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SOLUTI​ONS

S/4HANA, ​On-Premise

Advantages and Disadvantages of On-Premise Deployment

On-premise deployment involves hosting your SAP Business One solution in your own data center or computer room.

Advantages

Control over data

On-premise deployment provides you with full control over your data, including its security and customization.

No internet dependency

On-premise deployment eliminates the dependency on internet connectivity and ensures that the solution is accessible at

Customization

On-premise deployment enables you to customize the solution to meet your specific business needs.

Security

On-premise deployment provides you with greater control over your data security practices

Disadvantages

High upfront costs

On-premise deployment requires significant upfront investment in hardware and software, which can be a challenge for small

Maintenance a​nd upgrades

On-premise deployment requires regular maintenance and upgrades to ensure that the solution is running smoothly

Limited scalability

On-premise deployment limits your ability to scale the solution quickly, as it requires significant investment in hardware

S/4HANA Cloud, & 
On-Premise What Is the Difference?

On-Premise Edition Cloud Edition
Licensing model Traditional licensing Subscription
Cost (implementation) It is more costly because of the need for additional hardware and/or software. The price is comparatively lower.
Implementation time Requires more cost and time (because of additional hardware or software) and qualified personnel to build a new environment. Shorter due to the ready-made platform used by the cloud version.
Functional scope Full ERP scope. Key industrial and embedded ERP scenarios.
Customization Due to system flexibility, there are many opportunities for customization. Customers have on-premise extensibility with in-app and side-by-side extensions, code enhancement, and modifications.
Scalability Long-term planning and extra resources are required. To scale the system up or down is easier, faster, and cheaper.
Upgrades You decide how often to upgrade your system and define the schedule of software upgrades in case your business processes require new SAP features and innovations. You have less control over system upgrades.
Your provider informs you about the impending upgrades in advance, and you can choose the
timing and functionality.
Maintenance, support The system is supported by in-house IT specialists. The provider is responsible for the system maintenance.
Infrastructure Customer's Hardware SAP Data Center or Hyperscale
Who manages the system Customer Provider
Security You need security experts and often additional security software to support on-premise system security. The provider has all the required tools to ensure the customer's system security.