Cloud Vs On-Premise in SAP HANA

Want to know about Cloud vs On-premise in SAP HANA? Have a look at this SAP tutorial, I have explained the use of SAP HANA in the cloud version and also On-premise. I touched upon disadvantages, tools, and key differences as well.

Check: How to Install SAP HANA

What is the difference between On-Premise and Cloud?

On-premise offers more controls and customization based on the user requirement but needs infrastructure management. Whereas SAP S/4 HANA is managed locally by organizations that require hardware infrastructure. Private cloud deployment involves SAP HANA in a third-party provider data center whose organization owns software licenses.

Who can use SAP S/4HANA On-Premise edition and SAP S/4HANA Cloud

On-premise will be useful for industry enterprises that require customization. For large enterprises, On-premise is the best fit. Because user’s requirements can be done in On-premise. Moreover, this is located on the company’s server which offers better monitoring and configurations than the cloud edition.

On the other hand, Middle-sized companies for the less flexible database platform, can go for the cloud edition. The cloud version is the best option for companies that demand a high-performance offer that involves their core business strategies. Also provides greater agility, flexibility, and a faster upgrades cycle frequently instead of annually.


SAP HANA is 100 times faster than the typical relational database and thus gives the result in real-time, also it has the capacity of doing parallel processing. We can deploy SAP in a cloud environment or On-premises.

Primary Benefits of SAP HANA

The major advantages of SAP HANA are mentioned below.

  • 100 times quicker than conventional relational databases.
  • Reduction in storage needs of up to 80%.
  • Processing capabilities in parallel.
  • Real-time data processing and analysis.
  • Supports a variety of data kinds and formats.

Also, Read: How to Create Append Structure in SAP ABAP

A Major Drawback in SAP HANA

Every technology has both advantages and disadvantages. Below is the important drawback of SAP HANA.

  • Hardware certified for SAP or SUSE Linux is necessary.
  • Requires a large financial investment.
  • Difficult updating procedure.

Main Comparison between On-Premise and Cloud Edition

SAP S/4 On-PremiseSAP S/4 Cloud Edition
License ModelTraditional Based on Subscription
Infrastructure &Maintenance Managed by IT staff or customerLatest upgrades will be done frequently (Quarterly) without user involvement
Innovation speedERP scope, integration with Hybris marketing, SAP Ariba network.Latest upgrades will be done frequently (Quarterly) without user involvement
ImplementationEmbedded ERP scenarios, integration with SAP Success factors. Pre-defined configuration with limited specialization
FunctionalSystem infrastructure is under SAP’s controlSystem infrastructure are under SAP’s control

SAP Platform-as-a-Service

SAP platform as a service means the product that provides development and runtime environment for the cloud application. SAP Cloud Platform or HANA Cloud Platform, combines in-memory database capabilities, powerful analytics, and seamless intelligent integration services for an enterprise’s digital transformation.

It serves as a framework for several new products that promise to make businesses more secure, agile, and lean. like as.

  • Machine Learning
  • Analytics and integration with Hadoop
  • Cellular services
  • Dev-ops
  • Internet of Things
  • Master Data Governance

Running SAP HANA in the Cloud

If we want to use SAP HANA on the cloud, we have various choices to select from. SAP-certified hardware is available from all major cloud providers or we can use a specific service run by SAP.

Cloud SAP HANA Enterprise

We can have SAP HANA on bare-metal servers or virtual machines (VMs) that have been improved using Azure. Additionally, we can have locally integrated services with SAP HANA. We also can use Azure to license jointly or bring our licenses.


Elastic Block Store (EBS), Elastic Cloud Compute (EC2), and Virtual Private Cloud (VPC) resources can all be used by AWS to have SAP HANA. To guarantee adequate performance, employ memory-optimized instances. We must provide our own for licensing.

Google Cloud Platform (GCP) and SAP HANA

We can run SAP HANA on VMs with an SAP certification using GCP. With single or multi-host topologies and dynamic storage tiering, we may optimize our hosting. We must provide our own for licensing.

Check out: How to Logon to SAP System

Key Differences Between On-Premises and the SAP HANA Cloud

Implementation of SAP HANA On-PREMISE

Implementation On-premises usually takes longer and involves more work from you and your team. You are entirely responsible for implementation.

Since SAP HANA is hosted on a pre-built platform in the cloud, installations often end sooner.

Check out: How to Work With SAP HANA Cloud Integration

Integrations and Services in SAP HANA

  • Access to all the SAP’S ERP services, including SAP S/4HANA finance is available through the On-premise solutions.
  • Production Planning and Detailed Scheduling (PP/DS) can also be used on-premises. Until now, SAP’s ERP Business Suite was the only way to access this tool for SAP Advanced Planning and Optimization (APO).
  • With scenarios based on cloud-specific industry best practices, SAP HANA is modified for the cloud. Additionally, we can choose between business editions, complete ERP services, and marketing expert services. With scenarios based on cloud-specific industry.

We can interface our SAP HANA deployment with several other SAP services no matter how we deploy it. These consist of,

  • SuccessFactors by SAP
  • Hybris SAP
  • Fieldglass SAP
  • SAP Ariba SAP Jam

Enhancement and Support in SAP HANA

  • You have complete control over your upgrades when using On-premise installations.
  • This gives us the option to upgrade whenever it’s convenient for us. Both how frequently and when upgrades are planned for our systems are up to us.
  • We are in charge of all update operations and any necessary reconfigurations, which is a drawback.
  • Upgrades are frequently carried out automatically in cloud deployments. While it prevents us from managing the task of upgrading, it may result in unexpected downtime.
  • Although we normally have some control over when updates occur, we cannot completely prevent upgrades. On the other side, our supplier frequently offers comprehensive upgrading support.

Tools and Methods of Operation in SAP HANA

The SAP HANA Cockpit and SAP HANA database explorer, which you already use with your on-premise installation of SAP HANA, are two of the most important tools you need to interface with your SAP HANA Cloud database and data lakes.

Both tools perform nearly identically to their on-premises counterparts. There are some variations when it comes to the SAP HANA cockpit. You won’t find these options on your cockpit since SAP HANA Cloud doesn’t need tasks like OS updates and manual backup configuration.

The application development environment is one of the most important differences. You must use SAP Web Integrated Development Environment (IDE) Full-Stack for SAP HANA Cloud application development.

Cloud Vs On-Premise in SAP HANA

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Although SAP HANA is largely the same whether it is installed On-premise or in the cloud, there are significant variations to be aware of. While cloud operations require a monthly subscription, on-premise apps are licensed once.

On-premises SAP HANA implementations often require more time than cloud implementations of ready-made solutions. Mainly it depends upon the organization’s needs as well.

We can’t utilize all of SAP’s services in the cloud and also we can only use the ones we sign up for. In the cloud, updates are also automated. The topics discussed in this tutorial are listed below.

  • What is SAP HANA?
  • Primary benefits of SAP HANA
  • A major setback in SAP HANA
  • Running SAP HANA in the cloud
  • Key differences between On-Premises and the SAP HANA Cloud