SAP S/4HANA Deployment Model: Public, Private, and On-Premise
Many companies considering SAP implementation find themselves grappling with deployment decisions like "Cloud vs On-Premise" and "Public vs Private."
This article examines the characteristics of public cloud, private cloud, and on-premise approaches, with particular focus on the update policies for each method and corresponding testing strategies.
π SAP S/4HANA Deployment Options: What Can You Choose?
When implementing SAP S/4HANA, there are three main deployment options available. Let's examine the specific characteristics of each.
Public Cloud Edition
Public Cloud is a multi-tenant environment operated directly by SAP. Like Netflix or Google Workspace, multiple customers share the same infrastructure, but each customer's data and configurations remain completely separate.
Operating Model:
SAP manages everything (servers, security patches, updates)
Customers have no management burden
However, customer choice is limited
Functional Scope:
Only industry-standard functions provided (manufacturing, retail, etc.)
Rapid deployment possible
Constraints exist for special business requirements
Customization:
Code modification not possible
Limited extensions only in ABAP Cloud environment
Side-by-side extensions through SAP BTP
Private Cloud Edition (PCE)
Private Cloud is more complex. The important point is that within PCE, there are two operating models.
PCE - SAP Managed Model:
SAP configures and operates dedicated customer environment
Unlike public cloud, provides dedicated customer instance
Customization possible but only within SAP guidelines
PCE - Customer Managed Model:
Customer directly builds and operates private cloud environment
Utilizes hyperscalers like AWS, Azure, GCP
Cloud benefits + on-premise level control
Common Characteristics:
Supports most existing ABAP customizations
Table access and modification possible
Maintains legacy system integration methods (IDoc, BAPI, etc.)
Suitable for existing SAP users
On-Premise
On-premise is the most traditional approach, where customers build and operate all infrastructure in their own data centers.
Complete Freedom:
All development methods can be used freely
Customer decides everything from hardware to software
Suitable for special security requirements or regulatory environments
High Responsibility:
With high freedom comes customer responsibility for operational management
Self-management of server management, security patches, backup, disaster recovery
Requires specialized personnel and operational expertise
Cost Structure:
High initial investment cost
Long-term payment of license fees only
Economical for large-scale environments
Update Methods: Core Differences Between Deployment Models
One of the biggest differences between deployment methods is the update policy. This is not merely a technical issue but an important factor that directly impacts business operations.
SAP-Led Updates in Public Cloud
In public cloud, SAP proactively applies updates according to predetermined schedules.
Update Cycle:
Quarterly or semi-annual major updates
Security patches applied more frequently
No customer choice in scheduling
Update Scope:
Feature improvements, bug fixes, security patches
Includes UI changes and process modifications
Requires sudden user adaptation
Business Impact:
Potential changes to existing work methods
User training required
Advantage: Always using latest features
SAP-Customer Collaborative Updates in Private Cloud
In private cloud, update timing and scope can be decided through consultation between SAP and customer.
SAP Managed Model:
Update schedule adjustment through pre-consultation with SAP
Can avoid busy peak seasons
Can delay after completing important projects
Customer Managed Model:
Customer decides whether to apply updates
Complete autonomous decision on update timing
Partial updates also possible
Testing Period Secured:
Sufficient test period before production application
Minimizes business risk from updates
Can establish phased verification process
Customer-Led Updates in On-Premise
In on-premise, customers proactively control all updates.
Complete Autonomy:
Customer decides everything: when, what, how to update
Permanent non-application of specific updates possible
Complete update control
Long-term Stability:
Can maintain stabilized system for long periods
Preferred in mission-critical environments
Can use verified versions long-term
Update Burden:
Must plan and execute all updates independently
Requires specialized personnel and systematic processes
Security risks increase if updates are delayed
Testing Strategies Based on Updates
Testing strategies must differ according to the update characteristics of each deployment method. Systematic testing is essential, especially in SAP S/4HANA's complex environment.
Testing Challenges in Public Cloud Environment
Public cloud requires special testing approaches because updates are mandatory and unpredictable changes may occur.
Importance of Continuous Monitoring:
Need immediate verification of normal business process operation after updates
Since pre-testing is limited, rapid verification immediately after updates is key
Essential to establish real-time monitoring system
Standard Process Verification:
Since customization is limited, focus on checking standard business processes
Priority testing of core business flows (order processing, inventory management, accounting)
Business continuity assurance is top priority
User Impact Assessment:
Rapid assessment of user work capability when UI or process changes occur
Provide emergency training when necessary
Real-time collection of user feedback
Phased Testing in Private Cloud Environment
Private cloud allows more systematic approaches as sufficient test periods can be secured before updates.
Development-Test-Production Environment Separation:
Sufficient verification at each stage through phased update application
Development environment β Basic function verification
Test environment β Verification with actual data
Production environment β Final application
Customization Impact Analysis:
Detailed verification of normal operation of existing customizations after updates
Intensive testing of ABAP code modification parts
Essential verification of special business logic
Enhanced Integration Testing:
Verification of normal operation of interfaces with connected systems
Verification of all existing IDoc, BAPI, RFC integrations
Check data flow and integration processes
Complete Testing in On-Premise Environment
On-premise allows the most comprehensive testing as updates can be completely controlled.
Full System Replication Testing:
Verification of all scenarios in test environment identical to production
Complete testing with copied actual operational data
Testing under 100% identical conditions to actual environment
Including Performance Testing:
Pre-measurement and optimization of update impact on system performance
Pre-identification of large data processing performance changes
Performance verification under concurrent user load situations
Rollback Plan Development:
Establish plan to immediately revert to previous version if problems occur after update
Complete pre-testing of rollback procedures
Establish measures to minimize business downtime
Importance of Real Transaction Data-Based Testing
What's commonly important across all deployment methods is testing based on actual business data. Complex business scenarios or exceptional situations that cannot be discovered with sample data occur frequently in actual operations.
Value of Real Transaction Data:
Pre-verification of various cases of actual customer orders, inventory changes, accounting processing
Cover complex scenarios impossible to discover with sample data
Key to preventing unexpected errors after updates
Conclusion
Choosing SAP S/4HANA deployment method is not a simple technical decision. It's an important decision requiring comprehensive consideration of corporate digital transformation strategy, IT capabilities, regulatory environment, and business requirements.
Regardless of which method you choose, establishing an automated testing system based on real transaction data is key to successful SAP operations. This enables stable and continuous digital transformation without business interruption due to updates.
