A comparative representation of SAP Cloud ERP deployment variants

This article presents an overview of SAP’s ERP solutions, outlining available deployment models and providing a comparative representation of the variants. It is designed to support customers in navigating and evaluating options that align with their organization’s digital transformation goals, operational requirements, and existing technology investments. The attention is given to SAP’s private cloud offerings, highlighting the flexibility, scalability, and relevance for enterprise-grade modernization initiatives.

SAP ERP On-Premise

Historically, SAP operated as a software provider focused on licensing and support, while customers and partners took on the challenge of designing, building and running highly customized implementations. This approach offered maximum flexibility but came at a cost – fragmented landscapes, version sprawl, and operational complexity. Additionally, as SAP simultaneously support more than 20 software versions of ERP and countless release variations – it increased the burden of maintenance, made it harder to adopt new features, and slowed innovation. Today, SAP is shifting toward standardized, cloud-based solutions that streamline operations and accelerate the transformation and adoption of change.

Whether you run your SAP ERP systems in your own data center, with a hosting provider or directly with a Hyperscaler, it is considered an on-premise deployment. Moving from here to an SAP Cloud ERP deployment is equally relevant and the strategic direction of SAP.

SAP Cloud ERP

SAP delivers a diverse portfolio of ERP solutions tailored to meet the needs of organizations across industries and geographies, addressing increasing demands for security, compliance, and operational control. While SAP continues to drive standardization and scalable adoption, it recognizes that transitioning to a unified cloud-based ERP is a phased journey for many enterprises. To support this evolution, SAP offers a range of strategic pathways that enable customers to embrace SAP Cloud at their own pace – preserving existing investments, leveraging the latest innovations, and maintaining a flexible operating model aligned with their business priorities.

SAP Cloud ERP sits at the center of SAP’s strategic architecture, serving as a foundational layer for enabling accelerated adoption of AI-driven services and continuous innovation. Its integration with key architectural components – including SAP Business Technology Platform, SAP Business Data Cloud, line-of-business applications, and AI agents – is essential for designing future-ready business processes and operating models. This architectural alignment ensures cohesive data flow, scalable automation, and a unified platform for digital transformation across the enterprise.

SAP’s Strategic Architecture Model

Over the years, SAP has been transitioning to a cloud company. SAP Business ByDesign was launched in 2007, and multiple private cloud offerings were launched starting in 2013. SAP’s cloud services have matured continuously ever since, and SAP Cloud ERP is now at the center of SAP’s strategy. The consumption model is modular and scalable. Businesses can start with essential modules and expand as needed.

SAP Cloud ERP is a modern, cloud-based ERP solution that helps businesses manage core operations using intelligent technologies like AI, machine learning, and automation. It’s designed for speed, scalability, and continuous innovation – all while running under SAP’s strong security framework.

Adoption is now more important than ever. There is little to gain if innovation is held back due to technical difficulties, unsupported software and a lack of strong governance in the daily operation. This is one of the reasons SAP has invested heavily in cloud services and adoption programs. Now offering a modern commercial model with user- and metric-based subscription, which is accelerating the architecture design process with modular building blocks, and adoption programs helping customers to a modern ERP through “RISE with SAP” and “GROW with SAP”, focusing on accelerating the digital transformation of customers.

GROW with SAP     

GROW with SAP is a program to rapidly implement SAP Business Suite using a standardised framework, tools, and guidance. It is designed for new SAP ERP customers and enables a greenfield/new implementation of SAP Business Suite in SAP Public Cloud.

RISE with SAP

RISE with SAP is a program that helps on-premise SAP ERP customers tailor their transformation to modernise their business with Business Suite. It is designed for existing SAP ERP customers, focused on modernising their existing SAP ERP systems in SAP Private Cloud.

Both journeys lead to the same destination, full SAP Business Suite capabilities, but are tailored to the customer’s starting point.

Public or Private Cloud

SAP has two cloud ERP solutions to choose from:

SAP Cloud ERP (Public): Ready-to-run cloud ERP managed by SAPSAP Cloud ERP Private: Tailored-to-fit cloud ERP that adapts to your unique business needs while enabling the migration of your on-premises ERP investment from SAP

The first assessment customers need to make is whether their requirements can be met in SAP Public Cloud or if SAP Private Cloud deployment is needed. There are fundamental differences between the two cloud options, which often make the first choice simple:

Comparison Between SAP Public and Private Cloud

This simple table reveals significant differences. The public cloud doesn’t yet offer the full scope of ERP functionalities, and if that doesn’t cover the customer’s requirements, the private cloud is the only alternative.

