Negotiating SAP BTP in Contracts
SAP’s Business Technology Platform (BTP) is no longer optional for enterprises running SAP – it’s the glue that integrates and extends S/4HANA, RISE with SAP, and other cloud apps.
How BTP is priced in your contract, however, will determine whether it becomes an innovation accelerator or a costly sinkhole.
Too often, BTP gets tossed into negotiations at the last minute as an add-on, after core software terms are set. The result? Customers lose leverage and end up with subpar terms for this critical platform.
Strategic insight: BTP should be part of every SAP contract discussion from day one.
By proactively negotiating BTP within your main agreement, you can lock in favorable rates, secure usage credits, and build in flexibility before SAP has the upper hand. SAP knows BTP is the key to unlocking value from their applications – and they will position it to maximize their revenue if you’re not prepared to counter.
Below, we reveal how SAP positions BTP commercially and the levers you can pull to secure better credits, discounts, and long-term flexibility. Read our complete guide for SAP BTP Licensing & Cost Control: Managing Your SAP Cloud Platform Costs.
How SAP sells BTP: SAP often promotes BTP as a bundled component of RISE with SAP or large S/4HANA deals, but the pricing can be opaque. BTP is typically sold either via a Cloud Platform Enterprise Agreement (CPEA) – a credit-based consumption model – or as fixed subscriptions for specific services.
The credit model gives you a pool of BTP “credits” to spend on any platform services, which SAP loves because it encourages broader usage. However, SAP’s credit system isn’t straightforward: one service might burn through credits faster than another, and the “free” credits SAP dangles have strings attached.
Account teams may offer introductory BTP credit bundles that look generous (e.g. €100K in credits included in your deal), but beware – the fine print might commit you to equivalent spend in later years or renewals at full list prices.
In short, SAP will try to anchor you on BTP usage and then upsell more when the included credits run out. The good news is that with the right negotiation tactics, you can turn BTP into a cost-efficient asset. Here’s how.
Key Negotiation Levers
a) BTP Credits Included in the Deal
One of the most effective tactics is securing a pool of BTP cloud credits as part of your main SAP contract (whether it’s a RISE agreement or an S/4HANA license deal). Instead of paying extra for BTP usage from day one, insist that SAP includes a prepaid annual credit allowance for BTP. For example, large enterprises can often negotiate €50,000–€250,000 worth of BTP credits per year bundled at no additional cost.
This essentially gives you “free” BTP consumption for your initial projects. Make sure the credit pool is sized to cover your planned integrations, extensions, and innovations on BTP (ideally your first year of usage).
If SAP pushes back, remind them that BTP is essential to fully realize the value of the SAP software you’re already buying – it’s in both parties’ interest to enable its usage.
Sample contract clause:
“Customer shall receive an annual BTP credit pool of €150,000 as part of the agreement’s subscription fee, with unused credits rolling forward for 12 months.”
This clause ensures you have a significant BTP budget baked into the contract. It also introduces the concept of credit rollover (more on that later), so you don’t lose unused value each year.
The key is to get these credits guaranteed upfront. Don’t settle for vague promises or one-time “vouchers” – put the exact credit amount in writing for each year of the term. Also, clarify what services the credits can be used for (ideally, any BTP service).
By securing a sizable credit inclusion now, you create a buffer that stretches your budget and covers initial BTP use without surprise bills. It sets a baseline that any additional BTP spend is on your terms, not just at SAP’s list prices.
b) Discounts on Additional BTP Consumption
Including credits is great, but what happens if you use up those credits? Without pre-negotiated terms, any extra BTP usage will be charged at full list price – which is exactly what SAP hopes for. To avoid this, negotiate volume-based discounts on any BTP consumption beyond your included credits.
In your contract’s pricing schedule, specify tiered rates or an across-the-board discount for overage. For instance, you might secure a 15% discount on all BTP usage beyond the prepaid credits.
That way, if your development teams suddenly consume more BTP services than expected, you won’t be paying sticker price. Tie these rates to a unit of measure (e.g., a certain cost per credit or per resource unit) so it’s crystal clear.
Make sure this discount schedule is documented upfront. You want the overage pricing locked in before the first invoice arrives.
