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SAP S/4 HANA is the buzzword today. The Intelligent Enterprise Resource Planning Software has played a crucial role in transforming the landscape of various industries. The total number of SAP S/4 HANA subscribers has already crossed over 12,000 subscribers in the third quarter of 2019.
The numbers are counting upwards all because of SAP S/4 HANA simplifying the business operations by providing more agility and flexibility.
However, if you want to unleash the benefits of SAP S/4 HANA, it’s essential to choose a deployment option according to your business needs.
When it comes to implementing SAP S/4 HANA, there are two major options to explore. These include-
- On-premise cloud deployment
- SAP S/4 HANA Cloud Edition
In addition to these, there is a third option, which is called the Hybrid Cloud Deployment.
On-premise cloud deployment
SAP S/4 HANA services on-premise cloud deployment is basically a traditional approach to the implementation process. It means that as an SAP customer you cannot bring any crucial transformation in your business operation or model.
On-premise cloud deployment provides best-in-class flexibility. As a customer, you have the freedom to make a change in the customization and configuration process based on business requirements.
Thus, on-premise cloud deployment helps you to maintain the uniqueness of your business environment, offering a competitive advantage in the process.
SAP S/4 HANA Cloud Edition
SAP S/4 HANA Cloud Edition is based on the Software-as-a-Service (SaaS) model. The model is usually hosted on the SAP servers. The SAP software development update maintains this cloud edition on a quarterly basis.
You must note that the SAP S/4 HANA cloud solution can be accessed through public and private cloud editions.
The main difference between the private and the public cloud is that while the former provides full S/4 HANA functionality, the latter can solve issues related to LOB and overall business strategy. Private clouds also have far more geographical reach compared to public clouds.
On-Premise Cloud Versus Cloud Edition: The Key Differences
| Features | On-premise cloud | Cloud Edition |
| Maintenance and Infrastructure | The IT department of the company is responsible for deploying and maintaining the model | SAP undertakes control of system infrastructure and maintenance |
| Scope of Deployment | Get complete integration facilities with SAP Hybris and ERP scope along with the Ariba network. | The integration is with SAP Fieldglass, SAP SuccessFactors, Employee Central, and the Ariba network. |
| Licencing Model | It is based on the traditional licensing model | It is based on the subscription licensing model |
| Innovation Speed | The customer has to look after the updates, the testing, controlling, and making the changes. | SAP team automatically updates the system on a quarterly basis. |
| Method of Implementation | It has to fully comply with the business needs and customization process | It offers a pre-defined configuration process with a limited specialization |
Hybrid Cloud Model
You can well understand from the name itself that it is a combination of both the on-premise cloud and the cloud edition.
Best Customers for on-premise cloud
So, if we talk about the best customers and business enterprises that can choose on-premise cloud are the ones that need comprehensive features with full flexibility and customization. Therefore, the on-premise model is ideal for large business organizations, which are not interested in making major changes in their business process.
The company’s server contains the system and offers benefits like monitoring and configuring the cloud.
Ideal Clients for SAP S/4 HANA Cloud Edtion
The S/4 HANA cloud edition is regarded as perfect for mid-size organizations that want to get a flexible database for scaling their growth opportunities.
On-cloud edition will suit the requirements of firms that strive to achieve high performance and have to keep changing their core strategies according to market demand.
This deployment option is ready to provide more agility, flexibility, and quick updates.
Ideal Choice for Hybrid Model
The hybrid model is considered an excellent option for enterprises that want to bring more flexibility into their IT services and at the same time implement digital transformation in the business process with the help of business applications.
Summing it up
The choice of deploying SAP S/4 HANA Cloud largely depends on your business needs and the target that you want to accomplish. Thus, you need to make the decision very carefully and ensure that you are prepared for the transformation.
