Rise With SAP

[KetanParikh]

Hi,

Currently you are all aware about new SAP Business Transformation Buzz word going on by changing SAP on Premise Version to Rise With SAP (Public Cloud / Private Cloud Edition). It is gradually going towards making it mandatory for SAP Customers to move on to this new version on following ground:

ECC to S4 Hana Contract Conversion: Customer who had earlier converted contract from ECC to S4 Hana which is normal that we pay some fees for conversion. Normally we do not read the contract line items as we are under the impression that we have got right to use new version of SAP. This has turned into disaster as now it is not consider as license conversion. It is termed as you have ECC License for Hana use and not S4 Hana. This is totally absurd and whom to blame is a real question. This is true for many of the customers.

New On-Premise Licenses: All of us are aware that we do negotiation when we finalize the license deal. In current times there is no interest in selling on premise licenses. Even if we want to procure the prices are 10 time what we would have procured earlier. This really hurts the IT Budget & Company budgets in terms of ERP spend.

Now come the major part that as we do not have option available, we need migrate our contract from On Premise to Rise with SAP.  In this we will are surrendering our perpetual license right which we had procured and will have to pay new fees on subscription model.

The new license definition in Rise with SAP is on the basis of FUE which are determined on the basis of authorization object / activity. The same is classified as HB Professional (Ratio 1 User = 1 FUE)  / Functional (1 Fue = 5 User) / Productivity (1 FUE = 30 User). This is getting automatically determined via SAP Note 3113382.

The point which I want to highlight is that the definition which is decided on the basis of authorization object / activity is getting changed very frequently which is disturbing entire calculation of FUE count. In our case we had done the FUE Calculation basis this note with version 89 which was having list of authorization object / activity specified for classifying the user under 3 different lic. category. This definition has gone for change on 5th of June'2025 where certain object / activity which were earlier classified under category of Functional user has now got changed to Professional. So, from ratio of 5 it is has come down to 1. 

The definition change is in hand of SAP. If you just, try to evaluate the customer who had finalized the FUE and have already moved to Rise. Suddenly they will find increased number of FUE count as per the new definition so without increasing in number of users they have to pay additional cost to SAP.

This is very disturbing fact as it is clearly violation of trust which we had been carrying with SAP for so many years.  There is also known risk that as we will be moving to cloud (Public or Private) the renewals rates will be scary. We will not have any chance of negotiation which means what ever the rates which SAP wants to charge can be charge without any question ask as your entire data / landscape is in their hands unless you take a difficult decision in terms of moving to other software platform.

Aforesaid pointers need to be seriously looked into. 

Will appreciate if you can provide some insight on this.

Regards

Ketan