Looking to RISE with SAP? Here are the keys to success

SAP has a new cloud based version of its finance system. Previously, companies using SAP’s ERP packages had the option of hosting them on premises or on public or private cloud infrastructure. But that is changing.

Keen to move to a transformation-as-a-service (TaaS) model, in 2021 the German software giant introduced RISE with SAP, billed as a complete offering of cloud solutions, infrastructure and services to help modernise your legacy ERP "so you can thrive in the cloud."

There is much to commend RISE, such as the fact that SAP is throwing in an upgrade to its popular S/4HANA ERP system for companies that do not already use it, plus a time-limited incentive programme that aims to cut the cost of migration by up to 50%.

More generally, moving to a TaaS model can cut IT infrastructure complexity, maintenance needs and costs, while giving you instant access to the latest features, patches, upgrades, guidance, tools and resources such as SAP’s Readiness Check and S/4HANA Trusted Authorization Review.

Licensing is also easier, RISE is based on an annual subscription and a simplified bill of materials - so say goodbye to working out the value of perpetual licences, database charges, complex discounting and so on. Note, though, that subscription costs cannot be capitalised like perpetual licenses.

Finally, RISE underscores SAP’s commitment to TaaS, following the example of companies such as Microsoft with 365 and Adobe with Creative Cloud. This means that if you use SAP software, it is advisable to move to the cloud or your systems will wither and degrade over time.

Given this outlook, it makes sense to embrace RISE while SAP’s incentives last. But what should you be aware of before diving in? The good news is that SAP will let you use your favourite cloud provider and will take care of infrastructure management.

But there are still several questions you should ask yourself, such as:

Do your ERP users know about the change and what do they think of it?
Will RISE accommodate the customisations in your current SAP system?
Can you integrate third-party systems with SAP ERP when it is hosted on the RISE platform?
Does RISE offer service parameters such as availability, recovery time or point objectives, and incident response and resolution times that align with your policy?
Can other hyperscalers or system providers offer better service parameters?
Does your control framework address the risk of SAP’s technical team having access to the default SAP client—and thus your production application environment?

Other considerations

As with any large IT project, a RISE implementation is not to be taken lightly. The migration can involve from seven to 36 hours of system downtime, so you need to carefully plan for mock cutovers, compatibility testing and business continuity.

If you are moving from a legacy SAP ERP system to S/4HANA you will also need a clear migration plan for the upgrade. Remember to have clear sight of the purpose, plan and people associated with RISE before embarking on the transition. And consider whether you should engage experts to help.

At BDO, we are helping organisations assess and assure the tools, technology, programme management, service level agreements and service management processes and controls associated with RISE contracts. We can help you:

Make sure the RISE model aligns with your IT governance and security standards.
Integrate third-party applications securely with the RISE platform.
Evaluate connectivity between RISE and other cloud or on-premises systems.
Identify gaps in SAP’s shared responsibility model for security.
Weigh up the incident management indicators SAP will report on.
Assess how SAP addresses governance, cyber defence and business resilience within RISE.
See if you can use SAP’s security features to improve your cyber defences.
Determine how the new environment will affect access management, roles and authorisations.
Appraise SAP’s data security model.
Check whether SAP’s controls and contract responsibilities align with yours.
Manage SAP’s access to the system’s 000 SAP Reference Client.

Contact Jeroen Basten or Aditya Chordia if you are considering RISE with SAP as a potential solution, or are in the journey of migration. We support in ensuring that organisations not only achieves the desired outcome but also navigates the path with utmost excellence enhancing organisation’s capabilities and improving service delivery.

Disclaimer: The above article has been prepared to provide general guidance only and does not constitute professional advice.