More license upheaval to come after SAP kills RISE with SAP products, users warn
(2025/07/11)
- Reference: 1752237190
- News link: https://www.theregister.co.uk/2025/07/11/more_license_upheaval_to_come/
- Source link:
Biz customers should expect further changes to SAP's licensing as the company introduces the reboot of its Business Suite construct into its product packages, the German-speaking user group has warned.
The move came following the business software giant's decision to retire RISE with SAP products, which has drawn attention to its pricing upheaval.
Although RISE with SAP was [1]launched with great fanfare in early 2021 , SAP has now retired the moniker for specific products.
[2]
In April, SAP ended its RISE with SAP product package replacing it with SAP Cloud ERP Private package, with pricing based on the Full-Use-Equivalent metric (FUE).
[3]
[4]
User group DSAG represents organizations dependent on SAP software in Germany, Switzerland and Austria.
Michael Bloch, board member for licenses, contracts and support said: "It is true that the Full-Use-Equivalent metric (FUE) costs more compared to the old RISE Premium. However, it is not new for package contents to be recompiled, as in this case. Depending on which customers subscribed to which package and when, different compositions can result."
[5]
He said DSAG hoped that SAP had met the needs of customers with the new structure. "However, it would not be surprising if the SAP Business Suite construct, announced for Sapphire, were also to be used for the private cloud from 2026 and there were other packages again."
Last month Gartner published a research note critiquing the licensing changes. It warned users that the changes modified SAP's volume-based pricing tiers, which results in increased list prices for certain volumes. It said users should review their bill of material with SAP – as in what they are buying – and evaluate it "against achievable SAP cloud commercial terms before opting in."
Gartner said: "These changes necessitate revisiting existing budgets and business cases developed based on prior RISE with SAP package estimates. Customers must understand how the changes impact their bill of materials, potentially adding line items and increasing overall costs."
[6]
It said components included in SAP Cloud ERP Private package have been heavily modified compared to those previously found in RISE with SAP Premium package, which "may require changes to your bill of materials and potentially lead to additional line items and an increased budget compared to prior estimates."
"SAP has made changes to volume-based pricing tiers that were found in the RISE with SAP Premium package. For some volume-based pricing tiers, this may result in higher list prices per Full Use Equivalent (FUE). As a result, customers negotiating based on discounts will need to push for more aggressive discounts to meet the same net price per FUE previously afforded under RISE with SAP Premium," Gartner said.
Sharon Ryan, licensing expert and partner with SAP advisory firm Xactitud, said the actual FUE metric remained the same and whether the shift to the new product packages represented a price increase would depend on which package a user started from.
"At face value, this suggests that SAP Cloud ERP Private Edition is more expensive than RISE with SAP S/4HANA Cloud, private edition, premium, but cheaper than RISE with SAP S/4HANA Cloud, private edition, premium plus," she said.
However, the items that SAP Cloud ERP Private Edition includes in its base license have been expanded compared to RISE with SAP S/4HANA Cloud, private edition. For example, most customers migrating to the current ERP platform S/4HANA will typically require one or more SAP Signavio process mining products, and most SAP customers will need to invest in some Master Data Governance licenses which are included in SAP Cloud ERP Private Edition but not in RISE with SAP S/4HANA Cloud, private edition, she said.
"The smart customer will not only look at the unit price, but they will also consider to what extent they have already purchased separately some of the products included in the SAP Cloud ERP Private Edition and if they haven't, to what extent they will require them in the future. It is only then that one can make an informed purchasing choice," she said.
"You can't plan enough, and if you plan meticulously, you actually can get good value for money," she said.
"Where I'm finding customers becoming unstuck is that a lot of them, [assume] that Rise covers everything and it doesn't," she said.
[7]SAP ECC 6.0 lives to fight another decade under Rimini Street
[8]SAP users grapple with 50% premium for industry-standard service levels
[9]Interest in SAP cloud migration triples in its biz heartland
[10]SAP extends support deadline for getting off legacy software – in very special circumstances
An SAP spokesperson said, "As businesses venture into the new digital era, SAP is committed to guiding and supporting every step of their journey toward integrated, cloud-powered operational excellence. The [11]SAP Cloud ERP Private Edition package is not just a solution; it is a gateway to a future of limitless potential and unprecedented business agility."
It said the change "does not mean a direct increase or decrease in cost."
Users might welcome more clarity as they pass through the SAP Cloud ERP Private "gateway." Even so, they can hardly be heartened by the prospect of SAP embarking on more changes with the inclusion of [12]Business Suite – a reprise of SAP Business Suite 7, launched in 2006. This change is coming sometime next year, if DSAG is right. ®
Get our [13]Tech Resources
[1] https://www.theregister.com/2021/06/03/sap_rise_clarity/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2025/06/20/rimini_street_sap_ecc/
[8] https://www.theregister.com/2025/05/22/sap_sapphire_costs/
[9] https://www.theregister.com/2025/03/25/rise_with_sap_dsag/
[10] https://www.theregister.com/2025/01/28/sap_extends_support_deadline/
[11] https://news.sap.com/2025/04/sap-cloud-erp-private-package-accelerate-transformation/
[12] https://www.theregister.com/2025/02/14/sap_business_suite_revival/
[13] https://whitepapers.theregister.com/
The move came following the business software giant's decision to retire RISE with SAP products, which has drawn attention to its pricing upheaval.
Although RISE with SAP was [1]launched with great fanfare in early 2021 , SAP has now retired the moniker for specific products.
