Features and architecture of the
SAP S/4HANA Public Cloud

More and more companies are considering switching to SAP S/4HANA Cloud, Public Edition. But what functions does the SAP Public Cloud have in detail and what does its architecture look like? All information at a glance!

How does the SAP Public Cloud work?

The SAP Public Cloud (official product name: SAP S/4HANA Cloud, Public Edition) is a fully managed cloud ERP system from SAP. Unlike the classic on-premise installation (in-house operation on site), this solution is operated by SAP. This significantly reduces the workload of your own IT team.

What services does the SAP Public Cloud include?

SAP S/4HANA Cloud, Public Edition comes with a comprehensive service package that includes the following services:

1. Hosting

The SAP Public Cloud is hosted in SAP’s own, highly secure data centers or at a hyperscaler such as Amazon, Google or Microsoft. These data centers are specially designed to meet the requirements of business solutions. They guarantee maximum availability, security and performance.

Key aspects of hosting are

  • Global availability: SAP operates data centers in various regions around the world to ensure low latency and global coverage.
  • Highest security standards: Security mechanisms such as data encryption, access controls and cyber security solutions are in place. Regular audits are also carried out to ensure adherence to compliance standards such as ISO 27001 and SOC 2.
  • Redundancy and high availability: redundant systems ensure continuous operational readiness. Data is replicated automatically to avoid potential outages.
  • Performance optimization: SAP ensures that the hosting infrastructure is optimally designed for SAP applications such as SAP S/4HANA and other SAP services. This maximizes application performance.

2. Automatic updates

Another key feature of the SAP Public Cloud is the provision of automatic updates. These ensure that companies always have access to the latest functions and technologies without having to carry out time-consuming migration or test procedures.

The key features of the updates are

  • Regular release cycles: SAP provides updates on a quarterly basis. They include both technical improvements and new functions that are developed on the basis of customer feedback and market requirements.
  • No IT effort: The updates are automated and carried out without customer intervention. This saves companies the time and resources that would otherwise be required to maintain and update the system.
  • Security updates: In addition to functional enhancements, critical security updates are also applied automatically to ensure compliance with the highest security standards.
  • Compatibility assurance: SAP ensures that all updates are compatible with existing settings and enhancements to ensure smooth operation.

3. Additional services

In addition to operation, maintenance and updates, the SAP Public Cloud includes a number of other services. These include, for example

  • Automatic backups
  • 24/7 support for technical problems
  • Access to extensive documentation, knowledge databases and community resources
  • Support with implementation via “GROW with SAP”

What does the licensing of SAP S/4HANA Cloud, Public Edition look like?

Licensing for the SAP Public Cloud is based on a clearly structured subscription model. The costs are based on the number of users and the selected modules and services. This model offers companies the opportunity to license specific functionalities as required without having to co-finance unused resources.

Billing is usually annual and also includes essential components such as regular updates and maintenance, so that no additional fees are incurred for technical innovations. This model also has advantages in terms of scalability: companies can quickly activate additional users or services as demand grows. This flexibility ensures that companies can adapt their licensing to their business requirements at any time.

Architecture of the SAP Public Cloud

The SAP public cloud architecture is designed to provide companies with a modern, scalable and flexible environment. The two main system components are

  1. SAP S/4HANA Cloud Public Edition: standardized cloud ERP system based on the high-performance in-memory database technology HANA
  2. SAP Business Technology Platform (SAP BTP): platform for individual extensions and integrations

From a hosting perspective, the SAP public cloud architecture follows the multi-tenant approach. This means that several companies use the same physical infrastructure, while their data remains logically separated from one another. This has the following advantages:

  • Cost efficiency: shared use of the infrastructure reduces operating costs for each customer.
  • Scalability: Resources are allocated dynamically so that the platform grows flexibly with the company’s requirements.

Features of the SAP Public Cloud

The SAP Public Cloud is primarily aimed at standardization, good user experience and technical innovation. The most important features include:

  1. Clean core principle
  2. Best practices
  3. Lines of Business (LoB)
  4. SAP Fiori
  5. Access to modern technologies and AI-supported services

These SAP public cloud functions are described in more detail below.