The SAP code can’t be modified in public cloud and while the SAP recommendation has always been not to modify the SAP standard code, there are certain situations where it can’t be avoided, or changes have already been made in on-premise systems and must be kept. In this case the only possible destination is private cloud.

(*) Direct modification of SAP-delivered standard code is not permitted as a standard practice. The environment is designed to maintain a “clean core,” and customers are expected to use supported extensibility options (such as in-app extensions, BAdIs, or side-by-side development on SAP BTP) rather than altering SAP standard objects. Exceptions to this rule are rare and require formal SAP approval, with the customer assuming full responsibility and risk for any such modifications.

In public cloud, mandatory software releases and updates are pushed out by SAP and the changes must be adopted within a limited time period. In private cloud, the updates are included in the service, but the implementation is a customer choice. SAP will not install software updates without consent from the customer.

Finally, the very nature of a SaaS solution can be restricted by some customers or deployment options might be needed, which are not available in public cloud. Typical examples could be stronger segregation of data, the need for a private code base, increased business continuity concepts and distinct security and compliance requirements.

SAP Cloud ERP Public

SAP Cloud ERP Public is a pure Software-as-a-Service (SaaS) cloud delivery model, and it is the preferred deployment model for all customers opting for a fresh new-implementation (greenfield) of SAP ERP and whenever functional, integration, and localisation requirements can be addressed.

Being a SaaS offering, the deployment options are limited, by design, compared to private cloud, and as the focus of this article is private cloud, this deployment model is not described further.

SAP Cloud ERP Private

SAP Cloud ERP Private is a deployment option of SAP ERP software installed specifically for the customer in a private cloud environment.

SAP Private Cloud is technically SAP-managed services and software licenses running in a single-tenant, virtual private cloud environment on subscription. Customer systems run in a dedicated cloud tenant with dedicated capacity and is completely isolated from other customer accounts. SAP is providing managed infrastructure, technical managed services and operations, security, and lifecycle management. Customers access their systems via secure, private network connections (not public internet), retain control over business processes and configurations.

It offers enhanced control, security, and customization compared to public cloud solutions. Private cloud deployments typically offer more robust security measures and compliance capabilities, making them suitable for industries with stringent data protection requirements.

Private cloud deployments are more appropriate for existing on-premise customers who require more customization, whose functional needs can’t be addressed with the public cloud option, or if the investments made in existing on-premise systems need to be retained.

SAP aims to transition all customers using SAP ERP to SAP S/4HANA by 2027. Before the introduction of RISE with SAP in 2021, SAP did not fully meet the needs of customers seeking cloud-based ERP solutions. The primary option available was SAP S/4HANA Cloud Public Edition, which required a new implementation. This was not a viable option for many existing SAP ERP customers who wanted to retain their investment in their current systems, leverage existing data, and carry forward customizations and modifications.

To address this gap, SAP introduced SAP Cloud ERP Private solutions with the launch of RISE with SAP. These single-tenant solutions offer each customer their own dedicated instance of SAP software, hosted on separate infrastructure within a data center operated by one of the major hyperscalers or SAP itself. Existing SAP ERP customers can choose to either lift-and-shift their SAP ERP systems or transition to SAP Cloud ERP Private using a system conversion, selective data transition, or a new implementation approach. SAP Cloud ERP Private comes in two offerings: Packaged and Tailored.

Packaged Option (Private Cloud Edition, “PCE”)

SAP Cloud ERP Private is a packaged deployment option that is fixed, template-based, and uses SAP Reference Architecture. It focuses on core ERP functionality delivered in modular packages for standardised and rapid consumption. Infrastructure sizes and changes are delivered in T-shirt size models via a catalogue-based list of services that covers the user software license, infrastructure, and technical managed services required to run SAP.This is the strategic choice for providing innovation and cloud value while customers retain investments by converting existing systems.Standardisation is strict

Tailored Option (Private Cloud Edition, Tailored Option, “PTO”)

The SAP Cloud ERP Private, tailored deployment option is a flexible, individually configured using SAP Reference Architecture and covers the full ERP scope, covering nearly any SAP on-premise product still in maintenance with SAP technical support.This is the strategic choice for complex architecture, large data volumes, customer-specific requirements, compliance and flexibility.Standardisation is strict, while offering more flexibility

Both SAP Cloud ERP Private, Packaged and Tailored options can be deployed in different ways, but not all deployment options are available for both types.

