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Whether you decide to implement S/4HANA enterprise management by migrating an existing SAP ERP solution or you are considering a new implementation initiative, it is necessary that customers choose a deployment option that best suits their business needs, budget, and resources.
There are three main questions which typically get asked:
1. What is the difference between on-premise and cloud editions?
2. How to choose between them?
3. How will this choice affect my enterprise?
Let's explore these questions and how you can make the right choice for your business.
SAP S/4HANA can be deployed on two delivery platforms: 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 is an internal platform, located on your servers, maintained by your company. SAP upgrades are released annually but have to be implemented and tested by your team.
SAP S/4HANA Cloud edition is Software as a Service (SaaS) hosted on SAP's servers and is maintained by SAP. Software upgrades happen quarterly. The cloud version is available to enterprises in both private and public editions. While private cloud comprises complete S/4HANA functionality and also extends geographical reach, public cloud helps address challenges in the LOB, overall strategy and ERP.
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.
The SAP S/4HANA cloud edition includes industry scenarios for marketing and the professional services industry. It also includes the most critical scenarios required to run the entire enterprise in the cloud using a digital core. When you sort out the main differences between delivery platforms, you can make a selection between editions best suited for your enterprise.
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.
For large, well-known enterprises, the on-premise platform fits the most. The system located on the company's server provides opportunities for more effective monitoring and configuration than cloud edition.
Middle size companies who look for a light and flexible database platform to scale while growing should consider SAP S/4HANA cloud edition for their businesses.
On-cloud edition is the best option for companies that require a high-performance offer that covers their core business strategies, but at the same time provides greater agility, flexibility and faster upgrades cycle (quarterly rather than annually). SAP S/4HANA Cloud edition makes sense for rapidly developing enterprises who want a platform that can grow and change with their tempo.
As was mentioned at the beginning of the article, there is one more deployment option for customers who are interested in rapid business transformation with the reduced initial cost. A hybrid model that uses both on-premise and on-cloud editions enables to store core data and applications on organization’s hardware and at the same time, allows to change the system and adopt new opportunities for business improvement without additional advance charges for a full-scale software license.
The SAP S/4HANA hybrid model is the convenient deployment option for companies who want to get two in one: flexible IT solutions and innovative business transformation under full control of core business applications.
It is required for an organization to choose the right delivery platform. Because the right choice should help your business succeed and achieve planned goals. Therefore, organizations must spend quality time in designing a road-map.
For your business transformation, the LearnSAP.com team offers to consult and support from consideration, planning, and implementation to migration and upgrade services to enable you to achieve your business goals in a short time and realize business value. LearnSAP.com is an experienced SAP-certified partner, well aware of the challenges a company may meet on the way to the business transformation and we will be able to help you mitigate risks and maximize ROI. Call +1-832-419-7371 or drop us an email on info@LearnSAP.com for more details.
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