SAP S/4HANA Public Cloud offers a flexible, subscription-based pricing model designed for various industries and company sizes. Unlike traditional on-premise ERP systems that require upfront investments in software and infrastructure, S/4HANA Public Cloud allows organizations to pay based on usage, user count, and selected functionalities. This scalable approach enables businesses to adjust their investment as they grow, making it an ideal solution for small and medium-sized enterprises (SMEs) and large corporations looking for greater flexibility and cost efficiency in managing their ERP systems.
Deployment model for SAP S/4HANA Cloud:
There are two main options are:
SAP licensing has evolved with the introduction of S/4HANA, moving away from the traditional model based on named users and software components. The new, more flexible licensing options focus on consumption and business metrics, aligning better with S/4HANA’s capabilities. This shift provides greater transparency, flexibility, and predictability, catering to the diverse needs of businesses across on-premise, cloud, or hybrid deployments.
The licensing model for SAP S/4HANA differs from traditional SAP ERP by offering greater flexibility. While traditional models focused on licensing named users and software modules, S/4HANA allows businesses to base licensing on outcomes and value metrics, such as the volume of business processed. The new model introduces two options: digital access licensing, which accounts for increased API and automation usage, and business value licensing, where customers pay based on the software’s value rather than a fixed number of users. This ensures compliance and better alignment with business needs.
Cloud-based licensing for SAP S/4HANA takes a different approach with its subscription model, which typically includes both the software and the necessary infrastructure. Customers can choose between public (multi-tenant) or private (single-tenant) options. This cloud licensing is billed on a pay-as-you-go basis, giving organizations the flexibility to scale resources up or down based on their needs.
Migrating from an existing SAP ERP license to an S/4HANA license can be a complex process that demands thorough planning. The transition requires converting legacy licenses to new terms that align with the enhanced features and capabilities of SAP S/4HANA.
In short RISE with SAP is Private Cloud Migration, and GROW with SAP is Public Cloud Migration.