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Cloud that is not a cloud

One of the best-kept secrets is on-prem cloud functionality for Hana and S/4. Those with patience and good nerves can ask SAP if there is a way to run Hana and S/4 with cloud functionality in their own data center.
Peter M. Färbinger, E3 Magazine
November 3, 2022
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This text has been automatically translated from German to English.

On-prem cloud capabilities

The truth is: Yes, there is such a thing. However, it can take some time for the existing SAP customer to find a sales representative who also offers this strange and rare SAP product. It is easier to send a request to HPE, because SAP developed the solution with this IT provider. But why?

Cloud computing

There are many reasons for Cloud computing in their own data center or with a hoster of their choice. Many existing SAP customers cite their own data sovereignty, together with their own SAP licenses. The issue here is not security, i.e. data protection and security, but governance and compliance. It may well be that the data is more secure in the cloud centers of Microsoft, Amazon and Google. But if the worst comes to the worst, physical access is difficult. Downloading and then reusing your own data is also a challenge. Once the data is in the public or private cloud, the existing SAP customer is largely at the mercy of the cloud provider and hyperscaler. In addition to this loss of sovereignty, the high costs must also be taken into account.

We leave the cloud

"Too expensive and obscene margins: We are leaving the cloud" is the title of an excellently written article by my colleague JĂĽrgen Hill from Computerwoche in Munich. In his article, he describes a user who seriously tried cloud computing for a long time, but ultimately had to admit that it was not worth it! Even if the example given does not apply to every existing SAP customer, the linear growth of the costs of an SAP cloud can become worrying.

In the upcoming E-3 December/January issue, we report on the SAP Partner Summit Hamburg 2022 and a cloud calculation from SAP's perspective - not always to the advantage of existing customers. The fact is that there are hardly any savings in the private and public cloud due to reduced complexity. The constantly rising costs contradict many statements made by hyperscalers. Lower initial investments and less administration with regard to staffing and basic operation speak in favor of the cloud. This opens the discussion about the best S/4 Hana infrastructure.

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Peter M. Färbinger, E3 Magazine

Peter M. Färbinger, Publisher and Editor-in-Chief E3 Magazine DE, US and ES (e3mag.com), B4Bmedia.net AG, Freilassing (DE), E-Mail: pmf@b4bmedia.net and Tel. +49(0)8654/77130-21


1 comment

  • Mag. Christian Podiwinsky

    Ich habe einmal eine Rentabilitätsrechnung für einen Kunden zu Business by Design (das war der erste Cloud-Versuch von SAP) gemacht. Es wurde also der Cloud-Betrieb kostenmäßig mit einer On-Demand-Lizenzierung und Betrieb bei einem (günstigen) externen Rechenzentrum verglichen. Da kam heraus, dass ab maximal 5 Jahren der Betrieb im eigenen oder fremden Rechenzentrum auf On-Demand-Basis in Summe günstiger ist als eine Cloud-Abwicklung wie sie SAP propagiert und gerne möchte.

    Da wurde der Vorteil, dass man in einem “private” System wesentlich leichter ADD-ONs, VerknĂĽpfungen mit Non-SAP-Daten,… erstellen kann, gar nicht mitgerechnet.

    Fazit: Cloud-Lösungen rechnen sich meist nur dann, wenn man die Applikation nur relativ kurz nutzen will – in der Erwartung , dass es dazu laufende Verbesserungen am Markt gibt und man diese möglichst zeitnah nutzen will.

    Bei ERP-Systemen ist aber das Gegenteil der Fall: Einmal eingeführt, soll es 10 bis 15 Jahre genutzt werden, Verbesserungen Erweiterungen werden im Rahmend der Wartung eingespielt oder durch neue integrierte Module ermöglicht. Damit sind ERP-Systeme aus wirtschaftlichen Gründen in einem externen Cloud-Betrieb eher nicht empfehlenwert.

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