SAP S/4HANA Private Cloud vs SAP S/4HANA Public Cloud
Side-by-side comparison of SAP S/4HANA Private Cloud and SAP S/4HANA Public Cloud — features, pricing, modules, and deployment options.
SAP S/4HANA Private Cloud vs SAP S/4HANA Public Cloud at a Glance
| Criteria | SAP S/4HANA Private Cloud | SAP S/4HANA Public Cloud |
|---|---|---|
| Best For | Large, complex enterprises needing deep customisation and controlled upgrades | Mid-market and standardised enterprises wanting fast time-to-value |
| Starting Price | Custom quote | $180/user/mo |
| Pricing Model | custom | per-user |
| Deployment | cloud, hybrid | cloud |
| Company Size | 1001-5000, 5000+ | 251-1000, 1001-5000 |
| Implementation | 6–18 months | 3–6 months |
| Typical Cost | $500K–$5M+ | $150K–$600K |
Module Comparison
| Module | SAP S/4HANA Private Cloud | SAP S/4HANA Public Cloud |
|---|---|---|
| Finance & Accounting | ★★★ Strong | ★★★ Strong |
| Manufacturing | ★★★ Strong | ★★ Moderate |
| Supply Chain | ★★★ Strong | ★★ Moderate |
| CRM | ★★ Moderate | ★★ Moderate |
| HR & Payroll | ★★ Moderate | ★ Basic |
| Project Management | ★★ Moderate | ★★ Moderate |
| Inventory Management | ★★★ Strong | ★★ Moderate |
| Procurement | ★★★ Strong | ★★★ Strong |
| Warehouse Management | ★★★ Strong | ★ Basic |
| Ecommerce | ★★ Moderate | ★ Basic |
| Business Intelligence | ★★★ Strong | ★★★ Strong |
| Quality Management | ★★★ Strong | ★ Basic |
| Field Service | ★★ Moderate | — N/A |
| Asset Management | ★★★ Strong | ★★ Moderate |
Pros & Cons
SAP S/4HANA Private Cloud
Pros
- +Full custom ABAP development — bring existing ECC customisations
- +Customer-controlled upgrade schedule (annual/bi-annual)
- +Complete S/4HANA module portfolio including advanced manufacturing & EWM
- +RISE with SAP bundles software, hosting, BTP, and support
Cons
- -Higher TCO than Public Cloud due to dedicated infrastructure
- -Longer implementations (6–18 months) with migration complexity
- -Custom code maintenance adds ongoing effort and cost
- -Complex RISE with SAP licensing can be hard to negotiate
SAP S/4HANA Public Cloud
Pros
- +Lowest TCO in the S/4HANA family — no infrastructure or upgrade projects
- +Quarterly automatic updates keep you on the latest features
- +Rapid 3–6 month implementations via Fit-to-Standard
- +Standardised best-practice processes reduce complexity
Cons
- -Limited customisation — no custom ABAP; extensibility via BTP only
- -Not suited for complex manufacturing or engineer-to-order
- -Mandatory quarterly upgrades cannot be delayed
- -Multi-tenant environment limits data residency control
When to Choose SAP S/4HANA Private Cloud
- You need an ERP best suited for large, complex enterprises needing deep customisation and controlled upgrades
- Your company has 1001-5000 or 5000+ employees
- You operate in Manufacturing, Oil & Gas, Pharmaceuticals
- You prefer cloud / hybrid deployment
When to Choose SAP S/4HANA Public Cloud
- You need an ERP best suited for mid-market and standardised enterprises wanting fast time-to-value
- Your company has 251-1000 or 1001-5000 employees
- You operate in Professional Services, Wholesale & Distribution, Retail
- You prefer cloud deployment
- Your budget aligns with $180/user/mo starting price
Frequently Asked Questions
Is SAP S/4HANA Private Cloud better than SAP S/4HANA Public Cloud?
It depends on your business needs. SAP S/4HANA Private Cloud is best for large, complex enterprises needing deep customisation and controlled upgrades, while SAP S/4HANA Public Cloud is best for mid-market and standardised enterprises wanting fast time-to-value. SAP S/4HANA Private Cloud starts at custom pricing and SAP S/4HANA Public Cloud starts at $180/user/mo.
How does SAP S/4HANA Private Cloud pricing compare to SAP S/4HANA Public Cloud?
SAP S/4HANA Private Cloud uses a custom pricing model, while SAP S/4HANA Public Cloud uses a per-user model starting at $180/user/mo. SAP S/4HANA Private Cloud typical total cost is $500K–$5M+ vs $150K–$600K for SAP S/4HANA Public Cloud.
Which is better for manufacturing: SAP S/4HANA Private Cloud or SAP S/4HANA Public Cloud?
Both vendors serve manufacturing companies. SAP S/4HANA Private Cloud is typically chosen by 1001-5000, 5000+ employee organizations, while SAP S/4HANA Public Cloud targets 251-1000, 1001-5000 employee companies. Consider your company size and specific module needs to decide.
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