Reviewed by the SAP PRESS editorial team.
SAP offers a wide range of cloud-based solutions that help companies run better, faster, and more securely. These solutions—ranging from SAP S/4HANA Cloud and SAP BTP to SAP SuccessFactors, Ariba, and more—enable rapid innovation, real-time analytics, and scalability without the heavy lift of on-premise infrastructure.
SAP transitioned its ERP software strategy from on-premise only in the early 2010s with the advent of the SAP HANA database and SAP S/4HANA, and began a march towards the cloud with the acquisitions of Ariba, SuccessFactors, and Concur in the first half of the 2010s. In 2016, SAP S/4HANA Cloud was released, and the existing SAP HANA Cloud Platform was rebranded to SAP Cloud Platform in 2017. In 2021, this brand was officially retired to make way for the SAP Business Technology Platform (SAP BTP). SAP has since encouraged customers to move from their on-premise landscapes to the cloud to take advantage of a handful of improvements.
SAP cloud solutions can be deployed in several ways depending on a company’s needs and infrastructure:
Public cloud: The most common model, where services are shared among multiple customers and maintained by SAP or a hyperscaler. This model is cost-effective and scalable, and upgrades are handled by the provider.
Private cloud: A dedicated environment for a single customer, offering more control and security. This model is useful for regulated industries or businesses with strict data policies.
Hybrid cloud: Combines elements of both public and private cloud as well as on-premise infrastructure. Hybrid models are useful for companies transitioning to the cloud or with mixed compliance requirements.
Understanding which deployment model suits your business is key to choosing the right SAP solution.
There are numerous reasons why a company may want to take advantage of a cloud solution. For starters, some companies don’t have the IT support infrastructure to handle the technical backend of a system, and leasing a cloud solution relieves them of system maintenance. Similarly, administration responsibilities, such as security, can be reduced for a cloud customer as the provider handles security. This can translate into scalability without incurring large investment costs, and allows companies to focus on core business rather than managing the system backend.
Companies can save even more time and money by utilizing software-as-a-service solutions as they lower the time to value with a different implementation timeframe than on-premise versions. And as new functionality is added to the software and deficiencies or bugs are corrected, customers of cloud solutions can easily receive these improvements via the internet rather than a physical drive.
The main drawback to utilizing a cloud solution is that it limits the amount of customization an organization can make to the software. This may be unappealing to businesses that require the high level of flexibility that only an on-premise solution can provide.
Because software updates for cloud solutions come on a fixed basis, companies may also run into change enablement issues as they adapt to new or changed functionality that affect efficiency.
With the pros and cons in mind, here is an overview of SAP’s main cloud offerings.
SAP Business Technology Platform is a platform-as-a-service offering focused on the intelligent enterprise.
There are two “flavors” of SAP BTP. The first, called SAP BTP, Neo environment, is focused on cloud capabilities available from SAP‘s own data centers and allows users to connect to SAP ERP solutions. The second, SAP BTP, Cloud Foundry environment, is focused around any data center that meets a set of specific requirements and allows more extensibility options for developers and hyperscale vendors, such as Amazon Web Services, Google Cloud Platform, and Microsoft Azure.
SAP BTP is built upon a foundation of five pillars. Below explains each.
SAP BTP delivers powerful tools for both data management and analytics. SAP HANA Cloud, SAP Datasphere, and SAP Datasphere support robust data storage, modeling, and governance. SAP Analytics Cloud provides real-time reporting and predictive capabilities, enabling data-driven decision-making. These solutions empower businesses to uncover trends, monitor KPIs, and generate insights from a unified data foundation.
SAP BTP empowers developers to build and extend applications tailored to specific business needs. Whether creating standalone cloud apps or extending existing SAP solutions, developers can work in a language-agnostic environment that supports ABAP, Java, Node.js, Python, and more. SAP Build, SAP Business Application Studio, and DevOps tools streamline the process from development to deployment. Additionally, SAP BTP supports multicloud and hybrid development scenarios, ensuring flexibility across infrastructures.
Integration is a core pillar of SAP BTP, enabling seamless connectivity across SAP and third-party systems. SAP Integration Suite facilitates data and process integration whether your landscape is on-premise, in the cloud, or hybrid. This allows real-time data exchange and synchronized operations across departments and platforms, ensuring a single source of truth and eliminating data silos.
Automation in SAP BTP helps businesses streamline repetitive processes and reduce manual workloads. With tools like SAP Build Process Automation and SAP Intelligent Robotic Process Automation, organizations can automate workflows, approvals, and lower-level services like tax processing or invoice matching. These technologies allow users to design and manage workflows visually, while freeing employees to focus on high-value tasks.
SAP BTP provides embedded AI and machine learning capabilities that enhance business applications with intelligence. Tools like SAP AI Core and SAP AI Launchpad, along with solutions such as SAP Conversational AI and AI Foundation, enable use cases like natural language processing, smart recommendations, and chatbot development. These technologies allow companies to deliver personalized, context-aware experiences and automate intelligent decision-making across processes.
