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Overview of SAP S/4HANA Cloud, Public Edition

More and more small and medium-sized companies are interested in a cloud ERP system. One particularly attractive option is SAP S/4HANA Cloud, Public Edition.

What is SAP S/4HANA Cloud, Public Edition (SAP Public Cloud)?

SAP S/4HANA Cloud, Public Edition, is a fully managed, cloud-based ERP solution from SAP. It is often referred to as “SAP Public Cloud”, but this is not the official term used by the manufacturer. SAP S/4HANA Cloud, Public Edition is provided as Software-as-a-Service (SaaS) in the public cloud. This includes a service package comprising implementation services, managed services for continuous maintenance and optimization, security and compliance measures as well as regular updates.

What is the difference between SAP S/4HANA Cloud, Public Edition and Private Edition?

The Public Edition is a standardized multi-tenant cloud solution. It is operated on an SAP hosting infrastructure that is shared by several companies. The highly scalable solution contains standard functions and ready-made best practices for a quick start. It is also regularly supplied with mandatory updates. In addition to the best practices, individual customizations are possible via additional extensibilities in the Business Technology Platform. Hosting, maintenance and updates are provided entirely by SAP.

SAP S/4HANA Cloud, Private Edition, on the other hand, is a single-tenant solution that is operated in a dedicated (private) cloud environment (e.g. on hyperscalers such as Microsoft Azure, AWS or Google Cloud). It has more customization options as it is not strictly bound to best practices. For example, it enables the transfer of existing on-premise processes that do not comply with the standard. SAP S/4HANA Cloud, Private Editionand has longer, individually definable update cycles. Hosting can be provided by SAP or a partner. The total cost of ownership is higher than in the SAP Public Cloud.

What are the advantages and disadvantages of SAP S/4HANA Cloud, Public Edition?

The SAP S/4HANA Cloud, Public Edition brings a number of benefits for companies. The most important are as follows:

  • Access to the latest services and innovations: The Public Edition is provided with a regular update (quarterly). This gives customers continuous access to the latest functions, innovations and best practices. Companies therefore always remain technologically up to date without having to carry out costly update projects.
  • Preconfigured best practices for various industries: Companies benefit from proven, standardized processes that SAP has developed specifically for different industries. This enables faster implementation and reduces configuration effort.
  • Change as an opportunity for companies: The move to SAP S/4HANA Cloud, Public Edition forces companies to rethink previous processes and switch to standardized, modern, efficient processes. This promotes digital transformation, creates agility and makes companies more resilient to future challenges. It also results in long-term time and cost savings.

The notable disadvantages of SAP S/4HANA Cloud, Public Edition are:

  • Less flexibility for individual customizations: SAP S/4HANA Cloud, Public Edition offers limited options for customizing processes and workflows. According to the “clean core” principle, customizations cannot be made directly in the code, but are set up by Extensibilities via the Business Technology PLatform. It may not be possible to cover all specific requirements resulting from the previously defined processes.
  • Adaptation of business processes required: Companies must be prepared to adapt their internal processes to the standard processes of the Public Edition. This may initially cause resistance. However, this change is also an opportunity (see list of benefits).
  • Less control over operations: As the Public Edition of SAP S/4HANA Cloud is fully managed, companies have less control over hosting and maintenance. Decisions about updates and changes are made by SAP, which can affect predictability.
  • Limited migration options for legacy systems: Existing R3 or ECC systems cannot be easily transferred to the SAP Public Cloud. Instead, it is usually necessary to fundamentally rebuild SAP S/4HANA Cloud, Public Edition using the greenfield approach.

What innovations does the SAP S/4HANA Public Cloud offer?

SAP is continuously developing its public cloud ERP. This gives companies access to state-of-the-art technologies and tools that enable them to constantly increase their competitiveness and agility. For example, “Joule” is an AI assistant that can access data, analysis and processes directly. It provides users with quick business insights, the right app for the current business process and relevant information from the SAP knowledge database.

