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SAP has invested its whole savings in S/4 HANA and has lately come up with so many exciting products and now customers are confused having so many names of the products. It is also difficult for customer to choose the best fit product for their business. Even many SAP consultants are struggling to understand this name matrix.

It is important to understand what different options now we have with respect to cloud / on premise deployments. This is also important if you are trying to evaluate how S/4 HANA will impact your business investment.

I am here trying to give you the detail about the core SAP products that is running in the market these days.

Below are the core SAP products running these days in the market.

  1. S/4 HANA Public Cloud
  2. S/4 HANA Private Cloud (Also known as HANA Enterprise Cloud or HEC)
  3. S/4 HANA Hybrid Cloud
  4. S/4 HANA On Premise (Also known as S/4 HANA Enterprise Management)
  5. S/4 HANA Finance (Also known as Simple Finance)
  6. Suite on HANA (Also known as SAP ERP (ECC) on HANA Data base)
  7. SAP ERP (ECC6 and Older version)
  8. S/4 HANA Central Finance System

 

Will talk about the major ones, let’s get started.

 

# S/4 HANA Public Cloud

Public cloud resources are shared between organizations for maximum cost-efficiency.

  • Public cloud is completely managed by SAP
  • Quarterly mandatory Innovations
  • No customer specific changes are entertained. Best practice based system is delivered to customer
  • SAP S/4 HANA Cloud is a SaaS based solution (SaaS = Software as a Service)
  • SAP S/4 HANA Cloud is available for consumption on a per user per month framework
  • Cost Effective: Cost of ownership gets lowered compare to S/4 HANA On Premise solution
  • Futuristic: SAP with tightly controlled configuration and extension frameworks. For example, Success Factors, Concur, Field Glass, Cloud 4 Customer, Ariba and Hybris have public cloud delivery models.
  • Artificial Intelligence: Machine Learning, SAP Leonardo etc.
  • Migration not possible from previous SAP system. It would be greenfield project if you implement HCP.
  • Cloud edition is the best fit for companies that need a highly agile offering that covers their core business scenarios, yet offers more flexibility and a faster innovation. It’s perfect for businesses that are changing or growing rapidly and want a platform that can grow and change with them (Company like Amazon, Apple).

 

# S/4 HANA Private Cloud (Also known as HANA Enterprise Cloud or HEC)

Private cloud is cloud infrastructure operated solely for a single organization, whether managed internally or by a third-party and hosted internally or externally

 

  • Private cloud is either managed by SAP or by customer.
  • Quarterly Innovations available; update schedules are agreed with the customer
  • Some customer specific changes are allowed in this product and it comes with an additional price as it is difficult to handle client specific changes in the cloud
  • SAP S/4 HANA Cloud is also a SaaS based solution
  • SAP S/4 HANA Cloud is available for consumption on a per user per month framework
  • Cost Effective: Cost of ownership gets higher compare to S/4 HANA public Cloud
  • Futuristic: SAP with tightly controlled configuration and extension frameworks. For example, Success Factors, Concur, Field Glass, Cloud 4 Customer, Ariba and Hybris have public cloud delivery models.
  • Artificial Intelligence: Machine Learning, SAP Leonardo etc.
  • Migration from previous SAP version possible to HEC (I have talked to many people in SAP and they mentioned that it is possible, but I am not very sure about)
  • Cloud edition is the best fit for companies that need a highly agile offering that covers their core business scenarios, with possibility of customization.

 

S/4 HANA Hybrid Cloud

Hybrid cloud application is a combination of more than one solution (S/4 HANA on premise & Public Cloud or S/4 HANA Private Cloud & Public Cloud).

 

The SAP S/4HANA hybrid model is best for companies that need the best of both worlds: The ability to be flexible with their IT solutions and to innovate and transform their businesses while retaining control of core business applications. Hybrid cloud combines the benefits of multiple deployment models.

 

  • Hybrid cloud is partially managed by customers and partially by SAP
  • Customer specific changes are entertained.
  • Futuristic: SAP with tightly controlled configuration and extension frameworks. For example, Success Factors, Concur, Field Glass, Cloud 4 Customer, Ariba and Hybris have public cloud delivery models.
  • Migration from SAP ECC/ERP possible to Hybrid solution

 

# S/4 HANA On Premise (Also known as S/4 HANA Enterprise Management)

SAP S/4HANA On-Premises is similar in terms of coverage, functionality, industry-specific support, and localization to the current SAP Business Suite (35 languages, 61 country versions, 23 industries). This edition is available for on premises deployment and as a hosted offering via SAP and its partners.

The SAP S/4HANA, on premise edition is the best fit for enterprises in any industry that need the full spectrum of functionality combined with a high degree of flexibility in customization. Typically, these will be larger enterprises with very well established processes that they are not interested in changing.

