RISE with SAP – Friend or Foe?

June 28, 2021

by

Francisco Hansen

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SAP Licensing

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SAP Audit

Is this a relevant offering for existing and new SAP clients?
Contents of RISE with SAP
Value of RISE with SAP

At the beginning of 2021, SAP started a marketing campaign praising a new product said to support clients getting closer to having an intelligent enterprise: the product was named “RISE with SAP” – maybe a word game coming from the expression “the sap is rising”, announcing a new springtime?

Christian Klein, SAP’s president, called this offering: transformation as a service.

So, transformation as a service. That extends SaaS and PaaS now with Advisory Services: you obtain software licenses, application management, infrastructure, operating systems, systems management plus now implementation and process advisory – a real All-in-One offering.

But, is this really what you are looking for? Giving your software manufacturer now responsibility for your infrastructure and even your company’s process optimization? These areas were until now expertise of the known Hyperscalers, IT consultants and system integrators. Do you think, SAP has the ability to manage all of this?

Ever since RISE with SAP came out most of our clients have been wondering: What is “RISE with SAP”? How is it different from S/4HANA Cloud? For which clients is this? What does it contain? Is the pricing also attractive?

Finally, we are obtaining answers. So, leaving aside any marketing buzzwords:

RISE with SAP is a combination of the already existing SAP S/4HANA cloud plus some additional components, so its main component is still SAP S/4HANA cloud – private or public option – including SAP licenses and support, infrastructure and infrastructure services in one single contract.

What is now different to the S/4HANA cloud SAP has been offering the last years?

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Components included in RISE with SAP

1 – SAP S/4HANA CLOUD, private cloud or public cloud edition

Now called “RISE with SAP S/4HANA, private (or public) cloud edition”, including some additional components and with the same price as SAP S/4HANA, private (or public) cloud. Minimum purchase of 40 full user equivalents (FUE) for private cloud and 35 for public cloud.

2 – Business Process Intelligence Reports

A free online one-time report about process discovery and some customized ecommendations

3 – Business Technology Platform Starter Pack

Aka Cloud Platform Enterprise Agreement Credits for public or private cloud

4 – Business Network Starter Packs

Ariba Network including 2,000 documents

Asset Intelligence Network (200 equipment, two connections, and ten partner portal invites)

Logistics Business Network (1,000 documents and two service providers)

5 – Business Intelligence Tools & Services

A SAP S/4HANA readiness-check and a SAP S/4HANA custom code migration app.

You could also contract a Learning Hub access, but this is just an optional part of the offering

This might be interesting for some potential clients but is also enlightening for existing SAP clients.

RISE with HANA is still SAP S/4HANA cloud with a new name and some freebies.

We are now getting some freebies with SAP S/4HANA Cloud, which help us implement or migrate to SAP’s cloud software offering. In addition, we obtain some starter packs to get to know and start using Ariba, the Asset Intelligence Network, and the Logistics Business Network. Sadly, they will probably not be sufficient to cover your complete needs (see listed metrics), but they may help you to find a starting point in these business areas.

What about the other included offerings?

  • A readiness check (S/4HANA readiness or compatibility with our actual ECC)
  • A custom code migration app.
  • A business intelligence discovery report.

It is difficult for us to make an accurate estimation of the financial value of those. It would help if you compared these services with the existing offering from SAP implementation partners, who already offer comparable products, and build your own opinion.

We have a clear opinion regarding the “Business Technology Platform” and the “SAP business network” starter packs. If we compare their list price value with the yearly cost of a 1,000 user SAP S/4HANA private cloud subscription, we conclude:  their cost lies below 5% of the annual S/4HANA subscription price.

Conclusions

Will RISE with SAP make you turn your head towards SAP S/4HANA cloud? I doubt so. The reasoning behind the purchase of a S/4HANA cloud license does not depend on, let’s say, 10% more or less discount on the license price (not counting implementation costs). Instead, it depends much more on your strategic decisions about your business-critical applications and the ability of S/4HANA cloud functionality to meet your business requirements and provide enough ROI to justify such a move.

So, the questions for you to clear will still be: SAP or not SAP? SAP ECC or SAP S/4HANA? On-premise or subscription? Cloud or on-premise? SAP-managed infrastructure or hyperscaler-managed infrastructure?  Plus now: SAP advisory tools and services to transform your enterprise?

We at VOQUZ labs provide expert advice to answer these questions and can provide a detailed financial licence model for you to determine the best way forward.

Appendix

ABOUT THE AUTOR

Francisco Hansen

Francisco Fernández Hansen has been Head of Advisory at VOQUZ Labs since 2019. He is responsible for sales in the USA and Latin America. Francisco leads the team and the offices in New York and Mexico City.

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