Deployment Options

In SAP Cloud ERP Private, customers select their deployment option and specify the data center to use. Each option has its own distinct delivery model designed to cover different needs. Regardless of which option they choose, customers are responsible for the application layer (such as functional configuration, business process design, company authorization concept), and SAP is responsible for the technical managed service, infrastructure management, governance, security & compliance framework, and software and support.

Regardless of which private cloud deployment option is used, customers are in control of functional changes. Some changes are fully managed by customers, like custom code/extension and integration, business consistency and correctness, and SAP transport management. Other changes are initiated by customers and managed by SAP, like release upgrades and patch updates on SAP applications and the database. While updates to the software are included, SAP will not upgrade these components without customer approval.

The technical layers are managed differently, and the responsibilities vary as illustrated below. SAP has overall ownership, provides a generic architecture framework with common tools and a service delivery model, and remains agnostic about which deployment option to use. The end-user experience is designed to be the same regardless of which option is used.

SAP offers the following delivery options:

Hyperscaler

Deployed on Hyperscaler Infrastructure-as-a-Service (IaaS) under SAP’s accountThe default deployment model with global coverage, enterprise-grade scalability capabilities and the latest featuresOften an advantage for customers who already have an active account with the same hyperscaler. Advantages like improved network latency, re-use of existing connections between customer premises and the hyperscaler, pre-approved by the customer’s security department

SAP Data Center

SAP operated data centres in Germany and options in Europe, APJ and North AmericaCompared to Hyperscaler, the scalability capability is limited and generally reserved for moderate workloadsThis option is typically chosen for customers with strict regulatory, security, or technical requirements that cannot be met by Hyperscalers

Customer Data Center

Allows SAP to deliver and operate its managed cloud services directly within a data centre facility owned or leased by the customerSAP manages the full stack remotely, while the customer retains control over the physical facility and network perimeterDesigned for organisations with strict data residency, regulatory, or integration requirements, but with certain features that may be limitedThe data centre facilities must adhere to SAP’s reference architecture principles and security & compliance framework which must be approved by the hardware partner and SAP

Premium Supplier

A delivery framework where selected strategic partners, Premium Suppliers, are responsible for the technical infrastructure build, operation, and day-to-day servicesWhile the Premium Suppliers manage the technical run and operations, SAP retains overall contractual responsibility, governance, and customer engagementThe infrastructure and some operational services are delivered by the Premium Supplier, either in their own data centres or in Hyperscaler environments managed by themThe model has specific rules for technical validation and operational responsibilities, which differ from the other SAP-delivered deployment options

RACI for SAP Cloud ERP Private Deployment Options

Security, Data Protection and Compliance

The packaged and tailored options both share many characteristics and principles as they both run according to SAP’s global Private Cloud concept, Reference Architecture and Cybersecurity and Compliance Frameworks.

The table below shows some of the security, data protection and compliance options available in Cloud ERP Private for the different deployment options. Some are available in both Cloud ERP Private offerings, while others are available for either the packaged offering (core ERP) or the tailored offering (full ERP). This leads to many combinations of options available to meet the requirements of customers, and each option has conditions that need to be assessed individually in collaboration with SAP.

Security & Compliance Capabilities for SAP Cloud ERP Private Deployment Options

SAP Sovereign Cloud

SAP Sovereign Cloud can be categorized as a Cloud ERP Private deployment option. However, in essence, this is a separate offering with distinct features covering both private and public ERP cloud offerings from SAP. This is the strategic choice for increased country-specific sovereignty requirements. All data is stored and operated to maintain compliance with heightened local data protection regulations.

The sovereignty extends beyond the technical infrastructure and must also be operated by security-cleared personnel from government-accredited, security-cleared facilities, according to country-specific data residency regulations and specific audit and regulatory standards.

