RISE with SAP: Commercial Analysis & Negotiation Tactics for 2026

RISE with SAP, launched in January 2021, represents SAP's most ambitious commercial packaging in its history. By bundling S/4HANA Cloud (private edition), infrastructure, BTP credits, migration tools, and support into a single per-user subscription, SAP aimed to simplify the cloud transition message and make total cost of ownership comparisons with on-premise alternatives more difficult.

Five years later, RISE has achieved its commercial objectives for SAP — but many enterprises that signed RISE agreements without independent analysis have found themselves paying 30–50% more than comparable on-premise or hybrid S/4HANA deployments. This article, part of our SAP License Negotiation Guide, provides the commercial analysis and specific negotiation tactics that enterprise buyers need before signing any RISE with SAP agreement.

What Is RISE with SAP?

RISE with SAP is a bundled subscription offering that packages the following components into a single per-user per-month (PUPM) subscription fee:

• SAP S/4HANA Cloud, private edition: A dedicated (single-tenant) instance of S/4HANA, hosted by SAP or a hyperscaler partner (AWS, Azure, GCP) on the customer's behalf.
• SAP Business Technology Platform (BTP) credits: A defined allocation of BTP consumption credits for integration, extension, and analytics use cases.
• SAP Business Network Starter: Basic access to SAP's Ariba Network and related procurement network services.
• SAP Datasphere (formerly Data Warehouse Cloud): Limited capacity for data warehousing and analytics.
• Infrastructure and operations: Managed hosting, infrastructure, backups, disaster recovery, and SAP BASIS operations.
• Migration services tools: Access to SAP's Transformation Navigator, Readiness Check, and migration assessment tools.

GROW with SAP is RISE's mid-market counterpart, targeting organisations deploying SAP S/4HANA Cloud (multi-tenant, SaaS) for the first time, rather than migrating from ECC.

RISE with SAP Pricing Model

RISE is priced on a per-user per-month (PUPM) basis, with user count based on the total number of "RISE users" — typically all system users, including integration users, batch users, and service account users in addition to named human users. This user count definition is frequently broader than the customer expects and is a common source of post-signing cost surprise.

RISE subscription rates vary significantly based on:

• Industry and organisation size
• Legacy SAP maintenance base (conversion credits from existing licences)
• Contract term (3-year, 5-year, or 7-year — longer terms receive higher discounts)
• Hyperscaler preference (AWS, Azure, GCP — all three have different infrastructure cost profiles)
• Regional pricing variations
• Competitive pressure (presence of Oracle Fusion, Microsoft Dynamics, or other ERP evaluations)

List RISE pricing is not publicly available. SAP provides pricing through formal commercial proposals. The starting point for negotiation is typically 30–50% above what is achievable with active negotiation.

RISE TCO: The Hidden Costs

SAP's RISE TCO model typically understates total cost by excluding or minimising the following categories:

BTP Overruns

RISE includes a defined BTP credit allocation — but enterprise S/4HANA deployments with significant integration complexity routinely exceed this allocation. BTP overrun credits are billed at list price, which adds a variable cost element that SAP's TCO model does not highlight. Independent modelling of BTP consumption requirements against the RISE bundle allocation is a critical pre-signing step.

Add-On Module Costs

RISE includes S/4HANA as the core ERP module, but many enterprises require additional SAP modules that are not included in the base RISE subscription:

• SAP Extended Warehouse Management (EWM) — additional subscription
• SAP Transportation Management (TM) — additional subscription
• SAP Ariba Procurement Suite (beyond Starter) — separate contract
• SAP SuccessFactors HCM — separate contract
• SAP Concur — separate contract
• SAP Fieldglass — separate contract

A RISE TCO that excludes these additional modules significantly understates the true cost of an SAP-centred enterprise architecture. Model the full module footprint required, not just the core S/4HANA scope.

Implementation Partner Costs

RISE includes SAP migration tooling but not implementation services. For complex ECC-to-RISE migrations, implementation partner fees — charged by SAP's SI partner ecosystem at rates of $200–$500/hour — can exceed the first year's RISE subscription cost. SAP's TCO model typically shows indicative partner costs at optimistic rates and compressed timelines that real-world migrations routinely exceed.

