Navigating SAP Customer Challenges: Key Considerations and Strategies

SAP’s evolving ecosystem, particularly under the RISE model, continues to pose challenges for customers. Staying informed and proactive is essential for organizations leveraging SAP solutions. Transparency from SAP regarding its latest offerings, what is included in the RISE model, and its additional add-on services remains a critical concern for customers. Below, we explore some of the primary SAP customer challenges in today’s market and how customers can prepare for the road ahead.

SAP Customer Challenges

1. Developing a Strategy to Address End of Life Support

With SAP’s extended maintenance and end-of-life support policies changing, customers must plan strategically for upcoming transitions. Key SAP customer challenges include:

• End of Life for ECC Support: Although SAP has extended the deadline for end of life support many times in the past, SAP will now only provide mainstream maintenance for customers on SAP Business Suite 7 / ECC 6.0 until the end of 2027. Beyond 2027 and until the end of 2030, extended support will be offered at a premium.

For customers with very large and complex on-premise IT landscapes on ECC, SAP is offering an extended period maintenance until 2033. This new offering is called “SAP ERP, Private Edition, Transition Option”. The offering will be available for purchase starting in 2028.

• Extended Maintenance for S/4HANA in 2025: SAP S/4HANA On-Premise Versions 1709, 1809, and 1909 will reach the end of extended support on December 31, 2025, requiring customers to either upgrade support versions or opt for a move to the Cloud.
• Cost Considerations: Extended maintenance for newer support versions will likely come at a premium, adding to customers’ operational costs.
• Limited Availability: Extended maintenance is not available for all releases, necessitating a careful review of which versions qualify.
• New Support Agreements: Customers will need to negotiate new contracts with SAP to secure continued support, which poses a risk for daily operations.

2. Navigating the Complexities of RISE

SAP RISE presents a variety of product packages and commercial models, making it essential for customers to understand their options and mitigate common SAP customer challenges around RISE negotiation and adoption. In addition to understanding SAP’s offerings and commercial models, customers need to understand the complexities of the RISE RACI. More specifically, what is included within the RACI and each party’s responsibilities. It is important for customers to feel comfortable with how SAP manages certain components, such as applications, infrastructure and sizing requirements.

Other challenges include:

• Understanding RISE Commercial Models: RISE offers multiple packages, including Private Cloud Edition (PCE), Commit to Consume, and Private Tailored Options.
• Premium vs. Premium Plus Offerings: The SAP RISE Premium Package includes built-in AI capabilities while the Premium Plus Package expands on the Premium package with additional AI scenarios, sustainability solutions, and advanced finance capabilities.
• Generative AI Considerations: Customers using the common Private Cloud Edition (PCE) of RISE must purchase Generative AI as an add-on service known as “SAP AI Unit.” More advanced AI capabilities are included in select RISE commercial models. AI is playing an increasingly significant role in shaping customer decisions and operational strategies within SAP landscapes. The growing integration of AI into SAP’s offerings demands a deeper understanding of its implications, costs, and benefits.

3. SAP’s Evolving Cloud Roadmap

• Introduction of SAP Business Data Cloud: While not yet widely reflected in client Bills of Material, this new offering is expected to impact SAP’s landscape significantly. Business Data Cloud is part of SAP BTP, and SAP describes it as an evolution of Datasphere, SAP Analytics Cloud and Business Warehouse. SAP’s partnership with Databricks will also impact how customers will need to manage data.
• Continued Investment in AI: SAP recently announced the extensive integration of Joule throughout the company’s technology platform and portfolio of business applications. SAP has now integrated Joule into S/4HANA Cloud as well as across Finance, HR, and Sales. It is important for customers to be aware of Joule’s role in business functions and integrations.

4. Managing SAP’s Increasing Leverage

As SAP’s focus shifts further towards cloud-based solutions and further away from On-Premise, customers are experiencing increased pressure in negotiations and strategic engagements. SAP has reached a tipping point with RISE in terms of gaining critical momentum, making negotiations increasingly difficult. Addressing SAP customer challenges related to pricing, contracts, and executive engagement is crucial. Here are the specific challenges customers are facing regarding leverage:

• Diminishing On-Premise Discounts: SAP is becoming less aggressive in offering discounts for on-premise solutions as RISE gains momentum and is SAP’s preferred path for all customers.
• RISE’s Growing Market Presence: SAP continues to heavily invest in its cloud transition, making it imperative for customers to assess the long-term viability of their current deployments.
• Navigating SAP’s Leadership and Sales Restructuring: Recent changes in SAP’s executive leadership, such as the departure of Lloyd Adams, are causing shifts in customer engagement dynamics. SAP is restructuring global sales responsibilities, making it more challenging for customers to engage with the right decision-makers.

Preparing for 2025 and Beyond

As we move forward in 2025, understanding SAP’s evolving strategies, leadership shifts, and new offerings will be critical. To overcome SAP customer challenges, organizations must:

• Stay updated on SAP’s product roadmaps and pricing structures.
• Evaluate S/4HANA migration strategies in the context of extended maintenance for On-Premise customers and AI integration in the Cloud.
• Engage with SAP at the appropriate executive levels to ensure alignment on long-term IT strategies.

By taking a proactive approach, organizations can navigate SAP customer challenges more effectively, optimize costs, and position themselves for future success in an increasingly AI-driven ecosystem.

Get Expert Guidance on SAP Customer Challenges

Navigating SAP’s complex and evolving landscape requires expert guidance and strategic planning. If your organization is facing challenges with SAP RISE, contract negotiations, or technology transitions, our SAP Advisory Practice can help. Learn more about our SAP Advisory Services here.