Introduction

For over two decades, SAP has been a leader in the ERP market, continuously innovating its solutions to address the ever-changing customer needs. One of the most sophisticated products is SAP S/4HANA – an advanced enterprise resource planning system.  In 2018, SAP launched SAP S/4HANA Cloud that brought all the robustness of its on-premise counterpart into cloud. This move was aimed at increasing scalability, reducing IT costs and ensuring more agility. SAP’s ERP cloud solutions are designed to meet a variety of business types seeking digital transformation journey. To cater for different requirements among its customers’ base, SAP has developed different versions of cloud-based systems namely SAP S/4HANA Public, private and hybrid clouds. 

In this blog, we will focus specifically on comparing SAP S/4HANA Public vs Private Cloud deployments, exploring which option best suits your ERP needs and organizational objectives. 

 

Deployment Options for SAP S/4HANA Cloud 

SAP S/4HANA Cloud offers two main deployment options, namely SAP S/4HANA Public, Private Cloud and Hybrid Cloud. Now, let’s discuss about the private and public clouds. 

What is SAP S/4HANA Public Cloud? 

SAP S/4HANA Public Cloud is a Software as a service (SaaS) solution that has common cloud infrastructure for all customers. This makes it cheaper and scalable too. Every customer can load data in the cloud and choose functions according to their requirements. It is best suited for many businesses, especially those exploiting SAP’s Grow with SAP offering, since it is managed by hyperscaler cloud providers like Amazon, Microsoft Azure, and Google Cloud Platform. 

Advantages of SAP S/4HANA Public Cloud

• It helps optimize operating costs through its pay-as-you-use pricing model. 

• This allows IT teams to concentrate on strategic business areas by decreasing on-premises IT infrastructure management. 

• With the right partner, migrating SAP workloads to public cloud hosting is straightforward. 

• By using hyperscaler reliability, there is no significant downtime risk. 

 

What is SAP S/4HANA Private Cloud? 

SAP S/4HANA Private Cloud Edition offers better flexibility and functionality than the Public Cloud. Each customer uses their own private virtual cloud meaning that nobody else stores data or accesses computing resources from this environment. It comes under RISE with SAP of which this model provides extensive control and customization. 

Advantages of SAP S/4HANA Private Cloud 

• Operational effectiveness can be improved by clients responsible for their primary business data. 

• Business data is handled on private servers that are not accessible to all, which leads to more data privacy. 

• Customers can adjust their upgrade and maintenance calendars to minimize downtime and disruptions. 

• Compliance requirements are easily met through a dedicated infrastructure and customized security measures that support regulatory standards. 

Public vs Private cloud Statistics 

Organizations get private clouds to have their exclusive access to cloud infrastructure whereas users of public cloud services have common resources. Companies that need more access control, security and customization than offered by a Public Cloud model may be obliged to use a Private Cloud to handle sensitive information in compliance with regulatory requirements. 

• 96 percent of companies use at least one public cloud. 

• Public cloud runs half of the company’s workload. 

• 48% of data is stored within the organization’s premises. 

• The numbers are expected to grow if we look at private cloud revenue which is projected to reach $528.36 billion by 2029. 

• More than four fifths (84%) of enterprises have opted for at least one private cloud solution. 

• On average, companies only rely on 32% workloads that are run on private cloud environments 

• Private cloud is dominated by telecommunications sector whereby over sixty percent (64%) make use of it; In fact, this is the only industry where use of Public Clouds lags behind Private Clouds. 

Difference between SAP S/4HANA private vs public cloud    

Making the Choice: Public vs. Private Cloud 

The decision between SAP S/4HANA Public Cloud (GROW with SAP) and SAP S/4HANA Private Cloud (RISE with SAP) boils down to a trade-off between customization and standardization, control and simplicity. 

GROW with SAP (Public Cloud) is ideal for businesses prioritizing rapid deployment, operational efficiency through standardization, and lower upfront costs, especially those with less complex operations or a strong desire to adopt industry best practices with minimal customization. 

Unique Benefits: 

• SAP CoPilot: A digital assistant offering a consumer-grade user experience. 

• Embedded AI and Machine Learning: Automates repetitive tasks. 

• Advanced Analytics: Delivers personalized insights to each user based on their role. 

• Standardization and Best Practices: Common infrastructure processes and SLAs for all cloud users. 

RISE with SAP (Private Cloud), on the other hand is better suited for organizations that need deep customization due to unique business processes or regulatory requirements, prefer dedicated resources, and are looking for a cloud journey tailored to their pace and path. 

Unique Benefits: 

• Customization Capabilities: Full access to change SAP source code, backend visibility with SAP GUI, and extensive customizations through in-app features, code changes, and side-by-side extensions. 

• In-App Extensibility Features: Allows creation of new fields and addition of business logic. 

• Enhanced Security and Control: Suitable for sensitive IT workloads. 

Both routes offer the power of SAP S/4HANA’s advanced ERP capabilities, but the choice ultimately hinges on the specific business strategy, industry requirements, and growth objectives of each organization. 

Kaar Tech: Your Best Digital Transformation Partner 

At Kaar Tech, we excel in SAP S/4HANA Cloud transformations, backed by our extensive expertise and proven track record. Our team of over 800+ specialized consultants has successfully executed more than 70+ SAP S/4HANA transformations, including some of the largest cloud migration projects worldwide. 

We pride ourselves on offering personalized assessment packages tailored to your specific requirements. Utilizing IP-driven automation, we ensure efficient governance and flawless execution throughout your SAP S/4HANA journey. 

Whether you’re deciding between SAP S/4HANA Public Cloud and Private Cloud or need guidance on your digital transformation strategy, Kaar Tech is dedicated to delivering solutions that align perfectly with your business objectives. Contact us today by clicking here to discover how we can support your transformation journey with confidence and expertise. 

 

 

FAQ’s 

1. What are the key differences between SAP S/4HANA Public and Private Cloud?  

SAP S/4HANA Public Cloud offers standardized solutions on a shared infrastructure, ideal for rapid deployment and cost efficiency. In contrast, SAP S/4HANA Private Cloud provides dedicated resources for deep customization, enhanced security, and compliance with specific regulatory requirements. 

2.  How should I decide between SAP S/4HANA Public Cloud and Private Cloud?  

Choose SAP S/4HANA Public Cloud for quick adoption of industry best practices and lower upfront costs. Opt for SAP S/4HANA Private Cloud if your business requires extensive customization, dedicated resources, and stringent data security measures. 

3.  What are the benefits of SAP S/4HANA Cloud compared to traditional ERP systems?  

SAP S/4HANA Cloud offers real-time data access, AI-driven insights, scalability without upfront hardware costs, enhanced collaboration, and robust security measures, aligning it closely with modern digital business needs. 

4.  How does KaarTech support businesses in SAP S/4HANA Cloud transformations?  

KaarTech brings over 800 specialized consultants with a proven track record in 70+ successful SAP S/4HANA transformations. They offer tailored assessment packages, leverage automation for efficient governance, and ensure seamless execution of digital transformation strategies aligned with specific business goals.