SAP S/4HANA in the Private Cloud
(SAP Cloud ERP Private)
A first step towards the cloud – with maximum security and flexibility
SAP S/4HANA in the Private Cloud (Official name: SAP Cloud ERP Private) 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 in the Private Cloud 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.
SAP S/4HANA in the Public Cloud (SAP Cloud ERP)
Many companies still associate the Public Cloud 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 in the Private Cloud 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.
Differences at a glance
| Characteristic | SAP Cloud ERP Private (Private Cloud) | SAP Cloud ERP (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 | Greater update flexibility. Current release model for SAP S/4HANA Private Cloud (from 2023): One major release every two years (e.g. 2023, 2025, 2027, etc.). In between, there are Feature Pack Stacks (FPS) and Support Packages (SPs), but no new major releases. | Automatic, mandatory updates (twice a year) |
| Implementation model | Greenfield, Brownfield, Crossfield | Only Greenfield |
| Costs | Higher acquisition and operating costs | Lower acquisition and operating costs |
FAQ: Frequently asked questions about SAP Cloud ERP Private
Can I run S/4HANA in the Private Cloud with on-premise or public cloud as a hybrid model?
Yes, companies can adopt a hybrid cloud strategy to get the best of both worlds. There are various models, for example:
- S/4HANA On-Premise & in the Public Cloud. Companies use S/4HANA ERP as an on-premise solution and integrate cloud solutions such as IBP for global supply chain planning or group reporting for consolidation.
- Private cloud & on-premise: Many customers have been relying on a hybrid IT architecture for years. Large corporations in particular often opt for a gradual transition to S/4HANA and still have ERP on-premise solutions and S/4HANA ERP private cloud solutions integrated.
- Private cloud & public cloud: With SAP S/4HANA in the Private Cloud, companies can also connect S/4HANA solutions in the Public Cloud, e.g. S/4HANA in the Private Cloud for the company headquarters or plants, and the sales and service branches are connected to the headquarters with S/4HANA in the Public Cloud.
Thanks to these hybrid approaches, companies can exploit the advantages of different models and minimise disadvantages.
How does migration to S/4HANA in the Private Cloud differ from migration to the Public Cloud?
- S/4HANA in the Public Cloud is only available as a new implementation (greenfield), with FIORI as the exclusive user interface.
- S/4HANA in the Private Cloud offers all variants of transformation, from technical conversion (brownfield) and selective transformation to new implementation (greenfield).
- Technical adaptation & customisation: In a private cloud, the solution can be tailored to the specific requirements of the company in a similar way to an on-premise solution. With a public cloud, the customisation options are limited in some areas, but not as much as many companies still believe.
- Migration strategy: When migrating to a private cloud, existing SAP environments can be moved with minimal changes if companies wish to do so. This is not possible with a public cloud migration, where only a complete new implementation using a greenfield approach is possible. However, identical SAP best practices can often be found in the public cloud as in the private cloud.