Another example is the “Cost Center Review Booklet” analysis report, which is equipped with AI-generated financial insights in its beta version. Production planning has also been improved. It is now more intuitive and even easier to use thanks to drag-and-drop functions.

The following features are planned (as of January 2025):

  • Expansion of best practices: The continuous expansion of SAP Best Practices means that more and more industries can map their business processes with pinpoint accuracy.
  • More efficient production processes: New functions aim to increase efficiency in all production processes, improve sustainability and reduce waste.
  • Integrated value creation cycles: Companies should be able to continuously monitor company performance and derive consistent strategic measures based on fully integrated value creation cycles.
  • Combination of products and services: Companies should be given the opportunity to bundle products, services, projects and subscriptions into integrated offerings to promote the sale of complete solutions.

For which companies is the SAP S/4HANA Cloud, Public Edition suitable?

The SAP S/4HANA Cloud, Public Edition is primarily aimed at small and medium-sized enterprises (SMEs) that want to digitize and modernize their business processes. In particular, agile and fast-growing companies that have not yet used an ERP system from SAP can benefit from the SAP Public Cloud. This is because the standardized processes help them to create scalable structures. At the same time, the regular updates ensure a continuous supply of technological innovations. This makes SAP S/4HANA Cloud, Public Edition interesting for companies for whom future security is important.

SAP S/4HANA Cloud, Public Edition is also only suitable for companies that are prepared to set up new ERP software. This is also known as the greenfield approach. Existing legacy systems are not migrated. On the one hand, this means a certain amount of effort, but on the other hand it also presents an opportunity: companies can get rid of their outdated IT structures and start afresh, which represents a decisive step in the digital transformation.

Last but not least, with its public cloud solution, SAP takes over all important administrative tasks such as system maintenance and the installation of updates. The platform is therefore also aimed at companies that want to relieve the burden on their own IT team and do not want to operate their own servers.

Is the SAP S/4HANA Cloud, Public Edition suitable for all industries?

SAP S/4HANA Cloud, Public Edition is not yet suitable for all industries without restrictions. SAP offers a wide range of preconfigured best practices for many industries such as manufacturing, retail, services, the public sector, automotive, chemicals, healthcare and consumer goods. However, mature solutions are still lacking in certain specialized areas. This applies to more complex scenarios in warehousing, for example. In some cases, the functional scope of the SAP public cloud solution is not yet sufficient. However, in conjunction with other SAP products, such as SAP EWM, complex warehousing can already be mapped today. ERPvisor GmbH specializes in such models.

However, SAP is clearly committed to the public cloud as its preferred platform. As a result, the expansion of the range of functions in this area is being particularly accelerated: The company is systematically driving forward the development of industry-specific extensions and special solutions so that existing industry gaps are likely to be closed in the coming years. Companies that are currently still reliant on on-premise or private cloud solutions can assume that more complex requirements can also be mapped via the SAP S/4HANA Cloud, Public Edition in the long term.

Are the functions of the public cloud sufficient?

Ob Finanzen, Einkauf, Vertrieb, Produktion oder Personalmanagement: Geschäftsprozesse sind in den meisten kleinen und mittelständischen Unternehmen sehr ähnlich. Somit lassen sich die Anforderungen eines Betriebs in der SAP Public Cloud mithilfe der Best Practices größtenteils abbilden. Für spezifische Anforderungen stehen zudem zusätzliche Services (zum Beispiel Erweiterungen und Integrationen) aus der SAP Business Technology Platform (SAP BTP) zur Verfügung. Somit ist eine gewissen Extensibility sichergestellt.

Für Unternehmen mit komplexen Prozessen kann der Funktionsumfang von SAP S/4HANA Cloud, Public Edition (noch) zu gering sein. In diesem Fall ist die SAP S/4HANA Cloud, Private Edition die bessere Wahl, da sie individuelle Anpassungen ermöglicht.

How does the switch to SAP S/4HANA Cloud, Public Edition work?

