SAP S/4HANA Cloud is an intelligent, sustainable, cloud-based ERP software. There are two distinct offerings of SAP S/4HANA Cloud: the public edition and the private edition.
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In today’s fast-paced business environment, staying ahead of the competition requires embracing innovative technologies that can streamline operations and enhance productivity. In this blog post we will understand these editions in detail.
Introduction to SAP S/4HANA Cloud
SAP S/4HANA is an acronym for SAP Business Suite 4 the SAP HANA database. SAP S/4HANA is the next generation ERP software that is designed to help businesses of all sizes streamline their operations and improve agility.
It offers seamless integration capabilities and provides built-in features that enable effortless extensions and customizations, allowing you to customize the solution according to your unique business requirements.
The SAP S/4HANA system can be implemented in a public cloud, a private cloud, or on-premise, depending on the requirements of the individual customer. Both the public edition and the private edition of SAP S/4HANA Cloud offer a variety of features and applications.
SAP S/4HANA Cloud, Public Edition
SAP S/4HANA Cloud, public edition is the public cloud offering that SAP manages for you in the cloud. You don’t need to buy any infrastructure because SAP will take care of everything. SAP S/4HANA Cloud, public edition, has selected industry and Line of Business (LoB) scenarios than regular SAP S/4HANA, however SAP keeps adding more functional scope all the time.
- SAP S/4HANA Cloud, public edition operates in a special type of server called “multi-tenant,” where many customers share the same server. This means that multiple customers access their software through the internet using unique links.
- The multi-tenant server is located in an SAP data center and is managed by SAP.
- SAP takes care of the technical aspects of your system and ensures that your software service runs smoothly.
- One advantage of SAP S/4HANA Cloud, public edition is its rapid innovation cycle. New features and improvements are regularly released to keep the software up-to-date and it won’t cause any disruptions to your business.
- SAP provides bi-weekly hotfixes and installs release upgrades on a defined schedule to customer systems.
- Another benefit of SAP S/4HANA Cloud, public edition is its low total cost of ownership (TCO). The cost is reduced because multiple customers share the expenses of the server.
SAP S/4HANA Cloud, Private Edition
SAP S/4HANA Cloud, private edition is designed to deliver a seamless cloud experience, providing the same breadth of functionality including all lines of business and 25 industries and upgrade flexibility as SAP S/4HANA. It follows a biennial release cycle, accompanied by a comprehensive seven-year maintenance plan. Additionally, SAP provides feature packs every six months during the initial two years of each release.
As part of the service agreement, SAP handles the installation process for new releases and feature packs, minimizing the effort required from the customer. While the operating expense model follows a subscription-based structure.
In order to safeguard existing SAP ERP software investments, customers have the option to migrate their on-premise solution to the private cloud. Alternatively, they can opt for a new implementation of SAP S4HANA Cloud, private edition to establish a fresh and streamlined system.
SAP S/4HANA Cloud, private edition provides customers with comprehensive access to the on-premise extensibility framework, enabling in-app and side-by-side extensions, as well as code enhancements, modifications and expert configuration is facilitated through complete IMG (Implementation Guide) access.
SAP S/4HANA Cloud, Public edition Vs SAP S/4HANA Cloud Private edition
SAP S/4HANA Cloud, public edition, is a that delivers the latest industry best practices, a comprehensive ERP scope, and continuous innovation. The fully extensible platform enables customers to make lifecycle-stable extensions while benefiting from the low TCO of cloud architecture.
SAP S/4HANA Cloud, private edition, is a tailored-to-fit cloud ERP that adapts to an organization’s unique transformation. Customers can move to the cloud at their own pace while taking advantage of the comprehensive library of ready-to-run business processes that make it easy to start with a baseline, or alternatively utilize the customization flexibility to build highly tailored process to support industry requirements.
While both editions cater to intercompany financial operations, there are notable differences between them.
| SAP S/4HANA Cloud, Public edition | SAP S/4HANA Cloud, Private edition | |
| Core Solution | Standardized & ready-to-run cloud ERP | Tailored-to-fit cloud ERP |
| Cloud Type | Multi-tenant server | Single-tenant server |
| SaaS (Software as a Service) | Yes | Yes |
| Cloud Infrastructure provider | SAP | Customer’s choice |
| Total cost of ownership (TCO) | Low | High |
| Extensibility | On-Stack, Key User In-App, Developer In-app, Side-by-side | Classic In-App extensibility Side-by-side |
| Modifications | Not allowed | Allowed, but not recommended |
| Release Cycle | Semi-annual release cycle with Continuous Feature Deliveries (CFD) between releases | Similar to SAP S/4HANA On Premise release cycle |
| Business Scope | Selected Industry and Line of Business (LoB) scenarios | Similar to SAP S/4HANA on-premise |
RISE With SAP Offering
RISE with SAP refers to the additional services and benefits on top of the SAP S4HANA Cloud (Private & Public editions) designed to support a customer’s transition to the cloud. It’s like a bonus package that comes with the amazing SAP S/4HANA Cloud software, services and infrastructure especially created to help you smoothly move your business operations to the cloud.
With RISE with SAP, you have the flexibility to pick and choose specific modules or processes to implement at your own pace, gradually building the perfect Cloud ERP system that perfectly aligns with your unique business requirements. It’s like assembling the pieces of a puzzle, one step at a time, to create the ultimate cloud-based solution for your business.
RISE with SAP Components Overview
RISE with SAP S/4HANA Cloud, public & private edition packages make things simpler and better for customers like you who are diving into the world of cloud ERP solutions. These packages are available in base and premium.
Note: SAP S/4HANA Cloud, Private and Public Edition are ONLY available through RISE program.
Along with the powerful core SAP S4HANA Cloud software, you get a cool grant of Cloud Platform Enterprise Agreement (CPEA) credits to enjoy eligible services on the SAP Business Technology Platform (SAP BTP).
Plus, you get special entitlements to SAP Build, which lets you create apps, automate processes, and design stunning business sites. And wait, there’s more! The finance capabilities such as Group Reporting, Cash Management, Advance Financial Close are supercharged too. It’s like getting a bundle of goodies that take your business to a whole new level in the cloud.
Let’s look into the RISE With SAP plans in details. There are 2 plans
- Base
- Premium
Conclusion
Both editions of SAP S/4HANA Cloud provide the benefits of a cloud-based ERP system, including agility, scalability, reduced IT infrastructure costs, and continuous innovation. The choice between the public and private editions depends on the organization’s specific needs, preferences, and level of customization required.
It’s important to consult with SAP or an authorized SAP partner to determine the most suitable edition of SAP S4HANA Cloud based on your organization’s requirements and goals.
