The Rise and Impact of SAP RISE

SAP RISE enters its fourth year in 2024 after its launch in January 2021. A good moment to take stock and reflect on the SAP RISE journey so far. Does RISE deliver on its promises, and is RISE the right choice going forward today?

In conversations with customers in the context of the digital transformation with S/4HANA, I am often asked: “should we opt for RISE now?”. Despite my inclination towards SAP, my trust in SAP's solid strategy, and the fact that SAP offers RISE as the prime option only, I find the answer is not always clear-cut. In my advisory practice I therefor find myself default to the consultant's classic response: "it depends."

The Essence of RISE

Let me start with what RISE actually entails. Much like many SAP offerings, understanding its essence proves complex. Products, services, solutions, and future promises seamlessly interweave in the RISE promise. And although the RISE question often arises in connection with the transition to S/4HANA, RISE is not limited to contracting SAP ERP, but extends to the entire suite of business applications and supporting solutions. Including the likes of Business Technology Platform (BTP), Signavio and all related- and underlying services. Furthermore, RISE is applicable to both the Public Cloud and Private Cloud variants of solutions, which only adds to the intricacy.

For the essence of RISE, it is good to look at the way in which solutions are contracted with SAP. Essentially, RISE represents SAP's shift towards servitization of the software suite—transitioning from traditional licensing to a consumption based Software as a Service (SaaS) and cloud-based software. Unlike the conventional method of purchasing SAP software with one-time licensing and subsequent annual support costs, RISE operates on a subscription model. This model combines software, necessary infrastructure, and supporting (maintenance) services into a single subscription with periodic payments. Whether in public or private cloud variations, RISE offers consumed software solutions, infrastructure, and maintenance services within a single contract.

I belief in the benefits of SaaS and cloud based applications and their ability to deliver cost-efficiency, scalability, swift implementation of new functionalities, heightened accessibility, and robust security. SAP's cloud and SaaS offerings, such as Successfactors for HR, Ariba for procurement, and Concur for travel and expense management, serve as examples, showcasing the tangible benefits these solutions bring in minimizing maintenance burdens while maximizing operational efficiency.

Hence, I consider RISE, most specifically in relation with the transition to S/4HANA, as a strong model to pursue. However, the potential benefits heavily hinge on two critical factors: Firstly, the readiness of your organization for SaaS and cloud based ERP, and secondly, whether SAP is capable yet of delivering the SaaS and cloud based benefits for the larger domain of ERP solutions. The question to opt for RISE in my opinion is not merely "if", but rather shifts to the strategic timing of adopting RISE – making it a matter of "when".

(When) Am I ready for RISE?

Absolute stability in industries is becoming increasingly rare. Embracing technological advancements including continuous business functionality, as well as means to automate and embed AI has become imperative to stay competitive and future-proof. Cloud-based SaaS application solutions as contracted with RISE are focused on simplifying and facilitating these advancements.

Managing Cloud-based SaaS applications differs significantly from overseeing on-premise solutions or self-hosted software on your infrastructure or a hyperscaler's platform. With RISE, there's a notable shift in responsibilities, impacting both existing in-house capabilities and contracted services. SAP assumes responsibility for the technical maintenance of your SAP environment, potentially altering or rendering obsolete internal and external capacities managing this.

Where SAP infrastructure and technical applications are managed by in-house capacity, this capability needs to be re-defined, re-assigned or in the worst case becomes obsolete. And for the outsourced services where existing contracts overlap with RISE's scope, a transition timeline is to be considered. An ongoing contract with a hyperscaler for reserved hardware instances cannot simply be transferred to RISE by default. Ideally, the expiration of existing contracts therefor presents an opportune moment to consider and embrace a move to RISE.

The shift in roles and responsibilities triggers an evolution in governance, project methodologies, and maintenance procedures. This transition leads to a reevaluation of dependencies, potentially necessitating a comprehensive review and implementation of alterations. This means the impact of RISE is not solely about redefining infrastructure and technical application management; there's a broader need to redefine and implement changes across various operational facets.

When it comes to the prerequisites to benefit from a move to S/4HANA much has been written. Most of the advice logically is relevant when migrating under RISE as well. Maximizing the advantages of transitioning to S/4HANA beyond its inherent functionalities, but specifically focusses on the benefits of Cloud infrastructure and a SaaS management model, demands optimizing existing landscapes through standardized architectures. Ensuring readiness with this optimization is key even before embarking on your transition to RISE.

