Question

In conjunction with Building tomorrow ERP through SAP S/4 HANA how do you think the architecture will be proper for cloud-based ERP?

Answer 1

Ans.

Every company is facing unprecedented pressure to move faster, with greater agility and customer focus. Achieving and maintaining a competitive edge requires insight across the value chain. SAP S/4HANA has the most comprehensive artificial-intelligence-powered functionality in the ERP market, enabling companies to foresee developments early on and capitalize on opportunities immediately. Companies also have complete choice and full flexibility to decide where to run their mission-critical processes – in the cloud or on-premise.

What are the differences between the two? Which one should you choose for your organization?

Knowing the differences between the two will enable you to figure out which way is the right fit for your company’s needs and how it will impact your business in the long run.

SAP S/4HANA Cloud is a Software as a Service (SaaS) edition of S/4HANA. It’s available to enterprises both in public and private clouds and enables users to leverage S/4HANA functionality without any need for hardware, a database, or internal IT staff.

Meanwhile, S/4HANA cloud uses a subscription license model in which customers do not have the right to use the software in perpetuity. Instead, they have to pay an annual fee, which covers all SaaS components.

This license typically lasts from one to three years, and the associated fee is based on business metrics, such as the number of users, documents processed, or volume of storage or bandwidth.

For example, if a customer wants 1,000 users authorized to access SAP, then the subscription fee is based on that number. And, if they would like to reevaluate in five years, they can choose a five-year term with annual renewals thereafter.

In S/4HANA Cloud, SAP will provide and handle almost everything for the customer, including applications, data, runtime, middleware, operating system, servers, storage, and networking.

Moving to SAP S/4HANA is not just about following the newest trend in ERP technology. This is a move that can bring real competitive advantages to your business.

With its simplified architecture, real-time analysis, and performance improvements, SAP S/4HANA will enable you to achieve more–from time efficiency to faster ROI.