SAP S/4HANA stands out as one of the premier ERP systems for enterprises, especially with the imminent end of support for ECC in 2027. As companies contemplate the transition, it’s crucial to navigate the diverse SAP S/4 HANA deployment options available. Notably, each option is tailored to specific organizational needs, emphasizing the importance of choosing wisely. In this post, we’ll delve into the distinctions among SAP S/4HANA on-premises, public cloud, and private cloud deployments to empower businesses in making informed decisions.
SAP S/4HANA On-Premise
SAP S/4HANA On-Premise involves the installation of the system directly on the customer’s servers. This option provides individual and private hardware infrastructure, granting organizations complete control over their system and data. While it offers the freedom and flexibility to customize service offerings, it requires significant investment in infrastructure and ongoing maintenance. On-Premise is often chosen by organizations with specific security or compliance requirements.
SAP S/4HANA Cloud, Public
In the Public Cloud deployment, SAP S/4HANA services are delivered over a network accessible to the public. This option is characterized by efficiency and scalability, with shared resources among multiple clients. It simplifies IT management as SAP handles the infrastructure. Public Cloud is suitable for organizations seeking rapid implementation and lower initial costs.
SAP S/4HANA Cloud, Private
Private Cloud deployment offers a dedicated virtual private cloud for each customer. It provides greater flexibility and functionality compared to the Public Cloud. Combining benefits of on-premise and public cloud, it allows organizations control over their data and governance. This option is preferred by organizations needing customization, enhanced security, and control over data governance.
SAP S/4 HANA Deployment Models: On-Prem, Essentials and Extended
- 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.
- 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.
- 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.
- 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.
Control and Management
- With On-Prem, organizations have full control over hardware, software, and maintenance but are responsible for system management.
- In Public Cloud, SAP manages infrastructure, ensuring efficiency and scalability, but organizations have less control.
- The Cloud Extended Edition offers a balance, with enhanced client control compared to the standard Public Cloud.
- 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.
- On-Premise offers extensive customization capabilities, allowing organizations to tailor the system to specific needs.
- Public Cloud provides standardization with limited customization to ensure scalability and ease of management.
- Cloud Extended Edition balances customization with advanced capabilities for organizations with specific requirements.
- 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.
- 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.
- 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.
- On-Prem supports Web + GUI and some Fiori.
- CE is 100% web-based and supports mostly Fiori.
- CX supports Web + GUI and some Fiori.
- 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.
- 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.