SAP Cloud ERP Private

Q: What role does SAP Business Technology Platform (BTP) play in SAP Cloud ERP Private?

SAP Business Technology Platform (BTP) is the central link for enhancements and integrations in the Private Cloud solution. It enables companies to flexibly adjust their SAP landscape without changing the core of the ERP system. BTP can be used to develop individual applications, seamlessly integrate third-party provider systems and extend business processes via APIs and low-code tools. This architecture supports the clean core approach by implementing adjustments outside the actual ERP system, which increases ease of maintenance and facilitates future updates.

This specialist article describes what is behind SAP Cloud ERP Private, how the solution works and how companies can benefit from it. We also explain for whom the solution is suitable, how it differs technically from other solutions and what role it plays in digital transformation.

Stefanie Weber

Productmanager at FIS

What is SAP Cloud ERP Private?

SAP Cloud ERP Private (previously SAP S/4HANA Cloud Private Edition) is a cloud-based EPR solution that is operated on a dedicated infrastructure. It is aimed at companies with individual requirements and enables tailor-made adjustments to existing business processes. Companies can maintain their existing IT landscape, modifications and industry-specific enhancements and, at the same time, benefit from cloud advantages, such as scalability, flexibility and regular innovations.

Compared to SAP Cloud ERP (previously SAP S/4HANA Cloud Public Edition), the Private Cloud solution offers much more freedom for adjustment, higher controllability of updates as well as a single-tenant architecture that provides the infrastructure exclusively for a specific company.

The user interface can be designed flexibly – from classical SAP GUI to individually developed SAP Fiori apps. Therefore, the solution is particularly suitable for organizations with specific process and usability requirements.

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What benefits are provided by SAP Cloud ERP Private?

SAP Cloud ERP Private provides companies with several benefits such as

Customized solutions

Individual adjustments can be made to enable companies to implement their specific business needs in the best possible way.

Flexibility and control

Companies keep control over their systems and can make adjustments and enhancements as required.

Scalability

The solution grows with the company as additional functions or storage capacities can be added flexibly if needed.

Security

Higher data security due to dedicated infrastructure and specific safety measures.

Who is SAP Cloud ERP Private suitable for?

SAP Cloud ERP Private aims at companies that wish to benefit from both cloud advantages and the flexibility of customized ERP solutions. It is particularly suitable for organizations with complex business processes, specific adjustment requirements or special industry-specific requirements going beyond standardized processes.

Typical target groups:

Existing SAP customers with individual adjustments:
Companies that have been implementing specific processes and in-house developments in the SAP system over the years and wish to migrate these investments into the cloud without having to forego existing processes.
New SAP customers with unique business models:
Organizations wishing to gain competitive advantage through highly individual processes and business models and, consequently, searching for a solution that can be adjusted to the maximum extent.
Companies from niche industries:
Companies whose requirements are not covered by standardized processes, such as in specialized manufacturing industries, biotech industry or health care industry.
Organizations with high compliance requirements:
For regulated industries in particular, such as providers of critical infrastructures, in the health care or financial sector, the Private Edition solution offers the ideal basis for the compliance with legal and regulatory requirements through its dedicated infrastructure and enhanced safety measures.
Unternehmen, die die Kontrolle über ihre digitale Transformation behalten möchten:
Die Private Cloud erlaubt es Unternehmen, das Tempo ihrer Umstellung auf die Cloud selbst zu bestimmen. Sie eignet sich hervorragend für Organisationen, die eine hybride Strategie verfolgen oder schrittweise bestehende Systeme in die Cloud überführen wollen.

SAP Cloud ERP Private is particularly suitable for companies that need a flexible, customized and safe ERP solution. Greenfield and brownfield approaches ensure that existing investments, individual processes and integrations can continue to be used while at the same time the cloud benefits can take effect. This combination makes the solution ideal for companies that prefer a step-by-step transformation and, at the same time, wish to keep proven business processes.

Are you unsure whether SAP Cloud ERP Private is the right choice for your company?

How does SAP Cloud ERP Private work technically?

SAP Cloud ERP Private runs on a dedicated cloud infrastructure provided by leading hyperscalers or SAP computer centers.

Companies get a private cloud environment fully tailored to their requirements. Technically, the solution enables the seamless integration into existing on-premises systems and, at the same time, offers the flexibility and scalability of a cloud architecture.

SAP Business Technology Platform (BTP) offers additional tools for integrating and extending ERP solutions.

What is the difference between SAP Cloud ERP Private and SAP Cloud ERP?

