SAP S/4 HANA Private Cloud vs SAP S/4 HANA Public Cloud

In the rapidly evolving landscape of SAP cloud computing, choosing the right platform to drive the foundation of your business operations is critical for long-term success. Moving your SAP on cloud, coupled with the power of S/4 HANA Cloud, helps in business transformation and boost productivity within your organization. SAP solutions offers a range of S/4HANA cloud platform models, each cloud platform created to address specific business needs and deliver significant benefits. 

SAP S/4HANA cloud stands out as one of the company’s most advanced ERP systems. This comprehensive article delves into the compelling features and benefits of SAP S/4HANA private cloud edition and SAP S/4 HANA public cloud, guiding you towards the optimal choice for your organization.

What is SAP S/4HANA?

SAP S/4HANA Cloud represents the future of ERP processes, bringing together the power of the cloud and cutting-edge technologies. As a relatively new offering, it enables organizations to streamline their ERP processes, achieve more significant results, and reduce complexities and costs effectively.

Designed with modularity in mind, SAP S/4HANA Cloud is a full-featured ERP solution that integrates sophisticated AI and analytics. The real-time operations supported by its flexible cloud architecture make it an ideal choice for businesses seeking to expand their services globally.

What is S/4HANA public cloud?

The SAP S/4HANA public cloud is designed for businesses with straightforward processes and low complexity. It’s like renting space in a shared building where the infrastructure is provided by SAP consulting company or a major cloud provider like Amazon or Microsoft.

SAP s4hana public cloud edition starts fresh, without bringing in any old code or setups from previous systems. Your data and applications are hosted in SAP’s or the chosen cloud provider’s data centers, picked based on where you operate. With a pay-as-you-go model, you only pay for what you use, which can save money compared to managing your own system. However, switching over requires careful planning and investment. By choosing the public edition, you’ll receive regular updates and support from SAP. You also gain access to various integrations and extensions through SAP’s Business Technology Platform.

Modules of SAP S/4HANA Cloud Public Edition

1. Finance

This module assists organizations in handling their financial transactions & accounting, which encompass activities such as accounts payable, accounts receivable, general ledger management, and asset accounting.

2. Product lifecycle

This module aids organizations in planning and managing the production of goods and services. It encompasses tasks such as material requirements planning and capacity planning. Its goal is to define, develop, deliver, and manage innovative and sustainable products with product engineering services.

3. Procurement

Procurement with SAP S/4HANA Public Edition streamlines and enhances the procurement processes within an organization. This edition leverages the advanced capabilities of SAP S/4HANA to optimize procurement operations, improve supplier relationships, and drive cost efficiencies.

4. Supply chain

The SAP SCM module in SAP S/4HANA Public Cloud facilitates the management of goods and services across procurement, production, and distribution processes.

5. BRIM Service

Enhance revenue recognition and excel in service lifecycle management with SAP BRIM.

6. SAP HCM

SAP HCM assists organizations in managing their human resources processes, encompassing payroll, benefits, and talent management.

7. SAP CRM

This module, powered by SAP CRM, assists organizations in effectively managing their interactions with customers, covering sales, marketing, and service activities.

Recent Innovation of SAP S/4HANA Public Cloud

• AI Copilot
Empower your workforce with the latest in AI innovation. SAP’s AI copilot, Joule, is now accessible through SAP Early Adopter Care, enhancing the capabilities of SAP S/4HANA Cloud Public Edition.

• Cloud-native best practices
Unlock the power of SAP’s comprehensive cloud ERP solutions, backed by over 50 years of ERP expertise. Elevate your risk management strategies to enhance compliance, driving greater transparency and financial operational health.

• Sustainability

Drive informed decisions for your business by integrating environmental, social, and financial data seamlessly. With integrated financial planning and CO2 equivalent (CO2e) insights in SAP Analytics Cloud, manage your environmental impact strategically while pursuing economic sustainability goals.

What is S/4HANA private cloud?

The SAP S/4HANA cloud private edition is like having your own personalized space in the cloud. It’s a single-tenant solution, meaning each user gets their private, secure network environment. This option is great for businesses already using SAP ERP systems who want to move to the cloud without starting from scratch. You can migrate your existing SAP ECC or ERP system to this private cloud, and even tweak the SAP source code to match your business processes using in-app and side-by-side extensions.

Discover the power of SAP S/4HANA Cloud Private Edition, designed to elevate your business to new heights while safeguarding your existing investment in SAP ERP. This innovative solution combines the reliability of your current SAP ERP system with the latest capabilities and increased flexibility of SAP S/4HANA Cloud.

Key Benefits of SAP S/4HANA Cloud Private Edition:

• Flexibility: Adapt and evolve your ERP system as your business grows and requirements change.
• Security: Maintain the security and compliance standards essential for your industry.
• Innovation: Leverage the latest innovations from SAP to drive business success.
• Efficiency: Streamline processes and workflows for improved operational efficiency.
• Customization: Customize the ERP software to align with your unique business processes.
• Competitive Advantage: Gain a competitive edge with advanced capabilities and insights.

