Understanding the Technical Landscape: SAP S/4HANA Cloud vs On-Premise Solutions

Choosing the right cloud suite can be really tough. And if you’re migrating everything over to a new one, it can be a total nightmare. Luckily out of the many choices, two are the most popular. These are SAP S/4HANA Cloud and the on-premise solutions.

SAP S/4 HANA is a known name in the ERP landscape. According to a Cloud ERP 2023 study, Nine out of ten companies use an ERP solution, and around 75% of them use SAP S/4HANA.

However, amidst the excitement surrounding SAP S/4HANA, a critical decision looms on the horizon for companies: the choice between S/4HANA cloud and on-premise deployment.

Today, we embark on a journey to uncover the complexities of this decision point. We’ll explore the emergence of SAP S/4HANA as a transformative force in the ERP landscape. Moreover, we will understand the differences between on-premise and cloud deployment options. 

What is SAP S/4HANA On-Premise?

sap hana enterprise cloud

SAP S/4HANA is a super-smart software that helps companies manage their stuff better. When it’s “on-premise,” it means the company installs and looks after the software and hardware all by themselves on their own computers. 

For example, think of it like owning a car, you’re responsible for maintaining it, fixing it, and making sure it runs smoothly.

The cool thing about on-premise is that it gives companies more control over everything. Moreover, they can customize the software to fit their needs perfectly, kind of like customizing a suit. 

Additionally, since it’s all in-house, there’s a sense of security knowing exactly where your data is stored.

What is SAP S/4HANA Cloud?

sap best practices

Now, imagine if instead of owning a car, you could just rent one whenever you needed it. That’s what SAP S/4HANA Cloud is like. It’s a Software-as-a-Service (SaaS) where SAP takes care of everything for you in the cloud. As a result, you don’t have to worry about installing or managing anything because it’s all done for you. 

Furthermore, with SAP S/4HANA Cloud, companies can access the software from anywhere with an internet connection. Thus, this makes it super flexible and convenient. 

Additionally, since SAP handles all the technical stuff, companies can focus more on running their business without getting bogged down in IT headaches. 

SAP S/4HANA Cloud vs On-Premise

Unlocking Efficiency: Cloud vs. On-Premise Deployment for SAP S/4HANA

Now, let’s dive into the complexities: the showdown between sap on premise vs private cloud. Let’s explore the key differences that can shape the way your business operates in the digital world. 

  1. Upgrades and support packages

Let’s kick things off by comparing how upgrades and support work in the SAP S/4HANA Cloud versus SAP on premise

SAP S/4HANA Cloud:On-Premise:
SAP handles all the heavy lifting such as automatically updating the software without you even noticing. Thus, with the Cloud version, upgrades are as easy as flipping a switch. On the On-Premise side, upgrades are more like a DIY project. You’ve got to roll up your sleeves, plan everything out, and invest time and resources into the upgrade process.  
  1. Infrastructure & Maintenance

When it comes to infrastructure and maintenance, there’s a tale of two worlds in the SAP S/4HANA universe.

SAP S/4HANA Cloud:SAP On-Premise:
On this side, Cloud owners enjoy a lighter load. With SAP S/4HANA Cloud, the tech lifting is offloaded to the cloud systems at SAP. As a result, companies can skip the hardware headaches and focus on what they do best. For On-Premise adventurers, it’s all about hands-on control. Companies need to manage hardware and software updates. Moreover, they need to keep the tech running smoothly, on their own.
  1. Integrations

Transitioning into the discussion of integrations, let’s understand the intricate difference between SAP cloud vs on-premise deployments. 

SAP S/4HANA Cloud:SAP On-Premise:
When it comes to integrating SAP S/4HANA Cloud with existing applications, companies often face the challenge of ensuring smooth communication between different systems. Since everything is up in the cloud, the focus is on finding cloud-based integration platforms that can connect S/4HANA with other software.
Thankfully, That’s where advansappz steps in. With their expertise in cloud-based integration platforms, they specialize in creating bridges that allow data to flow effortlessly between S/4HANA Cloud and other applications. 
On the flip side, integrating SAP on-premise with existing applications requires a different approach. As it is housed on the company’s own servers, the challenge lies in ensuring compatibility between on-premise systems and external applications.

Here again, advansappz shines with its expertise in custom API development and configuration. They craft bespoke solutions that align perfectly with your on-premise setup. As a result, they ensure that S/4HANA plays nicely with your existing software ecosystem. 
  1. Security

Now, let’s buckle up and talk about security. Whether you’re diving into the S/4HANA cloud or sticking to on-premise paths, safety is key. 

SAP S/4HANA Cloud:SAP On-Premise:
With Sap Hana in the cloud, your data gets VIP treatment in the digital fortress of the cloud. Think of it like having a team of cybersecurity guardians watching over your information 24/7. In short, they take care of everything from the firewall to automatic scanning.When your data’s on-premise, you get to set up all the security measures yourself, from sturdy locks to surveillance cameras. It’s all about taking charge and making sure your information stays safe from any unwanted visitors.

