cost-effective. Identify your required vs. nice-to-have components early. Where possible, negotiate to remove or reduce the cost for items you won’t use – or at least make SAP aware that those features aren’t driving your decision (to strengthen your case for a discount).
• Demand a Detailed Bill of Materials: Always request a clear bill of materials (BOM) listing every component and service in your private cloud subscription. This should include the quantities or limits (e.g. X number of SAP Signavio users, Y amount of BTP credit, specific SAP modules included, etc.). A bundled deal can obscure what you’re actually getting. By making SAP spell it out, you not only understand the value, but you can also verify compliance later and avoid surprise charges. This helps in comparing offers, too – some enterprises discovered their RISE quote excluded things they assumed were standard. Don’t let assumptions creep in; get it in writing.
• Watch for Gaps (What’s Not Included): Just because it’s a bundle doesn’t mean everything is covered. Some notable exclusions to be mindful of: implementation services (partners will charge separately for the migration and configuration work), application support beyond the technical platform (you may need a support partner for functional help), and indirect access licensing (if third-party systems create SAP documents, you might need a separate document license or SAP’s Digital Access add-on). Make sure to budget for these outside the SAP subscription. Also clarify support levels – the standard SLA might be 99.7% uptime, for example, but if you need higher or specific disaster recovery, that could be an extra cost.
• Leverage the 2025 Change: If you are an existing RISE customer (or had an earlier proposal) and now SAP is moving you to the new Cloud ERP Private package, use this as a negotiation opportunity. The fact that some components were removed from the bundle can be turned into a request for concessions. For example: “We lost the included Datasphere and AI tools that we originally were considering – to accept this new package, we need a price reduction or some other add-on at no cost.” SAP is eager to transition customers to the new model and keep them happy; there may be flexibility to secure a better deal during this swap. Even new customers can mention that they are aware the package was adjusted, signaling to SAP that you expect competitive pricing given the recent shifts.
• Plan for Add-Ons Now: Given that certain high-value items (AI, advanced analytics, etc.) are now optional extras, consider your 3-5 year roadmap. If you anticipate needing, say, SAP’s AI capabilities or extra data warehousing in a year or two, try to negotiate terms for those now. It could be discounted rates if added later, or a small bundle of trial usage included upfront. If you wait until you desperately need the feature mid-contract, you’ll have less leverage and might pay full price. Proactively include price protections or future options in your agreement for likely add-ons.
• Volume and Unit Pricing: Recognize that SAP’s volume-based discount structure means your cost per FUE can change if your user counts increase or decrease. If you are near a tier threshold, there may be a big price impact by crossing into a higher band. Negotiate a scalable pricing model or caps on increases. Additionally, since SAP adjusted the FUE price bands in 2025, ensure that the quote you get reflects any promised discount in terms of net price per FUE. In some cases, you might need to push for a higher discount % just to maintain the same unit price you would have had under the older model.
• Consider Alternatives: Finally, remember that SAP Private Cloud (RISE/Cloud ERP) is not the only path. Some organizations still opt to purchase S/4HANA licenses outright and host them on their own (or on a public cloud like AWS/Azure with a third-party). Others look at the public cloud edition of S/4HANA (if they can work within more standardized functionality). While RISE’s bundles offer convenience, they also lock you in. As a negotiation tactic, it’s wise to evaluate a “do-it-yourself” equivalent cost and let SAP know that you have that benchmark. Even if you intend to go with SAP’s private cloud, showing that you have costed out other options (and that they might be cheaper or more flexible) can pressure SAP to make a more attractive offer.

In summary, the tiered and bundled nature of SAP’s private cloud service requires due diligence. You’ll want to maximize the value from the included elements you need, minimize paying for what you don’t need, and maintain enough flexibility as your business evolves.

Read SAP Private Cloud Bundle and Tier Changes in 2025.

Recommendations

• Map Your Requirements: Align SAP’s package components with your business needs. Choose the package (or extras) that fit your organization, and avoid paying for features you won’t use.
• Get Everything in Writing: Insist on a detailed contract/BOM that lists all included software, services, and limits. This avoids misunderstandings later.
• Assess Value of Included Tools: If the bundle includes process mining, BTP credits, etc., plan how you will use them to get your money’s worth – or negotiate their exclusion for a better price if possible.
• Negotiate Future Add-ons: Anticipate needs for AI, advanced analytics, or other extras. Try to lock in pricing or get credits now, so you aren’t at SAP’s mercy mid-contract.
• Scrutinize User Counts: Review how SAP calculates your FUE. Optimize the mix of user types (and clean up any unnecessary named users) to minimize the count. Ensure roles are correctly categorized.
• Benchmark Alternatives: Compare the RISE private cloud cost against keeping SAP on-premise or using a different cloud arrangement. Use that analysis to negotiate – SAP may match discounts if they know you have a Plan B.
• Leverage Renewal/Migration Timing: If you’re up for renewal or migrating to the new package structure, use that timing to get concessions (e.g., extra services or better pricing) in return for signing onto the new model.
• Monitor Utilization: Once signed, actively monitor usage of each component (licenses, BTP consumption, transactions) to ensure you stay in compliance and extract full value. This also prepares you for any SAP audits.
• Control Term Length and Flexibility: Aim for a contract length and terms that suit your strategy. For example, a shorter term or flexibility to adjust FUE counts can be beneficial if your user base is in flux.
• Stay Informed: Keep abreast of SAP’s licensing updates. The cloud licensing model can change (as seen in 2025), so maintain an ongoing dialogue with SAP and independent advisors to avoid unwelcome surprises.

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