One of the reasons why SAP still rules the world of ERP is its ability to innovate. There was a time when SAP was associated with a high learning curve and a higher difficulty in installing it. Today, we have SAP S/4HANA Cloud, Public Edition, which is run by SAP itself. Think of it like the Google Docs of ERP. The SAP instance is run on the servers of SAP. In the blog, we will talk about the ABC of SAP S/4HANA Public Cloud, how secure it is and why anyone would choose it over the private cloud edition. But more than that, we will explore what happens when SAP S/4HANA is run as an island – not integrated tightly with the rest of your business operations and the tools you use to manage them. This will be a deep dive. Sit back and read the blog at your own pace.
What Is SAP S/4HANA Public Cloud?
SAP S/4HANA Cloud Public Edition is the version that is run by SAP itself. In other words, it is a cloud-native version designed to be plug-and-play. Unlike the Cloud, Private version, where the software is hosted by an SAP vendor, in this case, it is SAP that hosts the S/4HANA instance.
In simple terms,
- S/4HANA Public Cloud is a complete
- pre-configured ERP system that you rent rather than own
- designed to digitally transform core business operations like finance, procurement, sales, and manufacturing.
Don’t get tricked by the word “Public”. The instance of SAP S/4HANA Public Cloud is secured by military-grade encryption with even field-level security in place.
Public Cloud vs. Other SAP Options:
It’s important to distinguish it from other deployment models:
- SAP S/4HANA Private Cloud/On-Premise:
You own the license and host the software on your own servers or a private cloud. This offers more customization but also requires your team to manage everything, including costly upgrades. - SAP S/4HANA Public Cloud:
SAP manages everything. It offers less customization but provides greater agility, lower total cost of ownership (TCO), and a faster path to value. The focus is on configuration within SAP’s standard model.
Please don’t treat lack of customizations as the limitation of SAP S/4HANA Cloud Public edition. The ERP comes with a lot of bells and whistles. This extensive out-of-the-box functionality means most organizations can achieve their core – and even advanced – objectives through configuration alone.
Some Advantages of Using the Public Edition of SAP S/4HANA Cloud
SAP S/4HANA is powerful on its own. But its public edition brings with it some more advantages. It allows businesses to reap the benefits of the cloud-hosted SAP platform thanks to an unbelievably fast setup time minus the complexity.
For Startups & High-Growth Companies
SAP S/4HANA Public Cloud is a great ally for startups and companies that have started to scale. The public edition doesn’t need any upfront cost in terms of infrastructure. Everything is hosted by SAP. Thanks to the subscription model, businesses also save a lot of CAPEX in terms of upfront licensing cost. This allows businesses to redirect capital towards innovation and growth. The platform scales seamlessly alongside the business, preventing IT from becoming a bottleneck during rapid expansion.
For Manufacturing and Industrial Products
Regardless of edition, SAP S/4HANA Cloud takes your product business to the next level. The public edition does so in a more agile way. From sourcing raw materials (vendor selection, vendor communication) to manufacturing the product (BOM, MRP, batch) and ultimately selling it – your entire production process remains monitored and the operational workflow remains automated. The Public Cloud provides a single, centralized source of truth for your product data. This is crucial for complex, multi-level BOMs. Traditional MRP runs in batches, often overnight, working on stale data. The Public Cloud’s in-memory computing allows for real-time MRP. The system continuously monitors live inventory levels, sales orders, and production schedules.
For Retail and Ecommerce
SAP S/4HANA Cloud Public Edition will finally materialize your dream of a truly omnichannel strategy. Set up the public edition within days – and you have a fully functional unified commerce and real-time inventory. Get a unified view of all your inventories – regardless of quantity and type. The embedded AI and machine learning capabilities analyze real-time sales data, social trends, and seasonal patterns. This moves beyond historical guesses to predictive forecasting. The public cloud model provides the agility and innovation needed to thrive in a digitally driven market. Retailers can quickly adapt to new trends (like flash sales or pop-up shops) without IT infrastructure delays.
Distribution and Logistics
The public edition of SAP S/4HANA Cloud can appear as a lifeline for distributors and logistics companies. Oftentimes they have to connect with non-standard systems of their vendors, clients and other stakeholders. SAP S/4HANA public cloud brings agility and standardization in connecting to these non-standard systems. The Public Cloud comes with a vast library of pre-configured integrations for common third-party systems through the SAP Business Technology Platform (BTP) and its API Business Hub. This drastically reduces the cost of building new integrations. S/4HANA itself becomes the standardized core of your operations.