S/4HANA Cloud VS On-Premise: Which One Is Best For Your Business?

Cloud vs. On-Premise: Choosing the Right SAP S/4HANA for You

Still feeling torn between S/4HANA Cloud and On-Premise? Let’s simplify the puzzle. Here are the factors that you should consider:

  • Company Size and IT Resources: Firstly, consider how big your company is and how much tech muscle you’ve got. Are you a small fish in a big pond or a big fish in a small pond?
  • Current IT Infrastructure: Secondly, take a peek at your current IT setup. Is it sleek and modern, or is it due for a tech makeover?
  • Customization Needs: Moreover, do you have any specific needs that require custom-made solutions? Think about how much customization you’ll need to get things just right.
  • Budget Considerations: Lastly, money talks. Therefore, think about your budget and how much you’re willing to invest in your ERP solution.

Now, feeling a bit clearer? But hey, if you’re still scratching your head, don’t worry.

advansappz is here to save the day. They’re professionals at S/4HANA cloud and on-premise deployment assessments. As a result, they help you find the perfect fit for your business. 

How can you Adopt S/4HANA Cloud or On-premise?

The Right Fit for Your Needs: Selecting Your S/4HANA Deployment

Ready to take the dive into S/4HANA? Let’s map out your adoption journey. Here are a few ways to make it happen:

  1. Brownfield Migration: Brownfield migration allows you to transition your existing SAP setup to S/4HANA, bringing along your data and processes. Think of it like moving houses but taking all your furniture with you. 
  1. Greenfield Implementation: Starting fresh? Greenfield implementation is for you. It allows you to implement S/4HANA in a brand-new environment without any existing data migration. It’s like building a new house from scratch. 
  1. Consolidation Migration: Lastly, if you’ve got multiple SAP systems floating around, Consolidation migration brings them together into one shiny S/4HANA instance.

However, before you dive in, make sure you’ve got a solid plan in place. A well-defined implementation strategy is key, and having a partner like advansappz by your side can make all the difference. They’ve got the know-how and experience to guide you every step of the way.

Also, speaking of advansappz, let’s shine a spotlight on their services for S/4HANA implementation:

  • Gap Analysis and Migration Planning: Firstly, they’ll help you identify what needs to change and how to get there.
  • System Configuration and Customization: Highly professional developers of advansappz will customize S/4HANA to fit your unique needs like a glove.
  • Data Migration and Integration: advansappz smoothly transfers your data from old systems to new ones.
  • Change Management and User Training: Lastly, advansappz makes sure your team is ready to hit the ground running with the new setup.

Therefore, with advansappz on your team, your S/4HANA journey is set for success.


In wrapping up our exploration of S/4HANA Cloud vs on-Premise, it’s clear that both options offer unique advantages customized to different business needs. Whether you’re looking for flexibility of the cloud or the control of on-premise, the key is to evaluate your specific requirements carefully.

Remember, the right choice depends on factors like company size, IT resources, customization needs, and budget considerations. Therefore, by taking the time to assess these factors, you can ensure that your S/4HANA deployment aligns seamlessly with your strategic objectives.

So, are you ready to take the next step on your S/4HANA journey? 

Don’t hesitate to reach out to advansappz for expert guidance and consultation. Their experienced team can help you navigate the complexities of implementation. Thus, they will ensure a smooth transition to SAP’s cutting-edge ERP solution. 

FAQs about SAP S/4HANA Cloud and On-premise

  1. What are the benefits of S/4HANA cloud vs on-premise?

Cloud is like renting a service while on-premise is like owning it. Cloud offers flexibility, scalability, and cost-effectiveness, while on-premise gives more control and security. 

  1. What is more advantageous SAP on cloud or SAP on-premise?

It depends on your needs. S/4HANA Cloud is great for flexibility and boosting productivity, while on-premise offers more control over customization and security.

  1. Which is safer on-premise or cloud?

Both have their own security measures. On-premise is like locking your house’s doors yourself, while cloud is like having a security team guarding your house. As a result, both can be safe if managed properly.

  1. What is a hybrid cloud in SAP?

A hybrid cloud is like having some stuff stored at home and some in a storage unit. It’s a mix of on-premise and cloud, where certain data and applications are kept on company servers while others are in the cloud.

  1. How do I know if SAP is on-premise or cloud?

Check where the software and data are stored and managed. If it’s on your own servers, it’s on-premise. Moreover, if it’s hosted by SAP in a remote data center accessed via the internet, it’s in the cloud.

Like this blog? Contact advansappz to get more insights
Table of Contents


Subscribe To Our Blog to Receive Weekly Updates

Get in touch with experts

Want to scale your business with tech? Contact us today to get expert advice from our professionals!

You may also like

2024 H1 Release Highlights: SAP SuccessFactors Learning – Don’t Miss Out!

Understanding the Technical Landscape: SAP S/4HANA Cloud vs On-Premise Solutions

How Salesforce AI is Revolutionizing Sales: A Data-Driven Look