SAP Public or Private Cloud? A Comparison.
With the upcoming S/4HANA transformation, many customers are asking themselves: SAP Private Cloud, Public Cloud, or On-Prem?
XEPTUM supports companies in selecting and implementing the right architecture – based on the specific requirements of the new solution, especially when it comes to innovation capabilities or individual customization options.
What Are the Differences Between SAP Public Cloud, Private Cloud and On-Prem?
SAP Public Cloud is a SaaS solution hosted in SAP’s own data centers. It offers standardized processes and regular updates; however, customization to individual customer needs is only possible to a very limited extent. Traditional user exits or modifications are replaced by so-called side-by-side extensions on the SAP Business Technology Platform (BTP), which plays a central role in SAP’s cloud strategy. The SAP Public Cloud is shared by many companies and maintained by SAP – comparable to a car-sharing model. This means that all users benefit from the latest updates and security standards, but have fewer options for individual customization.
SAP Private Cloud offers more customization options and is hosted either in SAP data centers or by an external service provider. It closely resembles a traditional on-premise system, with the difference that the Private Cloud is dedicated exclusively to one company. The customer pays for the use of the system, which enables greater flexibility and adaptability to specific business requirements, while also benefiting from a hosted infrastructure.
SAP On-Premise is installed and operated on the customer’s own servers. The company purchases the SAP system and is responsible for its maintenance, updates, and security. On-premise systems offer the highest flexibility and the most customization options, as they are fully owned and controlled by the customer. These systems can also be operated in the cloud, but even then, the responsibility for the operation remains with the company.
Which SAP Deployment Model Is Best for My Company?
The selection depends on the specific requirements of each company. The SAP Public Cloud is suitable for customers who prefer rapid implementation and predictable costs. New SAP features, such as the AI assistant Joule and additional AI functionalities, are always released first to cloud products.
In contrast, the SAP Private Cloud offers more extensibility and is ideal for companies that need more control and customization options.
On-Prem is appropriate for companies with strict compliance requirements or specific customization needs. However, it’s important to note that SAP follows a clear “Cloud First” approach. This means future innovations will primarily be developed for cloud products. With an On-Prem approach, there’s a risk of falling behind technologically in the long run. Therefore, customers should at least consider a hybrid solution in which a classic SAP S/4HANA system is extended with SAP BTP services in the cloud.
