Hello everyone,

In the IT world, there is rarely a “one-size-fits-all” solution – especially when it comes to the cloud. With SAP in particular, one of the world’s leading ERP systems, there are various options for using it: On-Premise, Cloud or Hybrid. Each of these deployment options has its own advantages and disadvantages. But which is the right choice for you? Let’s go through the whole thing and highlight the differences in a relaxed but practical style.

On-premise: The classic solution – but is it still up to date?

On-premise” means that you run SAP on your own servers in the company. The infrastructure is therefore located directly on site and you have complete control over everything to do with the system. Sounds good at first, doesn’t it?

Advantages:

  • Full control: You have control over your data, security measures and the entire infrastructure.
  • Adaptability: On-premise solutions can generally be better adapted to the specific requirements and individual circumstances of a company.
  • Data protection: Especially in certain industries or with sensitive data, it can be a plus that everything remains internal.

Disadvantages:

  • High costs: Purchasing and maintaining the hardware and operating the servers is expensive. Updates and upgrades also often have to be carried out manually.
  • Scalability: As the company grows, it becomes expensive and time-consuming to adapt the infrastructure quickly.
  • Maintenance effort: IT teams have to constantly monitor and maintain the systems – which ties up resources and causes additional costs.

Cloud: Flexible, scalable and usually more cost-effective – but not without challenges

The cloud is about running SAP in a virtual environment provided by a cloud provider such as AWS, Microsoft Azure or Google Cloud. The cloud therefore offers you the opportunity to access high-performance IT infrastructure without having to buy and maintain servers yourself.

Advantages:

  • Costs: No expensive investments in hardware. You only pay for the resources you actually use.
  • Scalability: You can easily add more storage or computing power as your company grows – without any major effort.
  • Flexibility: Cloud solutions are generally quicker to set up and offer high availability, giving you round-the-clock access to the systems.
  • Innovation: Cloud providers are constantly offering new features and services that the company can use quickly and easily.

Disadvantages:

  • Dependence on the provider: You are dependent on the availability and performance of the cloud provider. If there are outages, this can affect your business processes.
  • Security concerns: Even if cloud providers offer very high security standards, the question remains as to how secure your sensitive data really is in an external infrastructure.
  • Data sovereignty: Depending on the provider’s location, there may be legal and regulatory challenges regarding data sovereignty.

Hybrid: The golden mean?

The hybrid solution combines on-premise and cloud. Part of the SAP landscape continues to run internally, while other areas are outsourced to the cloud. This option combines the advantages of both worlds and can be particularly interesting for companies that want to keep certain data or applications in-house for security reasons, but at the same time want to use the flexibility of the cloud.

Advantages:

  • Flexibility: You can decide which parts of your IT infrastructure should run in the cloud and which internally. This gives you control where you need it, while at the same time taking advantage of the benefits of the cloud.
  • Scalability and security: Critical parts of the system can remain on-premise, while less critical applications can be easily and cost-effectively outsourced to the cloud.
  • Optimization of resources: You can benefit from cost-effective cloud services without giving up complete control.

Disadvantages:

  • Complexity: Managing a hybrid solution can be technically demanding. You need experts who can handle both on-premise and cloud systems.
  • Integration: It can be challenging to seamlessly integrate on-premise and cloud solutions, especially when systems use different architectures.
  • Costs: Even if hybrid solutions offer a good balance in many cases, they can sometimes turn out to be more expensive due to their complexity and higher administrative costs.

What suits you best? – A comparison of the three options

Option costs Scalability security Flexibility
On-Premise High (hardware, maintenance) Limited scalability High control, but internal Less flexible
Cloud Low to medium (pay-as-you-go) Very high Dependent on provider, but high standards Very flexible
Hybrid Medium to high (depending on structure) Flexible, but more complex Partially high control, depending on structure Very flexible, but complex

Conclusion – Which is the right choice?

Ultimately, the choice between on-premise, cloud and hybrid depends heavily on the individual requirements of your company. If you need maximum control and customized solutions, on-premise is still a good choice. The cloud scores with flexibility, cost efficiency and scalability – especially if you want to grow quickly. The hybrid option offers the best of both worlds, but can be technically demanding and more cost-intensive.

If you are unsure which solution suits you best, we will be happy to help you make the right decision and optimize your SAP landscape. Just write to us if you have any questions or need support!

See you soon and good luck with your decision!

Your amotIQ solutions team