Recently, SAP has undergone a systematic rebranding of its cloud ERP product line, consolidating the original “RISE with SAP Premium” and “Premium Plus” packages into the “SAP Cloud ERP Private” solution.
Some may view this as merely a name change, while others have keenly discerned the underlying implications.
In the article “SAP Cloud ERP Has Been Renamed: The New Name Is Simple and Easy to Remember,” we previously analyzed this change from a brand strategy perspective. However, today we will delve deeper into the question: What are the actual impacts of these underlying adjustments on businesses?
Let’s first look at the specific changes:
① Package Cancellation and Service Content Restructuring
The original “RISE with SAP Premium” and “Premium Plus” packages have been canceled, replaced by the “Cloud ERP Private” solution. The new solution integrates more SKUs (such as LeanIX tools) but removes some original features (such as SAP Datasphere), requiring customers to purchase additional services separately.
② FUE Authorization System Adjustments
User permission classifications have been adjusted: some “functional user” permissions have been reclassified as “professional users,” affecting the cost structure of licensing. SAP emphasizes that this adjustment is part of a more refined management of permission definitions to enhance the transparency and fairness of the licensing model.
③ Adjustments to AI functionality billing models
AI units have been decoupled from the original Premium Plus package and now operate on a pay-as-you-go basis. SAP emphasizes that whether AI functionality is enabled is entirely up to the customer’s choice.
For enterprises relying on private cloud deployments, the impact of this adjustment is particularly significant, potentially presenting dual challenges:
①Complexified Cost Structure: The separation of AI functionality billing and the redefinition of the licensing model require customers to reassess their budgets during renewal or migration. For example, if an enterprise wishes to retain capabilities such as intelligent analysis and automated processes, it must purchase AI units separately, whereas these features were previously included in the old package.
②Increased compliance risks: Permission adjustments under the FUE model may inadvertently cause customers to violate licensing agreements. Some companies may face significant fluctuations in licensing fees due to failure to update user classifications in a timely manner.
Additionally, SAP is nearing the elimination of on-premises deployment licenses, and updates for early S/4HANA on-premises versions have been discontinued.
These signals indicate that SAP is gradually implementing its “AI First, Suite First” strategy, gradually migrating customers to the cloud, especially SAP Cloud ERP [ERP Cloud].
Corporate response strategies: Finding certainty in dynamism
For CIOs, SAP’s adjustments are both a challenge and an opportunity to re-examine their technology roadmap.
First, enterprises should establish a dynamic licensing audit mechanism to regularly verify user permissions and functional usage, avoiding compliance gaps caused by rule changes. Second, in migration planning, prioritize assessing the suitability of public clouds and leverage their elastic scalability to reduce TCO. Additionally, involving third-party consultants in pricing negotiations and solution design can help maximize benefits in complex commercial terms.
Public Cloud: A Feasible Path for SAP’s New Strategic Breakthrough
Against the backdrop of SAP’s private cloud pricing adjustments and increased licensing complexity, SAP’s public cloud may become a more attractive option, especially for users who need to upgrade their ECC. As SAP’s core direction for the future, SAP Cloud ERP offers three key advantages:
① Transparent cost structure: The public cloud adopts a subscription-based model, eliminating the need for customers to bear complex licensing calculations and hidden costs. Resources can be scaled elastically on-demand, effectively reducing upfront investments and TCO.
② Continuous functional updates: SAP updates the public cloud at a significantly higher frequency than the private cloud, enabling customers to seamlessly access the latest features such as AI-enhanced capabilities and data integration without incurring the costs associated with on-premises upgrades.
③ Ecosystem synergy: SAP public cloud natively supports integration with ecosystem products such as SAP Analytics Cloud and SuccessFactors, facilitating the construction of an integrated digital platform for enterprises.
Although SAP private cloud remains suitable for industries with extremely high data sovereignty requirements, from the perspective of long-term costs and agility, SAP public cloud is undoubtedly a more sustainable choice. The series of adjustments to the SAP Business Suite brand strategy have sent a clear strategic signal.
As one of the first SAP Platinum Partners in China to offer native SAP Cloud solutions, Acloudear specializes in the full range of SAP Public Cloud products (including SAP Cloud ERP, CX, BTP, AI, etc.) and possesses end-to-end service capabilities spanning the entire lifecycle of cloud products, from architecture design to implementation and deployment.
By deeply integrating the SAP Business Suite strategy, we can help businesses precisely align business needs with technological innovations, enabling a smooth transition from on-premises systems to the cloud and unlocking value.
Looking back, SAP’s adjustments are essentially an evolution of technology and business models. As an SAP partner, we recommend that enterprises embrace cloud transformation with an open mindset, balancing business growth and cost optimization through flexible product portfolios and pricing strategies. In the digital wave, only those who dynamically adapt can remain invincible.
This article "What impact will SAP Cloud ERP’s rebranding and pricing structure adjustments have on businesses?" by AcloudEAR. We focus on business applications such as cloud ERP.
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