SAP S/4HANA Private Cloud is an ERP solution delivered in a private cloud environment. Compared to the on-premise solution, the software is operated in SAP’s own cloud or in a partner cloud.
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SAP S/4HANA Cloud Private Edition
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What is SAP S/4HANA Private Cloud?
What are the benefits of SAP S/4HANA Private Cloud?
Lower IT effort
Operations, maintenance, and updates are handled by SAP – relieving your IT department.
Cost transparency & flexibility
Subscription model instead of high upfront investments – enabling better cost planning.
Regular innovations
Flexibly deployed updates ensure continuous technical and functional advancement (e.g., AI).
High security & compliance
SAP operates the solution in certified data centers with the highest security standards.
Real-time analytics
Using the in-memory database SAP HANA enables real-time analytics and reporting, leading to faster and more informed business decisions.
Expandability
Companies can customize and extend the solution through additional modules and extensions.
Which migration paths are available for transitioning to SAP S/4HANA Private Cloud?
There are various migration scenarios for transitioning to S/4HANA. Which scenario is best suited for you depends on several factors. Learn more in our S/4HANA migration workshops, where we are happy to discuss the advantages and disadvantages of each option with you.
Greenfield
- New implementation of SAP S/4HANA from.
- Redesign of all structures, processes, and customizations
- Standardisation and harmonisation
- Separation from legacy issues and outdated organisational structures
- Reduction of custom developments
- Adoption of SAP’s latest best practices
- Pursuit of a clean-core strategy
Conversion
- Technical migration from ECC to S/4HANA on the cut-off date for all entities (Big Bang approach)
- The complete system history (except archived data) is carried over.
- Structures, data, and processes largely remain intact.
- However, certain mandatory changes apply under S/4HANA. We recommend implementing specific preliminary projects, such as introducing Business Partners or the new Asset Accounting, before the actual conversion begins.
Empty Shell approach
- Selective transfer of system settings (e.g. customising, developments, organisational structures)
- Selective transfer of master and transactional data
- Opportunity for standardisation and harmonisation
- Separation from legacy issues and outdated organisational structures
- Reduction of custom developments
- Adoption of the latest SAP best practices
- Pursuit of a clean core strategy
Lift and Shift
- Migration from an S/4HANA On-Premise System to the Private Cloud
- The transfer of the entire existing system into a new cloud environment
- No changes to processes
- No changes to the system architecture
How we can support you
We provide comprehensive support for your SAP S/4HANA implementation — from concept and design through to implementation, go-live, and hypercare. Throughout the project, we follow the SAP Activate methodology.
Greenfield/Hybrid
- Stakeholder interviews
- Strategy development
- Developing a business case
- Technical readiness check
- Change readiness check
- Definition of migration scenario
- Key user concept
- Defining target picture / guiding principles
Conversion
- Stakeholder interviews
- Strategy development
- Developing a business case
- Technical readiness check
- Change readiness check
- Definition of the migration scenario
- Defining target picture / guiding principles
Greenfield/Hybrid
- Set up project organisation
- Project and timeline planning
- Prototyping (if needed)
- Training of the project team
- Kick-Off
Conversion
- Set up project organisation
- Project and timeline planning
- Training of the project team
- Kick-Off (assuming pre-projects such as business partner implementation or archiving are completed)
Greenfield/Hybrid
- Fit-to-Standard workshops
- Process analysis
- Identification of gaps
- Definition of target processes
- FIORI concept
- Data migration concept
- Interface concept
- Reporting concept
- Test planning
- System landscape setup
Conversion
- Fit-to-Standard workshops
- Process analysis
- Gap identification
- FIORI concept
- Pre-checks as part of the Migration Cockpit
- Preparatory customising activities
Greenfield/Hybrid
Implementation of requirements:
- Customising
- Fiori implementation
- Test migration and validation
- Implementation of developments
- Implementation of interfaces
- Test preparation and execution
- Test migration
Conversion
- Test migration(s)
- Technical and functional follow-up steps
- Check & validation of results
- Test preparation and execution
- Data cleansing on the productive system
Greenfield/Hybrid
- Training management
- Final testing
- Go-live preparation
- Cut-over planning
- Go-live execution
Conversion
- Training management
- Final testing
- Go-live preparation
- Cut-over planning
- Go-live execution
Greenfield/Hybrid
- System stabilisation
- Handover to support
- Optimisation & continuous further development of the solution
Conversion
- System stabilisation
- Handover to support
- Optimisation & continuous further development of the solution
Change Management in an SAP S/4HANA Private Cloud Project
An S/4HANA Private Cloud project entails profound changes in processes, roles, and organizational structures. Our change management approach supports your organization along the SAP Activate methodology – structured, practical, and sustainable.
Change Management Along the SAP Activate Phases
1. Discover
Objective: Create awareness for the upcoming changes and analyze the initial situation.
- Conducting a change readiness assessment
- Stakeholder analysis to identify influencing factors and potential resistance
- Initial communication measures to raise awareness for the cloud transformation
- Derivation of initial change objectives and success factors
2. Prepare
Objective: Prepare the organization for the new system landscape and altered framework conditions.
- Development of a change and communication concept
- Establishment of a change network (e.g. change agents, key users)
- Expectation and resistance management in workshops and training sessions
- Introduction of the cloud mindset with a focus on standardization and release cycles
3. Explore
Objective: Specify changes and prepare new roles and processes.
