Difference Between SAP S/4HANA Public Vs Private Edition

Over the years, most firms and businesses have struggled to find a business transformation tool whose main functional scope would be delivering their customers the ultimate experience. This all changed when a new, reliable, and efficient ERP solution was created in the form of the SAP system. SAP has offered ERP solutions for decades. Still, due to the need to cater to different parties, this intelligent enterprise resource planning system has two offerings:

SAP S/4HANA on-premise/ SAP ECC, which involves

• Hosting the ERP solution on the company’s premises or hosting it on a public cloud like Microsoft Azure, AWS, and GCP

SAP S/4HANA Cloud is available in two forms:

• S/4HANA private cloud edition
• S/4HANA public cloud edition

It’s important to remember that the S/4HANA private edition forms the base of the revolutionary SAP Rise/ECS, but that’s not what we are going to talk about. This post is designed to help you understand the difference between the two SAP HANA cloud editions. However, first, you must learn what the SAP S/4hana private cloud vs public cloud are as well as their advantages, so keep reading.

What is S/4HANA Cloud?

SAP business technology offers various ways to streamline your business processes, one of which is with SAP HANA cloud edition. S/4HANA Cloud is designed to bring you all the benefits of cloud ERP processes while allowing you to accomplish more at low costs and complexity. Therefore, SAP S/4HANA Cloud offers a complete cloud ERP solution designed to leverage sophisticated analytics and artificial intelligence to simplify the SAP business process across your organization. As stated above, this ERP solution is further divided into public and private editions.

What is SAP HANA Public Cloud?

SAP Public Cloud Edition is a brand-new implementation that allows all customers to share the same cloud, reducing total costs while increasing efficiency and scalability. Each company using this edition uploads its data and applications and chooses the services it needs. The cloud solution is provided by hyperscale providers such as Google, Amazon, and Microsoft. These providers offer their clients numerous data centers they can share and partition.

Advantages of the Public Cloud Edition

• Reduced costs since you won’t need any capital investment or purchase any hardware or software since you only pay for the services that you use
• It’s much easier to use as it’s simple and can be configured remotely. It also allows SAP activation.
• Increased uptime with minimal risk of failure as it can be implemented through greenfield only
• Offers you the opportunity to restructure your IT department thanks to its multiple resources, reducing the total cost of the IT department

What is SAP HANA Private Cloud?

The private cloud edition is an SAP cloud solution that can be referred to as an on-premise edition of the SAP system as it incorporates the network, hardware, software, storage, and cloud architecture on-premise. As a result, it boasts all the benefits of the public edition but with more customization. This cloud solution isn’t shared with other companies as it is solely dedicated to your company.

Advantages of the Private Cloud Edition

• Since the private cloud is entirely managed by your organization, even SAP analytics, you are assured of complete control and improved efficiency.
• It allows for high-level customization so that it can meet your organization’s specific needs
• As the sole user, you are assured of maximum security for your data
• It offers you guaranteed leverage on unused resources

Differences Between SAP HANA Public Edition and Private Edition

• The public cloud is multi-tenant as it offers its services over a network making it accessible for public usage, while the private cloud can build on any of the landscape as-a-service or your cloud
• The public edition only allows for greenfield implementation, while the private edition allows for selective data transmission, brownfield, and greenfield implementation
• The public cloud edition customization levels are quite limited, while as for the private cloud edition, the customization levels and options are unlimited
• The public cloud boasts a higher return on investment and a lower total operational cost. In contrast, the private cloud has a higher total operation cost, but the return on investment is quite impressive
• In the public cloud edition, software as a service is offered. This means that if you opt for the cloud solution, then you must be prepared to start over with a fresh new system but with the private cloud edition, you can migrate your existing data, business, and processes onto the cloud.