RISE with SAP is SAP's primary commercial offering for customers moving to SAP S/4HANA Cloud. It combines cloud ERP software, infrastructure, and managed services into a single subscription contract, simplifying the procurement and transformation process. As of 2025, RISE with SAP has been repackaged under the SAP Cloud ERP Private umbrella, and the specific services and tools included in the offering have changed significantly from its original 2021 launch.
Because bundled inclusions, pricing tiers, and available add-ons are updated on an ongoing basis, organizations evaluating or renewing a RISE with SAP agreement should consult SAP directly or review current documentation at sap.com for the most accurate and up-to-date information on what is included.
SAP has taken a two-pronged strategy to growing its suite of cloud solutions. It has developed certain solutions in house, while others have been added to its portfolio via an aggressive acquisitions strategy.
Built on top of the capabilities of SAP BTP, SAP Analytics Cloud is a business intelligence (BI) solution that combines planning, BI, and predictive analytics capabilities. Highlighted features include analytics for both cloud and on-premise applications, data connectivity and blending from across different applications, smart assist features like smart insight, data visualization stories, collaborations, and more.
SAP Ariba is a comprehensive cloud-based procurement solution that supports the full source-to-pay lifecycle, helping organizations manage sourcing, contracting, purchasing, invoicing, payments, and spend analysis within a unified environment. It enables end-to-end collaboration with suppliers through the Ariba Network while embedding controls, workflows, and analytics to address common procurement challenges such as supplier discovery, demand planning, contract compliance, and invoice accuracy. By digitizing and connecting these processes, SAP Ariba streamlines procurement operations, improves transparency, and drives more efficient, data-informed purchasing decisions.
SAP Business ByDesign is a pre-configured ERP solution for medium-sized businesses that are looking for a robust ERP that won’t break the bank. It includes features from the following functional areas: finance, customer relationship management, human resources, project management, procurement, and supply chain management. Industry-specific functionality is also available.
SAP Cloud ALM is an application lifecycle management tool for SAP cloud solutions. Learn more about SAP Cloud ALM and how it compares to SAP Solution Manager here.
SAP Concur is a travel and expense management application that can be utilized by employees to book business travel, get reimbursed for expenses incurred, and reconcile other employee-related, non-compensation-based finances. It was acquired by SAP in 2014.
SAP Customer Experience is a customer experience suite of solutions that consists of five cloud applications: SAP Commerce Cloud, SAP Customer Data Cloud, SAP Marketing Cloud, SAP Sales Cloud, and SAP Service Cloud.
SAP Datasphere is SAP’s cloud-based data service that brings together data integration, cataloging, semantic modeling, and data warehousing into one unified environment, allowing organizations to access, manage, and share trusted data across systems while preserving its business meaning. It enables a business data fabric approach by connecting distributed data without heavy duplication, helping teams simplify data landscapes and deliver consistent, context-rich insights for analytics and decision-making.
SAP Digital Manufacturing is the latest manufacturing platform built on the Cloud Foundry/Docker technology stack and runs on SAP BTP. It provides the key components for optimizing production execution on the shop floor by continuously exchanging data between the ERP systems and other operational assets via the Industrial Internet of Things (IIoT), Open Platform Communication (OPC), Unified Architecture (UA)/Data Access (DA), historian databases, and Supervisory Control and Data Acquisition (SCADA) systems. It is also deemed the successor to the other manufacturing solutions provided by SAP, such as SAP Manufacturing Integration and Intelligence (SAP MII) and SAP Manufacturing Execution. The transition is planned for around 2027–2030.
SAP Fieldglass is an application focused on finding and hiring contingent workers such as temps or contract workers. It can be used to fill labor shortages that occur when demand is higher than expected or when existing labor is no longer able to complete the job. Similar to SAP Ariba, it was not initially developed by SAP and was acquired in 2014.
SAP HANA Cloud
SAP HANA Cloud is the cloud version of the SAP HANA database and provides users with a single place to access, store, and process enterprise data in real time.
SAP Integrated Business Planning (SAP IBP) is a cloud-based supply chain planning solution built on SAP HANA that unifies key planning processes—such as sales and operations, demand forecasting, inventory optimization, and response and supply—into a single, integrated environment. It enables organizations to align strategic, operational, and financial plans through real-time data, standardized models, and cross-functional collaboration, while supporting advanced capabilities like scenario simulation and predictive forecasting. By providing end-to-end visibility across the supply chain and synchronizing planning across departments, SAP IBP helps businesses respond faster to change, optimize resources, and improve decision-making in complex, dynamic environments.
A suite of five cloud-based enterprise asset management solutions: SAP Asset Performance Management, SAP Business Network Asset Collaboration, SAP Dynamic Forms, SAP Field Service Management, and SAP Service and Asset Manager.
SAP Logistics Business Network is a centrally located logistics operations tool that provides intercompany collaboration such as developing products among business units, across borders, etc. It is only available in the cloud.
