From On-Prem to Cloud: SAP S/4HANA Deployment Options and RISE with SAP

SAP S/4HANA isn’t one product with one deployment model. It comes in three editions — public cloud, private cloud, and on-premise — each with different update cycles, customisation options, and cost structures. RISE with SAP adds a fourth dimension by bundling private cloud with infrastructure and BTP services.

Choosing the right deployment model is one of the most consequential decisions in an S/4HANA project. Here’s how each option works and when to choose it.

TL;DR: Thirty per cent of organisations are now fully live on S/4HANA, up from 19% the prior year, while legacy ECC usage dropped below 50% for the first time (SAPinsider, 2025). S/4HANA offers three deployment models: public cloud (multi-tenant SaaS, fastest updates, least customisation), private cloud (single-tenant, RISE with SAP, moderate customisation), and on-premise (full control, full responsibility). RISE with SAP bundles private cloud with BTP, infrastructure, and migration tools into one contract.

What Are the Three S/4HANA Deployment Models?

The S/4HANA market is projected to grow from USD 20.35 billion to USD 48.46 billion by 2033 (Verified Market Reports, 2025). That growth is split across three deployment models, each designed for different levels of customisation.

Public Cloud (S/4HANA Cloud, public edition). Multi-tenant SaaS — your instance runs alongside other customers on SAP’s infrastructure. Quarterly automatic updates. Minimal customisation: you configure within SAP’s boundaries, extend through BTP, but can’t modify core code. Best for organisations willing to adopt SAP’s best-practice processes.

Private Cloud (S/4HANA Cloud, private edition). Single-tenant instance managed by SAP or a hyperscaler. You get more customisation options — custom code, industry-specific add-ons, and custom enhancements. Updates are less frequent (typically bi-annual). This is the RISE with SAP model.

On-Premise (S/4HANA). You own and operate the infrastructure. Full control over customisation, update timing, and infrastructure choices. But you’re responsible for hardware, patching, upgrades, and scaling. The highest TCO but the most flexibility.

What Is RISE with SAP and What Does It Include?

Forty-three per cent of organisations say generative AI influenced their ERP decisions in 2025, up from 14% in 2023 (ERP Today, 2025). RISE with SAP is how SAP packages its cloud ERP offering — including AI features — into a single subscription.

RISE with SAP bundles:

• S/4HANA Cloud, private edition — your dedicated ERP instance
• SAP BTP credits — for integration, extensions, and AI services
• SAP Business Network — supplier collaboration and procurement
• SAP Signavio — process intelligence and transformation tools
• Infrastructure — managed by SAP on a hyperscaler (AWS, Azure, or GCP)
• Migration tools — SAP provides assessment and migration utilities

The commercial model is subscription-based — one contract instead of separate licences for software, infrastructure, and services. This simplifies procurement but makes it harder to compare costs with unbundled alternatives.

How Do You Choose Between Public, Private, and On-Prem?

Nearly half of C-suite executives say more than 30% of their IT projects are over budget and late (BCG, 2024). The wrong deployment model contributes to budget overruns when organisations discover mid-project that their chosen model can’t support their customisation needs.

The decision comes down to three factors:

Customisation needs. If your business runs on heavily customised SAP processes (custom transactions, industry-specific Z-code, complex pricing logic), on-premise or private cloud are your options. Public cloud enforces SAP’s standard processes with limited extensibility.

Operational model. If you want SAP to manage infrastructure, patching, and upgrades, choose RISE (private cloud) or public cloud. If your IT team wants full control over the technology stack, on-premise is the choice.

Update frequency preference. Public cloud updates automatically every quarter — you can’t skip or delay. Private cloud updates bi-annually with more control over timing. On-premise updates when you choose to upgrade.

What Does the Migration Path Look Like?

Organisations that engage experienced ERP consultants report an 85% success rate (Panorama Consulting, 2025). Migration approach depends heavily on your current system and target deployment.

From ECC to S/4HANA Public Cloud: This is a re-implementation, not a migration. You configure S/4HANA Cloud from scratch, migrate master data and open transactions, and adopt SAP’s standard processes. Custom code doesn’t transfer. Timeline: 6-12 months for a mid-size organisation.

From ECC to S/4HANA Private Cloud (RISE): System conversion. SAP provides tools (SAP Readiness Check, Custom Code Migration) to assess your existing custom code, identify what needs modification, and convert the system. Timeline: 9-18 months depending on complexity.

From ECC to S/4HANA On-Premise: Also a system conversion, but you manage the infrastructure. The technical conversion process is similar to RISE, but you handle the hardware provisioning, database migration, and go-live infrastructure.

From S/4HANA On-Premise to RISE: Move-to-cloud migration. Your existing S/4HANA system and customisations transfer to SAP-managed infrastructure. This is the simplest path if you’re already on S/4HANA.

FAQ

What happens to custom ABAP code in a cloud migration?

In public cloud: it doesn’t transfer. You replace custom code with BTP extensions or adopt standard processes. In private cloud (RISE): most custom code transfers, but SAP provides tools to identify deprecated APIs and incompatible patterns. Expect 20-40% of custom code to require modification.

Is RISE with SAP more expensive than on-premise?

It depends on the time horizon. RISE’s subscription model has higher annual costs but eliminates capital expenditure for infrastructure. Over 5 years, RISE is often cheaper for mid-size organisations because it includes infrastructure, updates, and BTP. For large enterprises with existing data centre investments, on-premise may have lower TCO.

Can I move from public cloud to private cloud later?

Technically yes, but it’s not simple. The data models differ slightly between editions. SAP provides migration tooling, but budget 3-6 months for the transition. Better to choose the right deployment model upfront than to plan on switching later.

What’s the ECC end-of-support deadline?

SAP mainstream maintenance for ECC ends in 2027. Extended maintenance is available until 2030 (at a premium). After that, you’re on your own. Thirty per cent of organisations are already fully live on S/4HANA (SAPinsider, 2025) — the migration wave is accelerating.

Does RISE include everything I need?

RISE includes S/4HANA Cloud, BTP credits, infrastructure, and basic services. It does not include implementation consulting, custom development, data migration services, or additional BTP services beyond the included credit allocation. Budget for these separately.