Choosing Between SAP S/4HANA Private Cloud and Public Cloud

The decision to choose between SAP S/4HANA Private Cloud and Public Cloud largely depends on your business’s unique requirements and goals. For those committed to a fully cloud-based future for their ERP processes, SAP S/4HANA Public Cloud offers an innovative solution. However, if your organization prefers maintaining control over certain aspects of the scope, SAP S/4HANA Private Cloud presents an enticing alternative.

With A5E Consulting as your trusted partner, the journey towards SAP S/4HANA automation becomes seamless, cost-effective, and transformative. Our robust tooling and expertise ensure your organization maximizes the benefits of SAP S/4HANA, regardless of the chosen cloud approach.

SAP S/4 HANA Private Cloud vs SAP S/4 HANA Public Cloud

Parameters	SAP S/4HANA Cloud, private edition	SAP S/4HANA Cloud(Public edition / Essential edition)
Cloud Basics	This is a managed service offered by SAP. Your SAP S/4HANA runs in a dedicated environment within a larger cloud, separate from other users. You get the benefits of cloud scalability and management from SAP, with enhanced security compared to a public cloud.	Public clouds offer resources like computing power and storage over the internet. These services are delivered through a shared infrastructure, making them highly cost-effective.  This multi-tenant environment allows for efficient resource allocation and can be readily scaled to meet your needs.
Decide between public and private cloud edition under RISE with SAP,	Private edition is designed for existing SAP users who want to migrate smoothly to the cloud while preserving their investments. Public edition caters to new customers seeking a future-proof, fully loaded ERP solution.	Move away from legacy on-premise systems and leverage the scalability and agility of the cloud. Embrace the opportunity to streamline and optimize your business processes with SAP’s best practices.
Customization	Modify SAP source code, access the backend, and leverage the on-premise extensibility framework for deep customizations. Expert configuration with IMG and a subscription-based model provide ultimate flexibility.	Full control, customization, and access via SAP GUI (subscription model). Limited customization through Fiori apps and pre-built extensions. No backend access or source code modification.
Types of Implementation	Brown field, Selective Data transition  and Green field	Green field only.Could be a component of selective data transition
Infrastructure provider	S/4HANA is deployed on the infrastructure provider of customer’s choice	SAP is the default infrastructure provider for SaaS solution : SAP S/4HANA Cloud

Advantages of SAP S/4HANA Cloud

1. Design Excellence with Industry Expertise: Every aspect of SAP S/4HANA’s design is backed by long-standing industry expertise. This tailored approach makes it a compelling choice for businesses seeking processes customized to their respective industries.

2. Real-time Database for Seamless Operations: SAP S/4HANA’s in-memory database ensures lightning-fast data access, regardless of data volume. Whether dealing with analytical or transactional workloads, this setup offers operational flexibility without compromising on mission-critical consistency. By keeping the entirety of mission-critical data in active memory on hardware running SAP S/4HANA, businesses gain significant speed advantages, particularly in data-driven sectors like healthcare, gaming, and online commerce.

3. Empowering with SAP Business Technology Platform: A platform-as-a-service solution, the SAP Business Technology Platform empowers the development and enhancement of mobile-enabled cloud applications without the need for on-premises infrastructure. This comprehensive platform spans process integration, data acquisition, analytics, and simplified application development functionality.

4. Cutting-Edge Technology for the Future: SAP S/4HANA incorporates powerful automation technology, including machine learning and multifaceted AI. This ensures that businesses stay at the forefront of innovation, enabling intelligent decision-making and supporting custom AI deployments.

How do you migrate to SAP S/4HANA Cloud?

When transitioning to SAP S/4HANA, can select either of the two approaches: greenfield and brownfield. In the greenfield approach, the SAP system is implemented anew, although all data is migrated in a cleaned format. This method requires rebuilding and adjusting processes from scratch.

For companies opting for the S/4HANA Cloud version, this effort is inevitable as the entire system landscape needs restructuring. 

On the other hand, the brownfield strategy, commonly used in on-premise solutions, involves a system conversion where existing processes are adopted and optimized. The migration to SAP S/4HANA Cloud is a complex process that necessitates thorough planning. Besides the SAP S/4HANA Migration Cockpit tool, there are enterprise architecture (EA) tools available that simplify digital management transition and offer a roadmap for transformation. According to a study, 73 percent of respondents are leveraging the benefits of business capability mapping.

Conclusion

In conclusion, the decision to implement SAP S/4HANA Private Cloud or Public Cloud is a pivotal one for businesses seeking to stay ahead in the digital era. While both options offer unique advantages, A5E Consulting is here to guide your organization in making the right choice and leveraging SAP S/4HANA’s full potential. Embrace the future of ERP processes with A5E Consulting as your partner for SAP-focused automation and succeed in the cloud-driven landscape. Contact us today to embark on this transformative journey.