Choosing the Right Path: Public vs. Private Cloud in SAP S/4HANA

As legacy SAP ECC 6.0 approaches the end of mainstream maintenance in 2027, many organizations
must proactively weigh their options on how to address this deadline. Options may include
continuing extended maintenance (at additional cost) for 2028-2030, exploring third-party
support options, or committing to moving to SAP S/4HANA. For the latter option, there are
three approaches to consider: SAP S/4HANA on-premises/third-party hosting, SAP S/4HANA
Cloud Private Edition, or SAP S/4 HANA Cloud Public Addition. As most organizations look to
minimize their physical footprints and move to the cloud, it is important to understand the key
differences between SAP’s S/4HANA Public and Private Cloud offerings.

SAP S/4HANA Private Cloud:

SAP’s S/4HANA Private Cloud edition, often referred to as ‘RISE with SAP’, is the subscription
offering that focuses on modernizing, upgrading, and moving to the cloud a customers’ existing
legacy SAP footprint. This solution allows customers to keep control of their customizations (to a
certain extent) and run on their own established standard, making it a tailored-to-fit cloud ERP
that is adaptable to the organization’s transformation needs. Additionally, with the Private
Cloud being solely dedicated to the organization, greater control exists for the organization over
most aspects of the ERP landscape. Customers pursuing this option would need to undergo a
Brownfield and/or Greenfield deployment strategy. To learn more about what ERP migration
path is best for your company, read this article by Liberty’s Dave Leopold.

Learn more about RISE from Liberty’s experts:
RISE or Resist: Making the Right Move for our SAP ECC Transition
SAP RISE: What is IT, And More Importantly, Who Is It Best For?

SAP S/4HANA Public Cloud:

SAP’s S/4HANA Public Cloud edition, often referred to as ‘GROW with SAP’, is the subscription
offering that provides an out-of-the-box, ready-to-run cloud ERP solution that follows the latest
innovation and industry best practices. Furthermore, customization is not allowable in the
Public Cloud edition as it is a true multi-tenant cloud solution and the hosting hardware,
storage and network devices are shared with other organizations.

This solution is best for net new customers with limited business complexity or for
existing customers who want to distance themselves from an existing, overly complicated,
burdensome, and customized legacy footprint, and start fresh with an out-of-the-box Greenfield
implementation.

Regardless of the options available to an organization to address the upcoming end of
mainstream SAP ECC maintenance in 2027, it is imperative that each option is diligently thought
through and understood. Each option comes with its pros and cons, directly impacting and
implicating the transformation glide path and the business.

Liberty has extensive expertise and experience in helping clients develop, implement, and manage their SAP roadmaps. Contact us to connect with one of our experts today and learn more about how Liberty can help guide you through your ERP Transformation.


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