Cloud ERP Private

What is Cloud ERP-Private?

Cloud ERP-Private refers to the deployment of SAP S/4HANA in a dedicated cloud environment exclusively for one organization. Unlike shared, multi-tenant solutions, the private cloud setup offers organizations a secure, isolated infrastructure—ensuring full control, deep customization, and high compliance with regulatory needs.

SAP delivers this solution primarily through Cloud-Private, a key component of the broader RISE with SAP transformation program.

Key Features of SAP S/4HANA Cloud-Private

🔹 Dedicated Infrastructure
• In Hosted in a single-tenant environment,
• In the customer’s own data center or on Infrastructure-as-a-Service (IaaS) platforms like AWS, Microsoft Azure, or Google Cloud Platform (GCP)
This setup provides full isolation of resources, ensuring maximum data security, privacy, and control.

🔹 High Customizability:
• Deep customization of ERP functionalities, including modifications to the SAP source code
• Support for complex, industry-specific processes
• Retention and migration of existing in-house developments from SAP ECC (brownfield migrations supported
• This makes it ideal for companies with unique processes, legacy investments, or compliance-heavy environments.

🔹 Managed Services Flexibility:
• Handled in-house
• Outsourced to SAP’s Enterprise Cloud Services
• Or managed by an SAP-certified partner

• optimize IT costs and staffing

🔹 Subscription-Based Licensing:
• Cloud ERP-Private is offered on a subscription model covering; Infrastructure, Software licensing, Basic operational services.
• Implementation and ongoing application management are not included in the base subscription, allowing companies to choose partners or manage them internally.

Why Choose Cloud ERP-Private?

🔹 Tailored for Individuality
• Supports industry-specific requirements.
• Enables full differentiation from competitors through system customization.

🔹 Investment Protection
• Leverages existing SAP ECC developments.
• Supports brownfield migrations to avoid starting from scratch.

🔹 Cloud Benefits with On-Premises Power
• Scalable and reliable
• High performance and real-time analytics
• Modern UX and integration with emerging tech (e.g., AI, automation)

🔹 Self-Determined Innovation Pace
• Customers control when upgrades are applied (at least once every five years is mandatory)

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Ideal Use Cases

Cloud ERP, Private Edition is especially suited for:

• SAP ECC customers with custom-built solutions wanting a smooth transition

• Enterprises in regulated industries (healthcare, biotech, CRITIS, etc.)

• Companies with complex operations or proprietary processes

• Organizations wanting cloud benefits but unwilling to compromise on control

Migration and Implementation

The move to Cloud ERP-Private is typically supported through RISE with SAP, which includes:

• Tailored Cloud ERP solution

• Business process intelligence and analytics

• Industry-specific content

• Access to transformation and partner services

Especially Valuable for Midsize and Growing Companies

Public Cloud ERP is an ideal solution for midmarket companies that require flexibility, fast growth, and modern technology. Key reasons midsize businesses adopt cloud ERP include:

◉ Improved agility to launch new services, enter new markets, or scale operations

◉ Better cash flow visibility with integrated finance and operational data

◉ Easier integration with CRM, field service, and other cloud-native solutions

Is Public Cloud SAP ERP Secure?

Yes. In fact, cloud ERP can be more secure than traditional on-premises solutions. Leading cloud providers employ dedicated cybersecurity experts, perform regular backups, and offer high redundancy to minimize downtime and data loss. Many breaches reported in the media involve on-premises systems, not cloud-based deployments.

The Strategic Value of SAP Cloud ERP?

Cloud ERP isn't just about lowering costs — it's about driving digital transformation. It enables:

◉ Continuous innovation through regular upgrades

◉ Global business visibility and compliance

◉ Integrated operations across your value chain

◉ Sustainable and responsible business operations

With SAP’s GROW with SAP and RISE with SAP offerings, even small and medium enterprises can accelerate their cloud journey with best-in-class support and prebuilt industry content

SAP Cloud ERP is the future-ready backbone for businesses aiming to thrive in a dynamic digital environment. With its scalability, speed, intelligence, and security, SAP S/4HANA Cloud ERP, empowers organizations to simplify operations, innovate constantly, and grow without limits.

Whether you are a startup, a midsize company, or an enterprise, SAP Cloud ERP is the foundation for building an intelligent, connected, and resilient business.

Pros and Cons

Advantages

• Full control over IT infrastructure and data

• Supports existing custom developments

• Deep configurability and extensibility

• Meets strict legal, regulatory, and industry standards

• Scalable and modern platform with high availability

Disadvantages

• Higher total cost of ownership than standard public cloud solutions

• Longer implementation times

• Less alignment with “keep the core clean” principles, requiring careful governance

• Requires more IT plans for upgrades and maintenance