Rise With Basis
RISE with SAP or Not: Choosing the Right SAP Hosting Solution for Your Business
Three years ago, SAP introduced RISE with SAP, a package combining their software, public cloud infrastructure and operation services. This presents a new option for businesses running SAP systems. However, the decision to migrate to RISE with SAP requires careful consideration.
From “Flexibility and Control” to being locked into the SAP Ecosystem
Three years ago nobody was talking about a clean core. Many existing SAP installations are highly customized to fit a company’s specific needs. This customization was the key reason many businesses choose SAP in the first place. In addition, most customers integrate and use other software solutions than SAP. A shift to RiseWithSAP means to leave the flexibility to create a solution based on your company requirements and heavily rely on the SAP ecosystem for all your business processes.
Ownership vs. Subscription
Another critical difference lies in the licensing model:
- On-Premise Hosting: You own perpetual licenses, meaning you have paid an upfront cost and have access to the software indefinitely.
- RISE with SAP: This is a subscription-based model. You pay a recurring fee for access to the software and services, and access terminates when the subscription ends. Once you have converted your license to subscription, there is no possibility to revert back to a perpetual license model.
Weighing Your Options
We in Basis have built a robust hosting factory over a decade, providing significant flexibility for running your current SAP system. This solution likely offers advantages in customization compared to RISE with SAP.
Here are some key factors to consider when deciding:
1. Licenses and cost
A transparent licensing and cost model is crucial for optimizing costs associated with SAP usage. It empowers you to manage SAP licenses effectively and minimize unnecessary spending on subscriptions.
Basis Private Cloud
- Offers the freedom to use SAP perpetual licenses with maintenance you already own.
- Allows for 3rd party maintenance or even running the system without maintenance, though this may impact security and functionality.
- You pay a fixed amount per month per system with no additional costs to scale hardware resources up or down as needed.
- Easily add or remove systems based on your evolving business needs, offering flexibility and cost control.
RiseWithSAP Private Cloud
- Utilizes SAP subscription-based licenses only. You pay a recurring fee for access to the software and services.
- Typically allows for upward scaling only, meaning you can increase your resource usage but not decrease it.
- Discounts are often tied to long subscription contracts, locking you into a specific pricing tier for an extended period. Additionally, credits offered may not always be needed or fully utilized.
2. Solution control, security, data residency and compliance
The major component of SAP RISE is S/4 HANA, a hyperscaler and operation by third-party service providers subcontracted by SAP. This limits the customers’ freedom and flexibility because SAP must streamline the operation for a large number of SAP environments. This forces SAP to only deliver basic operations, giving customers many technical constraints. Another consideration for customers is the data residency, data processing, SLA and planned downtime. These topics are paramount concerns for many businesses. Carefully evaluate these aspects to ensure alignment with your business needs and data security regulations.
Basis Private Cloud
- Agnostic to specific software. You can run all SAP products along with non-SAP software in a single environment.
- Offers high levels of customization and integration. You have the freedom to integrate with any software you require.
- The SLA comes directly from Basis. We guarantee performance from the datacenter to the SAP application layer. This means Basis is solely responsible for any performance issues within this scope.
- Offers greater control over planned downtime. You have more flexibility to schedule maintenance and updates according to your needs.
- Basis offers a unique advantage due to its Norwegian data centers, and adherence to Norwegian privacy laws.
- Customer data remains within Norway or Germany. This provides strong assurances against foreign government access.
- Data processing is performed from EU locations, with the option to restrict it solely to Norway.
- Basis can even offer data processing by consultants with a "Police certificate of conduct," an additional layer of security for highly sensitive data.
RiseWithSAP Private Cloud
- Primarily built around SAP S/4HANA. While you can utilize a private cloud environment, the core focus is on this specific SAP product.
- Offers some extension capabilities. Additional functionalities can be added by purchasing components from the SAP Business Technology Platform (BTP). However, the level of customization and integration with non-SAP software will be limited compared to Basis Private Cloud.
- Planned downtime may be less controllable in this model.
- SAP may schedule maintenance windows that might not perfectly align with your business operations.
- The SLA involves two suppliers: Hyperscaler: This is the cloud provider (e.g., AWS, Azure, GCP) responsible for the underlying infrastructure. SAP: They are responsible for the SAP software and its performance within the cloud environment.
- Data processing is carried out by SAP's subcontractors
- Data storage relies on an American cloud provider. This may raise concerns for businesses subject to strict data residency requirements or wary of potential US government access.
3. Support and Service
Responsive Support and flexibility to changes is crucial for any business running SAP. Basis Private Cloud offers a more personalized, service-oriented approach with fast response times and experienced consultants. In contrast, RISE with SAP relies on a standardized support system that may introduce delays and limit direct interaction and customization. Carefully assess these factors to choose the cloud solution that best aligns with your operational needs and service expectations.
Basis Private Cloud
- Basis Consulting prioritizes fast reactions to service orders. This ensures your issues are addressed promptly, minimizing downtime and disruptions.
- Experienced Consultants: The Basis team consists of consultants with long experience, providing deep technical expertise to solve complex problems.
- Direct Communication: You have the option to talk directly with Basis consultants to discuss your needs and troubleshoot issues efficiently.
- Service-Oriented Approach: Basis emphasizes a service-minded culture, ensuring your concerns are addressed with a focus on customer satisfaction.
- Positive and proactive: It’s possible to talk and find a solution together.
RiseWithSAP Private Cloud
- Support is primarily handled through SAP's standardized ticketing system (SAP OSS). This may introduce delays compared to direct communication with Basis consultants.
- Limited Personal Interaction: There may be limited options for "calling someone" to directly address your specific needs.
- Potential Delays: Service requests might experience longer lead times due to the centralized support structure.
- Limited Customization: Services outside the standard catalog may require longer lead times or additional partners, potentially impacting your flexibility and agility.
- The complexity of the RiseWithSAP service catalog makes it unclear what's included.
Summary: Migrating to RISE with SAP requires careful consideration.
- Limited Transformation: Moving to RISE might not deliver significant business process improvements. It is to simply relocate existing SAP systems to the cloud with limited flexibility. Once the customer data is migrated to RIseWithSAP there is not possible to move it back on premise.
- Control Concerns: Cloud migration may restrict modification options. RISE offers pre-configured solutions, but these might not adapt well to specific business needs.
- Vendor Lock-in: RISE could lock you into the SAP ecosystem, potentially limiting future technology choices. Evaluate if SAP aligns with your long-term vision, especially in areas like AI.
- Time for Evaluation: On-premise support continues for several years (ECC till 2027, S/4HANA till 2040). It will also be followed by optional extended maintenance for 3 extra years (this comes with a premium of two percent points on the maintenance). Use this time to thoroughly assess your options and explore alternatives before a potential migration.
Our recommendation is to be very careful about choosing the RisewithSAP initiative and don’t rush into a decision you can’t get out of.