The Commercial Risks for “RISE with SAP”
What is RISE with SAP
Rise with SAP is a new offering to help SAP customers transform their businesses into a “Digital Enterprise” faster and at a lower TCO (cost over time). Commercially, it is a single contract which embraces everything required for the transformation journey into an SAP Cloud Service. This is a brilliant idea, but is it right for your business?
SAP are asking their customers, who have been ECC On-Premise based for many years, to commit to transition their business to HANA and S/4HANA Applications as a Cloud Service.
Why consider it?
This will form the “Intelligent Enterprise” and deliver important benefits in terms of flexibility and speed of innovation to keep pace with market changes, supporting the business processes and operations throughout the transformation. In doing this via RISE with SAP you should also reduce your total cost.
The Commercial Risks
All significant change carries risk. In this case there is a combination of Contractual and Financial Risk which needs to be assessed. You cannot move everything to the cloud in one project, so your existing On-Premise contracts, Terms & Conditions and Licence Metrics will continue to apply for some years. Adding a RISE contract will increase the complexity.
Questions you need answers to
SAP are claiming that you can reduce your TCO by 20% versus an On-Premise implementation. However, it is not all you need to consider, some key questions are;
What can you do about your current huge investment in SAP Licences or is it money wasted?
What about the on-going cost of Oracle run-time Licensing and Maintenance Fees, when do they stop?
What if you need to buy more On-Premise Licences during the Transition to remain compliant?
Does Indirect Use or Digital Access non-compliance just disappear immediately?
Stepping into the unknown on your own can be dangerous and leave you open to numerous additional Risks, writing off a lot of asset value and entering into potential future unseen risks. Azurious has the answers to these and many other commercial questions which will feed the TCO Model to give you a realistic and balanced view, upon which you can take a properly informed decision.
We have a substantial and proven track record having worked with many large SAP customer around the world and helped them to address these and many other SAP Commercial issues. We help you to create a mandate and execute it to deliver lower Cost and Risk. Not just saving money but Executive time and effort.