11 Questions about SAP S/4HANA Cloud
11 Questions about SAP S/4HANA Cloud
What you should know
Digitalization presents companies with the challenge of modernizing their IT systems in order to remain competitive in an increasingly dynamic market. SAP S/4HANA® Cloud offers an innovative solution to successfully navigate this transformation. An important aspect of this is choosing the right migration approach to ensure a smooth and efficient transition.
Below is an overview of migration strategies and ten essential questions that will help you make informed decisions for your business.
Quick Navigation:
→ Public vs. Private Edition – What’s the difference?
→ How does RISE with SAP support transformation?
→ Cloud vs. On-Premise – What are the advantages?
→ SAP S/4HANA Migration – What are the approaches?
→ How secure is SAP S/4HANA Cloud?
→ What role do hyperscalers play?
1. What is SAP S/4HANA Cloud?
SAP S/4HANA® Cloud is the cloud-based version of the SAP S/4HANA® ERP system. It combines cutting-edge technology with proven SAP® best practices to provide an efficient, flexible, and scalable solution. With integrated artificial intelligence and real-time analytics, S/4HANA® Cloud helps businesses make data-driven decisions.
The solution is complemented by the SAP® Business Technology Platform (SAP® BTP), which offers extensive possibilities for expansion, integration, and innovation. With BTP, you can develop custom applications, seamlessly integrate existing systems, and incorporate forward-thinking technologies like machine learning or the Internet of Things (IoT) into your business processes.
SAP S/4HANA® Cloud is available in two main versions: the Public Edition and the Private Edition.
2. What distinguishes the Public Edition from the Private Edition?
The Public Edition offers standardized processes based on the Software-as-a-Service (SaaS) model. It is ideal for companies that want to quickly benefit from best practices and do not require extensive customization.
The Private Edition, on the other hand, allows for higher levels of customization and operates in a dedicated environment, similar to on-premise systems. This version is ideal for companies with complex requirements, such as those in highly regulated industries, as it provides maximum flexibility and customization options.
3. How does RISE with SAP support the transformation?
RISE with SAP® is a comprehensive offering that supports companies step by step on their journey to the cloud. It provides tools for process optimization, such as SAP® Business Process Intelligence, a simplified cloud implementation, and integration with leading hyperscalers like AWS, Google Cloud, or Microsoft Azure.
Additionally, RISE with SAP® includes technical services such as system monitoring and continuous updates. The goal of the offering is to make the transition to the cloud easier, minimize risks, and reduce long-term costs.
4. What is GROW with SAP?
GROW with SAP® is specifically designed for companies looking for a quick and straightforward implementation of the Public Edition. It offers a turnkey solution with pre-configured processes and extensive support.
Thanks to the pre-configured best practices, companies can become productive within a few months. This makes GROW with SAP® particularly attractive for growth-oriented businesses with limited IT resources. At the same time, the solution remains flexible: businesses can make adjustments and utilize side-by-side extensibilities to meet specific requirements.
5. What advantages does a cloud solution offer compared to an on-premise solution?
Cloud solutions offer high flexibility and scalability, while on-premise systems are often associated with high maintenance efforts and slower innovation speed. By using cloud services, companies benefit from automatic updates, global availability, and a lower need for internal IT infrastructure. Additionally, resources can be scaled as needed, reducing costs and increasing agility.
Another key advantage is the higher security in the cloud. SAP® meets the strictest security standards such as ISO 27001, SOC 2, and GDPR compliance, which would be difficult to implement in many on-premise environments. Features like continuous monitoring and regular security updates also contribute to this enhanced security.
6. Migration to SAP S/4HANA: What approaches are there?
The migration to SAP S/4HANA® can take place in various ways, depending on your company’s specific requirements and existing IT landscape:
- Greenfield approach: This approach involves a complete reimplementation, where processes are redefined from scratch. It is ideal for companies looking to replace their outdated systems with a modern ERP solution and redesign their business processes.
- Brownfield approach: This is a system conversion, where the existing ERP environment is transferred to SAP S/4HANA®. This approach is suitable for companies that want to largely retain their existing processes. The focus is on optimizing existing systems, while also taking advantage of new functions and technologies available in SAP S/4HANA®.
