Some levels of confusion between SAP S/4HANA On-Premise and SAP S/4HANA Cloud still exist with the majority of the people these days. In this article, we clear the differences between on-premise and cloud.

1. SAP S4HANA ON-
PREMISE
VS
SAP S4HANA CLOUD
Licensing Method
On-premise: Traditional
licensing
Cloud: Subscription licensing
Infrastructure &
Maintenance
On-premise: Deployment and
maintenance is incorporated
and managed by the customer
who purchases the licensing of
On-premise edition
Cloud: System infrastructure
and maintenance are totally
under SAP’s control once the
customer takes subscription of
the SAP S/4HANA Cloud
edition
Innovation in
Software
On-premise: In the On-premise
version, planning, testing,
controlling, upgrading and
changing within the system are
the full responsibilities of a
customer
Cloud: In the Cloud version, the
automatic latest innovation
upgrades are incorporated
quarterly by SAP
Scope to
Customization
On-premise: The On-premise
edition is highly compliant with
individual business requirements
and customization
Cloud: The Cloud edition is
predefined for best-practice
and configured with limited
specialization
Functional Scope
On-premise:On-premise edition supports full ERP
Scope. Also, integration with SAP Hybris Marketing,
SAP JAM, and SAP Ariba Network is possible in
SAP S/4HANA On-premise edition
Cloud: Cloud edition supports critical industrial
scenarios and ERP scenarios. In the Cloud edition,
one can integrate with SAP SuccessFactors
Employee Central, SAP Fieldglass, SAP Hybris
Marketing, SAP JAM, and SAP Ariba Networks
Source: Apprisia
Read more at www.apprisia.com