One S/4HANA Cloud messaging

Guidance and Answers to Frequently Asked Questions

INTERNAL AND PARTNER

Version: 1.0

Last Edited: January 2020

Last Editor: Michael Lamade/Marcus Venth, SAP S/4HANA Solution Management

The purpose of this document is to provide a selection of frequently asked questions

(FAQs) and answers about the unified S/4HANA Cloud messaging and go-to-market to
SAP employees and S/4HANA resell partners.

DISCLAIMER: The contents of this document, and SAP’s strategy and possible future
developments, products, and/or platforms directions and functionality are all subject to
change and may be changed by SAP at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver
any material, code, or functionality. This document is provided without a warranty of any
kind, either express or implied, including but not limited to, the implied warranties of
merchantability, fitness for a particular purpose, or non-infringement. This document is for
informational purposes and may not be incorporated into a contract. SAP assumes no
responsibility for errors or omissions in this document, except if such damages were
caused by SAP’s intentional or gross negligence. All forward-looking statements are
subject to various risks and uncertainties that could cause actual results to differ materially
from expectations. Readers are cautioned not to place undue reliance on these forward-
looking statements, which speak only as of their dates, and they should not be relied upon
in making purchasing decisions.

VERSION HISTORY:

Version 1.0 Initial Version

Table of Contents
SAP S/4HANA SOLUTION PORTFOLIO ......................................................................................................... 2
POSITIONING, NAMING AND BRANDING ..................................................................................................... 3
COMMERCIALS (LICENSING, PRICING) ....................................................................................................... 4
SAP S/4HANA CLOUD CAPABILITIES, DELIVERY AND ROADMAP .......................................................... 6

SAP S/4HANA Solution Portfolio

SAP S/4HANA is our intelligent ERP and central to our strategy of enabling companies to deliver
the ultimate customer experience, through the power of the intelligent enterprise. An intelligent
ERP makes it possible for companies to adapt and scale with the agility needed to stay at the
forefront of ever-shifting markets.
This update reflects the latest go-to-market positioning for SAP’s flagship ERP solution. We go to
market on the strength of the SAP S/4HANA portfolio addressing 25 industries and providing a
complete choice of landscape options to meet a customer’s business needs. Externally, we have
two offerings:
• SAP S/4HANA – This is the offering for “any-premise” meaning traditional implementations
in a customer’s data center, on a hyper-scaler infrastructure, in a partner cloud, or on SAP
HANA Enterprise Cloud
• SAP S/4HANA Cloud – SAP S/4HANA Cloud provides as a Software as a Service (SaaS)
solution the industry capabilities companies require and the cloud qualities and simpler
solution life-cycle management customers expect.
For most customers looking for a cloud solution terms like public vs. private cloud, multi- vs. single
tenant have become more or less irrelevant.
As a result, we have simplified our go-to-market (GTM) by talking only about SAP S/4HANA Cloud
as the intelligent ERP SaaS offering from SAP to the market. Even though the underlying editions
will continue to exist and be further developed we will no longer use the terms SAP S/4HANA
Cloud, multi-tenant edition (MTE) and SAP S/4HANA, single-tenant edition (STE), in our GTM. In
case a differentiation is needed, we use SAP S/4HANA Cloud Essentials for former MTE and SAP
S/4HANA Cloud Extended for former STE.

Customer engagements will be simplified and streamlined as customer needs with regards to
industry scope, localization, additional flexibility and extension requirements can be qualified via
the Digital Discovery Assessment process and tool. As a result, we know which SAP S/4HANA Cloud
option fits best to the customer, without the need to spell out that there are options.

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Frequently Asked Questions
POSITIONING, NAMING AND BRANDING
What is the new SAP S/4HANA Cloud naming and positioning?
• Externally, we have a single cloud offering, SAP S/4HANA Cloud. We will stop using the terms
SAP S/4HANA Cloud, multi-tenant edition (MTE) and SAP S/4HANA Cloud, single-tenant edition
(STE).

When does the new SAP S/4HANA Cloud naming become effective?
• This naming change takes effect January 1, 2020 from a go-to-market perspective. Internal roll-
out starts at FKOM 2020.
• It has already taken effect as official naming in marketing and most of the S/4HANA L1 assets.
The update to all relevant assets, content, SKU names, etc. is underway but will likely take
additional time.

