{"id":11497,"date":"2020-07-17T06:31:00","date_gmt":"2020-07-17T06:31:00","guid":{"rendered":"https:\/\/www.accely.com\/blog\/importance-of-sap-application-management-services-2\/"},"modified":"2025-03-13T10:38:41","modified_gmt":"2025-03-13T10:38:41","slug":"sap-s-4hana-cloud-editions-or-on-premise-demystifying-the-options-and-cost-benefits","status":"publish","type":"post","link":"https:\/\/www.accely.com\/eg-en\/blog\/sap-s-4hana-cloud-editions-or-on-premise-demystifying-the-options-and-cost-benefits\/","title":{"rendered":"SAP S\/4HANA cloud editions or on Premise? Demystifying the options and cost benefits"},"content":{"rendered":"\n<section class=\"insights-banner\">\n    <div class=\"container\">\n        <div class=\"insights-banner-wrapper\">\n            <div class=\"insights-banner-left\">\n                                                <h1 class=\"insights-banner-title h3\">SAP S\/4HANA cloud editions or on Premise? Demystifying the options and cost benefits<\/h1>\n                                <div class=\"badge-wrap d-flex d-flex-wrap\">\n                                                           <span class=\"badge badge-orange\">SAP ERP<\/span>\n                                                      <\/div>\n                                 <p class=\"publish-date\">Published: July 17, 2020<\/p>\n                                \n                 \n\n\n\n            <\/div>\n                        <div class=\"insights-banner-right\">\n            <img decoding=\"async\" src=\"https:\/\/www.accely.com\/wp-content\/uploads\/2020\/07\/SAP-S4HANA-cloud-editions-or-on-Premise-Demystifying-the-options-and-cost-benefits.webp\"  alt=\"Banner\" class=\"insights-banner-img\" width=\"720\" height=\"471\">\n            <\/div>\n                    <\/div>\n    <\/div>\n<\/section>\n\n    <div class=\"main-content-blog-section\">\n        <div class=\"main-content-blog\">\n                            <div class=\"pdp-sidebar-sec-wrap\">\n                    <div class=\"pdp-sidebar\">\n                        <ul class=\"ul-none pdp-sidebar-menu-wrap\">\n                                                        <li>\n                                <a data-scroll=\"introduction\" href=\"#introduction\" aria-label=\"tab-link\" class=\"active\" >\n                                    <span class=\"body-font-sm text-capitalize\">Introduction<\/span><\/a>\n                            <\/li>\n                                                        <li>\n                                <a data-scroll=\"on\" href=\"#on\" aria-label=\"tab-link\" >\n                                    <span class=\"body-font-sm text-capitalize\">On-premise deployment\u00a0<\/span><\/a>\n                            <\/li>\n                                                        <li>\n                                <a data-scroll=\"cloud\" href=\"#cloud\" aria-label=\"tab-link\" >\n                                    <span class=\"body-font-sm text-capitalize\">Cloud Platform\u00a0<\/span><\/a>\n                            <\/li>\n                                                        <li>\n                                <a data-scroll=\"difference\u00a0\" href=\"#difference\u00a0\" aria-label=\"tab-link\" >\n                                    <span class=\"body-font-sm text-capitalize\">The Difference\u00a0<\/span><\/a>\n                            <\/li>\n                                                        <li>\n                                <a data-scroll=\"costing\" href=\"#costing\" aria-label=\"tab-link\" >\n                                    <span class=\"body-font-sm text-capitalize\">Costing<\/span><\/a>\n                            <\/li>\n                                                        <li>\n                                <a data-scroll=\"security \" href=\"#security \" aria-label=\"tab-link\" >\n                                    <span class=\"body-font-sm text-capitalize\">Security Comparison<\/span><\/a>\n                            <\/li>\n                                                        <li>\n                                <a data-scroll=\"flexibility \" href=\"#flexibility \" aria-label=\"tab-link\" >\n                                    <span class=\"body-font-sm text-capitalize\">Flexibility And Working<\/span><\/a>\n                            <\/li>\n                                                    <\/ul>\n                    <\/div>\n                <\/div>\n                <div class=\"content-blog-sections\">\n                                                            <section class=\"insights-middle\"  id=\"introduction\" >\n                        <div class=\"insights-container\">\n                            \n                        <div class=\"insights-middle-content\">\n                            <p><span style=\"font-weight: 400\">Shifting to SAP S\/4 HANA cloud looks easy on the ground. But in reality, this choice makes the process of decision making tough.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The newly designed structure of SAP S\/4 HANA cloud has got new components. These technical redesigns need repetitious training trials, which consume most of the resources and time.<\/span><\/p>\n<p><span style=\"font-weight: 400\">By <a href=\"\/solutions\/sap-s4-hana\/\">switching to SAP S\/4HANA<\/a> or by continuing <a href=\"\/solutions\/sap-erp\/\">ERP SAP-based solutions<\/a>, you can bring a new implementation system. In both cases, you will need highly effective deployment strategies<\/span><\/p>\n<p><span style=\"font-weight: 400\">According to factors such as costs and results, you can choose either cloud or on-premise hinges. Choosing a better platform needs a full understanding of redesigned technical features and also the one that will provide better results for your business.