SAP Sovereign Cloud is relevant if there is a specific need for increased sovereignty that SAP Cloud ERP and SAP Cloud ERP Private cannot otherwise provide. Like SAP Cloud ERP Private, different deployment options are available to cover different requirements across geographies and industries.

Deployment Options

Like SAP Cloud ERP Private, there are choices between which data centres to use, each option with its own distinct delivery model  designed to cover different needs. Equal for all is that customers are responsible for the application layer (like functional configuration, business process design, company authorisation concept) and SAP is responsible for the governance, security & compliance  framework and the global standard architecture framework.

There are differences in the remaining layers, however, SAP has overall ownership, provides a generic architecture framework with common tools and service delivery model and remains agnostic. The end-user experience is the same regardless of which option is used.

Deployment Options for SAP Sovereign Cloud

Make the right strategic choice

When evaluating cloud deployment options, the many available options SAP provides are often overlooked, perhaps inadvertently ruled out prematurely or not even known as valid deployment options.

The reality is that through the wide range of deployment options, SAP offers the ability to support most industry requirements and regulatory demands for deployment in the cloud:

Cloud ERP – preferred option when:

New or existing customers planning a new (greenfield) implementation from scratch and whenever functional, integration, and localisation requirements can be addressedMulti-tenancy is a suitable cloud deployment model for your organisationYour organisation can adhere to a mandatory software lifecycle management process governed by SAP

Cloud ERP Private – preferred option when:

Existing SAP customers looking for innovation and cloud value while retaining investments by converting existing systemsStandardisation and agility are a priorityStandard migration scenarios of your existing systems into SAP cloud are sufficientFunctional requirements can be addressedStandard Business Continuity and network capabilities are sufficient

Cloud ERP Private, tailored option – preferred option when:

Full functional SAP ERP scope is requiredFlexibility in the configuration of the infrastructureComplex migration scenarios of your existing systems into SAP Cloud are neededEnhanced Business Continuity and network capabilities are requiredAdvanced features and capabilities are requiredVery large data volumes

SAP Cloud ERP Private, SAP Data Center – preferred option when:

There is a specific need to have SAP as data center owner or controllerCloud workloads must run according to country-specific data residency regulationsSmall to moderate workload

SAP Cloud ERP Private, Customer Data Center – preferred option when:

There is a specific need to have the customer as data center owner or controllerCloud workloads must run according to country-specific data residency regulationsCustomer can provide data centers that are suitable for running SAP Cloud ERP PrivateThe customer want to manage the physical data center premisesTypically, most relevant for high workload

Sovereign Cloud – preferred option when:

There is a specific need for increased sovereignty that SAP Cloud ERP cannot otherwise provideMust be operated by security-cleared personnelMust run from government-accredited, security-cleared facilitiesMust run according to country-specific data residency regulations and specific audit and regulatory standards

On-premise / Native Hyperscaler – legacy option when:

Upgrade to a supported version is impossibleThe existing system is planned to be decommissioned within a short time frameOther reasons preventing customers from moving to the cloud. SAP will support with a detailed assessment of the available pathways

A closer examination reveals a wide range of options and combinations that can only be fully evaluated in collaboration with SAP through the mandatory Technical Assessment process. The table below aims to illustrate the wide range of options available to customers that SAP provides to support customers in transitioning to the optimal cloud deployment model.

Comparison of SAP ERP Offerings

Secure your SAP Cloud ERP deployment through a Technical Assessment

The Technical Assessment is a process designed to ensure that customer requirements are met when transitioning to SAP Cloud ERP Private, and to support a successful move to the cloud. This service is included in every engagement and is delivered by SAP Enterprise Cloud Services (ECS) – the business unit in SAP that is responsible for design, build and operate of Cloud ERP Private. ECS also oversees the service engineering of the included services (read more about that here), and the customer advisory for evaluating cloud deployment options and ensuring successful onboarding to SAP Cloud ERP Private.

Technical Assessment Scope:

SAP Cloud ERP Private DeploymentTechnical ArchitectureNetwork & ConnectivitySecurity & ComplianceServices & OperationsCloud Onboarding.

The Technical Assessment is defined and led by the SAP Cloud Architecture & Advisory team within SAP Enterprise Cloud Services. We guide customers through the necessary steps at a pace aligned with each customer’s readiness and transformation journey. Your designated Cloud Architect & Advisor (CAA) is available to guide you through a deeper assessment of the cloud deployment options outlined in this article.

