SAP S/4HANA Private Cloud 2023 in Hindsight: Deployment Options and Where to Start Today

We first published this post in November 2023, when SAP released S/4HANA 2023 and repackaged RISE with SAP around it. Three years on, the release news matters less than the decision it forced: which S/4HANA deployment model do you move to, and when? This version keeps what still holds from 2023 and adds what we would tell an ECC customer today. Dates, options and a path finder for your own system are collected in our hub on SAP ECC end of maintenance 2027.

The question most people start with is “which cloud?”. The better first question is “how far do our processes need to depart from SAP’s standard?”. That answer points to the deployment model. Almost everything else follows from it.

TL;DR: S/4HANA 2023 moved the on-premise and private edition to a two-year release cycle with seven years of mainstream maintenance per release. S/4HANA comes in three deployment models: public cloud (SaaS, SAP’s standard processes, clean extensions only), private cloud (single-tenant, usually via RISE with SAP, custom code allowed) and on-premise (full control, full responsibility). ECC mainstream maintenance ends in 2027, optional extended maintenance in 2030. If standard processes fit, S/4HANA Public Cloud is the fastest route.

What did the S/4HANA 2023 release change?

The headline was not a feature. It was the release rhythm. In 2022 SAP announced that, starting with S/4HANA 2023, the on-premise and private cloud product moves to a two-year release cycle, and each release stays in mainstream maintenance for seven years instead of five (SAP News). Between releases, SAP delivers feature packs so customers can pick up new functions without a full upgrade.

For customers on the private edition that means fewer upgrade projects and a longer runway per release. The 2023 release itself brought the usual mix of Fiori improvements, embedded machine learning in finance and new apps across procurement and supply chain. At the same time SAP added a Premium Plus package to RISE with SAP, with sustainability reporting, supplier collaboration and early access to its AI copilot Joule.

Most of those individual features have since been superseded by later feature packs and the 2025 release. The cycle and the maintenance commitment are what still shape planning today. What sets S/4HANA itself apart from ECC (the in-memory data model, Fiori and embedded analytics) is covered in our overview of S/4HANA key features and architecture.

What are the three S/4HANA deployment models?

Public cloud (SAP S/4HANA Cloud Public Edition). Multi-tenant SaaS on SAP’s infrastructure. SAP upgrades all customers on its own schedule. You test, you do not choose. You configure within SAP’s boundaries and extend through key-user tools, ABAP Cloud or SAP BTP, but you do not modify the core. It suits companies willing to run on SAP’s standard processes, which is more companies than expect it.

Private cloud (SAP S/4HANA Cloud Private Edition). Single-tenant, operated by SAP on a hyperscaler, normally contracted through RISE with SAP. You keep more room: custom code, industry add-ons, your own upgrade timing within SAP’s maintenance windows. This is where most large ECC estates with years of custom development end up.

On-premise (SAP S/4HANA). You own and run everything: hardware or hosting, patching, upgrades, operations. Maximum control, maximum responsibility.

What is RISE with SAP?

RISE with SAP is a commercial bundle, not a product. It combines the private edition subscription with hosting on a hyperscaler (AWS, Azure or Google Cloud), technical operations by SAP, SAP BTP credits, process tools such as SAP Signavio and access to SAP Business Network. One contract instead of separate licences for software, infrastructure and services.

That simplifies procurement, but it makes like-for-like cost comparison with an unbundled setup harder. RISE also does not include the implementation itself: process design, data migration, custom development and testing come from your partner and your own team.

For the public edition, SAP offers a comparable package under the GROW with SAP name, aimed at companies that implement standard processes in the cloud.

How do you choose between public, private and on-premise?

Three questions drive the decision:

How much do your processes deviate from the standard? If your business depends on heavy custom transactions, industry Z-code or complex pricing logic that you are not willing to simplify, you need private cloud or on-premise. If you are prepared to adopt SAP’s standard and extend it cleanly, public cloud is open to you.

Who should run the system? If you do not want to build or keep a basis team for infrastructure, patches and upgrades, choose RISE or public cloud. If your IT team wants full control of the stack, on-premise remains possible.