- Involvement of business departments in fit-to-standard workshops
- Definition and assignment of cloud-specific roles (e.g. release owner, adoption manager)
- Development of a continuous change process
- Integration of change topics into project communication and training
4. Realize
Objective: Anchor changes and prepare the organization for go-live.
- Support of test and training phases with change formats
- Establishment of feedback loops and lessons learned
- Activation of support networks (e.g. peer support, mentoring)
- Consolidation of communication and role responsibilities
5. Deploy
Objective: Ensure a stable go-live through targeted support.
- Go-live communication across all relevant channels
- Activation of support structures and escalation paths
- Ensure visibility and accessibility of change roles
- Provision of quick-help formats for end users
6. Run
Objective: Ensure sustainable change capabilities and continuous improvement.
- Consolidation of the change process for future releases
- Regular feedback formats and change reviews
- Maintenance and further development of change roles
- Integration of change topics into day-to-day operations and IT governance
Special Considerations in the Private Cloud Context
- The combination of standardization and limited flexibility requires targeted change support
- Focus on establishing a stable operating model with clearly defined roles and responsibilities
- Continuous communication is essential to ensure acceptance of regular updates and process adjustments
Our References
SAP ERP
We accompany you with experienced SAP consultants – using an approach that offers more: the PIKON 3-Point Consulting Approach.
FAQs about SAP S/4HANA Cloud Private Edition
- When is a cloud solution recommended?
- How does the migration to an on-premise system differ from a migration to the private cloud?
- What is behind RISE with SAP?
- What is change management in an SAP S/4HANA private cloud project?
- Why is change management particularly important in the private cloud?
- Which roles are relevant in change management?
- How long does change management take in a private cloud project?
- How can the success of change management be measured?
When is a cloud solution recommended, and when is on-premise the better choice?
When deciding between cloud or on-premise, the following points should be considered:
S/4HANA Cloud | S/4HANA On-Premise | |
Hosting | By SAP or hyperscaler (e.g. Azure, AWS) | In your own data centre or with an external hosting partner |
Maintenance & updates | By SAP, with regular updates | Self-managed, with flexible update cycles |
Investment model | Subscription-based (OPEX) | License purchase + operating costs (CAPEX) |
Compliance & control | High security, but within SAP environment | Full data sovereignty and internal control |
1. Hosting:
S/4HANA Cloud
By SAP or hyperscaler (e.g. Azure, AWS)
S/4HANA On-Premise
In your own data centre or with an external hosting partner
2. Maintenance & updates:
S/4HANA Cloud
By SAP, with regular updates
S/4HANA On-Premise
Self-managed, with flexible update cycles
3. Investment model:
S/4HANA Cloud
Subscription-based (OPEX)
S/4HANA On-Premise
License purchase + operating costs (CAPEX)
4. Compliance & control:
S/4HANA Cloud
High security, but within SAP environment
S/4HANA On-Premise
Full data sovereignty and internal control
In addition to these factors, SAP has clearly communicated that future innovations in S/4 will primarily take place in the cloud solutions. This means that new features, industry solutions, and AI-driven scenarios (Joule, machine learning, AI features) will appear first — and, according to the current status, almost exclusively — in the cloud. Anyone wanting to fully benefit from the announced innovations should at least consider transitioning to the cloud world in the medium term.
How does migration to an on-premise system differ from migration to the Private Cloud?
Migration to S/4HANA On-Premise compared to migration to the Private Cloud mainly differs in the operating and licensing model. While an on-premise system requires running your own data centre or contracting an external hosting partner, the Private Cloud is hosted directly by SAP or a hyperscaler such as Azure or AWS. This means control remains fully in your own hands with an on-premise system, whereas it is only partially retained in a Private Cloud setup. The licensing models also differ: with S/4HANA On-Premise, you continue to purchase fixed licences, while licences in the Private Cloud follow a subscription model, making them scalable.
In terms of migration to S/4, there is hardly any difference between an on-prem and a private cloud. In both scenarios, you can pursue both a greenfield approach and a conversion.
What is behind RISE with SAP?
RISE with SAP is SAP’s all-in-one offering designed to support companies in their transition to the cloud. The central components of this package include S/4HANA Cloud, the Business Technology Platform, as well as various tools for analysing, monitoring, and optimising business processes (such as Business Process Intelligence) and for managing the migration to the cloud.
What is change management in an SAP S/4HANA private cloud project?
Change management includes all measures that are necessary to successfully shape the organisational changes in the process of an S/4HANA private cloud implementation – from communication and training to the anchoring of new roles and processes.
Why is change management particularly important in the private cloud?
The private cloud combines standardisation with limited flexibility. Clear roles, structured communication and a stable operating model are required for changes to have a lasting effect.
Which roles are relevant in change management?
Important roles include change agents, key users, adoption managers and release owners. They are responsible for communication, training and the sustainable anchoring of changes.
How long does change management take in a private cloud project?
Ideally, change management accompanies the project from the discover phase well into the run phase. The duration depends on the scope of the project and the organisation’s willingness to change.
How can the success of change management be measured?
Success criteria include the acceptance of new processes, the use of new roles, feedback from the organisation and participation rates in training and lessons learned sessions.
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