Hyperscaler Infrastructure Costs Outside RISE Scope

RISE includes managed hosting for the core S/4HANA instance, but enterprises typically have adjacent infrastructure requirements — development and test environments, data migration infrastructure, integration middleware, monitoring tools — that are not included in the RISE subscription and must be provisioned separately on the chosen hyperscaler. These costs are rarely included in SAP's initial TCO model.

RISE vs On-Premise S/4HANA: The True Comparison

SAP's RISE TCO model consistently shows RISE as cost-competitive with or superior to on-premise S/4HANA over a 5-year horizon. Independent analysis almost always reaches a different conclusion. The table below shows the typical components of a fair RISE vs on-premise S/4HANA TCO comparison:

Cost Component	RISE with SAP	S/4HANA On-Premise	Advantage
Application licence (Y1)	PUPM subscription	Perpetual licence fee	RISE (cash flow)
Infrastructure	Included in RISE	Hyperscaler or owned	RISE (simplicity)
Annual maintenance	Included in RISE	22% of net licence	RISE (bundled)
Total 5-year cost	Higher (PUPM x 60 months)	Lower (perpetual + maintenance)	On-premise (TCO)
Flexibility to switch	Locked (5-year term)	Own assets, flexible	On-premise
BTP overruns	Variable (risk)	Separate contract	Variable
Upgrade management	SAP managed	Customer managed	RISE
Customisation flexibility	Limited (clean core)	Higher (traditional ABAP)	On-premise

For most large enterprises, a full 5-year TCO comparison favours on-premise or hyperscaler-hosted S/4HANA over RISE — primarily because RISE's subscription model generates higher total application cost over the term, even accounting for infrastructure savings. The exception is organisations with significant IT staffing constraints, where RISE's managed operations value is genuinely material.

The 10 Key RISE Negotiation Tactics

1. Build an Independent TCO Model First

Never enter RISE negotiations using SAP's TCO model as your baseline. Commission an independent TCO model that includes all cost categories — application, infrastructure, implementation, BTP, add-on modules, change management, and ongoing optimisation — and compares RISE against on-premise S/4HANA, hyperscaler-hosted S/4HANA, and relevant competitive alternatives. This model is the foundation of your negotiation position.

2. Challenge the User Count Definition

SAP's RISE user count methodology often includes integration users, service accounts, and system users that consume minimal application functionality. Challenge SAP's proposed user count with a detailed user audit. Reducing the baseline user count by 15–25% is achievable in most environments and directly reduces the PUPM total.

3. Negotiate BTP Credit Sizing

SAP's standard RISE bundle includes a BTP credit allocation that is adequate for simple deployments but typically undersized for enterprises with complex integration landscapes. Demand that SAP model your specific BTP consumption requirements and include adequate BTP credits within the RISE subscription. Getting this right at contract signing avoids expensive overrun charges later.

4. Use Competitive Pressure Explicitly

RISE negotiations respond more strongly to competitive pressure than almost any other SAP commercial discussion. Oracle Fusion Cloud ERP, Microsoft Dynamics 365 Finance, and Infor are all credible RISE alternatives for the right organisation profiles. Present a formal competitive proposal to SAP's account team with a defined decision timeline — this reliably triggers escalation to SAP regional management and unlocks discount authority that account teams alone cannot access.

5. Leverage ECC Maintenance as a Stay Option

RISE negotiations have maximum leverage when the customer has a credible option to extend ECC operations rather than migrating. A documented third-party maintenance evaluation (Rimini Street, Spinnaker) running in parallel with RISE negotiations signals to SAP that you have a genuine alternative to cloud transition. SAP will discount RISE more significantly for customers who credibly might stay on ECC with TPM than for customers who have publicly committed to cloud migration.