[2]
In April, SAP ended its RISE with SAP product package replacing it with SAP Cloud ERP Private package, with pricing based on the Full-Use-Equivalent metric (FUE).
[3]
[4]
User group DSAG represents organizations dependent on SAP software in Germany, Switzerland and Austria.
Michael Bloch, board member for licenses, contracts and support said: "It is true that the Full-Use-Equivalent metric (FUE) costs more compared to the old RISE Premium. However, it is not new for package contents to be recompiled, as in this case. Depending on which customers subscribed to which package and when, different compositions can result."
[5]
He said DSAG hoped that SAP had met the needs of customers with the new structure. "However, it would not be surprising if the SAP Business Suite construct, announced for Sapphire, were also to be used for the private cloud from 2026 and there were other packages again."
Last month Gartner published a research note critiquing the licensing changes. It warned users that the changes modified SAP's volume-based pricing tiers, which results in increased list prices for certain volumes. It said users should review their bill of material with SAP – as in what they are buying – and evaluate it "against achievable SAP cloud commercial terms before opting in."
Gartner said: "These changes necessitate revisiting existing budgets and business cases developed based on prior RISE with SAP package estimates. Customers must understand how the changes impact their bill of materials, potentially adding line items and increasing overall costs."
[6]
It said components included in SAP Cloud ERP Private package have been heavily modified compared to those previously found in RISE with SAP Premium package, which "may require changes to your bill of materials and potentially lead to additional line items and an increased budget compared to prior estimates."
"SAP has made changes to volume-based pricing tiers that were found in the RISE with SAP Premium package. For some volume-based pricing tiers, this may result in higher list prices per Full Use Equivalent (FUE). As a result, customers negotiating based on discounts will need to push for more aggressive discounts to meet the same net price per FUE previously afforded under RISE with SAP Premium," Gartner said.
Sharon Ryan, licensing expert and partner with SAP advisory firm Xactitud, said the actual FUE metric remained the same and whether the shift to the new product packages represented a price increase would depend on which package a user started from.
"At face value, this suggests that SAP Cloud ERP Private Edition is more expensive than RISE with SAP S/4HANA Cloud, private edition, premium, but cheaper than RISE with SAP S/4HANA Cloud, private edition, premium plus," she said.
However, the items that SAP Cloud ERP Private Edition includes in its base license have been expanded compared to RISE with SAP S/4HANA Cloud, private edition. For example, most customers migrating to the current ERP platform S/4HANA will typically require one or more SAP Signavio process mining products, and most SAP customers will need to invest in some Master Data Governance licenses which are included in SAP Cloud ERP Private Edition but not in RISE with SAP S/4HANA Cloud, private edition, she said.
"The smart customer will not only look at the unit price, but they will also consider to what extent they have already purchased separately some of the products included in the SAP Cloud ERP Private Edition and if they haven't, to what extent they will require them in the future. It is only then that one can make an informed purchasing choice," she said.
"You can't plan enough, and if you plan meticulously, you actually can get good value for money," she said.
"Where I'm finding customers becoming unstuck is that a lot of them, [assume] that Rise covers everything and it doesn't," she said.
[7]SAP ECC 6.0 lives to fight another decade under Rimini Street
[8]SAP users grapple with 50% premium for industry-standard service levels
[9]Interest in SAP cloud migration triples in its biz heartland
[10]SAP extends support deadline for getting off legacy software – in very special circumstances
An SAP spokesperson said, "As businesses venture into the new digital era, SAP is committed to guiding and supporting every step of their journey toward integrated, cloud-powered operational excellence. The [11]SAP Cloud ERP Private Edition package is not just a solution; it is a gateway to a future of limitless potential and unprecedented business agility."
It said the change "does not mean a direct increase or decrease in cost."
Users might welcome more clarity as they pass through the SAP Cloud ERP Private "gateway." Even so, they can hardly be heartened by the prospect of SAP embarking on more changes with the inclusion of [12]Business Suite – a reprise of SAP Business Suite 7, launched in 2006. This change is coming sometime next year, if DSAG is right. ®
Get our [13]Tech Resources
[1] https://www.theregister.com/2021/06/03/sap_rise_clarity/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aHE1FRDJ-W9vbNGDMRqHbwAAAcg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2025/06/20/rimini_street_sap_ecc/
[8] https://www.theregister.com/2025/05/22/sap_sapphire_costs/
[9] https://www.theregister.com/2025/03/25/rise_with_sap_dsag/
[10] https://www.theregister.com/2025/01/28/sap_extends_support_deadline/
[11] https://news.sap.com/2025/04/sap-cloud-erp-private-package-accelerate-transformation/
[12] https://www.theregister.com/2025/02/14/sap_business_suite_revival/
[13] https://whitepapers.theregister.com/
I see you Broadcom
Missing Semicolon
... we want summa dat!
Plus SAP BI
AMBxx
They've also annouced that SAP BI (BusinessObjects & Crystal Reports) will continue until with 2 more releases at least. SAP's cloud migration is failing and now they're trying to appease all the on-prem customers they've upset over the last few years.
SAP BI used to be about 80% of my work. When they shut the EU channel teams and announced everything was going cloud, I switched to more open source and MS products. My customers were more eager than me as they were seeing the same signals.
Now SAP BI is about 10% of my work and not really important any more. Shame as I built much of my career around it, dating back to the mid-90s.
SAP
The king of redefining contractual obligations and licenses from which Oracle and every other useless cloud-based bullshit company has written their lines of conduct.