The switch to the SAP Public Cloud takes place via the “GROW with SAP” program. It was specially developed for small and medium-sized companies to enable a quick and smooth transition to the new cloud ERP system. An important tool used in connection with GROW with SAP is the Digital Discovery Assessment (DDA). This is a structured process for defining the requirements profile (scoping) and planning the integration of SAP S/4HANA Cloud, Public Edition. The DDA program analyzes the compliance of the existing business processes with the predefined best practices in the SAP Public Cloud. It also identifies gaps and possible solutions. This gives companies a clear overview of the necessary preparations and the requirements for the changeover – for example with regard to data migration, process adjustments or necessary training. Other important components of GROW with SAP for the switch to SAP S/4HANA Cloud, Public Edition are
  • Best practices (preconfigured processes)
  • Trainings
  • Knowledge resources
  • SAP Business Technology Platform (BTP) for flexible extensions
All these tools and services are aimed at enabling a fast and structured implementation without companies having to provide their own resources on a large scale.
  • Mehr lesen: GROW with SAP

How secure is the data in the SAP S/4HANA Cloud, Public Edition?

Data in the SAP Public Cloud is protected by comprehensive security measures that meet international standards and compliance requirements: SAP ensures that data is encrypted both in transit and at rest. The provider also guarantees protection against unauthorized access through multi-level authentication procedures and regular security updates. Furthermore, the cloud solution is operated in ISO-certified data centers.

Detailed information on security guidelines, data protection measures and certifications is available on the SAP Cloud Security and Compliance page.

When is the two-tier scenario recommended as an alternative to the single instance?

The two-tier scenario – a hybrid approach – is suitable, for example, if a large parent company is already using a private cloud or on-premise instance of SAP S/4HANA and wants to connect a subsidiary or regional branch. In such a scenario, the parent company can retain its central processes while providing its subsidiary with a low-maintenance ERP solution with low total cost of ownership. Seamless networking between the two parties ensures full information transparency. In addition, there is no need to exchange data manually between parent and subsidiary.

At which locations are SAP Cloud Services available?

SAP Cloud Services are available in strategic locations around the world to ensure low latency and compliance with local regulations. These include data centers in North America, Europe, Asia-Pacific, and Latin America that meet regional requirements for data privacy, compliance, and security policies.

In Europe, for example, SAP operates data centers in Germany, the Netherlands and Switzerland to meet strict EU data protection requirements. In North America, there are locations in the USA and Canada, while in Asia-Pacific, data centers are operated in Australia, Japan and Singapore, among others.

The global availability of SAP Cloud Services enables companies to use the nearest data centers depending on the location of their subsidiaries or regional markets to ensure optimal performance.

FAQ - Your most frequently asked questions, our answers

A cloud ERP such as the SAP S/4HANA Public Cloud offers a lower initial investment, as no in-house IT infrastructure is required, and reduces ongoing maintenance and operating costs. It is more flexibly scalable, allowing companies to react quickly to changes, and enables continuous access to the latest functions and technologies thanks to regular updates. The cloud also ensures high security and compliance standards, which are adopted by professional data centers.

Sub-systems that are required to handle business processes can be seamlessly integrated into the SAP S/4HANA Public Cloud. This is done via standardized interfaces and integration options that are supported by the SAP Business Technology Platform. Existing sub-systems remain functional and can continue to be used for special requirements while they are harmonized with the central ERP solution.

A switch to the public cloud requires existing business processes to be based on SAP best practices, as the public cloud only supports standardized processes. The greenfield approach enables processes to be completely redesigned in accordance with these best practices and avoids legacy or individually developed solutions that are not supported in the public cloud. As a result, the greenfield approach is usually the only way to meet the technical and functional requirements of the public cloud.

Grow with SAP is aimed specifically at new SAP customers and small to medium-sized companies that want to get started quickly in the public cloud with preconfigured processes and a greenfield approach. RISE with SAP, on the other hand, is a comprehensive offering that is suitable for both existing customers and more complex scenarios such as brownfield migrations and supports hybrid deployment models. While Grow is focused on efficiency and simplicity with clearly defined standards, RISE offers more flexibility for customized transformation projects.

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