Top Challenges SAP S/4HANA Public Cloud Helps Resolve
While SAP S/4HANA itself addresses a lot of issues, we will focus specifically on the public edition of SAP S/4HANA. Let’s find out what specific challenges the public edition addresses:
Addressing the high barrier to entry:
Although SAP offers SAP Business One as a cloud service, many big businesses often need a more feature-rich, robust and heavy-duty ERP system. Yet setting up such a complex ERP requires CAPEX, a huge time investment and a huge arsenal of developers. However, the public edition of SAP S/4HANA Cloud can get your ERP setup up and running with relatively fewer headaches and a significantly lesser amount of upfront cost.
It operates on a subscription-based, pay-as-you-go (OpEx) model. This eliminates the need for a multi-million dollar hardware investment, transforming a capital expense into a predictable operational expense.
Addressing The Challenge of Reliance on Developers
SAP S/4HANA as software itself poses a steep learning curve. Now add to this – maintaining, patching, and upgrading an on-premise SAP system requires another set of specialized teams of engineers and developers. This is exactly why a complex, feature-rich ERP system like SAP S/4HANA remains outside the reach of many businesses.
The public edition of SAP S/4HANA Cloud comes to the rescue. For this version, SAP fully manages the underlying infrastructure, database, and application layers. This includes all technical maintenance, patches, and updates. The business’s IT team is freed from routine “keeping the lights on” tasks and can focus on strategic initiatives that drive business value.
The Innovation Gap
The high-end version of SAP typically consists of the SAP S/4HANA family today. Yet, nearly one-third of the old SAP ECC users plan to stick to the legacy ERP system beyond 2027. Don’t accuse them of being unwilling to change. Shifting from a legacy ERP system is a huge – HUGE – decision. A decision that can break the entire business operations if not handled properly.
SAP S/4HANA public offers businesses a chance to upgrade their legacy SAP ECC systems without making a mess. Of course, migrating years of business data comes with huge risks. But the public edition provides a standardized, pre-configured path for migration. Unlike a greenfield on-premise implementation, the public cloud’s predefined processes and data models act as a guardrail. SAP provides tools like the Maintenance Planner and RISE with SAP offerings that include specific migration services.
Introducing APPSeCONNECT - The iPaaS Made for SAP S/4HANA Public Cloud Migration
Moving to SAP S/4HANA Public Cloud is a giant leap forward, but the thought of migrating all your connected apps and data is daunting. APPSeCONNECT is your co-pilot, designed to simplify this critical transition and turn complexity into confidence.
Here’s how it makes your life easier:
It keeps your business running.
Instead of a risky “big bang” cutover, APPSeCONNECT allows you to sync data seamlessly between your old systems and your new S/4HANA cloud environment. This means you can migrate at your own pace without halting daily operations.
It connects everything, effortlessly.
Your CRM, e-commerce platforms, and other legacy systems don’t get left behind. APPSeCONNECT’s pre-built integrations act as bridges, ensuring all your critical business data flows smoothly into and out of your new SAP core from day one.
It future-proofs your tech stack.
This isn’t a one-time fix. APPSeCONNECT provides a powerful, flexible integration platform that will easily adapt as you add new applications, ensuring your S/4HANA cloud investment continues to deliver value for years to come.
In short, APPSeCONNECT removes the fear of disruption, making your transition to a modern ERP not just successful but surprisingly smooth.
Frequently Asked Questions
SAP S/4HANA Cloud Public Edition is the version of S/4HANA that’s hosted by SAP in its cloud infrastructure. Businesses that want to avoid a high upfront CapEx in terms of implementation and licensing often go for it. The benefit is the same, yet the cost is significantly lower
SAP S/4HANA Public Cloud is hosted by SAP. So you don’t have to sweat over hosting it in your managed cloud or, worse, on-prem. On top of that, since it is hosted in SAP-managed cloud infrastructure, expect a top-notch security posture and exceptional operational stability. Above all, the pay-as-you-go model saves you a huge amount of implementation costs.
APPSeCONNECT’s iPaaS eliminates the chaos of migrating to SAP S/4HANA. It seamlessly connects your legacy apps and data to the new cloud ERP with pre-built integrations, ensuring a smooth, low-risk transition that keeps your business running without disruption. It’s your shortcut to a successful upgrade
