SAP RISE Negotiation Playbook – Strategies to Secure a Better Private Cloud Deal

SAP RISE Negotiation Playbook – Strategies

Introduction – Why RISE Negotiations Require a Playbook

SAP’s RISE with SAP offering is billed as “one contract, one hand to shake,” promising simplicity by bundling software, cloud infrastructure, and services into a single package. In reality, negotiating a RISE (Private Cloud) deal can be complex and high-stakes.

The costs are significant, contract terms are nuanced, and the risk of vendor lock-in is real. Without a plan, enterprises may end up overpaying or agreeing to terms that are later detrimental to them. Read our overview of SAP RISE Deployment Options.

This playbook is designed to help CIOs, CFOs, procurement leads, IT sourcing managers, and legal teams approach RISE negotiations strategically. Instead of taking SAP’s first offer at face value, you’ll learn how to negotiate from a position of strength.

We’ll cover preparation steps, leveraging alternatives for bargaining power, key concessions to target, process tips, common pitfalls, and even an example scenario.

By the end, you should have a clear roadmap – a negotiation “game plan” – to secure a better private cloud deal with SAP.

Section 1: Preparation – Laying the Groundwork

Successful RISE negotiations start long before you sit down with SAP’s sales team. Preparation is everything.

Begin by gathering your internal data and requirements:

• Assess Your Current SAP Footprint: Document your current SAP ECC systems, licenses, and annual spend. How many users (or Full User Equivalents, FUEs) do you have today? What modules and functionality are in use? This baseline lets you evaluate SAP’s RISE proposal critically. For example, if SAP’s quote is much higher than your current total cost of ownership (licenses + infrastructure), you’ll know to push back.
• Project Future Needs: Outline your expected user counts, FUEs, and system growth over the next 3-5 years. RISE deals often lock you into certain numbers, so anticipate expansion and possible contraction. Have clarity on your business roadmap – e.g., planned acquisitions, divestitures, or new initiatives that could change SAP usage. Defining your needs up front ensures you (not SAP) set the scope of the deal.
• Define Business Requirements: Create a checklist of must-haves and red lines for the contract. This includes technical requirements (performance, uptime, disaster recovery), support needs, compliance/security standards, and flexibility provisions. Know what you absolutely need from the deal (e.g., a certain service level, or the ability to adjust users) and what would be nice-to-have. Going in with a clear list helps you stay focused and prevents SAP from dictating terms that don’t fit your objectives.
• Benchmark and Budget: If possible, gather industry benchmarks or advice from third-party advisors on RISE pricing. What discounts have similar companies received? Understanding the market rate for a deal of your size gives you a target discount to aim for. Also, set an internal budget or walk-away price based on the value you expect. This ensures you don’t agree to something outside your financial comfort zone.
• Timing Matters: SAP’s sales incentives can work in your favor if you time it right. Wherever possible, align your negotiation and decision timeline with SAP’s quarter-end or year-end. SAP reps are under pressure to close deals as these deadlines approach, often making them more flexible with discounts and concessions. For example, planning your final negotiation round for late Q4 (SAP’s fiscal year-end) might unlock an extra price reduction or bonus offering to get the deal signed. Use this to maximize your leverage.

By laying this groundwork, you transform the negotiation from a reactive discussion into an informed, proactive strategy.

You’ll enter talks with SAP knowing exactly what you need, what you’re willing to pay, and when to press for more. In short, preparation prevents SAP from having the upper hand.

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

Section 2: Leverage Alternatives to Strengthen Your Position

One of your greatest sources of bargaining power is the existence of credible alternatives.

SAP wants you to believe RISE is the only logical choice for moving to the cloud – it’s not. Even if you fully intend to go with SAP, hinting at or seriously evaluating other options keeps SAP on its toes.

