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RISEwithSAP
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SAPLicensing
RISE with SAP is currently a huge topic in the SAP S/4HANA transformation. The reason: this is where the biggest discounts are granted - companies are sensing high savings potential. The question is whether this sinfully sweet offer is really right for everyone.
How can you be sure that the decision made today for RISE with SAP will be the right one in the future?
So how can we be sure that our chosen path will also be sustainable in the future? How can we know in advance whether we are entering the "new world" with a lean solution, without unnecessary ballast, but still with a secure future?
visoryQ Business Case Builder for SAP contracting strategies provides the decision criteria and financial framework you need to prepare, visualize, and justify your decision-making about the future of your ERP.
The analysis must go beyond checking the existing license requirements. SAP's STAR analysis also provides results on the current status, but no "advice" on optimization. Each individual existing user must be checked for activities carried out in the past. However, their expected future activities must also be kept in mind.
Existing engines and products must be analyzed for correct dimensioning for the future, and shelfware must be identified and sorted out. Many metrics will change with the switch to SAP S/4HANA. This means you have to determine which users will not need a paid license in the future. Everything has to be converted into FUEs (Full User Equivalents) when it comes to RISE with SAP.
Doing something like this manually would mean a huge amount of work, and if you are not really familiar with the subject matter, costly errors are inevitable. It doesn't help that SAP keeps changing the rules. While product conversion used to be considered a possible switch to SAP S/4HANA world, SAP now insists on contract conversion until 2027. The 70, 60, 50% rule, which was circulated last year, suddenly no longer applies. Now the motto "Everything is a matter of negotiation" applies again.
In this white paper, we discuss where the real focus of change lies, where expenses arise, and where hidden costs lurk. It is not primarily about the offer and what is included in detail - there are enough papers about that. Rather this is about what might not be included and subsequently where even apparently small differences between your demand and the package offer make huge differences in your TCO analysis.
If you are starting out in the SAP world from scratch and with a small or manageable inventory, RISE with SAP can be a real option. If you later realize that the choice was not a good one, you can let the lease expire, but you will then have to take care of your own data backup, as there is hardly any support to be expected from SAP.
RISE with SAP can also be a good alternative for smaller companies that work very closely to the SAP standard and hardly operate any individual solutions. But here, too, the following applies: only make the switch after you have carried out an in-depth analysis and checked whether SAP's offering also corresponds to your own circumstances.
The larger the company, the more difficult the cloud variant becomes. Large companies have usually been operating their SAP system for a very long time and many individual solutions have been introduced over time, which can or should be replaced by new SAP products. The costs and adaptation efforts are often very high.
Outsourcing individual processes to the cloud can be interesting for large companies. For example, switching to RISE could be an option for pure working time feedback because the metric is licensed via Employee and the user is on the move in the cloud with a free engine user. A performance overrun would not be expected here either, which would then incur extra costs.
visoryQ Business Case Builder for SAP contracting strategies provides the decision criteria and financial framework you need to prepare, visualize, and justify your decision-making about the future of your ERP.
So is it possible to make a general statement in advance as to whether RISE with SAP makes sense for you or not? Without in-depth analysis? No! All options should be explored systematically and comprehensively. With visoryQ, we can determine this for your company quickly, cleanly, clearly and reliably. Talk to us - it can only get better 😊
Peter Rattey is the founder of VOQUZ Labs. He invented samQ and is still intensively involved in samQ's further development. Peter is one of our most experienced advisors.
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