The document outlines the differences between SAP Cloud-delivered ERP and on-premise ERP systems, detailing each deployment option's features, management requirements, investment needs, and scalability. On-premise ERP provides full control over data and infrastructure but requires significant upfront investment and management, while cloud ERP offers a subscription model with reduced management efforts and costs. Key considerations for choosing the appropriate option include organizational size, need for customization, and internal capabilities.

1. THE
Difference between SAP Cloud Delivered ERP VS SAP On-Premise ERP

2. § ON PREMISE SAP ERP
The customer purchase the required perpetual licenses from
SAP and manages its deployment and maintenance in an
environment of their choice.
§ CLOUD DELIVERED SAP ERP
The ERP is provided by SAP to customers on a
subscription model.
§ COMMON OBJECTIVE
To deliver SAP ERP functionalities required to run
your business
Overview

3. ● Customer acquires the required SAP
Licenses and has to plan for the sizing of the
systems (computing capacity – Processing,
Memory & Storage) based on the functions
and the number of users.
● Large diverse organisations who would like
to exercise significant control over their
data, systems and processes and have the
means and resources to build and manage
the same would prefer this model.
What is On-Premise ERP Deployment

4. Deployment Options

5. In this option the customer has to plan for :
1. Setup and management of own data centre
2. Network Infrastructure
3. Sizing and deployment of computing resources (Servers / Storage)
4. Virtualisation and scale-up architecture
5. Back-up & Disaster Recovery management
6. Installation, Setup, Management & Maintenance of SAP ERP
The customer has total control over the entire landscape (IT Infrastructure and the SAP Application)
Deployment : Option 1
On-Premise (Own Servers & Own Data Centers)

6. 1. Investment: Requires an upfront investment
to set up the system and for additional
capacity to be provided for growth.
2. Setup Time: The setup time is high
considering specialised equipment,
technology resources are required to put this
together.
3. Manageability: Organisations with extensive
capability and capacity to manage will find
total control freedom and manageability over
the entire landscape.
4. Scalability: Requires provision for spare
capacity to enable scale-up and manage time,
preparation, cost and down-times.
5. High Availability: Requires investment in
standby servers, systems, specialised
software and IT services to configure a time
and cost intensive high availability
environment.
6. Data Security: Offers total control over Data
Security Large – enabling organizations to
meet their custom security and privacy
requirements.
Features : Option 1
On-Premise (Own Servers & Own Data Centers)

7. ● The option is for On-Premise customers
who want total control over data &
application environment, without investing
in and managing expensive & expertise
base IT Landscapes.
● Cloud Infrastructure as a Service –
IaaS Providers host the organizations
applications on a high-end virtualized
shared environment managed based on
SLA by the provider.
Deployment : Option 2
On-Premise (Leased Infrastructure)
● IaaS Hosting lets organizations can optimize
IT performance and save on large costs
associated with purchasing and managing a
dedicated infrastructure.

8. 1. Investment: Saves on upfront investment
to set up the system and for additional
capacity to be provided for growth.
2. Setup Time: The setup time is significantly
reduced considering time saved in setting
up specialised equipment and technology.
3. Manageability: Relatively negligible
management effort from an Infrastructure
perspective, however all management
related to SAP ERP Application remains.
4. Scalability: Scalable without having to invest in spare
capacity, allowing almost instantaneous resource
modification (upscale / downscale) based on demand.
5. High Availability: Comes with good High Availability
Infrastructure by default. Customers have the option to
subscribe to additional services on need basis.
6. Data Security: SAP Applications offer great application
level security. For infrastructure, customers have to
adopt the security environment available with the
provider or negotiate for additional security services
Features : Option 2
On-Premise (Leased Infrastructure)

9. ● The option is positioned as an integrated,
intelligent, out-of-the-box, cloud ERP suite
offered as a Comprehensive SaaS-based
subscription, based typically on the number
of users and user types.
● Users don’t need to bother about the cost of
hardware, maintenance, and security.
Deployment : Option 3
Cloud ERP SaaS Offering
● Organisations can start small, achieve cutting
edge capabilities in short time avoiding big
investments and management of IT teams
and infrastructure.

10. 1. Investment: save heavily on all upfront
investment in acquisition of IT
Infrastructure, IT teams and SAP Licences.
2. Setup Time: Virtually no infrastructure set
up time. Only for implementation and
consultation.
3. Manageability: negligible management
effort both from Infrastructure and
Application perspective. Customers have to
adopt SAP Best Practices and give up over
customising tendencies.
4. Scalability: Extremely scalable. Ensures businesses are
only paying for their existing needs.
5. High Availability: Comes with good High Availability
Infrastructure by default.
6. Data Security: The solution is hosted in world class
data centres with stringent compliance standards for
security and availability. Customers have to adopt
standard offerings.
Features : Option 3
Cloud ERP SaaS Offering

11. That said…Some of the key considerations in the selection
of the right option are:
● Organisation Size and Spread
● Need for Customization
● Investment considerations
● Business Complexity
● Internal Capability & Capacity
● Organisation Roadmap.
● Special Security requirements
There is no one rule fits all in an ERP
adoption decision.
Deciding Factors

12. Want to know more?
Contact us today at:
connect@imark360.com
for a free demo, discussion, and evaluation of
your business.