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November 10, 2024

SAP S/4HANA On-Premise vs Cloud for Professional Services

SAP S/4HANA On-Premise vs Cloud: Which One to Choose? If you’ve made it this far, you already know that SAP S/4HANA is the best ERP to choose if your field of activity is professional services. However, you might still be undecided between the cloud solution or hosting it in your own data center.

Since this is a common concern among our clients, our SAP specialists have prepared a comparison between SAP S/4HANA On-Premise and Cloud, considering aspects specifically relevant to the professional services sector. We hope that after this analysis, you’ll have all the necessary information to make an informed decision.

Moreover, if you read until the end, we’ll explain a way to access this tool more efficiently and with significant cost reductions.

SAP S/4HANA On-Premise vs Cloud: Analysis

To compare SAP S/4HANA On-Premise vs Cloud, we will present the features of both options and then provide a conclusion based on these aspects.

SAP S/4HANA On-Premise vs Cloud: What Does the On-Premise Version Offer for Professional Services?

  • A tailored solution: Offers deep customization, adapted to the company’s specific needs. This feature is particularly valuable for professional services companies that manage complex or unique processes.

  • Requires proprietary technological infrastructure, which involves having servers, physical space, networks, and other necessary elements. It also requires a specialized team for support, which can drive up operational costs.

  • Manual updates: These require the internal IT team to plan and execute changes, as well as address any issues that arise. While this provides greater control over when and how updates are implemented, it also represents a heavier workload for teams.

  • Greater control over data and processes: This version is ideal for companies handling sensitive data, those subject to strict regulatory requirements, or those relying on confidentiality and strategic customization, such as medical sectors, consultancies, or financial industries.

  • Longer implementation time: This is due to the technical complexity and necessary integrations, as well as requiring resources to set up the infrastructure.

SAP S/4HANA On-Premise vs Cloud: What Are the Advantages of the Cloud Version for Professional Services?

  • Faster Implementation: Enables quick adoption of the ERP and new tools, avoiding prolonged service interruptions and ensuring operational continuity.

  • Automatic Updates: Companies gain fast access to advanced features thanks to automatic updates performed by the provider, without requiring intervention from the internal team. This ensures they always have the latest capabilities of the software.

  • Significant Cost Reduction: Does not require local infrastructure or active involvement from the internal team, allowing resources to be redirected to service improvements, hiring, or talent retention.

  • Flexible and Immediate Scalability: Adapts to business growth, making it ideal for companies with seasonal demands or rapid expansion.

  • Security Managed by Experts: SAP and its partners provide a specialized cybersecurity team, reducing costs and giving companies access to services that would otherwise require a substantial investment.

  • Access from Any Device: Teams can work from any location with an internet connection, accessing real-time project information seamlessly.

SAP S/4HANA On-Premise vs Cloud: Conclusions

After analyzing both solutions in this SAP S/4HANA On-Premise vs Cloud comparison, it is evident that the cloud version emerges as the most suitable option for professional services. This is due to its greater agility, accessibility, operational efficiency, and adaptability, which in most cases surpass the On-Premise version.

That said, we recommend the On-Premise solution primarily when total control over infrastructure is required. However, these advantages are often accompanied by higher costs, extended implementation times, and a heavier workload for the internal team.

On the other hand, the Cloud version of S/4HANA stands out for its fast implementation, automatic updates managed by the provider, and flexible scalability that eliminates the need for investments in proprietary infrastructure. Additionally, the advanced security managed by SAP is a significant advantage for companies that want to protect the integrity of their data without bearing the high costs of an internal specialized team. This feature is particularly relevant in a context where cyberattacks are increasingly frequent.

The article reaffirms that SAP S/4HANA Cloud, combined with Grow with SAP, is the most strategic and advanced option for professional services companies. SEIDOR stands out as the trusted and experienced partner to guide businesses through this process.

How to Implement SAP S/4HANA Efficiently and Cost-Effectively

We hope this SAP S/4HANA On-Premise vs Cloud comparison has helped clarify your doubts. Now, the only thing left is to choose a trusted partner for the ERP implementation.

At SEIDOR, as an SAP Platinum Partner, we have a highly qualified team that ensures an implementation service designed to maximize the advantages of the software. Additionally, if you’re looking for a more agile and cost-effective implementation, we offer the possibility of deploying SAP S/4HANA Cloud through RISE with SAP. This alternative is more accessible, agile, and standardized, making it easier to leverage SAP S/4HANA at a lower cost without sacrificing the essential features that make it the best ERP on the market.

SEIDOR has a proven track record in deploying SAP S/4HANA Cloud in over 45 countries, with a team of specialists combining technical and business knowledge with extensive experience in the professional services sector.

We provide a methodology that includes industry best practices, integrating key aspects into the service such as:

  • Automatic updates

  • Technical support

  • Staff training to maximize system utilization

We also guarantee on-time project delivery, ensuring that your company can start reaping the benefits of the ERP within the expected timelines.

For personalized advice, use the contact option at the bottom of this page. You’re just one step away from transforming your business processes and delivering excellent service.