Here’s how to leverage alternatives:

• Stay on ECC a Bit Longer: RISE often targets customers who feel pressured by looming SAP ECC support deadlines (2027 mainstream support, with optional extended maintenance to 2030). If you’re not ready for S/4HANA or the cloud yet, extending your current SAP ECC environment is an option. Yes, you might pay SAP a premium for extended support or use third-party support providers, but this can be far cheaper than rushing into a bad RISE deal. Let SAP know that sticking with ECC (for now) is your Plan B. This signals that you won’t accept a poor offer just because of the timeline – you have a fallback.
• Consider Best-of-Breed Competitors: Identify areas where SAP isn’t your only choice. Maybe for HR systems, you could consider Workday, or for CRM, you might look at Salesforce, or Oracle for ERP. You don’t have to actually switch, but by evaluating and mentioning these niche competitors, you remind SAP that parts of their footprint could be replaced if RISE terms aren’t attractive. For instance, “We’re also reviewing Workday for HR to compare value.” Such statements can encourage SAP to sweeten the deal to keep your whole business.
• Self-Managed Cloud (“Bring Your Own Cloud”): RISE in a Private Cloud edition means SAP manages the infrastructure (often on hyperscalers like AWS, Azure, or Google Cloud) and wraps it into one contract. But you have the alternative to license S/4HANA traditionally and host it on your own cloud tenancy or a preferred hosting partner. In many cases, large enterprises find they can run S/4HANA on a public cloud themselves at a lower cost. Make it clear that you’re weighing SAP-managed vs. self-managed options. For example, calculate the rough cost of running SAP on your existing AWS/Azure agreements – if it looks cheaper, you can mention that gap during negotiations. SAP sales teams hate the idea that a customer might “go it alone” because that means lost subscription revenue for them. Use that to negotiate: “We could simply run this on Azure ourselves. What value does SAP’s management add, and at what cost? We need a better price to justify RISE.”
• Deploying Selective Solutions: Perhaps you don’t need the full RISE bundle for all components. Some companies run core ERP with SAP but choose a different vendor for, say, analytics or procurement. Even within SAP’s ecosystem, consider hybrid approaches (e.g. keep some systems on-premises or in a cheaper hosting, and only move critical parts to RISE). By letting SAP know you’re open to splitting workloads, you implicitly pressure them to keep the whole package attractive so you won’t carve out pieces.
• Strategic Bluff vs. Serious Evaluation: It’s okay if some alternatives are mainly for leverage – just be sure not to bluff empty-handed. If you claim you might go with Oracle Cloud instead, be prepared for SAP to ask questions or counter. The key is to be credible. Engage in some level of due diligence on alternatives so that if you reference them, it sounds (and is) genuine. The mere act of exploring options often gets back to SAP through the grapevine, putting them on alert that their deal isn’t the only game in town.

In summary, don’t let SAP assume the deal is in the bag. Highlight that you have options – whether it’s delaying the move, sticking on ECC, or using other providers. When SAP knows you have alternatives, you change the power dynamic.

Suddenly, they need to convince you with a better price or terms. The result? SAP is far likelier to grant concessions, sharper discounts, or extra goodies in the RISE package to win your signature.

Key Concessions to Target

When negotiating a RISE private cloud deal, there are several high-impact concessions and terms you should put on the table. These can significantly enhance the value and mitigate risk for your organization.

Make sure to discuss the following areas and push for improvements in each:

