Deployment options for SAP S/4HANA

To ensure that companies have the greatest possible flexibility when operating SAP S/4HANA, they can choose from different options for how the software is made available to them. The system can be operated in the cloud as a multi-tenant, in the Private Edition as a single-tenant or, like earlier ERP versions, as an On-Premise solution. The solution scopes of S/4HANA Cloud, Private Edition and On-Premise are identical.

SAP S/4HANA Deployment Options: Extensions & Customization

Which business areas and processes are covered?

With S/4HANA Cloud, SAP delivers a future-proof product with standardized ERP core processes. All operational and administrative activities within (the LoBs) of a company are covered. In addition, special solutions are available for the service sector, the oil and gas industry, and the automotive sector.
In the Private Edition and On-Premise, SAP offers a flexible ERP core. This means that the system, including the processes, can be customized to serve all industry sectors.

What are the innovation cycles?

Due to the standardization of S/4HANA Cloud, the product can be updated semi-annually and provided with new content as well as improvements. Annual updates are offered for both S/4HANA Cloud, Private Edition and On-Premise operation. The timing of the update can be freely selected by the customer.
To ensure compatibility in the cloud, it is necessary to update the system at least once every 5 years. In On-Premise operation, an update is not mandatory, but recommended.

Costs and license modell

SAP S/4HANA Cloud includes a flexible rental model where services can be added or cancelled on a monthly basis, so you only ever have to pay for the things you actually use. This results in the lowest costs compared to S/4 HANA Cloud, Private Edition and On-Premise. For the Private Edition, a monthly subscription model is also offered. In On-Premise operation, licenses are purchased on a fixed basis, so the highest costs are incurred in this scenario.

System and IT infrastructure management

The system and IT infrastructure for S/4HANA Cloud is provided entirely by SAP. SAP is responsible for the operation and maintenance of the software and technical infrastructure. In the case of the Private Edition, the customer can decide whether the system is operated in an SAP data center or a hyperscaler. The options are Microsoft Azure, Amazon Web Services, Google Cloud Platform, and Alibaba Cloud. The On-Premise edition offers customers complete freedom to choose whether to operate the system in their own data center, at a hyperscaler or at an SAP data center. Operation and maintenance of the system are completely the responsibility of the customer.

Customization options in comparison

In the S/4HANA Cloud, the greatest possible standardization is to be achieved to ensure the stability of the core applications. For this reason, adjustments to the source code are not possible. However, existing apps can be adapted, for example to add a user-defined field. Custom apps can be developed externally in the SAP Business Technology Platform and fed in through interfaces. Other services provided via APIs must be approved by SAP. To fully implement the cloud idea, no SAP GUI is available. Navigation is done completely via the SAP Fiori Launchpad.
The On-Premise version as well as the S/4HANA Cloud, Private Edition offer source code modification in addition to the customization options of the cloud version. In addition, navigation via the classic SAP GUI is available, third-party extensions are possible.

Implementation options

Three options are available for implementing an S/4HANA system. The greenfield implementation, the brownfield implementation or a mixture of both, the so-called hybrid approach.
In a greenfield implementation, a new system is set up and only existing data (e.g. master data, customer data) is transferred. The brownfield approach involves a system conversion in which existing processes are also transferred in addition to the data. The third option is the hybrid approach, in which data and processes are selectively transferred or newly set up as in the greenfield implementation.
The S/4HANA Cloud only offers the option of greenfield implementation. If a brownfield or hybrid approach is desired, the S/4HANA Cloud, Private Edition or On-Premise variants must be used.