Selecting an SAP S/4HANA Deployment Option

Abstract

When planning to move to SAP S/4HANA, one of the most confusing and critical decisions is selecting a deployment option. The decision is largely dependent on the degree of standardization versus the degree of flexibility required for the enterprise software and the path you choose to move to SAP S/4HANA. The degree of extensibility allowed within the solution varies based on the selected deployment option.

RISE with SAP, SAP’s comprehensive new service that allows companies to move to the cloud in a more sustainable way, is designed to address unique customer scenarios. RISE is not a system upgrade; it’s a redesigned method of working that allows you to continually transform – in other words, it’s business transformation as a service. RISE with SAP supports customers in modernizing, standardizing and digitizing.

Introduction

SAP S/4HANA is the next-generation SAP business suite software. Its enterprise software is designed to be the digital core of your organization and has been created specifically to run an intelligent enterprise where data feeds into intelligent analytics, which enable process automation and innovation. SAP S/4HANA is built on the SAP HANA database and includes a library of pre-delivered business processes called SAP Best Practices.

Consider your options – deployment strategy

RISE with SAP S/4HANA Cloud (previously SAP S/4HANA Cloud, essentials edition)

This is a cloud solution that is highly standardized and covers selected lines of business (LoB) and industry scenarios, as well as a comprehensive enterprise resource planning (ERP) scope. Services are delivered to customers over a network generated from a multi-tenant server, meaning that two or more tenants (customers) are sharing the bandwidth of one server.

This multi-tenant server resides in an SAP data center. Your cloud provider (SAP) is responsible for maintaining the technical back end of your system and runs your software service in the server where your tenant resides. RISE with SAP S/4HANA Cloud has the fastest innovation, meaning it has regular release cycles where new features and enhancements to existing functionality are issued. SAP maintains your system with biweekly hot fixes and installs the release upgrades to customer systems on the defined schedule.

Please note, only the upgrades that affect a customer’s existing scope (active business processes) are applied. New business processes that are released are completely up to the customer’s discretion whether to activate the new scope in their system. RISE with SAP S/4HANA Cloud has the lowest total cost of ownership (TCO) because more standardization means SAP can provide far more pre-delivered resources to make the implementation and running the solution as easy as possible. In addition, the solution is delivered with RISE with SAP business transformation services.

If you have subscriptions to multiple solutions, in addition to SAP S/4HANA Cloud (e.g., SAP SuccessFactors, SAP Concur), you will have an individual tenant for each software server that may or may not reside in the same data center as your SAP S/4HANA Cloud ERP solution.

RISE with SAP S/4HANA Cloud, private edition

RISE with SAP S/4HANA Cloud, private edition, is a cloud solution with the full SAP S/4HANA on-premise scope. It has the elasticity, resilience, and TCO of cloud infrastructure, with the capability for customers to convert their existing SAP ECC systems to a cloud deployment. Customers have full access to the on-premise extensibility framework, supporting in-app and side-by-side extensions, in addition to code enhancement and modifications.

Expert configuration is possible with full image access, and the operating expense model is subscription-based. The solution is inherently deployed with SAP HANA Enterprise Cloud to provide the private cloud infrastructure and technical managed services. However, customers can choose where their solution is hosted: the SAP data center or hyperscaler data center that delivers a computing infrastructure provisioned and managed over the internet. Providers include Microsoft Azure, Amazon Web Services, Google Cloud Platform and Alibaba Cloud. SAP S/4HANA Cloud, private edition, is delivered with RISE with SAP services, in addition to the core ERP scope to support a customer’s business transformation to the cloud.

All services – from RISE to infrastructure management to the core software – are delivered under one contract with SAP, even if your solution is in a hyperscaler data center.

Key features of RISE with SAP S/4HANA Cloud, private edition:

• Full-functional S/4HANA scope, including lines of business (LOB) and industry processes
• System conversions and brownfield migrations into the cloud
• Safeguarding prior investments into SAP systems
• Flexibility and extensibility – access to S/4HANA Extensibility Framework

SAP S/4HANA Cloud, extended edition

SAP S/4HANA Cloud, extended edition, is a cloud solution based on standardized business processes, but also includes the extensibility and geographical reach of the SAP S/4HANA On-Premise solution. Services are delivered to customers over a private network protected by a firewall from a single-tenant server, meaning that only one tenant (customer) is using the storage and bandwidth of one server.