Why do we position SAP S/4HANA Cloud as single cloud offering?

• Customers, that look for Cloud ERP capabilities, are interested in functional (industry and LoB)
coverage, localizations and cloud qualities.
The former MTE and STE designations have shifted the conversation away from core benefits
(business value) into technical discussions before the appropriate point in a sales cycle and
have become stumbling blocks both internally and externally.
• Even worse competition guided customers to ask questions about “the real cloud”, multi- vs.
single-tenant which prolonged sales cycles and created customer confusion.

How do we differentiate between our cloud offerings internally?

• While we should always make every effort to communicate the offering as simple and at the
highest level of naming possible, there are times we need to differentiate between the SAP
S/4HANA Cloud landscapes internally. Going forward, please use:
o SAP S/4HANA Cloud, Essentials Edition (ES) instead of SAP S/4HANA Cloud, multi-tenant
edition (MTE)
o SAP S/4HANA Cloud, Extended Edition (EX) instead of SAP S/4HANA Cloud, single-
tenant edition (STE)

How do we guide customers to the “right” SAP S/4HANA Cloud offering?

• Customer engagements will be simplified and streamlined as customer needs with regards to
industry scope, localization, additional flexibility and extension requirements can be qualified
via the Digital Discovery Assessment process and tool. As a result, we know which SAP
S/4HANA Cloud option fits best to the customer, without the need to spell out that there are
options.
• Side-by-side comparisons lead to “pick & choose” behavior and should be avoided.

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What is the target market for SAP S/4HANA Cloud, Essentials?
• SAP S/4HANA Cloud Essentials will be the preferred solution for customers in professional
services (primarily in the Consulting, Audit & Tax segment), component manufacturing and
customers looking for a finance-led ERP solution. We will heavily invest into capabilities and
cloud qualities of this offering to make it market defining in this segment.

Which industries are supported by the different Cloud deployment options of SAP S/4HANA
Cloud?
• The answer depends on the functional scope your customer needs. Detailed qualification via
the Digital Discovery Assessment process and tool.

Is it realistic that we never mention SAP S/4HANA EX or ES to customers?

• For new customers, we should avoid positioning specific S/4HANA Cloud editions in the sales
process, until we have a thorough understanding of the scope and cloud requirements from
the cloud qualification process.
• SAP provides guidance and solution recommendation via the Digital Discovery Assessment
(DDA LINK) tool. Initial qualification is done by sales. Depending on the answers and the
resulting recommended deployment option, a more detailed qualification will be performed by
an SAP S/4HANA expert (e.g. from presales).
• In sales cycles where customers are already aware of the concepts of STE and MTE they can be
informed of the simplified naming and the renaming of MTE and STE to ‘essentials’ and
‘extended’ as per the guidance above.
• Customers should not be asked to make the choice between Extended and Essentials.
• We will need to continue to differentiate with the Essentials and Extended designations for
internal and partner discussions, addressing selling, implementation, and enablement.

Where do I find the sales presentation and demos for SAP S/4HANA Cloud?
• Please consult the SAP S/4HANA Solution Management Jam Page.

Where do I find customer references for SAP S/4HANA Cloud Essentials and Extended?
• Please consult the SAP S/4HANA Solution Management Jam Page.

COMMERCIALS (LICENSING, PRICING)

How will SAP S/4HANA EX or ES be reflected on the price-list?
• Only for internal purposes and on the price list we will use the following names:
SAP S/4HANA Cloud, Essentials (former MTE) and SAP S/4HANA Cloud, Extended (former STE).

Do the deployment options for SAP S/4HANA Cloud have different price points?
• The price points vary because of flexibility, extensibility, and functional scope. See price list.

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How does the pricing work?
• The pricing concept has not changed. A lot of this harmonization work has already been done.
We have an S/4HANA Enterprise Management (EM) license, based on users for the core EM
scope. This is a single license material, which is based on full user equivalents (FUE) concept,
which allows it to be applied to the different user types based on different multipliers.
(Customer facing pricing deck). S/4HANA Cloud ES and S/4HANA Cloud EX have different SKUs
for Enterprise Management as this triggers different provisioning procedures.
• Both solutions have additional licenses for advanced LOB and Industry capabilities. Wherever
possible we will consolidate these LOB- and Industry-engines and significantly simplify the
price-list.
• License materials will be updated to reflect the new naming.