If you wait until you’ve exceeded your credits to discuss discounts, SAP has little incentive to cut you a deal (they’ll already be billing you at high rates!). As one negotiation tip goes:
Negotiation Tip: Set your incremental rate ceiling in writing before the first BTP invoice hits – SAP rarely offers discounts after consumption begins.
By capping the cost of additional BTP usage, you remove SAP’s ability to charge runaway fees if your adoption of BTP grows. This is essentially an insurance policy on your cloud spend.
Consider also negotiating volume tiers – for example: 0–100k credits at 10% off, 100k–200k at 20% off, etc., or simply a flat discounted rate once you pass your included amount. The goal is to preemptively curb any “surprise” usage bills and ensure any growth in BTP usage remains cost-efficient.
Read how to optimize BTPs, Optimizing SAP BTP Usage: Practical Strategies to Cut SAP Cloud Costs
c) Rollover and Reallocation Rights
Another major lever is fighting the standard “use-it-or-lose-it” policy on BTP credits. SAP’s out-of-the-box rule under CPEA is that unused BTP credits expire at the end of each year – a big disadvantage to customers who prudently avoid waste.
You should negotiate rollover rights so that if you don’t consume all your credits in a given year, a portion (or all) of the leftover credits carries into the next period. For example, you might secure a clause that unused credits will roll forward for 12 months into the next year’s pool.
This gives you flexibility to bank credits for later projects instead of rushing to use them or losing that value. Even a partial rollover or one-year extension on credit validity is far better than zero.
In addition, seek flexibility to reallocate credits between BTP services or projects as needs change. Perhaps you initially earmarked most credits for Integration Suite, but mid-year, you realize you need more for SAP Build or AI services – your contract should allow you to shift your credit usage without penalties.
SAP might bundle certain credits for specific services in promotions; push back and insist that credits are fungible across all BTP services. That way, you can optimize usage where it’s needed most.
Sample contract clause:
“Customer may reallocate unused BTP credits among any active BTP services during the term, and unused credits shall carry over into the subsequent year of the term.”
This clause addresses two points: the flexibility to apply credits to different services and the right to carry over unused capacity. SAP may resist open-ended rollover (it affects their revenue timing).
Still, large enterprises have succeeded in getting at least a one-year carryover or the ability to transfer a portion of unused credits to a new agreement. Emphasize that you’re committing significant spending; in return, you need the flexibility to ensure no budget is wasted due to rigid rules.
d) Bundling BTP with RISE or Enterprise Deals
If you’re in the midst of a broader SAP negotiation – say for RISE with SAP (their flagship cloud offering) or a large S/4HANA license conversion – bundle BTP into that deal, not after. SAP might tell you “BTP is included in RISE,” but often that inclusion is minimal (e.g., a small starter credit allotment) or doesn’t cover the scale you need.
Make BTP an explicit line item in your RISE or enterprise agreement, with defined credits, services, and pricing. This gives transparency to what you’re getting and at what value.
For example, standard RISE contracts might include a few thousand BTP credits – if your plans require more, negotiate it now. It’s far easier to get additional BTP value when SAP is trying to close a multi-million-dollar deal than to do so later as a separate purchase.
Leverage the total contract value (TCV) of your SAP deal to get a better bargain on BTP. Essentially, the bigger the overall deal, the more generous SAP can be with BTP. Use that to your advantage: “We’re committing to a major cloud transformation with RISE – we expect BTP capacity to be part of that commitment at a favorable rate.”
Push for either a larger BTP credit allocation included (e.g., double the standard credits) or a steep discount on extra BTP usage as a condition for signing. Bundling also means any BTP spend counts toward your committed spend – ensure that in a RISE context, consumption of BTP services is billed against your agreement and benefits from any discount structure you’ve negotiated.
As a tactic, time this ask for when SAP is keen to book the deal (end of quarter or fiscal year). They will be more flexible then. For instance, you might say: “We’ll sign the RISE contract this quarter, if you increase our BTP credits from €100K to €200K per year and allow unused credits to roll over.” Don’t be afraid to explicitly tie BTP terms to the larger deal.
One real-world example: a company found the basic BTP credits in their RISE bundle insufficient, so they negotiated an additional €50,000 in BTP credits at a 30% discount. This ensured they could run their integrations on BTP without incurring high overage fees later.