(When) Is RISE ready (for me)?

While organizations navigate and adapt to the transformation brought by Cloud and SaaS solutions for ERP, SAP, as a provider of cloud based SaaS solutions, also faces the task of embracing and adjusting to this new paradigm. The responsibility of SAP extends beyond merely developing and selling cloud based software; it encompasses adapting to the evolving role of a supplier in ensuring seamless integration, customer support, and comprehensive assistance beyond one time software delivery only. The "promise" of new functionality to be exclusively delivered under RISE contracts only, is not the convincing argument for customers to adopt SAP's RISE offering.

SAP is navigating a transition towards becoming a service-focused, customer-centric organization alike born-in-the-cloud competitors. SAP is strengthening its capacity to support infrastructure, SAP basis consultancy, and tailored services for evolving customer needs for continuous improvement. However, the proof does not come from plans and intention and bundling existing and new services, it comes from the actual execution of the delivery under RISE.

My initial encounters with SAP delivering RISE in a project implementation bring mixed feedback. While collaborating with SAP's Technical Managed Services (TMS) team, a discrepancy arises. Processes tailored for stable operational phases encounter challenges within project dynamics. Incident escalations for infrastructure scaling demand meticulous specifications, counteracting the Cloud's swift scalability advantage. Although SAP basis falls under the responsibility of the SAP TMS team, the customer's project team still requires the indispensable presence of highly experienced SAP basis consultants for precise management and direction setting. Simply because the SAP TMS team primarily seems to focus on executing standard tasks within strict Service Level Agreements (SLA) boundaries.

Certainly, many customers have benefited from support partners adept at tailoring SLA agreements and processes to fit the customer situation and seamlessly integrate within expansive landscapes beyond SAP environments only. Supported by flexibility of the partner in the SLA execution fueled by considerations on creating future business opportunities. In SAP's RISE paradigm, customers are more compelled to adhere strictly to SAP's predefined SLAs and support processes, creating a one-sided adjustment where customers accommodate SAP rather than a balanced collaboration. Establishing a middle ground in this partnership is a vital development for fostering mutual alignment and collaboration.

Consumption-based pricing, following the consumption of e.g. services, present yet another challenge for SAP customers becoming more evident with RISE. Transparent pricing is crucial, especially when upfront requirements aren't clear. Unfortunately SAP traditionally has not been known to have the most transparent or even understandable pricing models, a characteristic that seems to persists with the RISE offering. Establishing a transparent and comprehensible pricing model, preventing situations where increased consumptions unnoticedly affects IT spend, is essential to foster customer trust in RISE and beyond.

The future of RISE and my advice?

I firmly believe in the inevitable shift towards a cloud-based SaaS landscape, signaling the relevance of the RISE offering. Although I would not be surprised RISE will be rebranded now it has entered it's 4th year, the paramount focus of SAP should revolve around enhancing the RISE proposition itself to meet the genuine expectations of SaaS cloud solutions. This evolution should prioritize delivering flexibility, robust capabilities, and cost efficiency to align with evolving industry demands.

For SAP customers, embracing RISE isn't merely about contractual shifts, but it demands thorough preparation and adaptability to secure a successful transition. Numerous organizations must streamline existing landscapes, aiming for standardized architectures while allowing tailored solutions at the periphery. Simultaneously, they need to adopt new governance and capabilities to manage SaaS cloud solutions effectively. Transitioning to RISE represents a significant movement, demanding meticulous planning, as it's not a quick process but a gradual, well-structured shift requiring careful consideration and strategic implementation.

I advise clients to look beyond the immediate benefits touted by RISE and avoid blindly pursuing a seemingly good contractual deal now. It's essential to consider the broader perspective. By envisioning RISE on the horizon and assessing the preparations needed, including the expectations to be placed on SAP, the likelihood of realizing RISE's promised advantages significantly improves. It's about strategic readiness to leverage RISE effectively for long-term benefits.

Note: My perspective on RISE is shaped by personal experiences and conversations with SAP users. Given the rapidly evolving nature of the RISE offerings, I welcome and encourage responses and additional insights to enrich these viewpoints