On-premise for maximum control, and in the cloud for fast time-to-value. Both have their pros and cons. Although, there is one more option: a hybrid delivery model that supports both on-premise and on-cloud scenarios.

SAP S/4HANA on-premise edition has the full ERP like the current SAP Business Suite but includes simplifications for SAP Simple Finance. It is integrated with SAP Hybris Marketing, SAP JAM, and SAP Ariba Network.


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SAP S/4HANA on-premise edition is suited for any industry enterprises which require a full range of features consolidated with highly flexible customization. This edition is perfect for large enterprises with very well-proven business processes.

Hello

Thank you for the overview and differences between cloud and on-premise.

But do you have a list, graphic, etc. where we can see which components/applications run on the cloud solution and which one can only run on an on-premise solution?

This next (and sizeable) on-premise update to SAP S/4HANA built upon some of the big additions featured in 1511, while also continuing to expand on the all-encompassing ERP platform, which touches multiple Lines-of-Business. SAP S/4HANA release 1610 began offering solutions specifically for the oil and gas industry, including high-performance materials inventory management along with regional inventory views and an inventory planning workbench.

This blog targets SAP solution architects and explains the different deployment options for SAP S/4HANA. I have used the latest terminology. It covers cloud, on-premise and hosted deployment options. Here are the options discussed:

Commonly used by net new customers that want the full cloud approach with regular upgrades that include new configuration and new software. This is a SaaS public cloud offering. Also used for subsidiaries alongside SAP on-premise implementations.

Has advantages of the cloud with the scope and flexibility of the on-premise solution. Existing SAP ECC customers can move to private cloud using a system conversion and retain their configuration and extensions. Has standardized infrastructure processes, services and SLAs.

An on-premise solution with individual and private hardware and infrastructure hosted by SAP or a hyperscaler. Infrastructure management is delegated to SAP with flexible service offerings. This can be used for combinations of solutions that are not available in SAP S/4HANA cloud, private edition.

Essentials Edition offers a reduced set of the on-premise functionality, transactions, industries, countries and languages. It is a simplified version of ERP. The configuration is also reduced meaning that there is less flexibility than in on-premise.

Yes. SAP ES can have many countries all running in one instance. The solution for China draws on the same codeline (product) as the on-premise solution. There are many features for country localisations. It would be best for you to look at the scope items for China in BPX at this link: _CLD_ENTPR/S4CLD/2005/CN/20

I'd like to set the same settings in on-premise, what I could do in the 'Manage my solutions' application in case of cloud, e.g. function or type for "Teams and Responsibilities" application. How could I do in on-premise system? Could you help me, what is the same point in SPRO?

SAP S/4HANA Cloud Private Edition (previously referred to as PCE) is new in 2021. It is the S/4 on-premise software solution stack offered in a private cloud (managed by hyperscalers). Key point is that existing ERP customers can move to it using a System Conversion. This was no possible in previous cloud editions. It is available under a RISE subscription contract.

Each cloud deployment option provides a different scope of services from SAP. If you want to do a system conversion from an existing SAP ERP system you must choose one of the on-premise deployment options or SAP S/4HANA Cloud Private Edition.

When we are looking to sizing perspective, if I have same system same S4 version, I need same sizing config as my on premise? or Private cloud machine need to run any other applications that consome more hardware?

When you say this can be hosted in your own data center, what exactly do you mean? My understanding is that this option can only be hosted in either SAP or a hyperscaler, is that not right? Can the customer also host this option in their own premises? If yes, can you please elaborate a bit more?

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Like on-premise (HEC) and private cloud, implementation can be done through the new implementation, system conversions, or selective data transition. Customers can use SAP Solution Manager to manage their project design.

All SAP S/4HANA deployment options, either cloud or on-premise, share the same code line, simplified data model, and consistent user experience. Both options run on a faster HANA in-memory database, bring new business capabilities, and offer to adopt innovation along with simplification of the IT landscape.

