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The Economics of Converting to RISE.

A fifty-four page financial analysis of converting from on-premise SAP to RISE with SAP. The Full-Use Equivalent conversion math. The hyperscaler costs SAP does not invoice. The eleven hidden line items. The five-year TCO model and the exit ramp every customer should reserve.

Research Paper 54 pages Published 28 May 2026 Format: PDF Access: Gated
What You'll Learn

Six learning outcomes from completed conversions.

  1. The Full-Use Equivalent conversion ratio in practice. The published SAP conversion ratios are the starting point, not the outcome. The actual ratio after negotiation, measured across 40+ conversions, and the customer-side levers that move it.
  2. Hyperscaler economics SAP does not invoice. AWS, Azure, and GCP infrastructure costs that flow outside the RISE invoice. The five line items that change the comparison fundamentally and frequently surprise CFO-level stakeholders.
  3. Eleven hidden costs in a typical RISE conversion. A line-by-line breakdown of the costs customers routinely under-budget. Integration, identity, network, data egress, basis services, premium support, and five more.
  4. The five-year total cost of ownership model. A modelled TCO comparison between staying on-premise and converting to RISE, with sensitivity analysis on the three variables that most affect the result.
  5. Renewal economics: the year-six cliff. What RISE renewal pricing looks like once the conversion incentive expires. The three-tier discount-decay pattern observed across forty conversions and the renewal-leverage points that flatten the curve.
  6. The exit ramp every contract should reserve. Six contractual provisions that preserve the customer's right to exit RISE without a punitive cost re-baselining. The clauses to negotiate before signing.
Table of Contents

Seven chapters. 54 pages.

Chapter IRISE economics, plainly statedpg. 5
Chapter IIThe Full-Use Equivalent conversion mathpg. 11
Chapter IIIHyperscaler costs SAP does not invoicepg. 18
Chapter IVThe eleven hidden line itemspg. 24
Chapter VA modelled five-year TCO comparisonpg. 31
Chapter VIRenewal economics: the year-six cliffpg. 40
Chapter VIIThe exit ramp every contract should reservepg. 47
Who It's For

Four audiences. One reference.

CFO and Finance Leadership

CFOs evaluating the financial case for RISE conversion. The TCO model and the renewal-economics chapters are the financial reference.

CIO and IT Leadership

CIOs assessing operational and architectural implications. The hyperscaler chapter and the exit-ramp chapter are the operational reference.

Procurement Leadership

VPs of procurement managing the RISE negotiation. The FUE chapter and the hidden-costs chapter set the negotiation positions.

SAP Programme Directors

Directors leading the conversion programme. The full document is the operational and commercial reference for the conversion period.

The SAP conversion model showed a 6% net saving over five years. The actual conversion, after we modelled the hyperscaler bills, the egress costs, and the year-six renewal cliff, came in at a 19% net premium. The exit ramp is the only reason we agreed to proceed.

Chief Financial OfficerGlobal CPG Manufacturer · Conversion 2025
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