Cloud-Based Applications: SaaS or Managed Services
Most cloud applications have services delivered by the provider of the application, which are typically detailed in the Service Level Agreement (SLA). However, the architecture and services offered vary based on whether the cloud applications are Software as a Service or managed cloud services.
SaaS applications are completely managed by the service provider and come ready to use, including all updates, bug fixes, and overall maintenance, and are typically multi-tenant.
SAP's cloud ERP SaaS offering is SAP S/4HANA Cloud Public Edition, which is installed in an SAP data center. There is also a commercial package of additional licenses and tools that accompany the core ERP software to help customers get the most out of their solution.
In a managed cloud service, the service provider has control over the cloud infrastructure and is fully responsible for its operation, maintenance, monitoring, availability, and support, and the infrastructure is typically single-tenant. In addition to the SLA, there's an additional document describing detailed roles and responsibilities of the customer and the service provider. Certain services are negotiable, where the customer may choose to perform a task themselves, or request the cloud provider perform the task on their behalf for an additional fee.
SAP's cloud ERP managed cloud services offering is SAP S/4HANA Cloud Private Edition. The managed cloud services are delivered by SAP Enterprise Cloud Services, and the software is hosted on an Infrastructure as a Service (IaaS) that can live in an SAP data center, or a third party data center partner. We refer to these data center partners as hyperscalers, which include, Microsoft Azure, Amazon Web Services, Google Cloud, and Alibaba Cloud. There is also a package of additional licenses and tools that accompany the core ERP software to help customers get the most out of their solution.