​ A comparative representation of SAP Cloud ERP deployment variantsThis article presents an overview of SAP’s ERP solutions, outlining available deployment models and providing a comparative representation of the variants. It is designed to support customers in navigating and evaluating options that align with their organization’s digital transformation goals, operational requirements, and existing technology investments. The attention is given to SAP’s private cloud offerings, highlighting the flexibility, scalability, and relevance for enterprise-grade modernization initiatives.SAP ERP On-PremiseHistorically, SAP operated as a software provider focused on licensing and support, while customers and partners took on the challenge of designing, building and running highly customized implementations. This approach offered maximum flexibility but came at a cost – fragmented landscapes, version sprawl, and operational complexity. Additionally, as SAP simultaneously support more than 20 software versions of ERP and countless release variations – it increased the burden of maintenance, made it harder to adopt new features, and slowed innovation. Today, SAP is shifting toward standardized, cloud-based solutions that streamline operations and accelerate the transformation and adoption of change.Whether you run your SAP ERP systems in your own data center, with a hosting provider or directly with a Hyperscaler, it is considered an on-premise deployment. Moving from here to an SAP Cloud ERP deployment is equally relevant and the strategic direction of SAP.SAP Cloud ERPSAP delivers a diverse portfolio of ERP solutions tailored to meet the needs of organizations across industries and geographies, addressing increasing demands for security, compliance, and operational control. While SAP continues to drive standardization and scalable adoption, it recognizes that transitioning to a unified cloud-based ERP is a phased journey for many enterprises. To support this evolution, SAP offers a range of strategic pathways that enable customers to embrace SAP Cloud at their own pace – preserving existing investments, leveraging the latest innovations, and maintaining a flexible operating model aligned with their business priorities.SAP Cloud ERP sits at the center of SAP’s strategic architecture, serving as a foundational layer for enabling accelerated adoption of AI-driven services and continuous innovation. Its integration with key architectural components – including SAP Business Technology Platform, SAP Business Data Cloud, line-of-business applications, and AI agents – is essential for designing future-ready business processes and operating models. This architectural alignment ensures cohesive data flow, scalable automation, and a unified platform for digital transformation across the enterprise.SAP’s Strategic Architecture ModelOver the years, SAP has been transitioning to a cloud company. SAP Business ByDesign was launched in 2007, and multiple private cloud offerings were launched starting in 2013. SAP’s cloud services have matured continuously ever since, and SAP Cloud ERP is now at the center of SAP’s strategy. The consumption model is modular and scalable. Businesses can start with essential modules and expand as needed.SAP Cloud ERP is a modern, cloud-based ERP solution that helps businesses manage core operations using intelligent technologies like AI, machine learning, and automation. It’s designed for speed, scalability, and continuous innovation – all while running under SAP’s strong security framework.Adoption is now more important than ever. There is little to gain if innovation is held back due to technical difficulties, unsupported software and a lack of strong governance in the daily operation. This is one of the reasons SAP has invested heavily in cloud services and adoption programs. Now offering a modern commercial model with user- and metric-based subscription, which is accelerating the architecture design process with modular building blocks, and adoption programs helping customers to a modern ERP through “RISE with SAP” and “GROW with SAP”, focusing on accelerating the digital transformation of customers.GROW with SAP     GROW with SAP is a program to rapidly implement SAP Business Suite using a standardised framework, tools, and guidance. It is designed for new SAP ERP customers and enables a greenfield/new implementation of SAP Business Suite in SAP Public Cloud.RISE with SAPRISE with SAP is a program that helps on-premise SAP ERP customers tailor their transformation to modernise their business with Business Suite. It is designed for existing SAP ERP customers, focused on modernising their existing SAP ERP systems in SAP Private Cloud.Both journeys lead to the same destination, full SAP Business Suite capabilities, but are tailored to the customer’s starting point.Public or Private CloudSAP has two cloud ERP solutions to choose from:SAP Cloud ERP (Public): Ready-to-run cloud ERP managed by SAPSAP Cloud ERP Private: Tailored-to-fit cloud ERP that adapts to your unique business needs while enabling the migration of your on-premises ERP investment from SAPThe first assessment customers need to make is whether their requirements can be met in SAP Public Cloud or if SAP Private Cloud deployment is needed. There are fundamental differences between the two cloud options, which often make the first choice simple:Comparison Between SAP Public and Private CloudThis simple table reveals significant differences. The public cloud doesn’t yet offer the full scope of ERP functionalities, and if that doesn’t cover the customer’s requirements, the private cloud is the only alternative.The SAP code can’t be modified in public cloud and while the SAP recommendation has always been not to modify the SAP standard code, there are certain situations where it can’t be avoided, or changes have already been made in on-premise systems and must be kept. In this case the only possible destination is private cloud.