SAP has recently moved the S/4HANA offering under the RISE with SAP program, creating a bundled set of products, licensing, and services under a new contract and provided at one price. The key takeaway is that RISE with SAP is a bundled commercial program and not a new product – S/4HANA provided under a RISE agreement is the same software that would be procured outside of a RISE agreement.
SAP presents the RISE agreement as reducing TCO by up to 20% and as the requisite platform to drive a business transformation as a service (BTaaS). As discussed in our previous note, true business transformation as a result of moving to S/4HANA (RISE or no RISE) is necessary for a sound business case and corresponding ROI. Many SAP customers are exploring a move to S/4HANA solely because of the end-of-support deadline for ECC in 2027. We caution clients that fall into this camp to broaden their horizons. SAP customers should explore viable alternatives such as third-party support or paying SAP's price increase for extended support through 2030 before spending millions of dollars on a replatform initiative.
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