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Let\u2019s discuss both the platforms in detail with an overview that will eventually help you to choose better options for your business growth.<\/span><\/p>\n                            \n                        <\/div>\n                            \n                        <\/div>\n                    <\/section>\n                                                                                <section class=\"insights-middle\"  id=\"on\" >\n                        <div class=\"insights-container\">\n                            \n                        <div class=\"insights-middle-content\">\n                            <h2>On-premise deployment<\/h2>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-60560 size-medium\" src=\"https:\/\/www.accely.com\/wp-content\/uploads\/2020\/07\/SAP-Activate-300x212.webp\" alt=\"SAP Activate\" width=\"300\" height=\"212\" srcset=\"https:\/\/www.accely.com\/wp-content\/uploads\/2020\/07\/SAP-Activate-300x212.webp 300w, https:\/\/www.accely.com\/wp-content\/uploads\/2020\/07\/SAP-Activate-768x544.webp 768w, https:\/\/www.accely.com\/wp-content\/uploads\/2020\/07\/SAP-Activate.webp 1024w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><br \/>\nImage Source: https:\/\/www.tachyontech.com\/wp-content\/uploads\/2016\/09\/SAP-Activate-Diagram-1024&#215;725.png<\/p>\n<p><span style=\"font-weight: 400\">For S\/4 HANA deployment, on-premise is an internal platform placed in servers. Your technical team is responsible for the control of the servers, whereas the company provides the SAP upgrades yearly. Test for the upgrades is however managed by your designated team.\u00a0<\/span><\/p>\n                            \n                        <\/div>\n                            \n                        <\/div>\n                    <\/section>\n                                                                                <section class=\"insights-middle\"  id=\"cloud\" >\n                        <div class=\"insights-container\">\n                            \n                        <div class=\"insights-middle-content\">\n                            <h2>Cloud Platform<\/h2>\n<p><span style=\"font-weight: 400\">Cloud deployment is present in the SAP server, unlike on-premise. The host company controls and maintains the server and renews the upgrades on a quarterly basis.<\/span><\/p>\n<p><span style=\"font-weight: 400\">There are several advantages to both the public and private edition. The private edition cloud deployment platform performs more than the prevailing range of S\/4 HANA functions. It also offers a geographical extension.<\/span><\/p>\n<p><span style=\"font-weight: 400\">On the other hand, the public edition is helpful in solving LOB challenges and is quite handy. It also has an optimistic approach to the overall working process and policy of ERP solutions. <\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-60940 size-medium\" src=\"https:\/\/www.accely.com\/wp-content\/uploads\/2020\/07\/03-1-1-300x200.webp\" alt=\"Cloud Platform\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.accely.com\/wp-content\/uploads\/2020\/07\/03-1-1-300x200.webp 300w, https:\/\/www.accely.com\/wp-content\/uploads\/2020\/07\/03-1-1.webp 626w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n                            \n                        <\/div>\n                            \n                        <\/div>\n                    <\/section>\n                                                                                <section class=\"insights-middle\"  id=\"difference\u00a0\" >\n                        <div class=\"insights-container\">\n                            \n                        <div class=\"insights-middle-content\">\n                            <h2>The Difference<\/h2>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">On-premise deployment is based on the traditional licensing approach whereas cloud deployment is based on a subscription model.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">On-premise deployment has internal servers that give the inhouse technical staff the responsibility for maintenance and control. Cloud gives control to the SAP hosting company and is also held responsible for the maintenance.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The user is given full control for PTC but in cloud, the control is in the hands of the hosting company but they do collaborate with the users for upgrades.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">In on-premise deployment, the customization process is not limited and gives a greater area for customizing. In cloud, the customization is strictly limited because of the predetermined industry-standard configuration.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">On-premise provides ERP functions and also paves the way for the inclusion of SAP- hybris. The cloud platform works on SAP field-glass, standard ERP, SAP Hybris marketing, and <a href=\"\/solutions\/sap-successfactors\/\">SAP Success Factors Employee central<\/a>.