Why RISE with SAP Makes Financial Sense

why rise with sap has financial advantages

Embarking on a digital transformation journey with RISE with SAP presents compelling financial incentives for enterprises considering Cloud migration. Here are several reasons why transitioning to RISE with SAP can be financially beneficial for your business.

Reason #1: Modernizing ERP with SAP’s Clean Core Strategy Promotes Savings

SAP’s clean core strategy is a concept introduced by SAP with a specific focus on reducing complexity and optimizing core processes. Through its Cloud-based ERP offerings, such as SAP Private Cloud on RISE with SAP, SAP provides organizations with features including streamlined operations and support, a lower total cost of ownership (TCO), use of emerging technologies including AI, extensive extensions integration and real-time transaction and analytical data insights.

The UK & Ireland SAP User Group (UKISUG) published research indicating that 11% of their member organizations plan to use the RISE with SAP business transformation service. The survey also revealed that 25% of the 11% that plan to use RISE with SAP are looking to accelerate their move to S/4, 19% to simplify their move to the Cloud, the same percentage will use it to reduce the number of suppliers they need to deal with and 17% to improve their change management processes.

Research from the Americas’ SAP Users’ Group (ASUG) – which represents users in continental North America – found that 47 percent were already running on SAP S/4HANA or had begun their migration programs, while 22 percent planned to begin the shift within the next two years.

Reason #2: SAP and Hyperscaler Funding Options Emphasize Affordability

All hyperscalers and SAP offer attractive economic incentives to businesses using their platforms. For example, SAP provides a percentage of committed Annual Cloud Revenue (ACR) as credit when selecting their services or platforms. According to a recent article on CIO.com, SAP is offering on-premises S/4HANA users a credit of 60% of their first year’s fees as credits if they migrate to its all-in-one cloud-based offering, RISE with SAP. This credit, which can be used for SAP services, can offset around half of the overall cost of a typical migration, as stated by Jan Gilg, the company’s Chief Product Officer for Cloud ERP.

Moreover, as recently referenced by The Software Report, during the first quarter of 2024, businesses migrating from ECC to RISE with SAP received up to a 67.5% incentive, capped at 3 million EUR. Similarly, those transitioning from S/4HANA On-Premises received up to 90% of the Annual Contract Value (ACV), capped at 6 million EUR.

In addition to SAP, hyperscalers such as AWS, GCP and Azure also provide significant funding to offset the one-time costs associated with Cloud migrations. This assistance is offered through various programs such as AWS’s MAP (Migration Acceleration Program), Microsoft’s AMMP (Azure Migration Modernization Program) and Google’s CAP Program (Cloud Acceleration Program). These programs typically offer a combination of cash funding and credits, which are used to facilitate different phases of the migration process, such as assessment, mobilization, and migration itself. By providing these financial incentives, hyperscalers help organizations mitigate the initial financial burden and streamline their journey to Cloud.

The combination of both funding offerings (SAP and hyperscalers), helps customers, not only alleviating one-off migration costs but also year 1 after migration SAP Service credits.

Reason #3: Future-Proofing Your Digital Infrastructure for Long-Term Success

Choosing RISE with SAP isn’t just about meeting your current needs—it’s about making a strategic investment that will grow as much as adapt to future technological advancements. One significant change is that SAP will manage infrastructure maintenance, shifting the burden away from on-premises teams.

At the core of this strategy is SAP’s commitment to continuously develop and improve the RISE platform over the next decade. This ensures that businesses remain at the forefront of ERP best practices.

For example, SAP is proactive in integrating state-of-the-art technologies, including advanced AI like Joule and new efficiency and sustainability solutions, into all its products and services. With RISE’s model of ongoing enhancement, businesses can benefit from the latest technological advances without incurring additional costs, seamlessly keeping them ahead of industry developments.

Reason #4: Streamlined Operations Save Both Time and Money

RISE with SAP offers a unified service structure that significantly streamlines operations, reducing the complexity and administrative overhead associated with managing multiple service agreements and technological frameworks. This consolidation is especially beneficial for businesses looking to simplify ERP systems. By integrating various operational components, such as finance, HR, supply chain, and customer service into a cohesive offering, RISE with SAP enhances a company’s entire efficiency. This integrated approach not only simplifies the management of SAP landscapes but also reduces the scope for error, ensuring a more stable and reliable system environment.

Conclusion: Strengthening Enterprise Resiliency with RISE and SAP

Underscored by substantial financial incentives, agility and a promise of continuous technological innovations, the rationale for transitioning to RISE with SAP is strong. More than just an enterprise shift to a new platform, choosing RISE with SAP marks the beginning of a transformative journey for businesses aimed at boosting operational efficiency, reducing overhead costs, and achieving a position of technological prominence where business agility, efficiency, and innovation operate in unison.

How Lemongrass Can Help

With Lemongrass as a Certified RISE with SAP Service partner and a certified RISE with SAP Partner, companies benefit from an industrialized approach to migration that’s not only rapid and secure but also optimized for cost efficiency. Lemongrass specializes in modernizing and migrating large-scale systems to RISE with SAP with remarkable speed and precision, minimizing potential near-zero downtime and mitigating potential lost revenue.

Lemongrass has a suite of managed services that complement and support SAP with RISE operations including:

  • Lemongrass Advisory Services are designed to support the RISE with SAP transformation by offering strategic guidance on SAP S/4HANA readiness, application compatibility, and overall transformation strategies. Our services include strategic planning, readiness assessments, financial and operational planning, mitigation strategy and roadmapping, and architecture planning.
  • Lemongrass Migration Services is a proprietary migration technology, LIM (Lemongrass Implementation Methodology) that accommodates RISE-specific migrations and has already successfully delivered multiple RISE migration scenarios efficiently and with minimal risk including S/4HANA transformations, conversions to Suite on HANA, and S/4HANA to S/4HANA Cloud Migrations.
  • Lemongrass Operate Services include:
    • Lemongrass RISE+: Ensures the process of migrating SAP systems and integrating ancillary SAP and non-SAP systems is seamless and rapidly enables the benefits of the Cloud, including accelerating the enablement of Cloud-native tooling and services.
    • Lemongrass RISE FLEX: This is a unique way for Enterprises to leverage Cloud-native capacity for Project/Training environments on-demand after they adopt RISE with SAP. Using LCP, customers can create a self-service development environment for testing and feature branching for faster SAP releases.
    • Lemongrass RISE Wrapper: A solution where Lemongrass acts as the Service Layer between the customer and SAP regardless of whether parts of the customer’s landscapes sit in RISE or Cloud Native (before being moved to RISE) including Integrated Management Tooling through LCP.
  • Lemongrass Innovation Services include SAP BTP (Business Technology Platform) Services, a key component of the SAP product roadmap and critical for a successful SAP on Cloud strategy.

For more details, contact one of our Lemongrass representatives and let us know how we can help manage your migration and data estate operations.

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