SAP S/4HANA On-premise VS Cloud Solutions

SAP S4HANA On-premise VS Cloud Solutions

One of the biggest questions of users is the difference between SAP S/4HANA on-premise and cloud solutions. Thus, in this blog, we will try to cover the price difference. However, before that, we will try to find out the basics. This will help you to gain a deeper understanding of it.

SAP Business Suite is one of the revolutionary models. The SAP S/4HANA is the fourth version that was created in 2015. The prime agenda of the development is to improve the analytical capabilities and performance. However, there are some challenges that can be taken care of by the implementation partners.

The S/4 HANA runs exclusively on SAP HANA. It is designed in a way that it has the capability of managing extensive data. Besides, SAP Fiori ensures offering the best user experience. There are some companies that are yet to migrate to S/4 HANA as they need to overhaul the business process. Thus, finance has become one of the stepping stones as it enables users to move to finance and accounting. Besides, it also maintains the SAP products.

What do you mean by SAP S/4HANA On-premise?

The on-premise edition makes use of the SAP licensing process. Thus, this is the internal platform installed in virtual machines or servers. Since they tend to release annual upgrades, there is a need for implementing and checking the new releases. The on-premise SAP S/4 HANA can be hosted by managed service providers. Thus, Cogniscient can be an excellent choice to make the best use.

Thus, it can simplify finance and marketing. The on-premise edition can be a good choice for companies that need customized solutions.

What do you mean by SAP S/4HANA Cloud?

The cloud edition is hosted on the servers of SAP and maintained as well. Since SAP has the efficacy to control the IT infrastructure, it would not give much room for customization. Thus, this might not be technically satisfactory for medium to large enterprises.

Some of the basic functions of the S/4 HANA cloud edition are sources and procurement, finance, professional services, manufacturing, and sales. Thus, the most significant benefit is improved business agility, return on investment, better compliance, efficient ERP, and lower cost of ownership.

Fundamental Difference between SAP S/4HANA On-premise and Cloud Solutions

Greenfield: Greenfield migrations set up the brand environment. This is one of the most commonly preferred methods for SAP enterprises and customers. Thus, it can be significant when there is a complex environment. Therefore, with greenfield conversion, you can leave the business process behind.

Brownfield: Brownfield conversion can easily take the SAP and migrate it to S/4 HANA. However, from the business perspective, it is a riskier approach. Customized migration can be really challenging. So, you can easily make technical updates and later choose to fix issues after migration.

Transformation: This migration would let you migrate data easily. Even when you plan to move, the regional system can still be used every day.

So, if you wish to implement any SAP modules, choose Cogniscient Business Solutions