The lesson: bundle and bargain – when SAP sees the whole pie (the full contract) at stake, they’re more likely to concede on BTP pricing and flexibility.
e) Future Flexibility and Scaling
Over a multi-year SAP contract, your BTP needs could evolve significantly. You might start small and then ramp up as new projects come online – or you might find ways to optimize and use less than expected. Your contract must accommodate these shifts.
Negotiate the right to adjust your BTP consumption commitment up or down annually within a reasonable band. For example, include a clause that allows you to increase or decrease your BTP credit commitment by, say, 20% each year without penalty or a pricing reset.
This kind of flexibility ensures you’re not overpaying for unused capacity, and also not handcuffed if you need more resources. Essentially, it’s a scaling clause that acknowledges forecast uncertainty.
Equally important is protecting against future price increases and renewal uplifts. Software vendors like SAP often bake in annual price hikes or have the freedom to raise rates upon renewal. You want to cap that.
Insist on a price protection clause – for instance, “no more than 5% price increase at renewal” or even better, “renewal pricing will remain at the prior term’s rates”. If you negotiated discounts or special rates on BTP, make sure those carry into renewal periods as well. SAP should not be allowed to wipe out your hard-won discount with a big uplift later.
If your contract is 3+ years, also guard against SAP raising the list prices of BTP services mid-term: you might include that your unit rates for credits or key services are fixed for the term, or that you’ll get equivalent discounts to maintain the same effective rate even if list prices change.
Finally, build in a forecast review with SAP each year. For example, you could have a contractual checkpoint to revisit BTP usage and adjust terms if needed (especially if you sign a long-term deal).
While SAP might not agree to lowering committed spend, they might agree to let you repurpose some unused commitment toward other services, or to sell you additional credits at the same discounted rate if you outgrow your plan.
The overarching principle is to avoid getting trapped: you want the ability to adapt the BTP portion of your contract over time as your business changes.
Sample contract clause:
“Customer may adjust BTP consumption commitment annually by up to ±20% of the baseline, with pricing and discounts remaining unchanged. Any renewal shall not exceed a 5% price increase from the prior term.”
This example clause combines several protections: it gives you wiggle room on volume and locks in the financial terms.
Securing such terms means your BTP costs stay predictable and fair throughout the lifecycle of your SAP agreement.
Common Pitfalls in BTP Contract Negotiation
Even seasoned negotiators can miss key points on BTP.
Here are five common pitfalls when negotiating BTP into your SAP contracts – and how to avoid them:
- Accepting “promotional” BTP credits without clarity on future costs. SAP may entice you with free or heavily discounted BTP credits initially, but if you don’t know what happens in Year 2, you’re in for “sticker shock.” Fix: Document the baseline pricing and terms for those credits in later years. For example, if you get €100K in free credits now, ensure the contract states what it will cost to renew or maintain that level of usage later (and ideally cap that cost). Don’t let a promo turn into an unbudgeted spend increase.
- Assuming BTP is automatically included in RISE (or other bundles) at no cost. Many RISE customers mistakenly believe BTP usage is unlimited or fully covered. In truth, RISE might include only a small amount of BTP resources, after which normal charges apply. Fix: Get explicit confirmation in your contract of what BTP services or credit amount is included in the deal. Have SAP itemize the value of any included BTP entitlement. This way there’s no ambiguity – you know what you’re getting, and anything beyond that should be negotiated.
- No rollover or portability of unused credits. If you go by SAP’s standard terms, any credits you don’t use by year-end simply vanish (money down the drain). Fix: Negotiate rollover and reallocation rights upfront. As discussed above, add clauses for a 12-month credit rollover or the ability to reassign unused credits to other BTP services or future periods. This prevents waste and gives you more agility in using your credits efficiently. Even if SAP only agrees to partial rollover (say 20% of unused credits), it’s better than zero.
- No predefined discount for overages. Without negotiated rates, any consumption beyond your committed credits will be billed at full list price – an unwelcome surprise. Fix: Predefine an overage discount schedule. Lock in volume tier discounts or a flat reduced rate for any extra BTP usage. Put those numbers in the contract so even if you exceed plans, you know the maximum rate you’ll pay (and it’s significantly less than the list). Never rely on trying to negotiate a discount after you’ve blown through your credits – get it in writing beforehand.