• Pricing & Discounts: SAP’s initial RISE quote will almost always have room for negotiation. Aim high on discounts – use those benchmarks and peer deals you researched. It’s not uncommon to target 30-40%+ off the list price for a sizable RISE subscription, especially if you’re a large enterprise or committing to a multi-year term. Don’t be shy about countering SAP’s “standard discount” with a bold ask backed by data (e.g., “We have insight that companies of our size got 45% off – we expect the same.”). Additionally, insist that SAP breaks down the pricing into its components (software, infrastructure, and support). This transparency helps you spot if, say, the infrastructure portion is overpriced compared to market rates, giving you leverage to negotiate that piece specifically. Remember, SAP is eager to grow RISE adoption – if you make a strong business case, they often have discretionary wiggle room to improve the price.
• Renewal and Price Caps: One of the biggest hidden dangers in a cloud deal is the renewal spike. Don’t focus only on the attractive first-term price and forget about what happens in year 4 or 6. You need to negotiate price protection for renewals upfront. There are a few ways to do this. Ideally, get a cap on any annual price increase at renewal – for example, no more than CPI (inflation) or a fixed 3% per year. Another approach is negotiating a “straight-line renewal,” meaning your second term can continue at the same price or same discount level as the first. SAP may resist at first, but many customers have secured commitments like “we can renew at no more than 5% increase” or “we’ll retain at least a 50% discount in the next term.” Make it clear that without renewal caps, you see too much risk and would reconsider RISE. Long-term cost predictability is essential for you, and SAP can often agree to reasonable limits if it means closing the deal now.
• Services & Support Inclusions: The RISE bundle comes with standard infrastructure management and basic support, but you can negotiate for additional services to be included or discounted. One key ask is migration assistance. Moving from ECC to S/4HANA (or from on-prem to cloud) is costly – see if SAP will provide onboarding help or migration credits. For example, ask for a certain number of free consulting hours for migration, or a dollar credit toward implementation services. SAP has been known to offer one-time credits (or reduced fees) to help cover things like data migration or training when customers sign on to RISE – leverage that. Similarly, consider support upgrades: you might request a period of SAP MaxAttention or Preferred Success (premium support programs) at no extra charge, or at least negotiate them at a reduced rate. These support extras can ensure you get better response times and guidance during your transition. Finally, clarify how many system environments are included (development, test, QA, sandbox). If you need an extra sandbox or training system, ask for it now rather than later – getting it bundled upfront can save a lot versus adding it mid-term.
• Flexibility (True-downs and Reallocation): No one can predict the future perfectly, so try to embed some flexibility into the contract. SAP’s standard cloud agreements are infamously rigid – they lock you in to a fixed number of users or capacity, with no refunds if you use less. However, you can negotiate some wiggle room. One tactic is to secure a “true-down” right – even a small one. For instance, ask for the option to reduce the user count or FUE count by, say, 5-10% at renewal (or at a mid-term checkpoint) without penalty. SAP might not love this, but if you have a plausible scenario (like you might divest a business unit), they sometimes concede a limited true-down clause. At a minimum, ensure that at renewal, you are free to decrease volumes if your needs are lower, rather than being forced to renew the exact same numbers. Also discuss reallocation rights: if you purchase 1,000 FUEs, can you later redistribute those between different user types or services? For example, maybe you initially allocate 800 to ERP users and 200 to procurement network. Still, a year in, you want to shift some to a different module – will SAP allow that flexibility? Get clarity on whether and how you can repurpose your licensed quantities internally to avoid waste.
• Exit and Change Clauses: Perhaps the most important (and most overlooked) area is planning your exit strategy at the time of entry. Negotiate terms that protect you if things change or if RISE isn’t meeting expectations. Key clauses to seek include:
  • Termination Rights: Can you terminate the contract early for convenience, and if so, what penalties apply? You might not have the right to cancel without a fee, but even a pro-rated penalty or some form of off-ramp due to unforeseen circumstances is worth discussing.
  • Data Portability: Ensure the contract specifies that your data is your data. At contract end (or termination), SAP should provide a full data export in a usable format, and perhaps even a period of read-only access to the system (e.g., for 30-60 days) after termination so you can retrieve anything you need. This avoids a scenario where your mission-critical data is effectively held hostage.
  • Transition Assistance: If you decide not to renew RISE down the road, will SAP assist in moving you to an on-premise environment or another platform? It might be optimistic to expect much help here, but at least spell out that you can convert your licenses to traditional ones or have a defined option to continue operating (maybe through a perpetual license conversion or extended access) if RISE ends. Some companies negotiate a clause like “if we exit RISE, we can convert to SAP on-prem licenses for S/4HANA at a predefined cost.” This way, you have a fallback to avoid a dead end.
  • Change of Cloud or Metrics: Include language for handling changes – for instance, if SAP changes the underlying cloud infrastructure or if your usage metrics need adjustment (perhaps you require more storage or different instance sizes), how will costs be adjusted? You want transparency and fairness, not surprises.

Securing these kinds of concessions transforms a boilerplate RISE contract into a more balanced, customer-friendly agreement.

