• Home
  • /
  • SAP S/4HANA On-Premise

SAP S/4HANA On-Premise

Numerous individuals inquire about the distinctions between the SAP S/4HANA On-Premise solution and the Cloud variant, so let's outline the essentials for everyone here.

SAP Implementation SAP Rollouts SAP Support SAP Migration SAP Application Management SAP Security Services SAP Integration SAP Migration to Cloud SAP S/4 HANA On Premise SAP S/4 HANA RISE with SAP SAP S/4 HANA Grow with SAP
SAP S/4HANA On-Premise

Numerous individuals inquire about the distinctions between the SAP S/4HANA On-Premise solution and the Cloud variant, so let's outline the essentials for everyone here.

SAP S/4HANA represents the fourth generation of SAP’s renowned enterprise resource planning (ERP) suite, offering comprehensive capabilities for finance, sourcing, procurement, sales, professional services, and manufacturing operations.

Introduced in 2015, it leverages SAP HANA’s innovative in-memory computing technology, which revolutionized performance and data analysis.

S/4HANA can handle more data compared to its predecessor, R/3, and offers an improved user interface through SAP Fiori.

Although some organizations have delayed their transition to S/4HANA over the past seven years due to hesitance in overhauling business processes, the rationale for migrating is becoming increasingly compelling as competitors gain a clear competitive edge from the suite.

What is SAP S/4HANA On-Premise ?

The On-Premise variant of S/4HANA follows SAP’s standard licensing framework and is an internal system installed on servers or virtual machines that are self-managed and maintained by the organization or its IT partner.

This implies that your team is also accountable for deploying and evaluating new S/4HANA updates, which are currently issued annually.

Partners such as Artihcus can offer a hosted On-Premise S/4HANA solution through a platform as a service (PaaS) model, which many businesses find to be an easier, more secure, and cost-effective alternative compared to managing and overseeing it independently.

We generally suggest On-Premise for companies that require the complete array of S/4HANA capabilities, as well as those needing to run software on-site for security purposes and those that need software customization that the Cloud version cannot provide.

On-Premise is a preferable option for organizations wishing to take an active role in monitoring and configuration.

It typically suits large enterprises with intricate business operations that can be streamlined, and it integrates well with SAP Hybris Marketing, SAP Jam, and SAP Ariba.

What is SAP S/4HANA Cloud ?

The Cloud version of S/4HANA operates on a subscription-based licensing model and is hosted on SAP's servers through the SAP HANA Enterprise Cloud, which is managed and maintained by SAP.

While this presents limitations on customization, it can offer a much simpler and less expensive means of implementing your S/4HANA solution.

The advantages of the SAP cloud platform are plentiful, including a quicker time to value, as there’s no requirement for the substantial initial time investment associated with On-Premise, along with heightened agility since you can easily deploy, scale, and customize your cloud instance with just a few clicks.

S/4HANA Cloud is a more limited offering compared to On-Premise, providing only predefined configurations with reduced control and flexibility.

It tends to be more aligned with businesses that require an ERP for standard processes and do not necessitate extensive customization in their workflows.

Mid-sized companies often opt for the Cloud solution as it allows them to leverage S/4HANA’s capabilities without the burden of costly on-premise management and monitoring.

Many organizations discover that they do not require the adaptability and customization associated with the On-Premise solution, as their processes are sufficiently standardized that the Cloud version can accommodate them.

The Cloud also serves as an excellent choice for rapidly growing companies, as it facilitates straightforward scalability.

Another benefit of the Cloud option is the avoidance of expenses related to an internal IT support team.

While it is still advantageous to engage a managed service provider for maintaining and securing your cloud solution, the costs will generally be significantly lower.

SAP S/4HANA’s Hybrid Model

If you’re still with us, congratulations! You’re about to discover another option for deploying S/4HANA: the hybrid delivery model, which is designed to accommodate both on-premise and cloud environments. This hybrid approach can be an excellent choice for businesses aiming for rapid transformation with a lower upfront investment compared to a complete on-premise installation.

The hybrid model functions by allowing core data and applications to be stored on local hardware, while also enabling system modifications without the need for the financial commitment associated with a full software license. It’s ideal for organizations seeking a balance between control and flexibility.

How Can I Implement S/4HANA ?
Before we conclude, let’s quickly review the various ways your business can deploy S/4HANA once you have selected your preferred version:
  • A brownfield conversion involves migrating your current SAP environment to S/4HANA, which can be a complex and risky endeavor for more customized SAP systems.
  • A greenfield migration entails establishing S/4HANA as a completely new environment, discarding any traces of legacy SAP processes and minimizing potential obstacles.
  • A consolidation transfers data from various ERPs into a unified S/4HANA platform, allowing regional teams to integrate existing ERPs into a system managed by a designated headquarters.