A Comparison of the Features and Functionalities of the Two Deployment Options
SAP S/4HANA is the next-generation ERP solution that enables organizations to run their business processes faster, smarter, and more efficiently. SAP S/4HANA offers various deployment options, such as on-premise, cloud, or hybrid, to suit different business needs and preferences. One of the deployment options that is gaining popularity among SAP customers is SAP S/4HANA Cloud Extended Edition (EX).
SAP S/4HANA Cloud EX is a cloud version offered by SAP that has more flexibility and offers more customer control than the SAP S/4HANA Cloud Essential Edition (ES). SAP S/4HANA Cloud EX has standardized infrastructure and processes, services, and SLAs, but also allows customers to customize and extend their system according to their specific requirements. SAP S/4HANA Cloud EX also has a semi-annual release cycle, which means that customers can benefit from the latest innovations from SAP without compromising on stability and reliability.
If you are already using SAP S/4HANA on-premise or in a private cloud, you might be wondering if you should upgrade your system to SAP S/4HANA Cloud EX. What are the benefits and challenges of upgrading to SAP S/4HANA Cloud EX? What are the differences between SAP S/4HANA on-premise or private cloud and SAP S/4HANA Cloud EX in terms of features and functionalities? How can you prepare for a smooth and successful upgrade to SAP S/4HANA Cloud EX?
In this article, I will answer these questions and provide you with a comparison of the features and functionalities of SAP S/4HANA on-premise or private cloud and SAP S/4HANA Cloud EX. I will also give you some tips and best practices on how to upgrade your system to SAP S/4HANA Cloud EX.
Benefits and Challenges of Upgrading to SAP S/4HANA Cloud EX
Upgrading your system to SAP S/4HANA Cloud EX can bring you many benefits, such as:
- Lower total cost of ownership (TCO): By moving your system to the cloud, you can reduce your capital expenditure (CAPEX) and operational expenditure (OPEX) related to hardware, software, maintenance, security, etc. You can also benefit from the economies of scale and pay only for what you use.
- Faster time to value: By using the standardized infrastructure and processes provided by SAP, you can accelerate your system deployment and configuration. You can also leverage the best practices and preconfigured business processes offered by SAP to optimize your system performance and functionality.
- Higher innovation potential: By adopting the semi-annual release cycle of SAP S/4HANA Cloud EX, you can access the latest innovations from SAP faster and easier. You can also take advantage of the in-app and side-by-side extensibility options provided by SAP to customize and enhance your system according to your business needs.
- Greater flexibility and control: By choosing SAP S/4HANA Cloud EX, you can enjoy more flexibility and control over your system than with SAP S/4HANA Cloud ES. You can choose your own cloud service provider, adjust your system landscape, select your industry coverage, configure your user interface, etc.
However, upgrading your system to SAP S/4HANA Cloud EX also comes with some challenges, such as:
- Higher complexity and risk: By moving your system to the cloud, you might face some technical and organizational challenges related to data migration, integration, security, compliance, etc. You might also encounter some compatibility issues between your existing customizations or extensions and the new features or functionalities of SAP S/4HANA Cloud EX.
- Higher change management effort: By adopting the semi-annual release cycle of SAP S/4HANA Cloud EX, you might need to invest more time and resources in preparing for and adapting to the new releases. You might also need to train your users and stakeholders on how to use the new features or functionalities of SAP S/4HANA Cloud EX.
- Higher dependency on SAP: By using the standardized infrastructure and processes provided by SAP, you might lose some autonomy and flexibility over your system. You might also need to rely more on SAP for support, maintenance, and updates.
Therefore, before you decide to upgrade your system to SAP S/4HANA Cloud EX, you should weigh the benefits and challenges carefully and assess your readiness and suitability for the cloud.
Differences between SAP S/4HANA On-Premise or Private Cloud and SAP S/4HANA Cloud EX in Terms of Features and Functionalities
SAP S/4HANA on-premise or private cloud and SAP S/4HANA Cloud EX have many similarities in terms of features and functionalities, such as:
- They both run on the same SAP HANA database platform, which enables high performance, real-time analytics, and simplified data model.
- They both support the same business processes and functions across different industries and lines of business, such as finance, procurement, sales, manufacturing, etc.
- They both offer the same user experience based on SAP Fiori, which enables intuitive, role-based, and mobile-friendly access to the system.
- They both provide the same in-app and side-by-side extensibility options, which enable customers to customize and enhance their system according to their specific requirements.
However, SAP S/4HANA on-premise or private cloud and SAP S/4HANA Cloud EX also have some differences in terms of features and functionalities, such as:
- SAP S/4HANA on-premise or private cloud has an annual release cycle, while SAP S/4HANA Cloud EX has a semi-annual release cycle. This means that SAP S/4HANA Cloud EX customers can benefit from the latest innovations from SAP faster and easier than SAP S/4HANA on-premise or private cloud customers.
- SAP S/4HANA on-premise or private cloud allows customers to choose their own hardware, software, maintenance, security, etc., while SAP S/4HANA Cloud EX provides standardized infrastructure and processes, services, and SLAs. This means that SAP S/4HANA Cloud EX customers can reduce their TCO and accelerate their time to value than SAP S/4HANA on-premise or private cloud customers.
