SAP S/4HANA Deployment Options at a Glance

There are three options for operating SAP S/4HANA. The first is deployment as a classic on-premise solution, where the company has the option of purchasing a one-time product license to use the S/4HANA solution on its own managed hardware. This variant offers the greatest possible customization options - but costs for operation and maintenance are entirely on the company's side.

The second option is operation as a single tenant cloud version (S/4HANA Cloud, Private Edition). This variant is on a par with an on-premise solution in terms of customization options. The company concludes a permanent contract with SAP, which means that some of the costs for operating the infrastructure and maintenance are borne by the provider. Technically, the S/4HANA system is operated in an SAP data center or a verified partner.

The third option is operation as a multi-tenant public cloud version - called S/4HANA Cloud. The solution is hosted in an SAP data center. Installation, operation, maintenance and updating of the software are entirely the responsibility of the provider. The business processes of this version are limited to those predefined by SAP (the so-called best practice). This significantly reduces the effort required for implementation, but limits the adaptability of the software to the needs of the company.

Which variant is the right one?

To answer this question, the individual starting point of the company is decisive. To find it, answers to the following questions are important:

  • Is there a desire to move to the cloud?
  • Are you open to adapting your existing processes to standardized business processes?
  • Are you ready for a fresh start, in a completely fresh system?

Yes? Then the S/4HANA Cloud could be a real alternative

  • Is there a desire to move to the cloud?
  • Do you want to benefit from the advantages of a subscription-based Software as a Service solution?
  • Would you like to take over all or part of your established business processes?
  • Do you need a complex system landscape, with a high demand for customization?

Yes? Then the S/4HANA Cloud, Private Edition could meet your requirements.

If not, or if there are further concerns about storing the company's data on the data centers of a hypersaler, or if investments already made in the company's own hardware are to continue to be used, an on-premise solution appears to be the best option.

Depending on the individual goals and needs of a company, there are therefore three variants for the introduction of S/4HANA:

Conclusion

The cloud ERP solution S/4HANA Cloud brings with it many advantages. Through the use of prefabricated best-practice processes, which can be combined modularly to form a complete package, the solution requires a short implementation phase. Together with the user-bound subscription model, this results in a flexible and scalable ERP solution with a low total cost of ownership (TCO).

Thanks to semi-annual updates of the software solution and continuous support of the infrastructure by SAP, companies can regularly access the latest innovations in SAP development.

However, the customization options in-app via the Fiori apps or side-by-side via the SAP Business Technology Platform are not fully comprehensive. Only a comprehensive analysis of the company's business processes and goals can show whether the requirements of a company can be mapped with this in sufficient complexity.

To support this process, SAP offers the Digital Discovery Assessment. The tool helps to match existing processes with the best practices available in the S/4HANA Cloud. It provides a basis for deciding which scope components are needed in a future cloud solution and which interfaces and integration scenarios are relevant.