SAP S/4 HANA Deployment Models: On-Prem, Essentials and Extended

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SAP S/4 HANA is the world leader in ERP systems. It is also mentioned in Visionaries Segment in Gartner Magic Quadrant for Cloud ERPs in 2021. SAP S/4 HANA is a big leap from the conventional On-Premises SAP ECC/ERP Business Suite, which is transformed into a Cloud Ready Architecture so that it can be offered to Mid-Size Enterprises. There are primarily 3 different SAP S/4 HANA deployment models, namely SAP S/4 HANA On-Premise (On-Prem), SAP S/4 HANA Cloud Essentials (Also known as Public Cloud / SAP S/4 HANA CE) and SAP S/4 HANA Cloud Extended (Also known as Private Cloud / SAP S/4 HANA CX). Here, we will discuss in detail the various SAP S/4 HANA Deployment Models and which method might be the best fit for you and your business!

If you have multiple systems running in your business and want to seamlessly connect all of them with SAP S/4 HANA under one single platform to automate the business processes, employ APPSeCONNECT ProcessFlow Integration and achieve a noticeable improvement in your business metrics.
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SAP S/4 HANA Deployment Models: On-Prem, Essentials and Extended

License

  • On-Prem Licensing and Infrastructure is usually managed by the customer with assistance from SAP S/4 HANA Implementation Partner.
  • CE is offered in the Multi-Tenant model where Infrastructure is managed by SAP/Chosen SAP Partner.
  • CX is usually offered in the Subscription License model, single-tenant for a particular customer, Infrastructure is managed by Selected SAP Partner of a Particular Region.

Software Updates

  • On-Prem model software updates need to be managed by Customer/SAP Service Provider and is a manual process.
  • CE Model software updates are automatic and managed by SAP/Chosen SAP Partner.
  • CX Model software updates are managed either automatically by SAP Partner or manually as well.

Release

  • On-Prem Model minor version release happens Annually.
  • CE Model minor version release happens in each quarter.
  • CX Model minor version release happens in every six months.

Cloud Infra

  • In the On-Prem model, the end customer will choose the authority who will manage the cloud infra, it can be internal/external.
  • In CE Model Cloud Infra provider is fixed and can’t be chosen by the customer.
  • In the CX Model end customers can choose from the different Cloud Infra provided by different SAP Partner, they can also host this in their own private cloud.

Implementation Timeline

  • The On-Prem model is highly customizable just like SAP ECC, so there is no fixed Implementation Timeline.
  • CE Model Phase 1 Implementation is usually 8-16 Weeks.
  • CX Model Phase 1 Implementation is usually 16 Weeks.

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Business Processes

  • Choosing Pre-Configured Business Processes in the On-Prem model is optional.
  • CX and CE Model Implementation starts with Pre-Configured Business Processes which is mandatory.

Industry

  • The On-Prem model supports all known industries, recommended list of 25 Industries.
  • CE model supports Finance led ERP, Professional Services, Component Manufacturing, Oil & Gas (Upstream Operations Management).
  • CX model supports all known industries, recommended list of 25.

Localization

  • The On-Prem model supports 64 Countries and 38 Languages Localization.
  • CE model supports 43 Countries and 25 Languages Localization.
  • CX model supports 64 Countries and 38 Languages Localization.

UI/UX

  • On-Prem supports Web + GUI and some Fiori.
  • CE is 100% web-based and supports mostly Fiori.
  • CX supports Web + GUI and some Fiori.

Security

  • On-Prem Model security is managed by the Customer/their SAP Service Provider. Data Brach Risk is low since the environment is isolated. Disaster Recovery is quick as well due to the Isolated System.
  • CE Model security is managed by SAP/Chosen SAP Partner. Data Brach Risk is moderate since the environment is shared Multi-Tenant. Disaster Recovery will also be moderate being shared Multi-Tenant Environment.
  • CX Model security is managed by SAP Partner who manages the Cloud Infra. Data Brach Risk is low since the environment is isolated. Disaster Recovery is quick as well due to the Isolated System.

Overall

  • The On-Prem model is ideal for Large Enterprise that can afford the high cost of ownership; needs complex customizations and wishes to manage the Infra, Licensing in-house.
  • CE model is ideal for midsize enterprises who wish to Go Live quickly with a Cloud ERP and pre-configured business processes with low cost of ownership and quick ROI.
  • CX model is ideal for Mid to Large Enterprises who wish to move with a moderate cost of ownership; need to have customization capability but will prefer pre-configured business processes as well.

If you have multiple systems running in your business and want to seamlessly connect all of them with SAP S/4 HANA under one single platform to automate the business processes, employ APPSeCONNECT ProcessFlow Integration and achieve a noticeable improvement in your business metrics.
Integrate-Business-Apps-through-APPSeCONNECT

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