6. Negotiate Contract Term Flexibility

SAP prefers 5-year RISE terms and offers progressively better discounts for longer terms. Challenge the commitment term: a 3-year initial term with renewal options and defined renewal pricing protects against migration delays and allows you to reassess after the initial deployment matures. SAP will discount less for shorter terms — quantify the discount value vs flexibility tradeoff independently.

7. Negotiate Pricing Escalation Caps

SAP RISE subscription pricing has escalation provisions for subsequent years. Negotiate a defined annual price escalation cap — typically CPI or a fixed percentage (3–5% per year). Without an explicit cap, SAP has the flexibility to increase RISE subscription rates at renewal based on arbitrary "list price adjustments."

8. Include Migration Risk Protections

RISE migrations routinely take 18–36 months for complex enterprises. Negotiate commercial protections for migration delay: delayed start dates, milestone-based billing triggers, and contractual extensions if the go-live is delayed beyond the contracted date. Without these protections, you may be paying full RISE subscription fees for an environment you cannot yet use.

9. Negotiate a Digital Access Amnesty

If your organisation has indirect access or Digital Access exposure from existing ECC integrations, negotiate an explicit DAA amnesty within the RISE package — a defined document volume allowance that covers existing and future indirect access exposure. This resolves a potentially large liability within the RISE subscription price. See our indirect access audit defense guide for context.

10. Secure Exit Rights

One of the most underrated RISE negotiation points is the exit provision. What happens if your organisation is acquired, decides to repatriate workloads, or finds that RISE does not meet its operational requirements? Negotiate clear data portability rights, exit assistance provisions, and defined termination costs at the outset. RISE exit terms are rarely buyer-friendly in SAP's standard contract — they must be negotiated explicitly.

GROW with SAP vs RISE with SAP: Choosing Correctly

SAP markets GROW with SAP to mid-market customers implementing S/4HANA for the first time, and RISE with SAP to large enterprises migrating from ECC. The commercial distinction is important:

• GROW with SAP uses multi-tenant SaaS (shared infrastructure) and requires customers to adopt SAP Best Practices without customisation. This limits customisation freedom significantly but reduces implementation complexity and cost.
• RISE with SAP uses single-tenant private cloud that accommodates more customisation and aligns with the clean-core BTP extension model — but at significantly higher subscription cost.

Some mid-market organisations are being pushed into RISE when GROW would better meet their requirements. If your organisation has limited customisation requirements and can adopt SAP Best Practices, GROW's lower price point may be more appropriate — and should be presented to SAP as a commercial comparison during negotiations.

RISE: Questions Every Enterprise Buyer Must Ask SAP

Before signing any RISE agreement, demand written answers to the following questions:

• What exact version of S/4HANA is included, and what is the upgrade cadence and customer choice around upgrade timing?
• How are BTP credits calculated, what services consume them, and what is the overrun rate if credits are exhausted?
• Which hyperscaler regions are included, and what is the cost if additional regions are required?
• What are the SLAs for system availability, incident response, and problem resolution — and what are the financial remedies for SLA breaches?
• How is the RISE user count defined, audited, and what triggers a true-up obligation?
• What are the conditions under which SAP can increase RISE subscription pricing during the contract term?
• What data portability rights does the customer have at contract end, and what exit assistance is included?
• How does RISE interact with existing perpetual SAP licences — are they retired, preserved, or convertible?

Conclusion: RISE with SAP Can Deliver Value — At the Right Price

RISE with SAP is a genuine cloud ERP option for large enterprises that value managed operations, SAP-guaranteed upgrade cadence, and simplified infrastructure management. But it is expensive relative to alternatives, and SAP's standard commercial proposal is rarely the best available offer. Enterprises that approach RISE negotiations with independent TCO analysis, credible competitive alternatives, and specific contractual asks consistently achieve 20–35% better economics than those that accept SAP's initial proposal.

IT Negotiations has supported RISE with SAP negotiations at enterprises across manufacturing, financial services, retail, and public sector. Our advisors bring former SAP commercial experience to every engagement — we know how RISE is priced internally and where SAP's flexibility lies. Contact us before your next RISE discussion.