Every concession you win now is a risk or cost you mitigate for later. It’s much easier to negotiate these upfront, when SAP wants your business, than to fix a bad contract in hindsight.

Focus on the areas above as you negotiate – they will have the biggest impact on the total value and flexibility of your private cloud deal.

Process Tips for Negotiating RISE

Having the right terms in mind is crucial, but how you conduct the negotiation process can be equally important. SAP’s sales professionals are well-trained in driving deals to closure on their terms.

Use these process tips to keep the playing field level and the pressure working in your favor:

• Have a Clear Walk-Away (BATNA): Before negotiations heat up, define your Best Alternative To a Negotiated Agreement (BATNA). In plain terms, decide what you’ll do if the RISE deal doesn’t happen. It could involve extending your ECC system for another year or two, switching to another vendor for certain capabilities, or simply postponing the project. Communicate (at least internally, and selectively to SAP) that you are willing to walk away if needed. If SAP senses that you must get a deal done, you lose leverage. By contrast, if they know you have a viable plan B (and the resolve to use it), they’ll tread more carefully. For example, tell SAP early on: “If the proposal doesn’t meet our requirements by the end of Q4, we’re prepared to defer the project.” That sets the expectation that deadlines won’t bully you.
• Anticipate SAP’s Tactics: Be ready for the common sales maneuvers. One is the artificial deadline – “This offer is only valid if you sign by this Friday (end of quarter)”. While timing does impact what SAP can approve, don’t let a sales rep’s urgency force you into a premature decision. Often, if the deal slips, SAP will come back with equal or even better terms, despite their earlier threats. Another tactic is bundling pressure – they might throw in extra SAP products or cloud services you didn’t ask for, claiming it’s a great bundle discount. Evaluate those critically; sometimes they inflate the package to justify a “discount” on paper. You’re not saving money if you never needed those extras. Also expect FUD (Fear, Uncertainty, Doubt) messaging: e.g., “Support for your current system ends soon – you’ll face huge risks/costs if you don’t move now.” Take such statements with a grain of salt. Yes, be aware of SAP’s roadmap and deadlines, but don’t let fear drive you; you often have more time or alternatives than the salesperson implies.
• Document Everything: Treat verbal promises as nonexistent until they’re written. During negotiations, SAP representatives might say encouraging things: “We’ll make sure you can add those users at the same price next year,” or “Yes, we can probably include that in the deal.” Don’t bank on any promise or understanding that isn’t captured in writing, ideally in the contract itself. Keep detailed notes of meetings and calls. After any call where a concession or detail was discussed, follow up with an email summarizing your understanding, and ask for confirmation. For critical items (pricing, capabilities, support levels), politely insist: “Please include that in the proposal document/contract.” If a term isn’t in the contract or official offer, it effectively does not exist. Having a written record not only prevents “amnesia” later, but it also signals to SAP that you are a diligent customer who will hold them accountable.
• Use Escalation Wisely: Sometimes negotiations stall at your account manager or regional sales director level – they might claim “this is the best we can do.” Know that higher-level executives at SAP (like a regional VP or cloud deal desk) have greater authority to approve special terms or discounts. If you’re not getting what you need, don’t hesitate to involve your leadership and SAP’s. For instance, a CIO-to-SAP-VP call near the end of the quarter can work wonders in breaking a pricing logjam or obtaining a contract change. The key is to use this card strategically: signal when you’re truly at an impasse, and have your executive communicate how important the deal is – but only if the terms are right. SAP will often bend more when they see the deal has executive attention and that you’re serious enough to walk if it’s not a win-win. A tip: frame escalations not as complaints, but as “We want to make this partnership work, but need a bit more to get there.” This helps SAP execs save face internally while granting you the concessions.

Following these process tips keeps you in control of the negotiation timeline and narrative. You want SAP to feel urgency, not you.

By managing the process deliberately – being willing to pause or walk away, countering their tactics, and ensuring promises are documented – you maintain leverage and steer the deal toward your objectives.

Remember, you are the customer; it’s okay to slow down or push back until the deal makes sense on all fronts.

