Industrial Machinery Company Selects SAP RISE and Reduces TCO by $8.6M

An SAP RISE Case Study

Client Profile

$14B Industrial Machinery and Equipment Manufacturing Company

Business Issue

  • Company had solicited SAP to facilitate a transition to a cloud architecture, and to consolidate disparate SAP agreements among several acquired companies
  • Engaged UpperEdge to support the RFP selection process through contract execution
  • Elected to pursue the SAP RISE holistic offering due to lack of in-house SAP IT knowledge and a competitive offering from SAP

Services & Results

UpperEdge conducted a baseline assessment of the existing SAP relationship, identifying commercial precedent and other leverageable opportunities.  A 10-year TCO was conducted to determine the financial differences between RISE and perpetual licensing offers to inform critical points of negotiation, with the following results:

  • Negotiated a best-in-class agreement that reduced TCO by $8.6M over 5 years
  • Optimized total discounting 31% to 58%
  • Achieved higher tier of RISE FUE SKU & Digital Access throughout deal term despite only reaching that volume in the final 6 months, an estimated savings of $2.7M over 5 years