SAP-powered cloud solutions are ideal for companies looking to grow their business to the next level. With the SAP S/4 HANA Cloud solution, companies can leverage the power of cloud technology without overspending on the underlying infrastructure.
That said, enterprises can invest in either the SAP S/4 HANA Private Cloud or the SAP S/4 HANA Public Cloud edition, depending on their requirements. Which of these editions is right for your business? Let’s take a closer look.
How is SAP S/4 HANA Private Cloud different from its public cloud edition?
As a cloud-powered SaaS solution, the SAP S/4 HANA Public Cloud is a multi-tenant solution that allows multiple enterprises to share the same cloud platform. This type of shared environment is suitable for enterprises with standardized processes and low complexity.
On the other hand, the private cloud edition of SAP S/4 HANA Cloud is a single-tenant solution that’s hosted on a private and secure platform. In this edition, each customer (or user) has their own virtual private cloud. This solution is ideal for enterprises looking to migrate their existing systems and processes from on-premises to a cloud setup.
Here are some of the primary differences between the SAP S/4 HANA public and private cloud editions:
1. Ownership
With the SAP S/4 HANA private cloud edition, enterprises need to purchase a software license— and then install the solution in their own data center or any IaaS cloud provider like Amazon, AWS, or Google Cloud. This ensures that the enterprise can maintain complete control and ownership of its data, applications, and underlying infrastructure. This also means that they are responsible for maintaining and securing their cloud infrastructure.
With the public cloud edition, enterprises need to outsource their entire cloud infrastructure to SAP in a shared multi-tenant cloud environment. In this case, the company does not control the infrastructure, but they do retain ownership of their data and have access to applications within the standard configuration.
2. Reinstallation or retention
The SAP S/4 HANA Public Cloud solution is designed as a complete “reinstallation,” which is not impacted by the existing systems or applications of the enterprise. This is why the public cloud is suited for organizations with less complex systems.
On the other hand, the private cloud edition enables enterprises to protect (or retain) their existing IT investments. This is ideal for existing SAP customers who want to move to the cloud, but don’t want to redesign their current systems and processes.
3. Security
With the SAP S/4 HANA Public Cloud solution, SAP is responsible for the overall cloud security and compliance requirements. By deploying the best security practices, SAP can offer improved security as compared to enterprises implementing their own cloud security. The downside is that enterprises are limited in customizing their security requirements according to their industry.
With the private cloud edition, enterprises are primarily responsible for maintaining their cloud security and compliance practices. On the positive side, the private cloud offers enterprises a secure cloud infrastructure to run their mission-critical SAP applications.
4. Customizations
The SAP S/4 HANA Public Cloud Edition is a standardized solution where enterprises can only customize their applications by using the SAP Fiori tool. This edition does not allow users to modify the source code. Enterprises can extend their ERP functionalities by using the SAP Business Technology Platform (BTP), which supports low-code application development and integration.
Alternatively, the SAP S/4 HANA private cloud edition allows enterprises to modify and customize their source code. SAP users can also view and control the backend GUI functionalities. Along with add-ons and extensions, the private cloud solution allows enterprises to extend their functionalities through Advanced Business Applications (ABAP).
5. Costs
The SAP S/4 HANA Cloud solution operates on different pricing models for its public and private editions. The public cloud edition operates according to the “pay-as-you-use” pricing model that charges enterprises only for the cloud services consumed. On the other hand, the private edition of this solution requires enterprises to spend a nominal upfront cost on hardware and licensing.
As compared to the private edition, the public edition delivers a lower cost of ownership (TCO) and higher ROI. However, enterprises with consistent workloads prefer the private edition for its cost-effectiveness. For varying workloads, the public edition is preferable for enterprises to scale their business needs.
6. Maintenance and updates
In the case of the SAP S/4 HANA Public Cloud solution, SAP is responsible for regular updates and maintenance. Enterprises don’t need to spend their time and resources on maintenance and updates. The public cloud edition is also easier and faster to implement, with projects going live in 6-12 months.
On the other hand, the private edition of the SAP S/4 HANA Cloud solution follows an annual release cycle. Enterprises are responsible for upgrading their solution at least once every five years. They are also responsible for installing periodic updates of this cloud-powered solution.
Which is better – SAP S/4 HANA Cloud Public or Private?
The choice between the SAP S/4 HANA private and public editions largely depends on business requirements and the size of the enterprise. The cost-effective public SAP S/4 HANA cloud trial is preferred by small-to-medium enterprises, while the private cloud edition is preferred by larger enterprises with complex IT systems and customization requirements.
As an SAP ERP expert for over 13 years, Praxis Infosolutions has delivered the benefits of cloud-enabled ERP to its global clientele. Our team of ERP professionals can guide and help you select the right cloud solution based on your business needs.
Are you looking for a reliable SAP ERP partner to support your business growth? We can help you. Contact us today.