- Lack of usage transparency and governance. If you aren’t actively monitoring BTP consumption, you could burn through credits or incur charges before you realize it. SAP isn’t always proactive in alerting you. Fix: Include governance and reporting clauses. Require SAP to provide regular usage reports (e.g., monthly or quarterly) that detail your BTP credit consumption by service. Also, ask for threshold alerts – SAP should notify you (or allow you to automatically get alerts) when you reach, say, 75% of your credit utilization. Internally, set up a governance process (perhaps part of quarterly business reviews with SAP) to review BTP usage and costs. This way, there are no nasty surprises, and you can course-correct usage or purchase more credits on your terms if needed.
How to Negotiate BTP as Part of a Broader SAP Deal
Negotiating BTP goes best when it’s woven into your overall SAP deal strategy. Here are some tips on approach:
- Bundle, don’t isolate. Treat BTP as a must-have component of your SAP environment, not an optional afterthought. When you include BTP in the larger deal (RISE, S/4HANA licenses, cloud renewals, etc.), you can trade off concessions. SAP might be willing to give on BTP credits or pricing if it helps them secure the big-ticket sale. If you negotiate BTP separately later, you lose that leverage.
- Use timing to your advantage. The best time to push for extra BTP value is when SAP is under pressure to close – typically at quarter-end or fiscal year-end. SAP sales reps have quotas, and the company wants deals booked by certain dates. By aligning your final negotiation steps with these crunch times, you increase your chances of getting that additional 20% of credits or an extra discount percentage that was previously off the table. Be aware of SAP’s calendar and, if possible, plan your negotiations to conclude during a high-pressure period for them.
- Leverage total contract value. When discussing BTP terms, frame it in the context of your total SAP spend. For example, “We are investing $5 million in SAP over the next 3 years; given that commitment, we expect competitive terms on BTP.” By highlighting the overall value of the deal, you justify why SAP should stick with BTP. They won’t want to take a hardline stance on a comparatively small portion (BTP) that could jeopardize a much larger sale. Make it clear that a satisfactory BTP arrangement is a condition for the broader partnership.
- Be ready to walk – and mean it. As with any negotiation, your power comes from your willingness to say no. If SAP’s BTP offer isn’t acceptable and they won’t improve it, be prepared to pause the entire deal. This could mean delaying a project or exploring alternatives (e.g., third-party integration tools or cloud platforms). Often, simply asserting that “BTP terms are a deal-breaker” will bring SAP back to the table with more flexibility. Of course, only use this if you have the support internally to follow through. But showing you’re serious about getting BTP right will signal to SAP that they can’t treat it as an afterthought or an easy upsell.
In summary, negotiate BTP holistically as part of your SAP ecosystem investment. Timing, bundling, and leverage are your friends. And ensure everyone on your negotiation team (procurement, IT, exec sponsors) is aligned that BTP value is a priority, not a throw-in.
Governance and Reporting Requirements
Once your contract includes BTP, the work isn’t over – you need to manage and govern its usage to maximize value and avoid overruns. This starts with baking reporting requirements into the contract. Make it SAP’s obligation to provide detailed consumption reports regularly.
At a minimum, negotiate for quarterly reports on BTP usage. Ideally, these reports should break down usage by service, project/team, and region or cost center (whatever dimensions matter to you). This level of detail helps your team identify who is consuming what and whether the usage is aligning with expectations. It’s common to include a clause such as:
“SAP shall provide Customer with a quarterly BTP consumption report, detailing credits used per service and remaining credit balance, including an alert if usage exceeds 75% of the annual allotment.”
Such a clause forces transparency. Additionally, ask for real-time or monthly access to usage data (SAP’s BTP cockpit and tools like SAP For Me can show consumption – ensure you have access and know how to use them). Contractually, you could require that SAP notify you when your usage hits certain thresholds (e.g., 50%, 75%, 90% of credits consumed) so you’re never caught off guard.
