Defining Scope and Service Levels in Your SAP RISE Agreement

Adopting SAP’s RISE (business transformation-as-a-service) model consolidates software, infrastructure, and managed services into a single cloud subscription. This streamlined approach holds promise for simplification and efficiency. However, beneath the surface lies a web of complexities that, if left unaddressed, can lead to gaps, misaligned expectations, and unexpected costs.

In this article, we’ll delve deeper into the core elements of RISE, highlight common pitfalls, and offer practical steps to help organisations define their scope and service levels before signing or renewing a RISE contract.

RISE with SAP: The Components and Interdependencies

At its core, RISE with SAP is a comprehensive bundle that typically includes:

• SAP S/4HANA Cloud software - either private edition (for large enterprises) or public edition (for smaller ones) - along with related SAP tools like Process Intelligence and Readiness Check.

  
  

• Cloud infrastructure, delivered through your chosen hyperscaler (AWS, Azure, Google Cloud, etc.), with SAP managing the contractual relationship and operational responsibilities.

  
  

• Foundational managed services provided by SAP/hyperscaler, including server provisioning, patching, backups, and monitoring.

  
  

However, RISE does not cover everything. Certain services, like custom code remediation, complex integrations, and functional support, remain your responsibility - or that of your chosen partners.

Imagine RISE as a layered service model:

• Hyperscalers deliver the infrastructure (compute, storage, networking).

• SAP manages the cloud platform, core services, and baseline SLAs.

• Implementation/AMS partners or internal teams handle customisations, system integrations, application management, and support.

  
  

Understanding these dependencies is crucial for defining scope and avoiding assumptions about what’s included.

Defining Scope: Key Considerations

A detailed and explicit scope statement serves as the blueprint for your RISE engagement. Key elements to cover include:

• System Landscape: Document every system : production, QA, development, sandbox, recovery and specify their configurations (e.g., CPU/RAM targets). Consider multiple production instances or legacy system connections that may introduce integration complexities.

• Environments: List the environments included in the subscription. Failing to specify required test or training systems can lead to delays and unplanned costs later.

• Licensing Metrics: Define the number of FUEs (Full-Use Equivalents), user assumptions, and digital document volumes. Include escalation rules for growth or additional licensing needs.

• Modules and Extensions: List all contracted SAP modules, including any add-ons or optional tools (e.g., SAP IBP, Ariba, Analytics). Note explicitly which components are excluded.

• Custom Code and Enhancements: Detail existing custom ABAP programs or interfaces. Define how remediation or adaptation for S/4HANA compatibility will be handled.

• Partner Services: Use a responsibility matrix (RACI) to assign ownership for tasks like data migration, custom integration, support, and system tuning.

• Performance and Compliance: State clear performance expectations (e.g., transaction volumes, response times) and compliance requirements (e.g., data residency, encryption).

  
  

Service Levels (SLAs): Getting Specific

While SAP’s RISE offering comes with baseline SLAs (such as 99.7% uptime for production), your contract should specify additional expectations tailored to your business needs:

• Availability: Confirm uptime targets for production and non-production environments. Negotiate higher SLAs or penalties for missed targets if your operations require greater availability.

• Performance Benchmarks: Define response times and throughput for key transactions, especially for mission-critical processes.

• Incident Response: Establish severity levels, response times, and escalation protocols. Define support hours and align with your internal or partner AMS coverage.

• Disaster Recovery (DR): Clarify whether DR is included or an optional add-on. Define RTO and RPO expectations and test plans.

• Monitoring and Reporting: Decide who will monitor system performance and how reports will be shared (e.g., quarterly reviews).

• Capacity Planning: Define expected workloads and growth plans to avoid unexpected costs from capacity overages.

  
  

Common Pitfalls to Watch For

Even seasoned IT teams can be caught off guard by these recurring pitfalls:

• Vague SLA Language: Don’t assume standard RISE SLAs are sufficient. For example, a 99.7% uptime SLA may translate to nearly 25 hours of annual downtime - far from acceptable for some critical systems.

• Incomplete Environment Definitions: Many contracts leave out non-production or training systems, which later require costly add-ons.

• Responsibility Gaps: Ensure every task is assigned and covered. For instance, SAP’s scope doesn’t include custom code or complex integrations - those must be handled by your partners.

• Digital Access Ambiguities: Clarify how indirect usage (e.g., external systems accessing SAP data) is licensed to avoid costly surprises.

• Cloud Lock-In: Under RISE, SAP controls the hyperscaler contract. Negotiate flexibility clauses or at least data export provisions to maintain control.

• Custom Code Cleanup Oversights: Treat custom code adaptation as a formal work package with defined scope and budget.

• Oversimplified Bundles: Ensure bundled offers don’t include shelfware you won’t use. Request itemised costs for transparency.

  
  

Practical Steps Before Signing or Renewing a RISE Deal

1. Form a Cross-Functional Team: Engage IT, business, legal, procurement, and finance to thoroughly review the proposed scope and SLAs.

2. Assess Your Current SAP Landscape: Inventory all systems, licenses, integrations, and customisations. Use SAP’s tools (USMM, LAW) for precise data.

3. Define Scope Precisely: Document every deliverable, environment, system, and licensing metric in the contract or SOW. Include detailed performance targets and compliance requirements.

4. Negotiate SLAs and Pricing: Don’t settle for default SLAs. Secure appropriate uptime targets, caps on price escalations, and remediation terms for missed service levels.

5. Clarify Change Control: Define how scope changes will be handled, approved, and priced. Build in clear timelines and penalties for delays.

6. Specify Exclusions: Clearly state what’s not included (e.g., certain support levels, DR, custom development) to avoid future disputes.

7. Plan the Migration Timeline: Allocate sufficient time for migration, testing, and cutover. Build in contingency for delays or change requests.

8. Negotiate Exit Rights: Secure provisions for data export, transition assistance, and even perpetual license options if exiting RISE in the future.

9. Establish Governance: Create a steering committee, assign a contract owner, and schedule regular SLA and performance reviews.

   
   

The Bottom Line

RISE with SAP offers a powerful path for cloud-based digital transformation but only if you define the scope, responsibilities, and service levels with precision. Avoid relying on marketing promises or assumptions. Instead, create a clear, detailed contract that sets firm expectations, defines who does what, and aligns with your business goals.

Taking a proactive approach now: engaging licensing and contract experts, involving cross-functional teams, and insisting on detailed definitions will minimise surprises, control costs, and ensure your RISE experience delivers on its promise.