The world of cloud computing can seem intimidating at first glance with a dose of jargon and acronyms. This computing model has transformed the way we work. The term cloud computing spans a range of classifications, types, and architecture models.

Cloud computing can be categorized into three general types: public, private and hybrid.

Organizations have the option of choosing from these three models to run their workloads.

Public clouds deliver higher scalability features, while private clouds provide enhanced security and complete control over data governance and privacy.

Deploying cloud and leveraging SAP and SAP HANA solutions provides a major opportunity to transform your business and unlock new value for the enterprise.

Each SAP S/4HANA cloud infrastructure model is designed for a specific purpose that offers substantial benefits to businesses. Industry leaders are taking advantage of this disruptive technology by choosing a model for their unique business needs.

For organizations to select the right cloud model, it is important to understand the fundamentals of these two cloud types.

In this article, cloud computing experts at VC ERP Consulting, will break down some of the basics of public cloud vs private cloud in a way that anyone can understand. We’ll cover –
  • What is SAP S/4HANA public cloud?
  • What is SAP S/4HANA private cloud?
  • Why is it necessary for companies to pursue cloud adoption?
  • What are the differences between public and private clouds?
  • Sharing use cases and examples

What is SAP S/4HANA Public Cloud?

SAP S/4HANA Public Cloud is a Software-as-a-Service (SaaS) solution where all the public cloud customers share the same cloud. This makes it cost-effective and scalable. Each customer uploads data and chooses features required as per their needs. It is powered by SAP’s Grow with SAP offering.

Hyperscaler cloud providers like Amazon, Microsoft Azure and Google Cloud Platform manage public clouds. All of this put together makes SAP S/4HANA Public Cloud as an ideal solution. Below are the advantages of SAP S/4HANA Public Cloud –
  • Pay-as-you-use pricing model offers optimized business costs
  • Restructure IT teams towards strategic business areas and optimize IT costs
  • Migrate your SAP workloads on public cloud hosting easily with the right partner, VC ERP Consulting
  • Increase uptime with minimal risk of failure

What is SAP/4HANA Private Cloud?

SAP S/4HANA private cloud edition offers greater flexibility and functionality than Public Cloud. Each customer using this version has their own dedicated virtual private Cloud. In a private cloud, no other users store data or access computing power. It is powered by SAP’s RISE with SAP offering.

Private cloud customers have total control over their upgrade and maintenance schedules to ensure that there is minimal downtime or disruption to their organization. Below are the advantages of SAP S/4HANA Private Cloud –
  • Get total control over your critical business data and improve operational efficiency
  • Enhance data privacy by managing your business data on private servers with limited access
Now that we have covered the basics of SAP S/4HANA Cloud, let us see why it has become necessary for businesses to adopt cloud technologies.

Why does your business need the power of SAP S/4HANA Cloud?

Conventional businesses are embracing cloud technologies that support easier data sharing, predictive analytics and automation of business processes that free up time for greater business engagement.

SAP S/4HANA Cloud introduces us with new features and capabilities.

These are some benefits leading businesses to invest in SAP S/4HANA cloud transformation:
  • Fault tolerance and disaster recovery
  • Scalability and flexibility
  • Global data centers
  • Respond to changing business needs
  • Optimize business costs
Now, let’s look at the differences between SAP S/4HANA Public cloud and SAP S/4HANA Private cloud.

Top 5 Differences between SAP S/4HANA Public & SAP S/4HANA Private Cloud

DescriptionSAP S/4HANA Private CloudSAP S/4HANA Public Cloud
BasicsWith a private cloud, you maintain all your services on a private cloud protected by a firewall.

Private editions are single tenant environments where VC ERP runs your services in a dedicated environment.

RISE with SAP S/4HANA Cloud, Private Edition is offered as a private cloud solution.

With the SAP S/4HANA Public Cloud, services are delivered to your business over a network that is open for public usage leveraging Grow with SAP offering.

Public clouds offer efficiency and affordability and are often multi-tenant – meaning VC ERP runs your service in a shared environment.

Grow with SAP for SAP S/4HANA Cloud is offered as a public cloud solution.
Powered ByRISE with SAPGrow with SAP
How to decide between public and private cloud editionPrivate Cloud is suitable for-
  1. Existing SAP ERP customers who have the desire to move to cloud but do not want a complete process redesign
  2. New customers who wants a full, extensive, ERP functionality including partner add-ons with the ability to extend and enhance as required
Public Cloud is suitable for –
  1. Existing SAP ERP Customers who wants to move to cloud and ready to start fresh with a clean system and are open for a process redesign
  2. New customers who are ready to embrace the future of ERP with a new implementation and predefined process
Type of implementation Brown field, Selective Data transition and Green field implementationGreen field only. Could be a component of selective data transition
Lines of Business CoverageThis covers all 25 industries like SAP S/4HANA on premiseHighly standardized business processes covering selected LoB and industry scenarios and a comprehensive ERP scope.

In-depth coverage for professional services and component manufacturing
CustomizationsYou can customize and modify SAP source code.

You have full visibility and control of the backend SAP GUI.
You can make customizations through SAP Fiori Applications. You cannot modify SAP source code.

No access to backend GUI.
TCO and ROIComparatively higher TCOLower TCO and high ROI

Each business has different requirements and VC ERP Consulting’s end-to-end managed cloud services for SAP S/4HANA guide you through a step-by-step process designed to help you make the most of your investment in your cloud journey.

Unlock the True Potential of Cloud Hosting for SAP with VC ERP

Bring together the power of SAP S/4HANA cloud solution: Public and Private Cloud edition that offer a clear path towards an ‘intelligent’ enterprise.

Become a more flexible, more cost-efficient business that can respond swiftly to evolving customer needs, market forces, risks and operational requirements.

Cloud experts at VC ERP Consulting work with your business closely to assess your current processes and infrastructure and to design your future strategy, architecture and roadmap for implementing or migrating SAP solutions to the cloud.

Are you ready to move strategically and deeply into cloud computing? Get in touch with award winning SAP Gold Partner, Certified Expert SAP S/4HANA Consultants and Advisors at VC ERP Consulting for free consultation.

Call +91 7948998911 (India), Whatsapp +254 111229970 (Kenya), Call +1 469 9156026 (North America), +974 31239246 (MENA) or drop an E-mail at