How do you want to handle upgrades? In the public edition you follow SAP’s schedule. In the private edition and on-premise you plan upgrades yourself, within the maintenance windows of each release.

Factor	Public Cloud	Private Cloud (RISE)	On-Premise
Customisation	Clean extensions (key user, ABAP Cloud, BTP)	Custom code + BTP	Full custom code
Upgrades	SAP’s schedule, mandatory	You plan, within maintenance windows	You plan
Infrastructure	SAP-managed	SAP-managed	You manage
Commercial model	Subscription	Subscription	Licence + hosting
Route from ECC	New implementation	System conversion or new implementation	System conversion or new implementation

What do the ECC maintenance dates mean for your timeline?

SAP provides mainstream maintenance for SAP Business Suite 7, which includes ECC, until the end of 2027, with optional extended maintenance until the end of 2030 at a premium. S/4HANA itself carries a maintenance commitment until at least the end of 2040 (SAP News).

For large, complex landscapes that cannot finish by 2030, SAP announced the SAP ERP, private edition, transition option in 2025. It covers 2031 to 2033, can be purchased from 2028 and requires the ECC systems to run on SAP ERP, private edition before the end of 2030 (SAP News). It is a safety net for complex transformations, not a reason to wait.

For a mid-sized Swiss company, the practical reading is simple: a project that starts in 2027 still ends comfortably before 2030. A project that starts in 2029 does not.

What does the migration path look like?

ECC to S/4HANA Public Cloud. A new implementation. You configure the public edition, migrate master data and open items, and adopt SAP’s standard processes. Custom code does not come along. What you still need is rebuilt as clean extensions (here is how that works with ABAP Cloud).

ECC to the private edition (RISE). Usually a system conversion. SAP’s Readiness Check and custom code analysis show what has to be adapted before the conversion. Duration depends mainly on the volume and quality of your custom code.

ECC to on-premise S/4HANA. The same conversion, with you running the infrastructure.

S/4HANA on-premise to RISE. A move to SAP-operated infrastructure. Your system and customisations come along. This is the simplest path if you are already on S/4HANA.

Where Spadoom fits

Our ERP practice works on S/4HANA Public Cloud. We deliver the ERP core and the customer processes around it (Sales and Service Cloud V2, Commerce, CPQ, Field Service) with one team, so the order that has to post and the quote that has to price are the same project. If you are still weighing the options, the S/4HANA readiness assessment gives you a fixed-scope answer in five days. The transformation guide shows the target architecture, and this comparison of ERP and CRM partners explains why one team for both matters. For the combined stack in detail, read S/4HANA Public Cloud and Sales Cloud V2 as one stack.

FAQ

What happens to custom ABAP code in a cloud migration?

In S/4HANA Public Cloud, classic modifications do not transfer. You rebuild what you still need as clean extensions (key-user tools, ABAP Cloud or SAP BTP) or adopt the standard process. In the private edition, most custom code can be converted, but SAP’s custom code checks will flag incompatible objects that need rework. How much depends on how much Z-code you have accumulated, so run the analysis before you plan the budget.

Is RISE with SAP more expensive than on-premise?

It depends on what you compare. RISE bundles software, hosting, technical operations and some services into one subscription, so the annual fee looks higher than a licence alone. Against the full cost of running your own infrastructure, upgrades and basis team, the picture changes. Compare total cost over the same period and the same scope, not list prices.

Can I move from the private edition to the public edition later?

Yes, but it is a new implementation, not a switch. The public edition runs SAP’s standard processes with clean extensions, so custom code and modifications have to be replaced. If standard processes fit your business, it is cheaper to start in the public edition than to move there later.

When does ECC maintenance end?

SAP provides mainstream maintenance for SAP Business Suite 7, including ECC, until the end of 2027, and optional extended maintenance until the end of 2030 at an additional fee. For large, complex landscapes SAP also offers the SAP ERP, private edition, transition option, used from 2031 to 2033, which requires the systems to be on SAP ERP, private edition before the end of 2030.

Does RISE with SAP include implementation?

No. RISE covers the software subscription, the hosted infrastructure, technical operations and included tools and credits. Implementation consulting, process design, data migration, custom development and testing are separate. Budget for them from the start.