What is the SAP Public Cloud?

• The official name of the SAP Public Cloud is SAP S/4HANA Cloud, Public Edition.
• It is a cloud ERP system with largely standardised processes (known as best practices).
• Companies benefit from low entry costs, fast deployment and continuous updates.
• Its counterpart is the more customisable SAP S/4HANA Cloud, Private Edition.

SAP S/4HANA Cloud, Public Edition is an SAP ERP system hosted in the public cloud and delivered via the SaaS model. The solution is often referred to as ‘SAP Public Cloud’, although this is not the official term used by the software vendor.

What makes the system unique is that it is ready for use very quickly and incorporates numerous best practices for various industries. Furthermore, SAP continuously updates the software with the latest technologies.

The SAP Public Cloud is provided in the SaaS model (Software-as-a-Service). The innovative ERP system SAP S/4HANA, including the associated data, is hosted centrally on SAP's servers (the SAP Public Cloud). Users access the services via the internet, eliminating the need to install, operate and maintain software locally in the company. This enables faster implementation, easier scaling and lower upfront costs compared to traditional on-premise solutions.

SAP Public Cloud licensing is usually based on a subscription model in which companies pay for the use of the software, usually on a monthly basis. The fee covers all relevant IT services such as hosting, maintenance and updating the infrastructure. SAP also takes care of security updates, data protection, backups and other necessary work to ensure the continuous availability and performance of the platform. Quarterly updates of the ERP software are also included in the price.

SAP also offers a comprehensive service package for the SAP Public Cloud. This includes services to accelerate implementation, training, support and consulting. It also includes tools and best practices to support business process optimization and integration with other SAP and third-party solutions.

SAP S/4HANA Cloud is available in two main versions: the Public Edition and the Private Edition. Although both are based on the same technology, they differ in terms of hosting, feature set and customisation options.

• The SAP Public Cloud is hosted in a multi-tenant environment as a pure Software-as-a-Service solution. Here, several companies use the same infrastructure, but data and applications are kept separate from one another. This approach enables particularly efficient use of resources and reduces costs.
• The SAP Private Cloud, on the other hand, is more akin to traditional outsourcing of an on-premise system. With this variant, companies receive a dedicated environment (single tenant) that is specifically configured for a single company. This allows for a greater degree of control.

In terms of software, the SAP Public Cloud is characterised by standardised functionality, which enables faster implementation and simpler updates. It also provides access to a wide range of best practices and pre-configured processes, allowing for customisation to meet individual requirements. However, the core (code) of the software cannot be altered. The Private Cloud, on the other hand, allows for deeper customisation of the software, including modification (changing the SAP source code). However, the latter option is not recommended for maintainability reasons.

Additional functionality can, however, be added via permitted extensions. Extensibility in an S/4HANA system is based on the Clean Core principle. This means that the standard SAP code should remain as untouched as possible and, ideally, should only be supplemented by external, permitted extensions. This ensures the stability of the system and release security. 

SAP Public Cloud

• Public network on multi-client system
• Pure SaaS solution, hosting and operation in SAP data centers (= SAP Public Cloud)
• Standardized and template-based
• Lower acquisition and total cost of ownership
• Mandatory upgrades

SAP Private Cloud

• Private network, protected by firewall
• Flexible hosting and operating models, IaaS provider can be freely selected (hosting with well-known
• hyperscalers such as AWS and Microsoft also possible)
• Very flexibly configurable and customizable
• Higher acquisition and total cost of ownership
• Upgrades can be controlled individually

SAP provides a 3-tier model for extensibility in the SAP Public Cloud:

• Key User Extensibility (no-code extension)
• Side-by-Side Extensions (developments via the interface to the SAP Business Technology Platform)
• On-Stack Developer Extensibility (SAP S/4HANA Cloud ABAP Environment or ‘Embedded Steampunk’) for developer extensions implemented directly in ABAP on the cloud technology stack.

By dividing extensions into different layers or levels depending on requirements, the complexity of customisations in the cloud can be minimised. The Private Edition also allows for deeper customisation of the software, including modification (changing the SAP source code). However, the latter option is not recommended for maintainability reasons.

The SAP Public Cloud is particularly suitable for medium-sized to large enterprises that have standardised (SAP-standard-based) business processes in core areas such as financial accounting, controlling, procurement, sales and logistics. SAP’s ‘fit-to-standard’ approach enables such organisations to implement the system quickly and scale it easily without the complexity and costs of an on-premise solution. Companies operating in highly specialised sectors or with highly customised processes, on the other hand, are more likely to benefit from the Private Edition.

Furthermore, the initial ERP situation plays an important role in deciding between the Public and Private Editions. If a brownfield migration (migration from SAP ECC) or the consolidation of multiple systems into a central SAP S/4HANA solution is imminent, the Private Edition is generally the more suitable option. This is because, in this case, existing code can be carried over. The Public Edition, on the other hand, is particularly advantageous for greenfield implementations, where companies are introducing SAP S/4HANA from scratch without migrating or updating existing SAP systems.

The SAP Public Cloud offers robust security measures to ensure data integrity and security. Nevertheless, there are industries and organisations that wish to implement even higher security and compliance standards. Examples include utility companies and organisations operating in highly regulated sectors such as healthcare. Organisations of this kind are particularly likely to opt for a private cloud. For all other organisations, however, the level of security in the public cloud is generally sufficient.

The SAP Public Cloud offers a number of advantages for companies. Above all, the following should be mentioned:

• Access to new services and innovations: Companies gain access to the latest innovations and services, which are regularly provided by SAP.
• Cost efficiency: By using a multi-tenant infrastructure in the cloud, companies save costs as they do not have to invest in their own infrastructure. Personnel costs in the IT area are also reduced.
• Fast implementation: Compared to on-premise solutions and the Private Edition, the Public Edition enables particularly fast implementation, as many processes are already preconfigured. In this context, SAP speaks of an implementation time of a maximum of 30 days (initial scope), 50 percent lower implementation costs and 40 to 60 percent faster value creation.

On the other hand, there are also some disadvantages:

• No high degree of customization: The Public Edition offers less flexibility when adapting business processes.
• Fixed updates: The updates are managed centrally by SAP and are mandatory. This means that companies have less control over the timing and content of the updates.

More and more companies are looking to switch from an on-premises system to an SAP cloud solution. 

There are now several options available for this.

• GROW with SAP: One option is GROW with SAP. This is a transformation methodology from SAP designed primarily to help small and medium-sized enterprises either migrate to the cloud or implement an SAP system for the first time (greenfield approach). The methodology is often used by rapidly growing companies for whom a rapid system roll-out is of particular importance.
• RISE with SAP: Another option is RISE with SAP. This transformation methodology is similar to GROW with SAP, but is aimed at companies wishing to migrate existing on-premise SAP systems to the SAP Cloud.
• Lift & Shift: Another approach is the Lift & Shift system, which GAMBIT has developed specifically for customers with an on-premise S/4HANA system. This service includes, amongst other things, secure migration, system optimisation, the implementation of SAP Fiori, and the management of custom Z-developments.

As a general rule, the decision on the best route to the cloud should always be supported by a thorough fit/gap analysis. This method clarifies which option best suits a company’s specific requirements and objectives. This significantly minimises the risk of making the wrong decision.

The costs for the SAP Public Cloud can vary depending on various factors. These include the number of users, the selected license options and the specific requirements of the company. It is advisable to contact SAP or a certified SAP partner directly to obtain a customized quote. In some cases, there may also be restrictions regarding the minimum number of users. This restriction may vary depending on the specific offer and contract terms.