In today’s fast-paced business environment, companies are looking for ways to innovate and scale their operations while reducing operational costs. For many SAP customers, this means moving their ERP system to the cloud. With the 2027 deadline to move off SAP ECC looming, SAP customers need to understand what SAP’s RISE (SAP Rapid Adoption by SAP) offering is and how it can help them with their cloud migration strategy.
Understanding SAP RISE
SAP RISE is increasingly positioned by SAP as a solution for customers who want to move to the cloud. It is an offering that allows customers to quickly and efficiently migrate their on-premises SAP applications to the cloud, with a focus on delivering a simple, unified experience for both software and infrastructure. Since its launch in 2021, RISE’s biggest selling point has been its single contract model that enables customers to negotiate software, services, and infrastructure in one deal.
RISE’s Single Contract Model
SAP has made an effort to simplify customer adoption of RISE by introducing a single contract model. This would enable customers to negotiate software licenses, infrastructure, and support through a single contract, streamlining the entire procurement process. However, the single contract model may not suit all customers, especially those with complex requirements. For instance, some customers may prefer to use their existing infrastructure or have unique service level agreements (SLAs) that are not part of SAP’s standard offering. Therefore, it is important to consider the advantages and disadvantages of the single contract model based on your company’s specific needs before deciding to adopt RISE.
SAP’s push for RISE
SAP is pulling several levers to promote RISE as the best option for all customers. They have emphasized the time and effort saved by adopting RISE, as well as the benefits of a unified cloud system. However, there is potential bias from SAP, as they are trying to promote RISE as a solution for all SAP customers, regardless of their specific requirements.
Factors to consider for RISE adoption
Whether SAP RISE will be a good fit for your organization depends largely on the complexity of your current SAP setup, how it fits into your greater IT strategy, and the involvement of any third-party partners. Some important factors to consider include the scale of your IT landscape, the level of customization required, the degree of automation you’re looking for, and the involvement of third-party providers.
SAP RISE is a good fit for companies in the following situations
Antiquated technology platforms: If you have an outdated SAP system, migrating to RISE can enable you to take advantage of the latest cloud technologies and accelerate your digital transformation journey.
For existing SAP ECC customers: If you’re currently running SAP ECC and don’t have a clear and unified cloud strategy, RISE can be a good choice to transition to the cloud.
Small and mid-size enterprises that have outsourced their IT infrastructure can benefit from RISE’s unified cloud experience, which can help them retain their current IT staff that handle the on-premises systems.
Be cautious with RISE adoption
Highly customized environments: If you have a highly customized SAP environment that requires a lot of flexibility and customization, you will need to evaluate if RISE can meet your requirements.
If you already have an established infrastructure-as-a-service (IaaS) strategy and wish to keep using your present cloud infrastructure, RISE may not be the best option for you.
Reliance on third-party providers: If your company heavily relies on third-party providers for software and services, it may be challenging to integrate RISE with your existing environment.
Early Decision Making for RISE Evaluation
During your evaluation, it will be critical for your company to make the right decisions early on in the evaluation process. This means thinking about how RISE fits into your overarching IT strategy, identifying your business requirements and constraints, and evaluating the potential benefits and drawbacks of migrating to the cloud.
Negotiating RISE
RISE is notoriously complex to negotiate, so having a firm grasp on the key decisions and risks that need to be considered at the outset is crucial to securing a competitive deal. Taking an integrated approach to your evaluation and negotiations will help you build a comprehensive RISE strategy and establish key decisions as part of your overall negotiation strategy.
In conclusion, adopting SAP RISE can offer significant benefits for companies looking to modernize their ERP systems and move to the cloud. However, it is not a one-size-fits-all solution, and companies need to evaluate their individual requirements before deciding to adopt RISE. Evaluating RISE early in the procurement process will help companies identify potential issues and risks, and make informed decisions. By taking a comprehensive approach and considering the factors discussed in this article, companies can make an informed decision about whether RISE is the right cloud solution for their business.