Rise with SAP Public Cloud vs. Private Cloud: Which Option is Right for Your Business?

Digital transformation has become a critical priority for an increasing number of companies. To streamline business processes, adopt innovative solutions, and gain a competitive advantage, many organizations are turning to cloud solutions. SAP offers a comprehensive solution called Rise with SAP to accelerate digital transformation journeys. However, the differences between Rise with SAP Public Cloud and Rise with SAP Private Cloud are essential considerations when deciding which path to take.

In this blog post, we will explore the key differences between these two solutions to help you determine the best fit for your organization.

What is Rise with SAP?

Rise with SAP is a digital transformation package designed to simplify the transition to the cloud by integrating SAP software, tools, and services into a single offering. This solution enables businesses to optimize their processes, enhance efficiency, and accelerate growth.

Public Cloud: Benefits and Considerations

Rise with SAP Public Cloud operates on a multi-tenant infrastructure where multiple companies share the same physical resources (such as servers) while keeping their data and applications isolated. This option is ideal for businesses looking for a cost-effective, low-maintenance, and quickly deployable solution.

Benefits:

1. Cost Efficiency: Because resources are shared, initial costs are lower.
2. High Scalability: Resources can quickly scale up or down based on your needs, aligning with business growth.
3. Fast Time-to-Market: With SAP managing the infrastructure and maintenance, companies can focus on their processes and deploy faster.
4. Continuous Updates and Innovations: SAP regularly adds new features and functionalities, enabling businesses to leverage the latest advancements effortlessly.

Considerations:

1. Data Security and Compliance: The multi-tenant structure may raise concerns about data security and compliance, particularly in regulated industries.
2. Customization Limitations: Public cloud solutions are typically more standardized, making deep customizations less feasible.

Private Cloud: Benefits and Considerations

Rise with SAP Private Cloud provides a dedicated infrastructure for a single business. This model gives companies more control over their environment and is ideal for those with high-security requirements or significant customization needs.

Benefits:

1. Greater Control and Flexibility: Private cloud gives businesses complete control over their infrastructure.
2. Enhanced Security and Compliance: Since the infrastructure is dedicated to a single business, custom security protocols can be implemented, ensuring high levels of data protection.
3. Tailored Performance: Resources are allocated exclusively to one business, allowing for specific performance demands to be met.
4. Extensive Customization: Private cloud solutions offer more extensive customization options to align with unique business processes.

Considerations:

1. Higher Costs: Private cloud solutions typically involve higher initial and operational costs.
2. Longer Deployment Times: Customization and configuration processes can take more time, delaying the go-live timeline.
3. Increased Maintenance Effort: Private cloud usually requires more management and maintenance, adding to the workload of internal or external teams.
4. Updates: Unlike public cloud, private cloud does not receive automatic updates. Private cloud operates similarly to on-premise systems, and updates are typically planned and executed based on the company’s schedule. It is recommended to update at least once every five years.

Can Private Cloud Be Deployed on Existing Infrastructure?

Private cloud solutions can be implemented on a company’s existing infrastructure. However, this requires careful evaluation of compatibility and potential upgrades to meet SAP’s private cloud requirements.

Differences from S/4HANA On-Premise

Rise with SAP solutions differ significantly from S/4HANA On-Premise models. Here are some key distinctions:

• Infrastructure Management: S/4HANA On-Premise requires companies to manage their systems on their own infrastructure, while Rise with SAP (both public and private cloud) operates on a cloud platform. In public cloud, SAP manages the infrastructure, whereas in private cloud, it may be managed by the company or a third-party provider.
• Cost Structure: On-premise solutions often involve higher capital expenditures and maintenance costs, whereas cloud solutions use a subscription-based payment model with lower initial costs.
• Flexibility and Scalability: Cloud solutions are easily scalable to meet business needs, whereas on-premise solutions typically require additional hardware investments and upgrades.
• Updates and Innovations: Cloud solutions are continuously updated with the latest features, but on-premise solutions require manual updates, which can be complex. For private cloud, updates operate similarly to on-premise; they are planned and executed by the company, with updates recommended every five years.

Conclusion

The choice between Rise with SAP Public Cloud and Private Cloud depends on your company’s size, industry, security requirements, and budget. If lower costs and quick deployment are your priorities, public cloud might be the best fit. However, if you need more control, security, and tailored business processes, private cloud could be the right choice.

Both solutions can accelerate your digital transformation journey and shape the future of your business. Consulting with an SAP expert can help you identify the best option for your unique needs.