- SAP S/4HANA on-premise or private cloud allows customers to have full control over their system landscape, configuration, integration, etc., while SAP S/4HANA Cloud EX imposes some limitations and restrictions. This means that SAP S/4HANA Cloud EX customers can enjoy more flexibility and control over their system than SAP S/4HANA Cloud ES customers, but less than SAP S/4HANA on-premise or private cloud customers.
The table below summarizes the main differences between SAP S/4HANA on-premise or private cloud and SAP S/4HANA Cloud EX in terms of features and functionalities:
Aspect On-Premise or Private Cloud Cloud EX
Release Cycle Annual Semi-Annual
Infrastructure Customer Choice Standardized by SAP
Processes Customer Choice Standardized by SAP
Services Customer Choice Provided by SAP
SLAs Customer Choice Provided by SAP
Landscape Customer Choice Limited by SAP
Configuration Customer Choice Limited by SAP
Integration Customer Choice Limited by SAP
Tips and Best Practices on How to Upgrade Your System to SAP S/4HANA Cloud EX
If you have decided to upgrade your system to SAP S/4HANA Cloud EX, you should follow some tips and best practices to ensure a smooth and successful upgrade. Here are some of them:
- Plan your upgrade carefully: You should define your upgrade scope, objectives, timeline, budget, resources, etc. You should also assess your current system status, performance, functionality, customization, integration, etc. You should also identify any gaps or risks that might affect your upgrade and prepare mitigation strategies.
- Choose your upgrade strategy wisely: You should choose the most suitable upgrade strategy for your system based on your business needs and preferences. You can choose between two main upgrade strategies: greenfield or brownfield. A greenfield upgrade means that you start from scratch with a new system based on the best practices and preconfigured business processes provided by SAP. A brownfield upgrade means that you migrate your existing system data and settings to the new system with minimal changes. A greenfield upgrade offers more simplicity and standardization, while a brownfield upgrade offers more continuity and customization.
- Use the right tools and methodologies: You should use the tools and methodologies provided by SAP to support your upgrade process. You can use the following tools and methodologies: SAP Readiness Check: This tool helps you analyze your current system readiness for the upgrade to SAP S/4HANA Cloud EX. It provides you with a comprehensive report that covers various aspects of your system, such as simplification items, custom code analysis, recommended Fiori apps, etc.
- SAP Transformation Navigator: This tool helps you plan your upgrade journey to SAP S/4HANA Cloud EX. It provides you with a personalized roadmap that covers the products, services, and best practices that you need for your upgrade. It also provides you with a business case that shows the benefits and costs of your upgrade.
- [SAP S/4HANA Migration Cockpit]: This tool helps you migrate your data from your current system to SAP S/4HANA Cloud EX. It provides you with a web-based interface that allows you to select, transform, and validate your data. It also provides you with predefined migration templates and objects that simplify and accelerate your data migration process.
- [SAP Activate]: This is the methodology that guides you through the entire upgrade process to SAP S/4HANA Cloud EX. It consists of four phases: prepare, explore, realize, and deploy. It provides you with a set of tools, accelerators, and best practices that help you manage your upgrade project efficiently and effectively.
- Test your upgrade thoroughly: You should test your upgrade extensively before you go live with your new system. You should perform various types of testing, such as functional testing, integration testing, performance testing, security testing, etc. You should also involve your users and stakeholders in the testing process and collect their feedback and approval.
- Monitor and optimize your system continuously: You should monitor and optimize your system performance and functionality continuously after you go live with your new system. You should use the tools and services provided by SAP to measure and improve your system availability, reliability, scalability, security, etc. You should also keep up with the new releases and innovations from SAP and adopt them as soon as possible.
For more detailed information and procedures on how to upgrade your system to SAP S/4HANA Cloud EX, please refer to the following documents:
- [Upgrade Guide for SAP S/4HANA Cloud Extended Edition]
- [SAP S/4HANA Cloud Extended Edition – Overview Presentation]
- [SAP S/4HANA Cloud Extended Edition – FAQ Document]
I hope you find this article helpful. If you have any questions or feedback, please feel free to leave a comment below. Thank you for reading.
Text: Microsoft Bing Chat with ChatGPT
- SAP. (n.d.). SAP Readiness Check. Retrieved from [SAP Readiness Check]
- SAP. (n.d.). SAP Transformation Navigator. Retrieved from [SAP Transformation Navigator]
- SAP. (n.d.). SAP S/4HANA Migration Cockpit. Retrieved from [SAP S/4HANA Migration Cockpit]
- SAP. (n.d.). SAP Activate. Retrieved from [SAP Activate]
- SAP. (n.d.). Upgrade Guide for SAP S/4HANA Cloud Extended Edition. Retrieved from [Upgrade Guide for SAP S/4HANA Cloud Extended Edition]
- SAP. (n.d.). SAP S/4HANA Cloud Extended Edition – Overview Presentation. Retrieved from [SAP S/4HANA Cloud Extended Edition – Overview Presentation]
- SAP. (n.d.). SAP S/4HANA Cloud Extended Edition – FAQ Document. Retrieved from [SAP S/4HANA Cloud Extended Edition – FAQ Document]
