Difference Between SAP HANA On Premise and Cloud

SAP HANA is an in-memory, column-oriented database system. You can use it as a database server to store and retrieve application data. The in-memory nature of HANA allows you to manipulate data much faster than traditional database systems. The speed of SAP HANA makes it a useful tool for big data processing, business intelligence, and next-generation applications. You can also use it to perform a variety of advanced analytical tasks, including predictive analysis, spatial data processing, flow analysis, and Extract, Transform, Load (ETL) functions. SAP S/4HANA On-premise and SAP S/4HANA Cloud both have their pros and cons. SAP S/4HANA On-premise or on-premises version gives you maximum control over your data as everything is stored and managed on your organization's local servers. However, if you have space issues on your server, then it is recommended that you go for the S/4HANA Cloud version, which also provides fast-paced operations when you have time constraints in an ongoing project. After looking at the main differences, let's take a look at the table below. The data below will explain the differences between Local and Cloud, including:

1. On Premise Edition SAP S/4HANA On-premise or on-premises version has a traditional license, which means an initial purchase with annual maintenance. License fees allow companies to own the software and reduce current maintenance costs. But the upgrade costs will be high. The cloud edition has a subscription license, meaning that one predictable monthly payment covers everything from infrastructure to system upgrades.

2. Infrastructure & Maintenance Model SAP S/4HANA on cloud edition does not require you to invest in in-house IT support, which ensures smooth and stable operation of other IT applications and reduces expenses on IT staff. On the other hand, on-premises editions incur high IT entry and operations costs compared to SaaS due to infrastructure and staff support requirements.

3. Speed of Innovation With S/4HANA On-Premise, you must plan, test, and control all system upgrades that occur every year. All changes are under the control of the organization, while the cloud edition automatically upgrades the software every quarter without customer participation.

4. Implementation Approach SAP S/4HANA on-cloud is a limited version of the on-premises edition. Deployment is faster, but offers are very limited. The on-cloud edition is focused on key processes with a limited set of settings. In contrast, the local edition offers a wide range of functions, extendable for additional payments.

SAP S/4HANA On-premise Edition takes advantage of the full spectrum and functionality. This edition is best for large organizations that have highly established complex business processes that require simplification. Unlike Cloud edition, On-premises edition provides more opportunities for effective business process monitoring in large organizations. SAP S/4HANA Cloud edition offers higher quality performance, faster upgrade cycles (quarterly, as opposed to annually for the on-premises version) at the cost of greater agility and less flexibility in customization. Mid-sized companies looking for fast business development process management can choose the Cloud edition.