Governance also means setting up internal processes. Make BTP usage a standing item in your vendor management or IT governance meetings with SAP. For example, during quarterly business reviews with SAP, include a section to review BTP consumption vs. plan.
This keeps SAP accountable to help optimize usage and allows you to discuss adjustments if needed (maybe you need more credits, or maybe you need advice on using a cheaper service – make SAP part of the solution since they sold you the platform).
Finally, ensure you have internal owners for BTP cost management – someone in IT or finance who monitors the dashboards, checks the monthly usage, and works with teams to prevent credit waste.
Your contract can support them by providing the necessary data and rights (like rollover), but active management is key. With strong reporting and governance clauses, you create a culture of no surprises and continuous optimization for BTP, turning what could be a cost risk into a well-managed investment.
Internal Preparation Checklist
Negotiating SAP BTP effectively requires homework on your side. Before you even engage with SAP on contract terms, make sure your team is prepared.
Use this checklist to cover all the bases internally:
- Identify current and forecasted BTP use cases. Map out how your organization plans to use BTP. Will you build custom extensions, integrate non-SAP systems, use analytics, develop apps with SAP Build, or explore AI services on BTP? Knowing this helps quantify your needs.
- Estimate the annual BTP credits required. Based on those use cases, estimate how many credits (or what monetary value) you’ll consume in year 1, year 2, etc. Account for growth – e.g., if more projects will move to BTP next year, factor that in. This forms your baseline for negotiation (e.g., “we anticipate needing €150k in credits annually”).
- Gather pricing benchmarks. Research what other similar companies have negotiated for BTP. Understand SAP’s list prices for the services you’ll use, and typical discount ranges. If you have access to any industry benchmarks or advisors, get a sense of what a “good deal” looks like (e.g., 20%+ discounts, credit bundles of a certain size, etc.). This prevents you from aiming too low or missing an opportunity.
- Align your stakeholders. Bring together IT architects, procurement, finance, and legal to define your ideal BTP contract structure. Ensure everyone agrees on the must-haves (e.g., €X credits, rollover, discount percent, flexibility) and your walk-away point. This unity is crucial when pushing back on SAP’s offers – you don’t want internal disagreement to undermine your stance.
- Define your “walk-away” positions. Decide in advance what terms are non-negotiable and where you have flexibility. For example, you might say, “If SAP won’t include at least 100k credits/year and a 10% overage discount, we’ll consider delaying the project or alternatives.” Knowing this prevents impulsive decisions under pressure. It also arms your negotiators with clear boundaries.
Taking these steps internally will make your external negotiation much stronger.
You’ll approach SAP with a data-backed request and a unified front, which increases your credibility and leverage. It also ensures you’re not forgetting any important aspect (like who will monitor usage later, or how a certain team’s needs will be met).
5 Contract Tactics to Maximize BTP Value
To wrap up, here are five concrete tactics you can apply in your SAP contract to maximize the value of BTP and avoid overspending:
- Bundle BTP from the start. Integrate BTP credits into your main SAP deal (RISE or enterprise agreement) rather than treating it as an add-on. Early bundling yields better pricing and “free” credit allowances.
- Negotiate rollover and reallocation rights. Don’t accept expiring credits. Secure the ability to carry over unused capacity and apply credits to any BTP service you need during the term.
- Lock in overage rates and renewal terms. Establish discounted rate tiers for any usage beyond your credits, and cap any price increases at renewal. Never leave future consumption pricing to chance.
- Tie BTP discounts to your total spend. Use the weight of your full SAP investment to get deeper discounts on BTP. The more you spend with SAP overall, the more breaks you should get on those BTP unit costs – insist on it.
- Document everything – no assumptions. Every promise needs to be in the contract: credit amounts, discount percentages, reporting obligations,and flexibility clauses. Rely on written terms, not verbal assurances or goodwill, to ensure SAP delivers the value you expect from BTP.
By following these tactics, you’ll turn SAP BTP from a potential cost headache into a well-negotiated asset. You’ll gain the cost efficiency, flexibility, and scalability your organization needs, all while keeping SAP accountable to fair terms.
In the end, a strategically negotiated BTP agreement means you can fully leverage SAP’s powerful platform without breaking your budget – a win-win for innovation and cost control. Good luck with your negotiations!
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