For years, the conversation around SAP modernization has been framed as an inevitability. Move to the Cloud. Do it fast. Follow the standard model.
But for Energy Transfer – one of the largest midstream pipeline operators in North America – inevitability was never enough.
When your systems underpin critical national infrastructure, process thousands of transactions a month, and must seamlessly absorb acquisitions worth billions, technology decisions are not trends to follow. They are risks to manage – deliberately and on your own terms.
That reality shaped every step of Energy Transfer’s SAP journey – and it’s what makes their story a truly compelling one.
A Platform Built For Constant Change
Randall Grogan, Senior Director of SAP at Energy Transfer, has spent most of his career implementing and leading SAP programs across the energy sector. When he joined Energy Transfer over seven years ago, the organization was already mid-flight on a major transformation: rationalizing more than 50 applications into a single S/4HANA platform.
That decision proved pivotal. By moving early to S/4HANA, Energy Transfer created a stable, scalable core that could support one of its defining characteristics – growth through acquisition. Businesses like Sunoco and USA Compression now coexist on a shared SAP platform, with new acquisitions continuously rolled in and legacy systems wound down.
In Randall’s words, SAP wasn’t just an ERP. It became “a platform for acquisition”. But platform or not, one big question still loomed.
Why RISE wasn’t an obvious “Yes”
Like many large SAP customers, Energy Transfer had been hearing about RISE with SAP for years, but they weren’t rushing to sign.
There were good reasons for caution. Their S/4HANA environment was already running reliably in their own data center on high-performance hardware. They valued control, particularly around cybersecurity. And, as a critical infrastructure operator, resilience and uptime were non-negotiable.
Being an early adopter of a new commercial and operational model simply didn’t fit.
“We knew we’d get there eventually,” Randall explains, “but the question was timing – and leverage.”
That leverage came from two converging factors: hardware approaching end of life, and the emergence of a new option within RISE that changed the equation entirely.
Discovering a Different RISE Model
In early 2024, SAP introduced Energy Transfer to the RISE CDC (Customer Data Center) model – a sovereign-style approach where SAP-managed infrastructure runs inside the customer’s own data center, behind their firewall.
For Energy Transfer, this was the first time RISE felt compatible with their operating reality. It preserved proximity to commercial systems that weren’t moving to the cloud anytime soon. It reduced latency. And critically, it aligned with the organization’s security posture and leadership comfort level.
At this stage, Energy Transfer brought in Lemongrass as a strategic partner to support its evaluation and execution of the RISE with SAP CDC model. Lemongrass worked alongside Energy Transfer and SAP to assess architectural options, validate availability and resilience requirements, and provide commercial and technical guidance throughout the RISE contracting process. The engagement focused on ensuring the chosen model aligned with Energy Transfer’s security posture, operational constraints, and long-term growth plans—while preserving flexibility for future acquisitions and innovation.
Negotiating RISE Like a Project
Signing a RISE agreement wasn’t treated as procurement paperwork. It was treated as a program in its own right.
Availability targets were pushed hard. Hardware architecture was scrutinized in detail. Incremental growth scenarios were modelled to account for future acquisitions. Even the size of future memory jumps was negotiated upfront.
Downtime, Randall was clear, could not be a trade-off for modernization. “We didn’t feel we should pay more to take a step backwards,” he says.
The contract itself reflected that mindset. Spanning six years, it was designed not just for today’s footprint, but for where Energy Transfer expects to be several acquisitions down the line. And crucially, it locked in flexibility before their leverage diminished.
Preparing For What Comes Next: AI, on their Terms
With the RISE agreement in place and hardware now live in the data center, Energy Transfer is entering its next phase: upgrading to S/4HANA 2023 and beginning to explore SAP’s AI capabilities.
AI credits were negotiated as part of the deal, but Randall is pragmatic about what that means.
“The real work starts with governance,” he says. “Understanding which use cases matter to us, what they consume, and how we justify them to the business.”
Rather than chasing hype, Energy Transfer is taking a measured approach – testing in sandbox environments, understanding consumption models, and building internal maturity before scaling.
It’s a continuation of the same philosophy that has guided their journey so far.
Lessons from the Journey
Looking back, both Randall was clear: don’t underestimate this process.
A RISE agreement isn’t a standard contract. The metrics are complex, the pricing models varied, and the implications long-lasting. Treating it as a project – with time, expertise, and peer input – makes all the difference.
And perhaps most importantly, Energy Transfer’s experience shows that modernization doesn’t have to mean surrendering control.
With the right model, the right partners, and a clear sense of what matters most, organizations can move forward on their own terms – securely, deliberately, and ready for whatever comes next.
Watch the full podcast episode to hear Randall Grogan and Rogan Morrison discuss Energy Transfer’s RISE with SAP journey, including deep insights into CDC, contract negotiation, and preparing for AI at scale.