<\/span><\/li>\n<\/ul>\n                            \n                        <\/div>\n                            \n                        <\/div>\n                    <\/section>\n                                                                                <section class=\"insights-middle\"  id=\"costing\" >\n                        <div class=\"insights-container\">\n                            \n                        <div class=\"insights-middle-content\">\n                            <h2>Costing<\/h2>\n<h3>Cloud platform<\/h3>\n<p><span style=\"font-weight: 400\">The licensing module of the cloud platform confides on monthly revenue. This amount is for maintaining the updates and infrastructural modifications. The best advantage of the cloud platform is that it does not need a huge amount for hiring a bunch of IT professionals for maintaining the platform.<\/span><\/p>\n<h3>On-premise<\/h3>\n<p><span style=\"font-weight: 400\">As discussed previously, on-premise deployment is based on traditional licensing. The payment is authorized for the introductory purchase and annual maintenance. The cost of maintenance is quite low because of the high cost of updates.<\/span><\/p>\n                            \n                        <\/div>\n                            \n                        <\/div>\n                    <\/section>\n                                                                                <section class=\"insights-middle\"  id=\"security \" >\n                        <div class=\"insights-container\">\n                            \n                        <div class=\"insights-middle-content\">\n                            <h3>Comparing On The Basis Of Security<\/h3>\n<p><i><span style=\"font-weight: 400\">As pre recent research on IT decision-makers by BT, 49% of the people stated that they are worried about the security breaches of cloud platforms.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400\">For 76% of people, security becomes the key concern in cloud services. Another 41% of the people concluded that cloud services are innately insecure.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400\">On-premise is safer because of its in-house data centers. There are no chances of a security breach by outsiders. It has a control on its own data\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">If the security breach happens because of an in-house employee, it takes a lot of time to find out and handle it.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In a cloud platform, the host company gets the data faster and also informs the users of unauthorized physical access.<\/span><\/p>\n                            \n                        <\/div>\n                            \n                        <\/div>\n                    <\/section>\n                                                                                <section class=\"insights-middle\"  id=\"flexibility \" >\n                        <div class=\"insights-container\">\n                            \n                        <div class=\"insights-middle-content\">\n                            <h3>Comparison On The Basis Of Flexibility And Working<\/h3>\n<p><span style=\"font-weight: 400\">When a business witnesses massive growth then the cloud platform is the most reliable solution to promote your business in new regions without investing a huge amount.<\/span><\/p>\n<p><span style=\"font-weight: 400\">On-premise will require considerable infrastructure and troop investment.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A cloud application is subject to access from any browser and makes the working process flexible and easy. An on-premise network requires security profiles for providing access to a third party. It is quite a complicated process for outsourcing. A cloud application is hosted externally and provides easy outsourcing.<\/span><br \/>\n<span style=\"font-weight: 400\">If a problem persists regarding data access you won&#8217;t find a local admin to help you immediately in the cloud services. You need to contact customer support for help and will take a lot of time to get it fixed.<\/span><\/p>\n                            \n                        <\/div>\n                            \n                        <\/div>\n                    <\/section>\n                                                        <\/div>\n            \n            \n        <\/div>\n    <\/div>\n\n<section class=\"insights-middle insights-middle-conclusion\" id=\"conclusion\">\n    <div class=\"insights-container\">\n        <div class=\"insights-middle-content\">\n            <div>\n                           <div class=\"insights-conclusion\">\n                                        <h4 class=\"insights-conclusion-title\">Conclusion<\/h4>\n                                        <div class=\"insights-conclusion-text\">\n                        <p>The deployment service of SAP S\/4HANA cloud surely has a bunch of benefits. But the clients should deeply research before choosing a service. They must keep the pros and cons in mind before going for a service. The choice majorly depends on the factor of cost and usability of the service.<\/p>\n                    <\/div>\n                                    <\/div>\n                        <\/div> \n        <\/div>\n    <\/div>\n<\/section>\n\n<div class=\"insights-middle insights-middle-conclusion\">\n    <div class=\"insights-container\">\n        <div class=\"insights-middle-content\">\n             <div class=\"insights-conclusion-bottom\">\n                <div class=\"insights-conclusion-profile\">\n                                        <img decoding=\"async\" src=\"https:\/\/www.accely.com\/wp-content\/uploads\/2025\/07\/Vikas-Chopra.webp\" class=\"insights-conclusion-profile-img\" alt=\"Profile\" width=\"56\" height=\"56\">\n                                        <div class=\"insights-conclusion-profile-content\">\n                        <p class=\"conclusion-profile-name\">Vikas Chopra<\/p>\n                                                <p class=\"conclusion-profile-designation\">Practice Head SAP S\/4HANA<\/p>\n                       \n                                               \n                    <\/div>\n                     <\/div>\n                                \n                <ul class=\"insights-conclusion-share ul-none\">\n                    <li><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Fwww.accely.com%2Feg-en%2Fblog%2Fsap-s-4hana-cloud-editions-or-on-premise-demystifying-the-options-and-cost-benefits%2F&#038;title=SAP+S%2F4HANA+cloud+editions+or+on+Premise%3F+Demystifying+the+options+and+cost+benefits\" target=\"_blank\" aria-label=\"link\" class=\"conclusion-share-link\"><span class=\"icon-linkedin\" rel=\"noopener noreferrer\"><\/span><\/a><\/li>\n                    <li><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fwww.accely.com%2Feg-en%2Fblog%2Fsap-s-4hana-cloud-editions-or-on-premise-demystifying-the-options-and-cost-benefits%2F&#038;text=SAP+S%2F4HANA+cloud+editions+or+on+Premise%3F+Demystifying+the+options+and+cost+benefits\" target=\"_blank\" aria-label=\"link\" class=\"conclusion-share-link\" rel=\"noopener noreferrer\"><span class=\"icon-twitter\"><\/span><\/a><\/li>\n                    <li><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.accely.com%2Feg-en%2Fblog%2Fsap-s-4hana-cloud-editions-or-on-premise-demystifying-the-options-and-cost-benefits%2F\" target=\"_blank\" aria-label=\"link\" class=\"conclusion-share-link\" rel=\"noopener noreferrer\"><span class=\"icon-facebook\"><\/span><\/a><\/li>\n                <\/ul>\n                <a aria-label=\"link\" href=\"#\"  target=\"_self\" class=\"btn btn-outline-dark insights-conclusion-btn copy-link-btn\" data-post-link=\"https:\/\/www.accely.com\/eg-en\/blog\/sap-s-4hana-cloud-editions-or-on-premise-demystifying-the-options-and-cost-benefits\/\">Copy link\n                    <span class=\"btn-icon icon-arrow-right\"><\/span>\n                <\/a>\n                \n\n            <\/div>\n            \n                                     <p class=\"conclusion-profile-info \">SAP Solution Architect with 23+ years in logistics and SCM. Expert in SAP S\/4HANA with hands-on experience in global rollouts, upgrades, and enterprise solution delivery.\r\n<\/p>\n             \n  <\/div>\n    <\/div>\n            <\/div>\n<script>\n    jQuery(document).ready(function($) {\n    $('.copy-link-btn').on('click', function(e) {\n        e.preventDefault(); \/\/ Prevent default anchor behavior\n\n        \/\/ Get the post link from data attribute\n        var postLink = $(this).data('post-link');\n\n        \/\/ Create a temporary input element\n        var tempInput = $('<input>');\n        $('body').append(tempInput);\n\n        \/\/ Assign the post link as input value\n        tempInput.val(postLink).select();\n\n        \/\/ Copy the link to clipboard\n        document.execCommand('copy');\n\n        \/\/ Remove the temporary input element\n        tempInput.remove();\n\n        \/\/ Provide feedback to the user (optional)\n        $(this).text('Link Copied!');\n\n        \/\/ Reset anchor text after a short delay (optional)\n        setTimeout(function() {\n            $('.copy-link-btn').text('Copy link');\n        }, 2000); \/\/ 2000 milliseconds = 2 seconds\n    });\n});\n\n<\/script>\n\n<section class=\"blog-list-sec related-posts-sec\">\n    <div class=\"container\">\n                <h4>Explore related blogs <\/h4>\n                        <ul class=\"blog-list-wrapper ul-none\">\n                    <li class=\"blog-list-item\">\n                <div class=\"blog-list-item-top\">\n                                        <img decoding=\"async\" src=\"https:\/\/www.accely.com\/wp-content\/uploads\/2020\/04\/An-SAP-Cloud-Platform-overview_-Capabilities-and-benefits.webp\" class=\"blog-thumbnail-img\" width=\"638\" height=\"320\" alt=\"blog-thumbnail\">\n                                        <div class=\"blog-meta d-flex d-space-between color-white\"> \n                        <div class=\"left\">\n                                                        <p class=\"body-font-md author-name\">Vikas Chopra<\/p>\n                                                        <p class=\"body-font-sm blog-post-date\">10 April 2020<\/p>\n                        <\/div>\n                                                <div class=\"right\">\n                                                        <p class=\"body-font-md blog-category\">SAP ERP<\/p>\n                                                    <\/div>\n                        \n                    <\/div>\n                <\/div>\n                <div class=\"blog-list-item-bottom\">\n                                        <h5 class=\"h6 blog-title\">An SAP Cloud Platform overview: Capabilities and benefits<\/h5>\n                                        <p class=\"body-font-md blog-excerpt\">SCP is a PaaS (Platform as a Service) provided by SAP. 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But in reality, this choice makes the process of decision making tough.<\/p>\n","protected":false},"author":7,"featured_media":37713,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"product-post":[],"industry-post":[],"solution-post":[140],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SAP S\/4HANA cloud editions or on Premise? Demystifying the options and cost benefits<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SAP S\/4HANA cloud editions or on Premise? Demystifying the options and cost benefits\" \/>\n<meta property=\"og:description\" content=\"Shifting to SAP S\/4 HANA cloud looks easy on the ground. 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