SAP S/4HANA Cloud, Private Edition offers companies the opportunity to benefit from the advantages of cloud architecture without sacrificing the control and customisation they are accustomed to with an on-premise solution. SAP S/4HANA Cloud, Private Edition is just as configurable as an on-premise version and allows for customisation even in core processes. Technically, the private cloud is largely based on the same architecture as the on-premise version – in contrast to the public cloud version, which is actually a cloud platform in the strict sense.
Many companies still associate SAP S/4HANA Cloud Public Edition with significant limitations in terms of functionality and customisability. In fact, the public cloud has developed rapidly and already covers numerous use cases. SAP S/4HANA Cloud, Private Edition currently offers a higher range of functions in some areas.
However, SAP is mainly investing resources in the further development of the public cloud version, so it is to be expected that the limitations in these areas will also decrease. Extensions and the development of individual processes are also possible for the public cloud. As is familiar from ECC ERP or S/4HANA ERP On-Premise, settings can also be made in the public cloud to adapt processes to the company. In addition, side-by-side extensions with the SAP Business Technology Platform (BTP) enable individual customisation of apps, the implementation of business add-ins, the development of completely customer-specific applications and the connection of third-party systems.
Characteristic | Private Cloud | Public Cloud |
Hosting | Dedicated network per customer (single tenant) | Public network (multi-tenant) |
Adaptability | Just as customisable and flexible as an on-premise solution | Currently still reduced in some areas |
Update flexibility | 1x annual update that does not need to be installed | Automatic, mandatory updates (twice a year) |
Implementation model | Greenfield, Brownfield, Crossfield | Only Greenfield |
Costs | Higher acquisition and operating costs | Lower acquisition and operating costs |
Yes, companies can adopt a hybrid cloud strategy to get the best of both worlds. There are various models, for example:
Thanks to these hybrid approaches, companies can exploit the advantages of different models and minimise disadvantages.