Common Pitfalls in RISE Negotiations

Even savvy negotiators can stumble into a few traps when dealing with SAP’s RISE contracts. Here are some common pitfalls to watch out for (and avoid):

• Assuming “All Inclusive” Means SAP Does Everything: The RISE private cloud pitch suggests SAP will handle all your IT headaches – after all, it’s one contract for software, hardware, and services. However, don’t assume SAP’s responsibilities cover every task or requirement. Scope gaps are common. For example, SAP will manage the infrastructure and technical operations. However, your team or your implementation partner might still be on the hook for things like user administration, custom ABAP enhancements, interface monitoring, or application-level support. Always clarify the division of duties. If it’s not explicitly stated that SAP will do X, then SAP probably isn’t doing X. Many customers have been surprised post-go-live that certain support tasks or improvements aren’t covered without extra fees. Avoid this pitfall by detailing roles and responsibilities in the contract and service description. Don’t sign believing “SAP takes care of everything” – spell it out.
• Myopic Focus on the Initial Term Cost: It’s easy to get tunnel vision on the attractive 3-year or 5-year subscription cost and celebrate that you’ve fit it into your budget. But if you ignore the renewal, you could be in for a nasty surprise. Some companies negotiate a fantastic first-term price, only to find the renewal quote comes in 30% higher because they didn’t lock in protections. Don’t just model 3-year TCO – model 6-10 years out. What happens after the initial term? Always address the renewal terms (as discussed) and cap them or pre-negotiate pricing. Similarly, consider long-term functional needs: is the RISE bundle giving you everything you’ll need in the future, or will SAP upsell new cloud services later at higher prices? Plan ahead so year 4 doesn’t bust your IT budget.
• Signing SAP’s Standard Contract “As Is”: SAP’s contracts are written by SAP, for SAP. The boilerplate RISE contract will be vendor-friendly, full of protections for SAP and few for you. A common mistake is thinking these contracts aren’t negotiable – they absolutely are. Failing to redline terms is a missed opportunity to fix onerous clauses. For instance, standard terms might allow SAP to modify services or fees under certain conditions, limit SAP’s liability heavily, or lack clarity on data handling. Always have your legal team (or external software licensing counsel) review and propose changes. Even if SAP won’t accept all changes, you can often get critical safeguards added. Everything is negotiable if it’s important to you. Don’t be so relieved at the price that you overlook the fine print. Make sure the final contract language reflects the deal you think you’re getting.

In summary, avoid these pitfalls by staying vigilant. Read the fine print, think long-term, and don’t make assumptions about service scope.

A RISE deal can go wrong if you let your guard down at the last minute. By being detail-oriented and forward-looking, you’ll dodge the traps that have caught others.

Negotiation Checklist – 10 Must-Haves

When preparing for SAP RISE (Private Cloud) negotiations, use the following checklist of 10 must-have items as a quick reference.

These are the key areas to address, what to ask for, and why each matters to your deal’s success:

Use this checklist during negotiations as a reminder. If any of these ten items isn’t addressed in your draft contract, that’s a flag to revisit the topic with SAP before signing.

FAQs

Can smaller companies negotiate RISE effectively?
Yes, absolutely. While large enterprises often have more leverage due to bigger budgets, small and mid-sized companies can still punch above their weight in RISE negotiations. The key is preparation and mindset. As a smaller customer, you should emphasize your growth potential and reference fair market terms to establish a strong foundation for your negotiations. Do your homework – even if your spend isn’t huge, SAP doesn’t want to lose any cloud customer to competitors. Highlighting alternative paths (like third-party hosting or competitor solutions) works for smaller firms too. And don’t shy away from asking for concessions just because you’re not a Fortune 500. You might not get everything, but you’d be surprised what’s possible if you ask professionally. Many SAP reps will make concessions to close a deal and hit their targets, regardless of company size. Engage in the negotiation confidently, perhaps with the help of an independent advisor if you lack internal licensing expertise. In summary, smaller companies can negotiate effectively by being informed, united in what they want, and willing to say “no” to a subpar offer.

