Last updated: Jan 26 2024 (Updated links)
This blog targets SAP solution architects and explains the different deployment options for SAP S/4HANA. I have used the latest terminology. It covers cloud, on-premise and hosted deployment options. Here are the options discussed:
1. SAP S/4HANA Cloud, public edition: This is SaaS public cloud.
2. SAP S/4HANA Cloud, private edition
3. SAP S/4HANA On-Premise managed by SAP (HEC)
4. SAP S/4HANA On-Premise: On-Premise or managed by cloud provider Hyperscalers
Deployment options 1 and 2 are the most commonly positioned options for new SAP customers. Option 2 is available through a RISE with SAP contract. Option 1 is available through a GROW with SAP contract.
I cover the following aspects of each option: infrastructure, license, how upgrades are managed, scope (functional, country and industry), configuration, extensibility (how solution can be extended beyond configuration) and implementation (possible approaches). All options can be implemented by the customer, SAP or a partner.
I also cover which roadmap of the SAP Activate implementation methodology is relevant, what SAP Best Practices are used and what tools are relevant. See my other blog for an overview of SAP Best Practices and the SAP Enterprise Management Layer.
1. SAP S/4HANA Cloud, public edition
Commonly used by net new customers that want the full public cloud approach with regular upgrades that include new configuration and new software. This is a SaaS public cloud offering. Also used for subsidiaries alongside SAP on-premise implementations.
Unlike all the other deployment options, the user interface is purely Fiori and configuration is done using SAP Central Business Configuration and not through the IMG.
2. SAP S/4HANA Cloud, private edition
Has advantages of the cloud with the scope and flexibility of the on-premise solution. Existing SAP ECC customers can move to private cloud using a system conversion and retain their configuration and extensions. Has standardized infrastructure processes, services and SLAs.
Also see this blog on the 5 golden rules to adopt some of the lessons learnt from public cloud. https://blogs.sap.com/2018/07/28/the-5-golden-rules-for-implementing-sap-s4hana-cloud-single-tenant-...
3. SAP S/4HANA On-Premise managed by SAP (HEC)
An on-premise solution with individual and private hardware and infrastructure hosted by SAP or a hyperscaler. Infrastructure management is delegated to SAP with flexible service offerings. This can be used for combinations of solutions that are not available in SAP S/4HANA cloud, private edition.
4. SAP S/4HANA On Premise: On-Premise or managed by cloud providers Hyperscaler
Classic on-premise SAP S/4HANA managed by the customer in their own data centre or managed by a third party.
Which Deployment Option is Right?
The SAP Activate roadmap has 3 approaches to implement SAP S/4HANA:
New implementation: for new customers or existing customers that want to reset and start again with a clean system.
System conversion involves converting your existing ERP system into SAP S/4HANA by migrating the database, applying software updates and doing a data conversion from the old data model to the new S/4HANA data model. The system must be converted to S/4HANA in one go meaning a single big bang go-live.
In the “selective data transition” approach, configuration and custom code from your old ERP system are used in the new SAP S/4HANA instance. For example, this can be done with a "shell copy" of the old system that leaves all master and transaction data behind and is followed by a system conversion to S/4HANA.
What will influence your choice of deployment option? Organizations that are completely new to SAP will do a new "greenfield" implementation and can choose any option 1 to 4. What about if you are currently running the on-premise ERP ECC and want to move to S/4HANA?
See me related blog on moving to S/4HANA from ERP: https://blogs.sap.com/2019/10/30/how-to-move-to-sap-s4hana/. This blog may also be helpful:https://blogs.sap.com/2020/05/11/sap-s-4hana-deployment-on-hyperscalers/
When using the Transition to SAP S/4HANA SAP Activate roadmap, you can select the approach e.g. system conversion in the search tags.
Note: there is an option called SAP S/4HANA Cloud, extended edition but this is no longer available for customers buying SAP S/4HANA now. This was an earlier variation on SAP S/4HANA Cloud, private edition.
I hope you found this blog informative.
Amin Hoque
Enterprise Architect at SAP Services UK
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