When does the customer find out which product, they are buying?
• At the very latest, the designation of SAP S/4HANA Cloud, Essentials or Extended will be visible
in the description of the SKU on the order form.

Will SAP S/4HANA EX keep the same contracts as STE today?

• No, further harmonization of the contracts is planned

Does SAP S/4HANA EX offer preferred success?

• Not yet, please position Value Assurance instead.

How is my compensation influenced by the different deployment options for SAP S/4HANA
Cloud?
• Please see the Quota Credit Rules (+ local addendum)

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SAP S/4HANA CLOUD CAPABILITIES, DELIVERY AND ROADMAP
Does this unified S/4HANA Cloud go-to-market mean we are giving up on S/4HANA Cloud,
Essentials? Should we just position S/4HANA Cloud, Extended for all deals?
• S/4HANA Cloud, Essentials remains the strategic cloud ERP solution for SAP. Instead we have
taken the decision that there is no ONE SIZE FITS ALL in the cloud, so we will have both ES and
EX as long-term solutions.
• S/4HANA Cloud, Extended has the broader industry and country coverage, but has restrictions
regarding cloud qualities (e.g. release updates, test automation, …).
• While we will invest in the cloud qualities of S/4HANA Cloud, Extended, which should help
reduce TCO, it will not meet the same scalability and TCO (for both, customers and SAP) we
can achieve with S/4HANA Cloud, Essentials.
• S/4HANA Cloud, Essentials is the solution which will meet the cloud qualities our customers
expect from a true SaaS solution. We will continue to invest in S/4HANA Cloud, Essentials
Edition and carefully expand its industry coverage.
• The introduction of S/4HANA Cloud, Essentials Edition into new industries will be managed in a
phased approach through incubation to make sure we have the necessary scope and reference
customers, before opening it more widely to customers in those industries.
• Ultimately, we see the market moving in the direction of S/4HANA Cloud, Essentials and need
to make sure this solution is successful.
• At SAP we pride ourselves in providing choice to our customers. We just need to become
more prescriptive to avoid that choice being perceived as complexity.

What is the development strategy and roadmap for SAP S/4HANA Cloud, Extended?
• S/4HANA Cloud Extended will not be an interim solution, but the final solution for a specific set
of customers. We will invest in 2020 and beyond substantially into this solution to increase the
cloud qualities and further streamline the provisioning.

Where can I find the roadmap for S/4HANA Cloud, Extended?

• The roadmap is currently under development and will be posted in Q1/2020.

What is the development strategy and roadmap for SAP S/4HANA Cloud, Essentials?
• SAP S/4HANA Cloud Essentials will be the final solution for the other set of customers (mainly
professional services, component manufacturing and finance led ERP) and we will heavily
invest into capabilities and cloud qualities of this offering to make it market defining in this
segment.

Will we merge the different deployment options for SAP S/4HANA Cloud?
• There are no plans to merge the different deployments options of SAP S/4HANA Cloud.

What is the upgrade frequency for SAP S/4HANA Cloud?

• For S/4HANA Cloud, we provide at least two upgrades each year.

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Will there be a path from SAP S/4HANA Cloud, Extended to SAP S/4HANA Cloud, Essentials?
• There are currently no plans to automate the transition from SAP S/4HANA Cloud, Extended to
SAP S/4HANA Cloud, Essentials (or vice versa).
• S/4HANA Cloud ES is a long-term solution. We should position the right solution as the final
destination. We should not position a ‘stepping stone’ strategy.

Can customers “upgrade” from SAP S/4HANA Cloud, Essentials to SAP S/4HANA Cloud, Extended
if their requirements evolve?
• There are technical and operational differences between the two consumption options.
Therefore, a transition between the SAP S/4HANA Cloud deployment models “Essentials” and
“Extended” is not possible.

Does the migration path for customers from SAP ERP to SAP S/4HANA Cloud depend on the
deployment option?
• Data migration is supported for both SAP S/4HANA Cloud deployment options.
• We are currently investigating the options to transport an existing configuration (ECC and
S/4HANA) into EX. Details on the possibilities will be published in the product roadmap.
• In any case we recommend using the pre-configuration content and best practices.

