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RISE versus On-Premise TCO.

A forty-six page total cost of ownership comparison. SAP RISE against the on-premise alternative and the hyperscaler-hosted alternative. The five-year crossover, the indexation drag, and the model assumptions SAP rarely surfaces in the sales motion.

Research Paper 46 pages Published May 2026 Format: PDF Access: Gated
What You'll Learn

Six outcomes from completed TCO models.

  1. The 12-category TCO decomposition used in 80+ engagements. Subscription, infrastructure, BTP, integration, FUE conversion, run-and-maintain — and six more that SAP's own TCO model frequently omits.
  2. Where the 5-year crossover actually sits. The breakeven points between RISE and on-premise across three workload profiles, and the assumption sensitivities that move them.
  3. The indexation drag that compounds across years 3, 4, and 5. How SAP's standard 4–6% annual uplift reshapes a model that looks favourable at year-one.
  4. The hyperscaler-hosted alternative, fully modelled. RISE-equivalent functionality run on AWS, Azure, or GCP — the licensing, the infrastructure, the operational team cost, and the comparison-grade economics.
  5. The hidden operational cost line items in each model. Run-and-maintain, integration support, custom-code management, security and compliance — what each option actually requires, not what the sales pitch implies.
  6. How to present the model to the executive committee. The four sensitivities that always come up, the answers, and the slide layout that frames the decision honestly.
Table of Contents

Seven chapters. Forty-six pages.

Chapter IWhy TCO comparisons go wrongpg. 5
Chapter IIThe 12-category decompositionpg. 11
Chapter IIIRISE economics, line by linepg. 17
Chapter IVOn-premise economics, fully loadedpg. 24
Chapter VThe hyperscaler-hosted alternativepg. 31
Chapter VIThe 5-year crossover analysispg. 37
Chapter VIIPresenting the model to the committeepg. 42
Who It's For

Four audiences. One reference.

Chief Financial Officer

CFOs and finance leadership running the TCO decision against the SAP-supplied or partner-supplied RISE business case. The decomposition chapter is the audit framework.

Chief Information Officer

CIOs and infrastructure leaders weighing the operational profile of each option against the existing internal capability set and the organisation's risk tolerance.

SVP Procurement

Procurement teams sourcing the comparison to anchor the commercial negotiation, regardless of which option ultimately closes.

Enterprise Architects

Architects responsible for the technical decomposition that supports the financial model. The integration and run-and-maintain chapters are the technical reference.

The SAP-supplied RISE business case showed a fifteen per cent five-year saving. The independent model showed a four per cent five-year cost — once indexation, BTP shelfware, and exit cost were properly loaded.

SVP, Strategic SourcingGlobal Consumer Goods · Q3 2025
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