(*) Direct modification of SAP-delivered standard code is not permitted as a standard practice. The environment is designed to maintain a “clean core,” and customers are expected to use supported extensibility options (such as in-app extensions, BAdIs, or side-by-side development on SAP BTP) rather than altering SAP standard objects. Exceptions to this rule are rare and require formal SAP approval, with the customer assuming full responsibility and risk for any such modifications.In public cloud, mandatory software releases and updates are pushed out by SAP and the changes must be adopted within a limited time period. In private cloud, the updates are included in the service, but the implementation is a customer choice. SAP will not install software updates without consent from the customer.Finally, the very nature of a SaaS solution can be restricted by some customers or deployment options might be needed, which are not available in public cloud. Typical examples could be stronger segregation of data, the need for a private code base, increased business continuity concepts and distinct security and compliance requirements.SAP Cloud ERP PublicSAP Cloud ERP Public is a pure Software-as-a-Service (SaaS) cloud delivery model, and it is the preferred deployment model for all customers opting for a fresh new-implementation (greenfield) of SAP ERP and whenever functional, integration, and localisation requirements can be addressed.Being a SaaS offering, the deployment options are limited, by design, compared to private cloud, and as the focus of this article is private cloud, this deployment model is not described further.SAP Cloud ERP PrivateSAP Cloud ERP Private is a deployment option of SAP ERP software installed specifically for the customer in a private cloud environment.SAP Private Cloud is technically SAP-managed services and software licenses running in a single-tenant, virtual private cloud environment on subscription. Customer systems run in a dedicated cloud tenant with dedicated capacity and is completely isolated from other customer accounts. SAP is providing managed infrastructure, technical managed services and operations, security, and lifecycle management. Customers access their systems via secure, private network connections (not public internet), retain control over business processes and configurations.It offers enhanced control, security, and customization compared to public cloud solutions. Private cloud deployments typically offer more robust security measures and compliance capabilities, making them suitable for industries with stringent data protection requirements.Private cloud deployments are more appropriate for existing on-premise customers who require more customization, whose functional needs can’t be addressed with the public cloud option, or if the investments made in existing on-premise systems need to be retained.SAP aims to transition all customers using SAP ERP to SAP S/4HANA by 2027. Before the introduction of RISE with SAP in 2021, SAP did not fully meet the needs of customers seeking cloud-based ERP solutions. The primary option available was SAP S/4HANA Cloud Public Edition, which required a new implementation. This was not a viable option for many existing SAP ERP customers who wanted to retain their investment in their current systems, leverage existing data, and carry forward customizations and modifications.To address this gap, SAP introduced SAP Cloud ERP Private solutions with the launch of RISE with SAP. These single-tenant solutions offer each customer their own dedicated instance of SAP software, hosted on separate infrastructure within a data center operated by one of the major hyperscalers or SAP itself. Existing SAP ERP customers can choose to either lift-and-shift their SAP ERP systems or transition to SAP Cloud ERP Private using a system conversion, selective data transition, or a new implementation approach. SAP Cloud ERP Private comes in two offerings: Packaged and Tailored.Packaged Option (Private Cloud Edition, “PCE”)SAP Cloud ERP Private is a packaged deployment option that is fixed, template-based, and uses SAP Reference Architecture. It focuses on core ERP functionality delivered in modular packages for standardised and rapid consumption. Infrastructure sizes and changes are delivered in T-shirt size models via a catalogue-based list of services that covers the user software license, infrastructure, and technical managed services required to run SAP.This is the strategic choice for providing innovation and cloud value while customers retain investments by converting existing systems.Standardisation is strictTailored Option (Private Cloud Edition, Tailored Option, “PTO”)The SAP Cloud ERP Private, tailored deployment option is a flexible, individually configured using SAP Reference Architecture and covers the full ERP scope, covering nearly any SAP on-premise product still in maintenance with SAP technical support.This is the strategic choice for complex architecture, large data