On-premise
vs
Cloud
SAP S/4HANA On-Premise
vs
SAP S/4HANA: Cloud, Cloud Single-Tenant Edition, Private Cloud managed by SAP (HEC)
On-premise
Licensing
Perpetual license model
Variant for existing customers
Variant for new customers
Infrastructure
and
maintenance
The customer is in control of
deployment and maintenance with
dedicated own IT staff
The customer needs to provide their
own hardware, networking, staff etc.
The customer should have his own
data centre or be hosted by third-
party
Customization
More flexibility and control in terms
of customization
Upgrades
Annual. The customer decides the
frequency and schedule of software
upgrades or whether to implement
the latest support packages
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Cloud
Licensing
Subscription model for Public Cloud
Perpetual or Subscription model for
Private Cloud
Infrastructure
and
maintenance
SAP provides the system,
infrastructure and is responsible for
the maintenance
SAP S/4HANA Cloud: infrastructure
shared with other customers hosted
only by SAP
SAP S/4HANA Cloud Single-tenant
Edition: dedicated landscape on
cloud infrastructure
SAP S/4HANA Private Cloud:
customer specific landscape on SAP
HANA Enterprise Cloud (HEC)
Customization
Less control and flexibility in terms
of customization
Upgrades
SAP S/4HANA Cloud: quarterly fixed
and mandatory
S/4HANA Cloud Single-tenant
Edition: two per year with flexibility
SAP S/4HANA Private Cloud: annual