What’s the right timing to engage SAP?
Start the conversation early, but time your serious negotiations strategically. Ideally, you want to begin engaging SAP at least 6-12 months before you actually need to sign a RISE deal or before a critical project date. This gives you time to evaluate options and doesn’t put you against a wall. However, the best negotiating window often aligns with SAP’s financial calendar. If possible, structure your negotiation so that final approval and signing happen near SAP’s quarter-end (March, June, September, or December) – and even better, near year-end (December is typically SAP’s Q4). That’s when sales teams are most eager to close and more likely to grant discounts. Be careful not to reveal your ideal timing too eagerly; maintain flexibility so SAP feels the clock more than you do. Additionally, engage internally early on – ensure all stakeholders (IT, finance, legal, and procurement) are on the same page well in advance. This way, when SAP is ready to deal, you’re not slowing things down on your side. In short, starting early and finishing at quarter-end is a good mantra.

Should we involve third-party negotiators or advisors?
There’s no shame in getting expert help. SAP licensing and cloud contracts are specialized, and many organizations (even large ones) use third-party negotiation advisors or licensing experts. These consultants often have insight into SAP’s pricing tactics and what other customers are getting. They can help benchmark the deal and even handle some of the back-and-forth for you. If you feel your team doesn’t have deep SAP contract experience, an advisor can level the playing field. That said, choose your partners carefully – make sure they are truly independent and have a track record with SAP deals. Also, involve them early so they can guide your strategy, not just at the last minute. On the flip side, if you have a strong internal procurement and legal team familiar with SAP, you might not need external help. Just ensure someone on your side is dedicated to understanding the intricacies (for example, the specific terms of the RISE contract, metrics like FUE, etc.). Whether internal or external, having experienced negotiators is key. The cost of an advisor is often tiny compared to the potential savings on a multi-million dollar contract.

How do we avoid auto-renewal traps?
Auto-renewal clauses in cloud contracts can indeed be a trap if not managed. To avoid nasty surprises, negotiate the renewal process clearly in your RISE agreement. Firstly, try to avoid an automatic renewal at all – instead, have the contract require an active renewal or re-negotiation. If SAP insists on auto-renewal for convenience, then include protections: the renewal should carry the same terms or a controlled price increase (as we discussed under renewal caps). Never allow an auto-renewal at “list price” or undefined pricing. Also, set a requirement that SAP must give written notice well in advance (e.g., 90 days or more) before any auto-renewal kicks in, giving you a window to say yes or no. Internally, treat the renewal date as a critical event – mark it in your contract management system and start discussions at least 6 months before. Some companies also offer the option to opt out by a certain date without penalty, even if the default is auto-renewal. The main goal is to ensure you’re not inadvertently locked in for an extra term at unfavorable rates. By planning ahead and structuring the contract to prevent a silent auto-renew, you keep control. Always read the renewal clause carefully (many skip over it in the rush to sign the initial deal). Don’t hesitate to modify it to require explicit mutual agreement for renewal, or at least cap the conditions of renewal. And of course, keep track of time – a great contract term won’t help if you forget to act on it when the time comes!

Five Expert Recommendations

To wrap up, here are five concise expert tips to keep in mind as you navigate your SAP RISE private cloud negotiation:

• Never enter RISE without an exit plan (in writing). Always have a documented strategy for how you could disengage from the deal if needed – it keeps SAP accountable and you in control.
• Always negotiate renewal caps and flexibility clauses. Lock in your long-term protections at the start; it’s your safety net against future price hikes and changing needs.
• Use ECC support deadlines as leverage, not pressure. Don’t let SAP’s end-of-support dates force a bad decision. Instead, use them as one factor in negotiations while keeping alternatives open.
• Involve executives early to show seriousness. Executive sponsorship (on your side and engaging SAP’s execs) signals that you mean business and can expedite escalations when needed.
• Treat RISE like any big procurement – benchmark, compare, and push back. Do your due diligence as you would with any major vendor contract. Get multiple data points and don’t hesitate to challenge terms that don’t align with your interests.

By following these recommendations and the playbook above, you’ll be well-equipped to secure a better, more balanced private cloud deal with SAP. Good luck, and happy negotiating!

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