SAP S/4HANA on-premise

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What is SAP S/4HANA On-Premise?

SAP S/4HANA is an enterprise resource planning solution based on the SAP HANA database that enables on-premise operation. This means that as the customer, you are responsible for installing, upgrading, and running the software within your company’s own infrastructure. SAP S/4HANA provides functions for all business areas in a single suite, supporting a wide range of business processes across your organization.

A comparable range of functions is offered by SAP S/4HANA Cloud Private Edition as a cloud solution. This means the software is implemented on hardware provided by SAP or an infrastructure-as-a-service provider and hosted for you as the SAP customer.

What are the benefits of SAP S/4HANA On-Premise?

Which migration paths are available for transitioning to SAP S/4HANA On-Premise?

There are various migration scenarios for transitioning to S/4HANA. Which migration 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 scenario with you.

Greenfield

New implementation of SAP S/4HANA from scratch.
Redesign of all structures, processes, and customizing.
Standardisation and harmonisation.
Separation from legacy systems and outdated organizational structures.
Reduction of custom developments.
Use of SAP’s latest best practices.
Pursuit of a clean-core strategy.

Conversion

Technical migration from ECC to S/4HANA on a set date for all entities (big bang).
The complete system history (except archived data) is transferred.
Structures, data, and processes largely remain unchanged.
There are some mandatory changes under S/4HANA; we recommend implementing certain preliminary projects (such as introducing Business Partners or the new Asset Accounting) before starting the actual conversion.

Empty Shell approach

Selective transfer of system settings (e.g., customizing, developments, organisational structures).
Selective transfer of master and transactional data.
Opportunity for standardisation and harmonisation.
Separation from legacy systems and outdated organisational structures.
Reduction of custom developments.
Use of SAP’s latest best practices.
Pursuit of a clean-core strategy.

How we can support you

We provide comprehensive support for your SAP S/4HANA implementation — from design and conception to implementation, go-live, and hypercare. Throughout the process, we follow the SAP Activate methodology.

Greenfield/Hybrid

Stakeholder interviews
Strategy development
Developing the business case
Technical readiness check
Change readiness check
Defining the migration scenario
Key user concept
Defining target vision/guiding principles

Conversion

Stakeholder interviews
Strategy development
Developing the business case
Technical readiness check
Change readiness check
Defining the migration scenario
Defining target vision and guiding principles

Greenfield/Hybrid

Setup project organisation
Project- and timeline plannig
Prototyping (if needed)
Training of the project teams
Kick-Off

Conversion

Setup project organisation
Project- and timeline plannig
Training of the project teams
Kick-Off:
(Assumption: Preliminary projects such as Business Partner implementation or archiving are completed)

Greenfield/Hybrid

Fit-to-standard workshops
Process analysis
Gap identification
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 customizing activities

Greenfield/Hybrid

Implementation of requirements:

Customizing
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 production system

Greenfield/Hybrid

Training management
Final testing
Go-live preparation
Cutover planning
Go-live execution

Conversion

Training management
Final testing
Go-live preparation
Cutover planning
Go-live execution

Greenfield/Hybrid

System stabilization
Handover to support
Optimization & continuous further development of the solution

Conversion

System stabilization
Handover to support
Optimization & continuous further development of the solution

Change Management in an SAP S/4HANA On-Premise Project

An SAP S/4HANA On-Premise project is more than just a technical migration – it involves profound changes in processes, roles, and organizational structures. Our change management approach supports your organization throughout the SAP Activate methodology, ensuring sustainable acceptance and implementation.

Our Change Management Measures Along the SAP Activate Phases

Discover
Objective: Create awareness of the need for change.

Conduct a change readiness assessment
Stakeholder analysis and interviews
Develop a change vision and communication strategy

Prepare
Objective: Prepare the organization for the upcoming changes.

Establish a change team and governance structures
Create a change and communication plan
Sensitize leadership to act as change agents

Explore
Objective: Strengthen readiness for change and prepare new roles and processes.

Involve business departments in fit-gap analyses
Train and empower key users
Conduct change workshops to promote acceptance

Realize
Objective: Anchor changes within the organization.

Support testing phases with feedback formats
Role-specific training and communication measures
Set up support structures (e.g. change champions, peer support)

Deploy
Objective: Ensure a smooth transition to productive operations.

Go-live communication and escalation management
Activate support networks
Support through change agents and key users

Run
Objective: Ensure sustainable use and continuous improvement.

Establish feedback loops and lessons learned
Consolidate new roles and processes
Monitor change and maintain ongoing communication

Special Considerations in the On-Premise Context

Higher degree of customization requires more intensive change support
Greater technical complexity and longer project durations
Focus on sustainable anchoring without automatic cloud updates

Our references

SAP ERP

We support you with experienced SAP consultants — using an approach that delivers more: the PIKON 3-Point Consulting Approach.

FAQs about SAP S/4HANA On-Premise

When is a cloud solution recommended, when On-Premise?