volumes, customer-specific requirements, compliance and flexibility.Standardisation is strict, while offering more flexibilityBoth SAP Cloud ERP Private, Packaged and Tailored options can be deployed in different ways, but not all deployment options are available for both types.Deployment OptionsIn SAP Cloud ERP Private, customers select their deployment option and specify the data center to use. Each option has its own distinct delivery model designed to cover different needs. Regardless of which option they choose, customers are responsible for the application layer (such as functional configuration, business process design, company authorization concept), and SAP is responsible for the technical managed service, infrastructure management, governance, security & compliance framework, and software and support.Regardless of which private cloud deployment option is used, customers are in control of functional changes. Some changes are fully managed by customers, like custom code/extension and integration, business consistency and correctness, and SAP transport management. Other changes are initiated by customers and managed by SAP, like release upgrades and patch updates on SAP applications and the database. While updates to the software are included, SAP will not upgrade these components without customer approval.The technical layers are managed differently, and the responsibilities vary as illustrated below. SAP has overall ownership, provides a generic architecture framework with common tools and a service delivery model, and remains agnostic about which deployment option to use. The end-user experience is designed to be the same regardless of which option is used.SAP offers the following delivery options:HyperscalerDeployed on Hyperscaler Infrastructure-as-a-Service (IaaS) under SAP’s accountThe default deployment model with global coverage, enterprise-grade scalability capabilities and the latest featuresOften an advantage for customers who already have an active account with the same hyperscaler. Advantages like improved network latency, re-use of existing connections between customer premises and the hyperscaler, pre-approved by the customer’s security departmentSAP Data CenterSAP operated data centres in Germany and options in Europe, APJ and North AmericaCompared to Hyperscaler, the scalability capability is limited and generally reserved for moderate workloadsThis option is typically chosen for customers with strict regulatory, security, or technical requirements that cannot be met by HyperscalersCustomer Data CenterAllows SAP to deliver and operate its managed cloud services directly within a data centre facility owned or leased by the customerSAP manages the full stack remotely, while the customer retains control over the physical facility and network perimeterDesigned for organisations with strict data residency, regulatory, or integration requirements, but with certain features that may be limitedThe data centre facilities must adhere to SAP’s reference architecture principles and security & compliance framework which must be approved by the hardware partner and SAPPremium Supplier A delivery framework where selected strategic partners, Premium Suppliers, are responsible for the technical infrastructure build, operation, and day-to-day servicesWhile the Premium Suppliers manage the technical run and operations, SAP retains overall contractual responsibility, governance, and customer engagementThe infrastructure and some operational services are delivered by the Premium Supplier, either in their own data centres or in Hyperscaler environments managed by themThe model has specific rules for technical validation and operational responsibilities, which differ from the other SAP-delivered deployment optionsRACI for SAP Cloud ERP Private Deployment OptionsSecurity, Data Protection and ComplianceThe packaged and tailored options both share many characteristics and principles as they both run according to SAP’s global Private Cloud concept, Reference Architecture and Cybersecurity and Compliance Frameworks.The table below shows some of the security, data protection and compliance options available in Cloud ERP Private for the different deployment options. Some are available in both Cloud ERP Private offerings, while others are available for either the packaged offering (core ERP) or the tailored offering (full ERP). This leads to many combinations of options available to meet the requirements of customers, and each option has conditions that need to be assessed individually in collaboration with SAP. Security & Compliance Capabilities for SAP Cloud ERP Private Deployment OptionsSAP Sovereign CloudSAP Sovereign Cloud can be categorized as a Cloud ERP Private deployment option. However, in essence, this is a separate offering with distinct features covering both private and public ERP cloud offerings from SAP. This is the strategic choice for increased country-specific sovereignty requirements. All data is stored and operated to maintain compliance with heightened local data protection regulations.The sovereignty extends beyond the technical infrastructure and must also be operated by security-cleared personnel from government-accredited, security-cleared facilities, according to country-specific data residency regulations and specific audit and regulatory standards.SAP Sovereign Cloud is relevant if there is a specific need for increased sovereignty that SAP Cloud ERP and SAP Cloud ERP Private cannot otherwise