  • S/4 HANA On-Premise is completely managed by customers.
  • Fully customizable as per business need, no restriction.
  • Higher TCO
  • Migration possible from any previous SAP versions
  • So far released versions: S/4 HANA 1709, S/4 HANA 1610, S/4 HANA 1511
  • Yearly Innovation, but it is not that simple to avail this yearly innovation for existing customer who are on S/4 HANA On-Premise.
  • It includes Finance innovations and logistics innovations

 

# S/4 HANA Finance (Also known as Simple Finance)

 

SAP Simple Finance is a new version of SAP ERP Financial & Controlling, which has been rebuilt based on the SAP HANA DATABASE in order to take full advantage of the possibilities offered by SAP HANA, and to get rid of any limitations of constrains coming from the disk based database paradigms, which no longer apply.

 

  • S/4 HANA Finance is completely managed by customers.
  • Fully customizable as per business need, no restriction.
  • Higher TCO
  • Migration possible from any previous SAP versions
  • Versions: Simple Finance 1503 & S/4 HANA Finance 1605 (No new version in plan by SAP)
  • It includes only finance innovations. There is no logistic innovations

 

# Suite on HANA (Also known as SAP ERP (ECC) on HANA Data base)

 

Suite on HANA is one of the core SAP Applications (like ECC6/ERP) sitting on a HANA DB. standpoint, Suite on HANA and SAP ERP are similar from technical stand point. In short only database is migrated from any DB to HANA DB.

  • It is SAP ERP system (Like ECC6, SAP ERP etc.)
  • Data base is migrated to HANA from any other DB
  • Not Preferable solution

 

# SAP ERP (ECC6 and Older version)

SAP ERP is enterprise resource planning software. SAP ERP incorporates the key business functions of an organization. The latest version (SAP ERP 6.0) was made available in 2006. The most recent Enhancement Package (EHP7) for SAP ERP 6.0 was released in 2013.

We all know this product very well. I don’t need to tell anything about this.

 

Note: Cloud based products have many other name which get changed with minor changes in the cloud products such as Private Cloud, Managed Service/ Public Cloud, Infrastructure-as-a-Service (IaaS)/ SAP HANA on Amazon Web Services (AWS)/ SAP HANA on Google Cloud Platform/ SAP HANA on IBM Bluemix Cloud Platform/ SAP HANA on Microsoft Azure/ Public Cloud, Pay-as-you-go/ SAP HANA One.

 

#S/4 HANA Central Finance System

Central Finance is there in the market for a while, now additionally it can be used as an approach to adopt SAP S/4HANA. SAP and Non-SAP system can replicate financial documents in S/4 HANA Central Finance system which can be used for central financial reporting.

 

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8 Comments

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  1. Michael Habermueller

    Sorry I have not read the complete article, because it contains some errors even in the first section.

    A good try to explain from external perspective, but please take some time to review it, otherwise you are confusing people as well.

    My experiece is that the product strategy of Sap has never been that clear as in the past 15 year

    remember how we all struggled with Netweaver a decade ago,

    A good practice in my opinion is to set the new product names in relation to our “old” products. Then everything becomes more obvious and clear to the customer, especially for the ones already using SAP.

    Although being employed by SAP, I am not paid to make marketing or advertising. In global services I make the new products “Run” at our customers.

    Honestly, it makes definetly fun with S4. There is so much content for fast and quality implementation. Hey even the UI looks great and with the technology behind, great IOT scenarios are implemented in short time.

    So please take my advice for review. I am in holidays and may have a look on it, in 2018.

    Best regards

    Michael

     

     

     

     

     

     

     

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  2. Shakeel Ahmed Post author

    Hi Michael,

    With all due respect I would like to urge you to be clear and tell where the error is (are) instead of making stories around it. If you tell where the error is you can make this article better with which not only me but 100 of other people can learn.

    Be always clear in your response this would be the only request from my side to you.

    Thanks for investing time on this blog.

    Regards

    Shakeel

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  3. Joachim Rees

    Telling SAP-Products (and their ever changing names) apart is an important task, and any help in doing so is appreciated!

    I have one remark, though:

    S/4 HANA Public Cloud (Also known as HANA Cloud Platform or HCP)

    I think you should remove the “(Also known as HANA Cloud Platform or HCP)”-Part here, as this is misleading an confusing – to my understanding, the S/4HANA Cloud (~a Cloud ERP-System) has nothing to do with the SAP Cloud Platform (formerly known as SAP HANA Cloud Platform, HCP).

    Really hope I do not add to the confusion!

    best
    Joachim

    (1) 
  4. Prashanth Bidare

    Hi Shakeel,

     

    Excellent blog trying to navigate S/4 HANA products.  But I think “S/4 HANA Hybrid Cloud” is not core product it is deployment option.

     

    Thanks,

     

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  5. Shakeel Ahmed Post author

    Hi Prashanth,

     

    Thanks for your comment.

    What you are saying is true but SAP has been marketing it as a product which combines S/4 HANA on-premise and S/4 HANA Cloud. In-fact there are other combination also for hybrid.

    Regards

    Shakeel

     

    (0) 

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