This single-tenant server can reside in your own data center or one owned by a vendor. SAP S/4HANA Cloud, extended edition, has semiannual (twice yearly) upgrades, and is hosted in SAP’s private, managed cloud – SAP HANA Enterprise Cloud (HEC).

SAP S/4HANA Cloud, extended edition, is well-suited to customers that require specific functionality, broader extensions, and deeper configuration capabilities in a dedicated cloud environment. Additional capabilities are allowed because a customer is the only tenant on the server. As a cloud solution, it is also easily scalable and has a low TCO.

Key features of SAP S/4HANA Cloud, extended edition, include:

• Standardization and scalability of the cloud, combined with the full-functional scope, extensibility, and geographical reach of SAP S/4HANA On-Premise
• Semiannual upgrades
• Configurable and customizable processes
• SAP S/4HANA Extensibility Framework and extensions via SAP Cloud Platform
• All industries supported
• Low TCO and faster time to value
• Subscription licensing
• Runs on single-tenant/private cloud-managed infrastructure (SAP HEC) and offers choice of where SAP’s HANA Enterprise Cloud (HEC)is hosted: SAP data center or hyperscaler (non-SAP vendor, e.g., Microsoft Azure, Amazon Web Services)

SAP S/4HANA On-Premise

SAP S/4HANA On-Premise is for enterprises across industries that need a deep and broad level of functionality, in addition to a high degree of flexibility in customization. Customers have the most flexibility to configure, extend, and modify their software, with full access to the SAP HANA database and development tools. SAP S/4HANA has an annual release cycle where customers can choose to adopt new innovations on their schedule.

Customers can choose to deploy the SAP S/4HANA solution in their preferred infrastructure, with varying degrees of maintenance responsibilities, depending on the infrastructure selected. SAP S/4HANA has perpetual licensing when deployed on-premise in a customer’s own data center, and subscription or bring your own license when deployed on the SAP HANA Enterprise Cloud or a third-party hyperscaler (e.g., Microsoft Azure, Amazon Web Services, Google Cloud Platform).

SAP S/4HANA On-Premise: Choosing an SAP S/4HANA On-Premise deployment option

SAP S/4HANA hosted in the customer’s data center

The classic on-premise deployment option is when the customer has purchased their own hardware and is responsible for maintaining the infrastructure, purchasing, installing, configuring, and managing the software.

SAP S/4HANA hosted by an IaaS provider (hyperscaler) data center

The SAP S/4HANA On-Premise solution is hosted in a non-SAP infrastructure-as-a-service (IaaS) provider data center (private cloud) – hyperscalers. The IaaS provider is responsible for maintaining the infrastructure, and the customer is responsible for purchasing, installing, configuring, and managing their software (operating systems, middleware, and applications) hosted in the cloud.

SAP S/4HANA hosted in SAP HEC in an SAP data center

The SAP S/4HANA On-Premise solution is hosted in the private, SAP-managed HANA Enterprise Cloud and deployed in an SAP data center. SAP HEC is an IaaS platform with managed services delivered by SAP to support SAP applications and solutions. The managed services include coordination and management of your entire cloud solution landscape, including infrastructure, systems, technology and applications.

SAP S/4HANA hosted in SAP HEC in a hyperscaler data center

The SAP S/4HANA On-Premise solution is hosted in the private, SAP-managed HANA Enterprise Cloud and deployed on a hyperscaler data center. SAP provides customers who choose this option with the same comprehensive managed services for HEC in a non-SAP data center as HEC in an SAP data center. SAP operates and manages the customer’s SAP systems in the HEC private, managed cloud with the IaaS provider of their choice under one contract and comprehensive responsibility.

Conclusion

Every customer has a unique set of goals and challenges when considering their move to SAP S/4HANA. The Hackett Group’s approach is designed to support customers in moving to SAP S/4HANA in the most nondisruptive way. We offer guidance to tackle critical moments to offer customers complete control over their transition. Our engagement model describes the customer’s end-to-end journey with specific resources and tools to accelerate their move to SAP S/4HANA. Answerthink (a division of The Hackett Group) helps regardless of the SAP S/4HANA deployment option customers choose. We simplify a customer’s move to the cloud or on-premise and help during their SAP S/4HANA journey. Our experience helps to make the conversion faster, and get customers the most value from their investment.