provide. Like SAP Cloud ERP Private, different deployment options are available to cover different requirements across geographies and industries.Deployment OptionsLike SAP Cloud ERP Private, there are choices between which data centres to use, each option with its own distinct delivery model  designed to cover different needs. Equal for all is that customers are responsible for the application layer (like functional configuration, business process design, company authorisation concept) and SAP is responsible for the governance, security & compliance  framework and the global standard architecture framework.There are differences in the remaining layers, however, SAP has overall ownership, provides a generic architecture framework with common tools and service delivery model and remains agnostic. The end-user experience is the same regardless of which option is used.Deployment Options for SAP Sovereign CloudMake the right strategic choiceWhen evaluating cloud deployment options, the many available options SAP provides are often overlooked, perhaps inadvertently ruled out prematurely or not even known as valid deployment options.The reality is that through the wide range of deployment options, SAP offers the ability to support most industry requirements and regulatory demands for deployment in the cloud:Cloud ERP – preferred option when:New or existing customers planning a new (greenfield) implementation from scratch and whenever functional, integration, and localisation requirements can be addressedMulti-tenancy is a suitable cloud deployment model for your organisationYour organisation can adhere to a mandatory software lifecycle management process governed by SAPCloud ERP Private – preferred option when:Existing SAP customers looking for innovation and cloud value while retaining investments by converting existing systemsStandardisation and agility are a priorityStandard migration scenarios of your existing systems into SAP cloud are sufficientFunctional requirements can be addressedStandard Business Continuity and network capabilities are sufficientCloud ERP Private, tailored option – preferred option when:Full functional SAP ERP scope is requiredFlexibility in the configuration of the infrastructureComplex migration scenarios of your existing systems into SAP Cloud are neededEnhanced Business Continuity and network capabilities are requiredAdvanced features and capabilities are requiredVery large data volumesSAP Cloud ERP Private, SAP Data Center – preferred option when:There is a specific need to have SAP as data center owner or controllerCloud workloads must run according to country-specific data residency regulationsSmall to moderate workloadSAP Cloud ERP Private, Customer Data Center – preferred option when:There is a specific need to have the customer as data center owner or controllerCloud workloads must run according to country-specific data residency regulationsCustomer can provide data centers that are suitable for running SAP Cloud ERP PrivateThe customer want to manage the physical data center premisesTypically, most relevant for high workloadSovereign Cloud – preferred option when:There is a specific need for increased sovereignty that SAP Cloud ERP cannot otherwise provideMust be operated by security-cleared personnelMust run from government-accredited, security-cleared facilitiesMust run according to country-specific data residency regulations and specific audit and regulatory standardsOn-premise / Native Hyperscaler – legacy option when:Upgrade to a supported version is impossibleThe existing system is planned to be decommissioned within a short time frameOther reasons preventing customers from moving to the cloud. SAP will support with a detailed assessment of the available pathwaysA closer examination reveals a wide range of options and combinations that can only be fully evaluated in collaboration with SAP through the mandatory Technical Assessment process. The table below aims to illustrate the wide range of options available to customers that SAP provides to support customers in transitioning to the optimal cloud deployment model.Comparison of SAP ERP OfferingsSecure your SAP Cloud ERP deployment through a Technical AssessmentThe Technical Assessment is a process designed to ensure that customer requirements are met when transitioning to SAP Cloud ERP Private, and to support a successful move to the cloud. This service is included in every engagement and is delivered by SAP Enterprise Cloud Services (ECS) – the business unit in SAP that is responsible for design, build and operate of Cloud ERP Private. ECS also oversees the service engineering of the included services (read more about that here), and the customer advisory for evaluating cloud deployment options and ensuring successful onboarding to SAP Cloud ERP Private.Technical Assessment Scope:SAP Cloud ERP Private DeploymentTechnical ArchitectureNetwork & ConnectivitySecurity & ComplianceServices & OperationsCloud Onboarding.The Technical Assessment is defined and led by the SAP Cloud Architecture & Advisory team within SAP Enterprise Cloud Services. We guide customers through the necessary steps at a pace aligned with each customer’s readiness and transformation journey. Your designated Cloud Architect & Advisor (CAA) is available to guide you through a deeper assessment of the cloud deployment options outlined in this article.   Read More Technology Blog Posts by SAP articles 

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