By now, almost every SAP user must be aware of the 2025 deadline. The deadline marks the end of support for the SAP ECC solution. This makes it mandatory for every SAP user to migrate to the SAP S/4 HANA solution. As most SAP users currently operate the on-premise solution, there is a significant push to encourage migration to the cloud-based interface.
While cloud-based solutions are the future of ERP solutions, people are still confused about their choices. The choices include private and the public cloud deployment of the SAP S/4 HANA solution. Thus, continue reading to better understand the difference between the public and the private cloud edition of the SAP S/4 HANA solution. This will help you make an informed decision, further enhancing the chances of a successful implementation.
What is the Public Cloud?
The public cloud edition of the SAP S/4 HANA Cloud solution means operating on a shared cloud space among multiple tenants. Third-party vendors generally manage such architectures. In such architectures, the cloud provider will deliver all the IT services through the internet.
Many organizations choose to go with this cloud-based architecture because the shared cloud space offers more room for cost-effectiveness. The methodology behind this is simple as the vendor can allow multiple parties to access the cloud and consequently lower the prices for everyone.
What is the Private Cloud Edition?
The private cloud architecture is more or less self-explanatory. As the name suggests, it is a private cloud space where your organization operates on a dedicated cloud solution. But you must remember that it is still a third party who will manage the underlying infrastructure of your cloud-based solution.
The most distinctive characteristic of private cloud infrastructure is that your organization gets your dedicated infrastructure. This restricts any other party from accessing any computing potential or storing data on your organization’s cloud. Many organizations with the need to store and deal with sensitive data and information are the ultimate beneficiary of such a cloud-based infrastructure.
Similarities between the Private and Public Cloud Edition
Yes, there are many differences between the private and public cloud versions of the SAP S/4 HANA solution. Yet, there are also certain similarities that you ought to know about to make a better decision. Both the cloud editions offer distinctive perks that include:
- Embedded machine learning and artificial intelligence to help you automate different time-consuming, repetitive tasks. Using these technologies, your organizations can make better use of available resources.
- Access to the SAP CoPilot, a digital assistant that will cater to all your digital requirements. You can also use the same to create an ideal consumer-grade user experience to facilitate ease of use.
- Access to role-based insights and analytics with unmatched personalization to help you facilitate effective decision-making across the organization.
What are the Differences?
Besides the primary differences, such as the low cost and scalability of public cloud and customization and costly nature of private edition, there are other differences. For starters, their public cloud allows you to benefit from more simplicity and standardization. So if you are an organization with predictive requirements, this can be an ideal choice.
But when it comes to the private cloud edition, you get more third-party integrations and nuanced customization competencies. Also, you get a wider range of expanded functionality and a wide range of interface alternatives. This includes the in-app extensibility features to help you create new fields and add business logic for good.
Differences in Cost of Public and Private Editions
It is no surprise that the private cloud version costs much more than the public cloud version. You can blame the cost of this infrastructure and its complexities for the increased cost. Besides that, the private cloud version requires a higher user count, and it also gives you the ability to drive more enhanced customization.
Things are different with the public cloud edition as it requires much less time for implementation, making it a more cost-effective alternative for all. You also get access to a much simpler configuration along with future innovations in the form of updates.
So, it is best to weigh your requirements and then decide on the right cloud infrastructure for your organization. But in case you are still confused, make sure to read till the end.
Should you be using the Public Cloud Edition?
There are numerous reasons behind organizations choosing the public cloud edition of the SAP S/4 HANA Cloud solution. Factors such as lower costs, access to limitless computation potential, and technological agility are among the primary reasons you should choose such an infrastructure. But besides that, the need to invest or maintain an IT infrastructure also plays a key role here.
Most growing organizations, such as startups with minimal IT expertise, can benefit from a public cloud solution. This offers you an ideal alternative to minimize complexities and scale your business without worrying about the IT infrastructure. So, if you are an organization that can work with little control over the cloud infrastructure, you must certainly consider the public cloud edition.
Should you use the Private Cloud Edition?
The private cloud edition of the SAP S/4 HANA solution is ideal if you need more control over your IT infrastructure. In addition, the single-tenant architecture is ideal for industries that need to comply with stringent regulations, as seen in the healthcare and finance industry.
So, if your organization needs to ensure effective compliance with greater levels of security and control, a private cloud is what you need. But before you finalize this decision, you better ensure that you have a competent team of IT experts who can manage the intricacies of such an infrastructure.
This is your comprehensive distinction between the private and public cloud editions of the SAP S/4 HANA solution. So, keep this information in mind to make a better decision and help your organization grow. You can also seek consultation from experts at SAP implementation companies to help you make the right choice.