When deciding whether to use the cloud or on-premise, the following points should be considered:

	S/4HANA Cloud	S/4HANA On-Premise
Hosting	Through SAP or hyperscalers (e.g. Azure, AWS)	In your own data centre or external hosting partner
Maintenance & updates	Through SAP, regular updates	Independent, flexible update cycles
Investment model	Subscription-based (OPEX)	Licence purchase + operating costs (CAPEX)
Compliance & control	High security, but in an SAP environment	Full internal data authority and control

1. Hosting:

S/4HANA On-Premise

In your own data centre or with an external hosting partner

S/4HANA Cloud

By SAP or hyperscaler (e.g. Azure, AWS)

2. Maintenance & updates:

S/4HANA On-Premise

Self-managed, with flexible update cycles

S/4HANA Cloud

By SAP, with regular updates

3. Investment model:

S/4HANA On-Premise

License purchase + operating costs (CAPEX)

S/4HANA Cloud

Subscription-based (OPEX)

4. Compliance & control:

S/4HANA On-Premise

Full data sovereignty and internal control

S/4HANA Cloud

High security, but within SAP environment

In addition to these factors, SAP has clearly communicated that future innovations in S/4HANA will primarily take place within the cloud solutions. This means that new functionalities, industry-specific solutions, and AI-powered scenarios (such as Joule, Machine Learning, and AI features) will appear first—and according to current information, almost exclusively—in the cloud.

Anyone who wants to fully benefit from the announced innovations should at least consider transitioning to the cloud landscape in the medium term.

How does migration to an On-Premise system differ from migration to the Private Cloud?

The migration to SAP S/4HANA On-Premise compared to migration to the Private Cloud differs primarily in terms of the operating and licensing models.

While an on-premise system requires operating your own data center or engaging an external hosting partner, the Private Cloud is hosted directly by SAP or a hyperscaler such as Microsoft Azure or AWS. This means that control remains fully in your own hands with an on-premise system, whereas it is more limited in a Private Cloud environment.

The licensing model also differs: for S/4HANA On-Premise, customers continue to purchase perpetual licenses, while in the Private Cloud, licenses are based on a subscription model, making them more scalable.

In terms of the actual migration to S/4HANA, there are hardly any differences between On-Premise and Private Cloud. In both scenarios, organizations can choose either a Greenfield approach or a system conversion (Brownfield).

How does the migration from an On-Premise system to a Public Cloud differ?

The migration from an S/4HANA On-Premise system to an S/4HANA Public Cloud differs significantly more than to the Private Cloud — both technically and conceptually. The hosting and licensing models differ, and in this regard, the Public Cloud is aligned with the Private Cloud.

However, there are additional functional differences between the Public Cloud and an On-Premise or Private Cloud system. The Public Cloud provides a preconfigured system based on SAP Best Practices for various industries. The cloud system can be extended using in-app extensions (SAP FIORI) by key users and side-by-side extensions via the BTP. The only viable migration path to the Public Cloud is the Greenfield approach, since this involves setting up an entirely new system.

Is the S/4HANA migration purely an IT project?

The S/4HANA migration is not a purely (technical) IT project. It is a transformation project that holistically covers all processes and areas and benefits from well-planned change management. In the best-case scenario, this includes company-specific features, processes and all users, thus guaranteeing a successful project on all sides.

It is also a business project, often driven by specialist areas. This means that the business often does not have the opportunity to map its own needs and requirements via the existing system landscape. The wish list includes high performance in terms of automation in harmony with real-time analyses, AI-supported processes and modern user interfaces such as SAP FIORI to enable more efficient work through increased productivity.

What are the benefits of using SAP Cloud ALM and Signavio during an S/4HANA implementation?

SAP Cloud ALM is a cloud-based application lifecycle management solution for implementation, operation and service. It acts as a central access point for the implementation and operation of SAP projects.

The solution is part of SAP Enterprise Support and selected cloud subscriptions. The benefits are realised via a harmonised platform. This means that implementations can be realised more quickly, internal processes optimised and service workflows simplified.

SAP Signavio is a cloud-based platform for business process management (BPM) and process transformation. As part of the S/4HANA implementation, it enables a systematic analysis of business processes as well as their modelling and targeted further development.

What is change management in an SAP S/4HANA On-Premise project?

Change management includes all measures that are necessary to successfully shape the organisational changes in the course of an S/4HANA implementation – from communication and training to the sustainable anchoring of new roles and processes.

Why is change management particularly important for On-Premise projects?

On-Premise projects are often more complex, customised and long-term than cloud projects. Without regular updates like in the cloud, changes need to be planned in a targeted manner and permanently anchored – this requires structured change management.

Which roles are relevant in change management?

Important roles include change agents, key users, project communicators and managers. They are responsible for living out change, communicating it and anchoring it in everyday life.

How long does a change management process normally take in an S/4HANA project?

Ideally, change management accompanies the project from the very beginning until well after the go-live. The duration depends on the scope of the project, the size of the company and the organisation’s willingness to change.

How can the success of change management be measured?

Typical indicators of success are, for example, the acceptance of new processes, the use of new roles, feedback from the organisation and the number and quality of training participants or lessons learned.