Which SAP and partner add-ons are allowed on SAP S/4HANA Cloud EX?
• Please see pricelist to find out which SAP and partner add-ons are available (commercialized)
for S/4HANA Cloud, Extended. In addition, we will document a process how partner add-ons
not on the SAP price list can be certified for EX. This will include partner templates and
extensions as well. Please refer to the EX roadmap for details on this process.

What do we show if the customer wants to see a demo?

• For S/4HANA Cloud, (both Essentials and Extended) we should always be leading with the
FIORI UX.
• For most level 1 demos it should suffice to show S/4HANA Cloud, Essentials, as it would not be
apparent to the observer which solution we are demonstrating and most of the capabilities are
shared across the solutions.
• For most level 1 demos it should suffice to show S/4HANA Cloud, Essentials, as it would not be
apparent to the observer which solution we are demonstrating and most of the capabilities are
shared across the solutions. to be aware that they are now predisposed towards S/4HANA
Cloud, Extended Edition in the cloud qualification process, if those features are critical to the
customer.
• Similarly, when demonstrating solutions, not available in S/4HANA Cloud, Extended Edition
(such as Vistex), we are automatically directing the deal towards an HEC, hyper-scaler, or
traditional on-premises type agreement.

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What can we expect from S/4HANA Cloud, Extended Edition in the future?
• There is an internal program underway, “Next Gen STE,” covering the entire solution build as
well as go-to-market, with the goal of aligning the offerings regarding their non-functional
requirements.
• This program is ongoing and many of the changes will take months or even years to
implement.
• These announcements will be made in due course. Contractual commitments made to
customers based on current qualities of S/4HANA Cloud, single tenant edition will be honored.

Where can I find the roadmap for S/4HANA Cloud, Extended?

• It will be posted in Q1/2020, once the Next Gen team has decided on the qualities of S/4HANA
Cloud EX.

Which user experiences are available for SAP S/4HANA Cloud?

• FIORI is available for SAP S/4HANA Cloud. If required for special cases, the SAP GUI is available
for SAP S/4HANA Cloud Extended.

Will there be restrictions on IMG access for S/4HANA Cloud, Extended similar to what is in
S/4HANA Cloud, Essentials today?
• In order in increase the cloud qualities and simplify application life-cycle aspects configuration
options of S/4HANA Cloud, Extended will be restricted, but not to the level we know from
S/4HANA Cloud, Essentials today.

Are there differences with respect to extensibility?

• Both deployment options support in-app and side-by-side extensibility. Please consult the
Extensibility Guide for more details.

Which other SAP Cloud products are integrated with the different SAP S/4HANA Cloud
deployment options?
• S/4HANA Cloud, Extended offers a wide range of integration to other SAP Cloud and on-
premise products
• Prepackaged integration content for S/4HANA Cloud, Essentials (please see integration scope
items per LoB in the S/4HANA Cloud 1911 Business Scope document) is available in the Best
Practice Explorer.

Some customers say that SAP S/4HANA Cloud Extended (fka STE) is basically HEC or hosted on-
premise.
• While S/4HANA Cloud, Extended Edition is using the on-premise product stack and scope, it
varies from S/4HANA on-premise in the way it is offered in the market place, addressing key
needs of a SaaS solution:

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 o S/4HANA Cloud, Extended Edition is offered as a subscription which bundles the
license, infrastructure, and Application Management Services (AMS), much like
S/4HANA Cloud, Essentials Edition, creating a single point of accountability in all 3
aspects of providing an enterprise application
o S/4HANA Cloud, Extended Edition re-uses cloud application lifecycle components such
as the testing framework from Essentials wherever possible.
o S/4HANA Cloud, Extended Edition includes upgrades up to twice per year, where many
of the upgrade tasks are delivered by SAP.
o The customer buying experience is simplified using packaged products
o S/4HANA Cloud, Extended Edition enforces standards to enable customers to
continuously consume innovations
S/4HANA Cloud, Extended Edition will continue to evolve as we focus on aligning the cloud
qualities with S/4HANA Cloud, Essentials Edition.

Will S/4HANA Cloud, Extended be continued to be delivered by HEC?

• This is still to be decided as part of the Next Gen program, but in either case it will be managed
by a dedicated team.

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