21. November 2024

Insight into SAP S/4HANA Cloud: Private vs. Public

Cloud applications are attractive to many companies and are increasingly replacing the familiar on-premise approach on the market. With S/4HANA Cloud, SAP offers a solution for this development that is available in two main variants. This gives companies a choice. In this blog post, we take a closer look at SAP S/4HANA Cloud and compare the cloud variants.

What is SAP S/4HANA Cloud?

S/4HANA Cloud was developed as a software solution based on SAP’s in-memory database technology called HANA. The software solution offers a modern, scalable and flexible environment for a wide range of business areas such as finance, production, warehouse management, sales and human resources. Many companies are currently facing the transition to SAP S/4HANA – and with it, the decision to choose one of the two main variants available: the Public Edition or the Private Edition. Both options offer unique advantages tailored to different business needs. It is therefore crucial to understand the intricacies of each option before making a selection.

What makes the Public Edition special?

The Public Edition is a future-proof SaaS ERP solution. Hosting and operation take place in SAP data centres, which form the core of the SAP Public Cloud. The Public Edition is suitable for companies looking for an efficient out-of-the-box solution with minimal customisation. The most important features of this variant are listed below.

Fast Implementation

No long waits – the public cloud enables rapid implementation of SAP S/4 HANA, as no extensive IT infrastructure is required. This allows you to quickly benefit from the latest SAP innovations.

Scalability

With the public cloud, companies can scale their resources as needed. This allows them to adapt flexibly to changing business requirements and make optimal use of resources.

Automated Updates

SAP manages the infrastructure and performs regular updates, including new features and security patches. This ensures that companies always have access to the latest features without having to worry about maintenance.

Lower Costs

By using the public cloud, companies can save costs because they do not need their own servers and infrastructure. Instead, they only pay for the resources they actually use.

SAP Cloud ALM as a central companion

In today’s digital world, effective project management is key to the successful implementation of enterprise solutions. SAP Cloud ALM (Application Lifecycle Management) provides exactly the support needed for a smooth and successful SAP S/4HANA Cloud Public Edition implementation project.

As a central platform, ALM provides a comprehensive overview of all project activities. Tasks and responsibilities can be clearly defined and assigned, which significantly improves teamwork. Automated testing procedures ensure the quality of your solution and enable potential errors to be quickly identified and rectified. With SAP Cloud ALM, you have a complete overview of project progress at all times, enabling you to ensure that your SAP implementation runs smoothly and meets your requirements.

What characterises the Private Edition?

Unlike the Public Edition, SAP S/4 HANA Private Cloud is a dedicated cloud instance managed by an external service provider or internal IT teams. The Private Edition is ideal for companies that have complex business processes and require a high degree of flexibility.

More Control

With the private cloud, companies have more control over their IT infrastructure and resources. They can tailor the environment to their specific requirements and have full control over security and compliance.

Higher Security

Since the private cloud is managed by companies or trusted service providers, it generally offers higher security standards and compliance options than the public cloud.

Adaptability

The Private Edition is configurable and customisable. It enables greater adaptability and flexibility, as companies can scale and adapt their IT infrastructure as needed without being dependent on the limitations of a public cloud service.

Specific Requierements

For companies with customised processes or in highly regulated industries with specific compliance requirements – i.e. specific requirements for security, compliance or performance – the private cloud may be the better option, as it offers a tailor-made solution that is precisely tailored to their needs.

Which option is right for your company?

Overall, both editions offer unique advantages and features. The choice between the Public and Private Editions depends on the specific requirements, budget, strategic orientation, priorities and restrictions of a company. The decision should be carefully considered. It is important not to hesitate too long in order to avoid falling behind the competition.

In addition, the latest innovations from SAP are only available to customers who use SAP S/4HANA Cloud, Public Edition or SAP S/4HANA Cloud, Private Edition via GROW with SAP or RISE with SAP contracts.

Would you like to delve deeper into the differences between the two editions, or do you have any further questions? I would be happy to explain the advantages and disadvantages of each option in detail.

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A post by:

Maximilian Klose

As Principal Consultant for SAP S/4HANA Public Cloud, Maximilian Klose has extensive experience and expertise in managing and implementing implementation projects. His expertise covers various areas of S/4HANA Cloud, with a focus on the Public Edition.
All posts by: Maximilian Klose

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