As the name suggests, it is a cloud edition of SAP S/4HANA, which works on SaaS (Software as a Service). It works the same as the on-premises version without depending on the hardware, IT staff, or database. You can offer the SAAS deployment with complete management, thanks to SAP.

Conclusion

 We have discussed the differences between the S/4HANA Cloud and S/4HANA On-premises in detail. It will help you decide which is the better option for your organization, considering your requirements.

What are the differences between SAP cloud vs on-premise solution? Which one should you choose for your organization? Both options will be compared here to give you an overview of the respective pros and cons of each of the deployment options.

When choosing to deploy SAP S/4HANA on-premise, customers need to provide their own hardware, database, networks, etc. They also need to have dedicated IT staff to maintain it all. This might be a bit expensive at first, but customers will have more control over costs during the deployment.

The on-premise option allows customers to have more flexibility and control in terms of customization. If the business has a new requirement, and a customer wants to customize their current SAP ERP system, they can do this right away according to business needs. This is a perk that comes with managing the system in-house and with their own IT staff.

With an on-premise deployment, the implementation might take a longer time and more effort because the customers have to plan and test everything on their own. In addition, they also have to spend time creating a team with the right people who are dedicated to setting up the new system and environment.

In order to have a fair comparison between an on-premise or cloud environment, there are several things to be considered when it comes to costs. Those that can be easily calculated for the on-premise edition are as follows:

At first, the costs for on-premise deployment option might seem higher than that of the cloud version. However, you need to also compare the annual subscription fee of cloud deployment to the initial licensing fee of on-premise. To actually calculate a more tangible and accurate Total Cost of Ownership (TCO), you also must include factors such as integrated support.

For compliance with industry-specific business requirements and greater flexibility to customize the system as desired, the on-premise edition is typically best. It is recommended mainly for large enterprises that already have a well-established business process and do not plan on changing it in the foreseeable future.

SAP S/4HANA can be deployed on-premises, in the cloud, or through a hybrid model.[15] The S/4HANA product offering consists of various editions: SAP S/4HANA Cloud: previously called essentials edition (ES) and Multi-Tenant Edition, SAP S/4HANA Cloud extended edition: previously called Single-Tenant Edition, SAP S/4HANA Cloud, private edition, SAP S/4HANA On-Premise.[16]

Both SAP S/4HANA on-premises and the SAP S/4HANA cloud editions have release strategies. The cloud editions are released biannually. The on-premises edition has one new release per year and receives additional functionality and corrections in the form of Feature Pack Stacks (FPS) or Service Pack Stacks (SPS) each quarter.[36]


On-premises: Each year, SAP traditionally shipped a new product version of its on-premises SAP S/4HANA product (e.g., SAP S/4HANA 1610), followed by three successive Feature Pack Stacks (FPS) on a quarterly basis. Subsequently, the previous product version received Service Pack Stacks (SPS) quarterly until the end of mainstream maintenance. However, with the release in October 2023, SAP introduced a significant shift in its release and maintenance strategy for SAP S/4HANA. The product now follows a two-year release cycle, providing a longer seven-year mainstream maintenance period per release. This change aims to offer customers greater opportunities for continuous innovation and a flexible path to cloud readiness. Additionally, more easily adoptable feature packs will be introduced every six months during the first two years of a release, reducing the need for disruptive upgrades and lowering total implementation costs.[37]

In order to successfully exchange events between SAP Event Mesh and an SAP S/4HANA on-premise system, a corresponding connection is required. This connection is maintained by the Enterprise Event Enablement framework during channel creation. To consume events, the inbound bindings and subscriptions of the channel must be configured as well.

The UK & Ireland SAP User Group annual conference kicked off earlier this week in Birmingham with an impassioned keynote from outgoing Chair, Paul Cooper, who used his final address to member organizations, and SAP, to focus on how the vendor can better communicate what users should expect from its S/4HANA roadmap - particularly as to how it relates to on-premise and hosted customers. ff782bc1db

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