Choosing SAP S/4HANA Deployment Model


After completing this lesson, you will be able to:

  • Understand internal and external integration options
  • Differentiate between classic and cloud operating model

SAP S/4HANA Platform Considerations

SAP S/4HANA and SAP S/4HANA Supply Chain for Transportation Management

SAP S/4HANA Supply Chain for transportation management is a powerful solution that seamlessly integrates with both the internal components of SAP S/4HANA and a variety of external components:

  • SAP ERP Financial Accounting, Sales and Distribution, Logistics Execution, and Materials Management

    Transportation management seamlessly integrates with these core internal components, ensuring efficient order management and providing a clear financial picture of logistics operations.

  • SAP Extended Warehouse Management (SAP EWM)

    Integration with SAP EWM streamlines the coordination between warehouse operations and transportation activities, enabling a seamless flow of goods from the warehouse to their intended destinations.

  • SAP Event Management

    Transportation Management integration with Event Management offers real-time visibility into transportation events, empowering organizations to proactively monitor and manage events, thereby enhancing operational efficiency and customer satisfaction.

  • SAP Global Trade Services (SAP GTS)

    Integration with GTS ensures adherence to international trade regulations, effectively managing customs and trade compliance for cross-border shipments, thereby mitigating global trade-related risks.

These integrations are pivotal in enhancing logistics and supply chain operations, ensuring that goods flow seamlessly and compliance is maintained. Therefore, organizational decision-makers should begin by selecting their preferred ERP (Enterprise Resource Planning) system. The ERP system serves as the foundational technology platform that underpins a multitude of business processes and functions across the organization. The choice of an ERP system carries extensive ramifications, affecting how the organization conducts its operations, manages resources, and realizes its strategic goals.

The decision between SAP S/4HANA as a "Service" or as a "Product" depends on the organization's specific needs, resources, and preferences. The "Service" option offers a cloud-based, managed service, while the "Product" option involves an on-premise installation. The choice should align with the organization's strategic goals and IT infrastructure.

In the following video you will learn the difference between SAP S/4HANA as a service versus as a product.

Classic vs Cloud Operating Model

Classic Operating ModelCloud Operating Model
In the classic operating model, infrastructure, platform, and software are maintained by the customer.In the cloud operating model, infrastructure, platform, and software are maintained by the provider and the customer.
The customer buys the software and the rights to use it. This model has comparatively higher deployment costs. There is also an additional risk of hidden overhead costs, such as customizations.The customer uses the software based on a subscription model, and this subscription cost becomes a part of the ongoing operational costs.
The customer is not only responsible for the initial installation, but also for ongoing maintenance, bug-fixes, and upgrades. After the software is purchased, significant setup is required before it can be used. The workload of installation and maintenance is often distributed between customer and providers. Due to the specificity of the technology and development needs, highly skilled resources are required to set up the system.The software is available to use immediately. Functional components are pre-configured, therefore the skills required are more functional than technical, which makes it easier for customers to acquire or scale resources.
All non-functional aspects, such as performance, security, and compliance are managed by customer as the solution is deployed in their own environment.All the non-functional aspects, such as performance and risk, are offloaded to the provider.

Choosing the right S/4HANA deployment model, whether it is Public Cloud, Private Cloud, or On-Premise, is pivotal. These decisions are crucial for the successful implementation and operation of transportation management within the broader SAP S/4HANA ecosystem.

In the following video you will discover the different deployment options available for SAP S/4HANA.

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