SAP’s “Clean Core” strategy has become one of the most discussed topics in the SAP ecosystem, particularly for organizations planning or executing a move to SAP S/4HANA Cloud under an SAP Cloud ERP Private (formally RISE with SAP) deal.

Marketed as the key to agility, faster upgrades and long-term value, Clean Core is based on the principle that 75-80% of business processes are non-differentiating, meaning they can follow SAPs standard best practices rather than rely on heavy customization.

However, many IT and finance leaders are asking a simple question:

Is Clean Core a genuine strategy for efficiency, or just another sales narrative?

What does ‘Clean Core’ Mean?

The phrase “keep the core clean” was first introduced by former SAP CTO Björn Goerke at TechEd 2018. The concept was simple: minimize in-core customizations and build flexibility to adapt in rapidly evolving modern business environments.

Today, SAP defines a “clean core” as a system that follows standardized principles for configuration, integration and extension, allowing upgrades without costly disruption.

In practice, a Clean Core means:

• Extensibility: Adding new functionality without modifying standard SAP code, using BTP or on-stack extensions.
• Integration: Using APIs and event-driven architecture to connect SAP and non-SAP systems.
• Process Alignment: Adopting SAP’s best practice, end-to-end processes.
• Operations: Embedding best practices across governance, people, processes, and tools for business transformation.
• Data Integrity: Maintaining clean, compliant, and well-governed data for reliable analytics and decision making.

This approach is powered by SAP Business Technology Platform (BTP), the innovation layer where organizations build extensions, automations, and applications outside the ERP core.

Why Clean Core Matters

Clean Core promotes lean systems that are more responsive, easier to upgrade and cheaper to maintain over time. SAP describes it as a continuous innovation approach, claiming it can deliver up to 75% more incremental business value over a 10-year period.

Licensing Implications & Cost Shifts

While Clean Core delivers architectural benefits, the financial implications model behind are often less transparent.

By moving custom functionality from the Enterprise Resource Planning (ERP) core into the SAP BTP, organizations shift cost categories from one time development to recurring subscription fees. For example, custom ABAP developments previously built into ECC might now require:

• SAP BTP subscription and consumption charges
• SAP Build Process Automation licenses
• Application Programming Interface (API) usage or integration call costs

Dual Licensing in RISE with SAP

Some organizations face dual licensing, paying for core ERP functionality under RISE and again for equivalent capabilities re-implemented in BTP. Without careful planning, this can lead to cost duplication and subscription sprawl.

Measuring the Value of Your Clean Core

Evaluating whether your Clean Core strategy is delivering value requires visibility into both performance and cost.

While SAP provides dashboards via SAP for Me and RISE with SAP portals translating metrics into business outcomes can be challenging.

At ITAA we go beyond dashboards to deliver actionable insights. Our consultants analyze entitlements, consumption, and user groups to identify inefficiencies, overlaps and under-utilized subscriptions, ensuring  your systems remain compliant, optimized and cost-effective.

Governance Challenges: Why Expert Guidance Matters

A decentralized approach to application development, can quickly result in fragmented governance, overlapping subscriptions, and inconsistent compliance, undermining Clean Core’s very purpose.

Without structured oversight, organizations risk:

• Paying for duplicate BTP services
• Losing visibility into usage-based billing
• Creating integration or security vulnerabilities

By aligning architecture, licensing and financial governance, ITAA ensures that your Clean Core delivers both technical and commercial value.

Partner with ITAA for a Smarter Clean Core Journey

ITAA consultants combine deep expertise in SAP transformation, licensing optimization, and cloud architecture. We help organizations strike the balance between flexibility with cost control, from evaluating current landscapes to planning long term financial and technical strategies.

If you are planning or optimizing your RISE with SAP or SAP BTP adoption, we can help you build a roadmap that is clean, compliant, and commercially sound.

Sources available below:

• Introducing the Clean Core Approach
• What does it mean and how to achieve it with SAP BTP?
• SAP Activate Methodology for RISE with SAP SAP S/4HANA Cloud
• Unpacking SAP’s Clean Core Strategy

💡 Access expert SAP support instantly with Assist – ITAA’s on-demand consultancy service connecting you directly with SAP licensing and cloud specialists.

Ed Thompson, Associate Consultant

Ed is an Associate Consultant at JNC UK, specializing in SAP solutions and digital transformation. With a first-class BSc in Business Management (Business Analytics) from Swansea University and experience in marketing and negotiation, he combines business acumen with analytical expertise. Ed is passionate about optimizing workflows, driving efficiency, and delivering SAP solutions.