1. Clean core principle

The clean core principle is one of the basic SAP public cloud functions. It ensures that the core system remains standardized and untouched. By way of comparison: with previous on-premise versions of SAP ERP systems (e.g. SAP ECC), it was possible to make what is known as a modification – i.e. to change the source code. In practice, this regularly led to challenges during version changes and updates. In the case of SAP S/4HANA Cloud Public Edition, the software manufacturer has decided to make such interventions impossible from the outset. This reduces complexity, facilitates future updates and ensures that companies can easily benefit from the latest innovations.

2. Best practices

SAP S/4HANA Cloud Public Edition is delivered with best practices for various industries. These are preconfigured, standardized business processes based on years of experience and proven methods. The best practices enable fast and cost-efficient implementation. They also open up the opportunity to adapt existing processes to proven industry standards and thus optimize them.

3. Lines of business (LoB)

Like the older SAP ERP systems, SAP S/4HANA has a modular structure. However, SAP no longer refers to modules in the current product generation, but rather lines of business (LoB for short). The following LoBs currently exist (as of January 2025), which can be used individually or in combination

  • Asset Management
  • Finance
  • Manufacturing
  • R&D/Engineering
  • Sales
  • Service
  • Sourcing & Procurement
  • Supply Chain
  • Sustainability, Compliance and Enterprise Strategy

4. SAP Fiori

Another SAP Public Cloud feature is the SAP Fiori user interface, which provides an intuitive, role-based user experience. The modern front end ensures ease of use and enables employees to work more efficiently by completing their tasks faster and in a more targeted manner. Various customizations are also possible.

5. Access to innovations and AI-supported services

New technologies such as artificial intelligence, machine learning, robotic process automation (RPA) and big data analytics are constantly being integrated into the SAP Public Cloud. One example is an AI assistant that enables users to execute business processes particularly quickly and gain business insights.

What if the range of functions is not sufficient?

As mentioned, SAP S/4HANA Cloud, Public Edition is a highly standardized ERP system. The business processes can therefore not be highly individualized. Nevertheless, there are various options for implementing specific requirements:

1. SAP Business Technology Platform (SAP BTP)

SAP BTP offers a flexible platform for extending and integrating standard functions. The BTP can be used to create new applications, extend existing processes or integrate non-SAP systems. The extension options include

Side-by-Side Extensions: development and operation of new functions outside the core system in order to maintain the update capability of the core system.
Integration Services: Connection of third-party systems or legacy IT systems via ready-made connectors.

2. Use of extensions (apps) from the SAP Store

There are numerous extensions for SAP S/4HANA Cloud, Public Edition that have been developed by SAP or SAP partners – for example for the areas of financial reporting, product management, logistics, service and project management and compliance. These additional tools are available in the SAP Store.

3. Key User Extensibility

This no-code/low-code functionality enables key users (specialist users) to make minor adjustments themselves. This includes adding user-defined fields, customizing forms and interfaces and defining simple rules or workflows.

4. On-Stack Developer Extensibility (Embedded Steampunk)

Developers can work with ABAP directly on the core system to implement extended functions. These extensions are update-safe and are suitable for deeper customizations within the permitted framework.

5. Addition of further SAP solutions

Additional modules and cloud-based SAP solutions such as SAP Ariba (procurement), SAP SuccessFactors (HR management) or SAP Fieldglass (external resource management) can be easily connected to extend the functional scope of the S/4HANA Cloud.

FAQ - Your most frequently asked questions, our answers

Backups of the entire SAP database are performed automatically on a regular basis. Manual precautions are therefore not normally necessary. However, it is still possible to export the data manually.

No, Windows licenses cannot be installed on the instances of the SAP Public Cloud. The SAP Public Cloud is a fully managed environment intended exclusively for the operation of SAP applications. It is not an infrastructure for the operation of general operating systems such as Windows.

Yes, SAP BTP (SAP Integration Suite) can also be used to connect non-SAP systems to SAP S/4HANA Cloud Public Edition.

Yes, it is possible to outsource individual processes to the SAP Public Cloud while the rest of the ERP landscape remains “on-premise”. On the one hand, this is possible via a so-called two-tier model, in which core processes remain in the on-premise system, while specific areas or processes are transferred to the cloud.

Yes, it is possible to outsource a business unit to a separate SAP S/4HANA cloud environment. This is often implemented as part of a two-tier ERP model, in which the head office continues to use an on-premise or existing ERP system, while the outsourced unit is given an independent cloud environment.

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