SAP Cloud ERP Private

This solution provides companies with a dedicated cloud infrastructure that can be configured individually and adjusted to specific business needs.

The single-tenant architecture ensures that companies keep full control of updates, extensions and integrations.

This is of particular advantage for organizations that wish to migrate existing in-house developments and complex processes into the cloud or make industry-specific adjustments.

SAP Cloud ERP

This solution uses a multi-tenant architecture, i.e. several companies share a scalable cloud infrastructure without their data coming into touch with each other.

Through this architecture, companies benefit from regular and automatic updates, reduced operating costs and fast implementation.

The solution is ideal for standardized business processes that are based on best practices and hardly require any individual adjustments.

Learn more about SAP Cloud ERP

What are the individualization options of SAP Cloud ERP Private?

SAP Cloud ERP Private offers companies maximum flexibility for adjusting their business processes. Companies can develop individual enhancements and adjustments and make in-depth configurations.

Unlike the public variant that relies on standardized best practices, SAP Cloud ERP Private enables a comprehensive adjustment of the solution to map highly specialized processes. However, these adjustments are made via external platforms, such as SAP Business Technology Platform (BTP), without directly changing the SAP source code.

What is the difference between SAP Cloud ERP Private and SAP S/4HANA On-Premises?

SAP Cloud ERP Private

It is hosted in a dedicated cloud environment. However, it offers the flexibility and control of an on-premises solution. It enables easier scaling and access to advanced technologies (e.g. AI) without the necessity of operating a complete infrastructure on site.

SAP On-Premises

The ERP system is operated locally on individual corporate servers. It offers maximum control but requires high investments in infrastructure and resources for maintenance and operation.

Conclusion

SAP Cloud ERP Private offers companies an ideal combination of flexibility, control and cloud advantages. It enables companies to meet individual business needs and, at the same time, benefit from the scalability and innovative power of advanced cloud technologies. Companies with complex processes and specific adjustment requirements get a customized solution that can seamlessly be integrated into existing IT landscapes.

Companies keep control over their systems and, at the same time, benefit from a dedicated infrastructure that is updated regularly and fulfills highest security standards. This makes the solution particularly attractive for organizations that pursue a hybrid strategy or long-term digital transformation.

SAP Cloud ERP Private is more than just an ERP system: it is a platform helping companies optimize their processes, promoting innovations and preparing themselves for tomorrow’s challenges in an agile way. The perfect choice for companies searching for individual solutions without having to forego the cloud advantages.

FAQ – frequently asked questions

The costs for SAP Cloud ERP Private vary according to company size, selected infrastructure, functional scope and individual adjustments. Since the environment is a dedicated cloud environment, the operating costs are usually higher than the costs for a public cloud solution. In turn, companies benefit from more flexibility, control and planning security.

SAP offers a subscription-based price model which is based on the specific corporate requirements. Factors such as the selection of the hosting provider (SAP computer centers or hyperscalers) as well as the extent of migration and system adjustments influence the final pricing.

SAP Business Technology Platform (BTP) is the central link for enhancements and integrations in the Private Cloud solution. It enables companies to flexibly adjust their SAP landscape without changing the core of the ERP system. BTP can be used to develop individual applications, seamlessly integrate third-party provider systems and extend business processes via APIs and low-code tools. This architecture supports the clean core approach by implementing adjustments outside the actual ERP system, which increases ease of maintenance and facilitates future updates.

SAP Cloud ERP Private meets highest security standards including ISO 27001, GDPR and SOX compliance. Data is encrypted during transmission and storage and access is secured through role-based access authorizations as well as multi-factor authentication. SAP guarantees a round-the-clock monitoring of the infrastructure to identify security risks at an early stage and respond to them.

The duration of a migration to SAP Cloud ERP Private depends on the selected strategy. Companies can select between greenfield (new implementation), brownfield (adopting existing processes) or selective data transition where specific data and processes are migrated. While a greenfield approach may take several months, brownfield and hybrid scenarios might be implemented more rapidly. The exact duration depends on the complexity of the existing system landscape and the individual adjustments.

SAP Cloud ERP Private follows the release cycle of SAP S/4HANA On-Premises. A big basic release is published annually while quarterly Feature Pack Stacks (FPS) contain smaller optional improvements. Companies will be flexible enough to determine themselves when upgrades are to be made. However, an upgrade must take place at least every five years to remain within the mainstream maintenance. This differs considerably from the Public Cloud solution where updates are automatically and mandatorily imported in short intervals.