7. How can costs be saved?
By using SaaS, companies can avoid high investments in extensive IT infrastructure. Businesses only pay for the resources they actually use, which is particularly beneficial for growth-oriented companies.
Additionally, standardized processes and pre-configured SAP® best practices lead to shorter implementation times and lower setup efforts. This significantly reduces both initial and ongoing operational costs.
8. How secure is the SAP S/4HANA Cloud?
The SAP S/4HANA® Cloud meets the strictest and most modern security standards, such as ISO 27001, SOC 2, and GDPR compliance. These ensure the protection of sensitive data and adherence to international data privacy regulations.
Additionally, businesses benefit from the security mechanisms of leading hyperscalers such as AWS, Google Cloud, and Microsoft Azure. IT security is guaranteed through measures like encryption technologies, multi-factor authentication, and continuous security checks.
Companies thus benefit from a high level of data protection and IT security in the SAP S/4HANA Cloud®.
9. What role do hyperscalers play?
Hyperscalers provide the technical infrastructure for the cloud, ensuring high availability, scalability, and top security standards. Customers can choose the provider that best fits their needs:
- AWS (Amazon Web Services): AWS is a leader in the cloud industry and offers a wide range of services, including advanced analytics and machine learning capabilities. Its scalability and global infrastructure make AWS ideal for companies with high capacity requirements.
- Google Cloud: Particularly strong in the areas of artificial intelligence and big data. Google Cloud is the preferred choice for companies that rely on data-intensive processes and modern AI-powered applications. Additionally, Google is known for its high energy efficiency and sustainability.
- Microsoft Azure: Azure is perfect for companies already using Microsoft products like Office 365 or Dynamics. Its seamless integration with existing Microsoft environments makes migration and operation much easier. Furthermore, Azure offers strong hybrid cloud capabilities.
Alternatively, companies have the option to run their SAP S/4HANA® Cloud directly through SAP®. This approach is especially suited for customers who prefer a unified solution from a single provider and wish to delegate the operation entirely to SAP.
10. How do SAP Best Practices support implementation?
SAP® Best Practices offer pre-configured processes based on the experiences of thousands of SAP customers. They are specifically designed to accelerate the implementation of SAP S/4HANA® Cloud while minimizing risks. The key benefits include:
- Time savings: Pre-defined processes drastically reduce the implementation time, enabling companies to become productive faster.
- Reduced costs: Using Best Practices lowers the need for costly custom development and helps avoid potential errors.
- Industry focus: SAP offers Best Practices for a wide range of industries, from manufacturing to retail to financial services, ensuring that industry-specific requirements are already addressed.
- Proven processes: These processes are based on decades of experience and the Best Practices of other leading companies, ensuring high quality and efficiency.
- Easy customization: With the SAP Business Technology Platform (BTP), Best Practices can be easily adjusted or extended to meet specific needs.
- Global compliance: SAP Best Practices account for international standards and regulatory requirements, which is especially beneficial for companies with a global presence.
11. Is SAP S/4HANA Cloud the right solution for my business?
The answer depends on the specific requirements of your company. SAP S/4HANA® Cloud offers benefits for businesses that prioritize flexibility, fast innovation cycles, and a lean IT architecture.
For companies with more complex requirements, the Private Edition provides the opportunity to tailor the solution to specific needs. Use a checklist or conduct a needs analysis to identify the right solution for you.
Conclusion
The decision between the Public and Private Editions, the integration of RISE with SAP® or GROW with SAP®, as well as the consideration of economic and technical benefits, are crucial for a successful transformation. With SAP S/4HANA® Cloud, you lay a solid foundation to future-proof your business and secure long-term competitive advantages. Take advantage of modern cloud solutions to increase efficiency, drive innovation, and elevate your business to the next level!
If you would like to learn more about SAP S/4HANA® Cloud and the right strategies for your company, feel free to contact us. Our team of experts is ready to answer your specific questions and guide you on the path to a successful transformation.