SAP SuccessFactors is a cloud-based human capital management (HCM) suite that provides a unified set of applications for core HR and talent management, including recruiting, onboarding, learning, performance, and succession planning. Delivered as software-as-a-service (SaaS), it centralizes employee data and HR processes while enabling organizations to standardize workflows, enhance employee experiences, and support data-driven workforce decisions through embedded analytics and reporting. Originally founded as an independent company and acquired by SAP in 2012, SAP SuccessFactors has since become a core component of SAP’s cloud HR portfolio, helping organizations manage the full employee lifecycle in a scalable, integrated environment.
SAP S/4HANA’s introduction in 2015 was a key point in SAP’s pivot to a cloud-first strategy. As time passed, SAP regularly added functionality to the cloud platform with quarterly updates and detailed SAP Community documentation on new features. Customers of SAP S/4HANA Cloud can currently take advantage of the finance, supply chain and supplier relationship management, sales, and R&D lines of business. An add-on called SAP Human Capital Management for SAP S/4HANA can be utilized for HR processes.
SAP S/4HANA Cloud customers get all the benefits of the cloud solutions, as well as the business advantages of SAP HANA’s in-memory computing architecture. This gives them the ability to gain real-time business statistics and analytics.
SAP S/4HANA Cloud also includes embedded versions of other SAP solutions, such as SAP Enable Now, Joule, SAP Analytics Cloud, and a test automation tool.
Here are answers to some of the most common things SAP users want to know about SAP and the cloud.
What is the difference between SAP BTP and SAP S/4HANA Cloud?
SAP S/4HANA Cloud is a cloud-based ERP system used to run core business operations. SAP BTP (Business Technology Platform) is a platform-as-a-service that enables integration, application development, and analytics across SAP and third-party systems. SAP BTP supports and extends the capabilities of SAP S/4HANA Cloud but is not an ERP system itself.
Does SAP still offer on-premise ERP systems?
Yes. SAP S/4HANA is still available in an on-premise deployment. However, SAP is increasingly focusing on cloud-first development and encourages customers to adopt cloud solutions such as SAP S/4HANA Cloud through programs like RISE with SAP.
What are the benefits of using SAP cloud solutions?
SAP cloud solutions offer faster deployment, lower upfront infrastructure costs, regular automatic updates, and simplified IT maintenance. These benefits help businesses scale quickly, adopt innovation faster, and reduce the burden on internal IT resources.
What does “hybrid cloud” mean in the SAP context?
A hybrid cloud refers to an IT landscape where some systems are run on-premise and others are operated in the cloud. This setup allows companies to gradually transition to the cloud or retain critical on-premise systems while still benefiting from cloud-based innovation.
Is RISE with SAP mandatory for moving to the cloud?
No. RISE with SAP, now repackaged as SAP Cloud ERP Private, is one option, offering a bundled, guided path to SAP S/4HANA Cloud and related services. Companies can also choose to adopt SAP cloud solutions independently, depending on their specific business needs and cloud strategy.
In addition to the information laid out above, there are a handful of important SAP cloud terms you should also be familiar with. Here they are in list form:
Want to learn more about SAP and the cloud? Additional information can be found in the blog posts and books listed below.
SAP BTP
These posts cover SAP Business Technology Platform capabilities and services, including an overview of its five pillars, the Cloud Application Programming Model (CAP), SAP Integration Suite features and configuration, SAP Cloud Connector setup and authentication, ABAP in the cloud, and integration scenarios with SAP Ariba and SAP IBP.
SAP IBP
These posts cover SAP Integrated Business Planning across its core planning capabilities, including demand planning, supply planning, sales and operations planning, machine learning for demand sensing, characteristics-based planning, time profiles, user setup, and the Excel-based user interface.
SAP Fieldglass and SAP SuccessFactors
These posts cover external and total workforce management using SAP Fieldglass and SAP SuccessFactors, including getting started with SAP Fieldglass, integrating it with SAP S/4HANA, and combining it with SAP SuccessFactors for an end-to-end workforce management strategy.
SAP Ariba
These posts provide an introduction to SAP Ariba and practical guidance for getting started with a sourcing implementation.
SAP Analytics Cloud
These posts cover SAP Analytics Cloud planning features, live connection integration scenarios, and how to create SAP Fiori tiles for story-based reporting.
SAP Cloud ALM
These posts cover document management and test management capabilities within SAP Cloud ALM, SAP's cloud-based application lifecycle management solution.
SAP S/4HANA Cloud
These posts cover cloud migration and deployment topics for SAP S/4HANA, including migration planning considerations, the SAP Activate prepare phase, integration strategy for cloud deployments, and the SAP Landscape Transformation scenario.
Cloud Infrastructure
These posts cover cloud infrastructure topics for SAP environments, including DevOps practices on AWS, connecting on-premise systems to AWS, deploying SAP systems with the SAP Cloud Appliance Library, and the SAP Lens framework for AWS.
Cloud-Delivered PLM
These posts cover the evolution of SAP Product Lifecycle Management toward cloud delivery, including current technology trends, the benefits of cloud-based PLM for product data and enterprise structure, and SAP's strategic shift to cloud PLM.
Learn more SAP from our official Learning Center.
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