Designing the transformation correctly

Those who opt for S/4 Hana in the cloud have the choice between Rise with SAP or a Direct Cloud by means of a service provider. Many managed services providers (MSP) offer hosting and operation of an S/4 cloud and related services. Rise, on the other hand, is SAP's own offering package. It includes a cloud ERP hosted either in an SAP data center or with a hyperscaler that the customer can choose. SAP assumes operational responsibility and provides technical support. SAP also offers managed services, but nowhere near to the extent of an MSP. Only SAP base operations and technical support for the SAP platform are included in Rise. However, this does not include the peripherals.

There is also a lot to consider in terms of licensing. Rise is a cloud offering that includes software, hosting and operation in one license and is billed in a subscription model agreed with SAP. This simplifies license management on the one hand, but limits flexibility on the other. With an S/4 cloud hosted and operated by an MSP, on the other hand, companies can negotiate individual contracts with hyperscalers and service providers and optimize licenses across the entire IT infrastructure. 

In some cases, the Rise platform differs significantly from the offerings of MSPs - especially with regard to any customizing that may still be necessary. Most companies have heavily customized their SAP landscape over the years. Rise, on the other hand, standardizes in many places. It may well be desirable to return to the standards programmed by SAP in order to streamline processes. However, companies often have specific customizations that they cannot do without. If the SAP package does not fully cover their needs, companies must take care of closing the gaps themselves. 

With both Rise and Direct Cloud using a service provider, customers can choose where the S/4 cloud is hosted. Companies that already have a cloud strategy usually opt for hosting with a hyperscaler, as this allows them to better integrate the SAP platform into their existing architecture.

When choosing a hyperscaler, companies should primarily consider their technical environment. Cloud providers differ in detail when it comes to topics such as AI, big data, analytics or IoT support. A service provider can help to analyze one's own needs, weigh up the advantages and disadvantages of the various hyperscalers and select the best option. Although it is technically possible to move the S/4 cloud again at a later date, this involves considerable effort and costs.

The switch to S/4 is a great opportunity for companies to advance their digitization and gain competitive advantages. Whether the SAP Rise package is suitable for the switch always depends on the individual case.