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 Data Warehouse Cloud, 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 a subscription-based offering designed to help companies move to the cloud with a single contract and bundled services. It includes:
SAP S/4HANA Cloud
SAP Business Technology Platform (SAP BTP)
Tools for business process intelligence and transformation
Infrastructure management and technical services
RISE with SAP provides a guided journey to become an “intelligent, sustainable enterprise,” reducing migration complexity while enabling innovation. It’s SAP’s preferred framework for moving customers off legacy ERP systems and into the cloud.
Learn more about RISE with SAP here.
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 collection of applications that manage procurement activities. This includes supplier collaboration, contract and invoice management, and spend analysis. It was originally launched independent of SAP as an internet-based procurement tool and was acquired in 2012.
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 Data Warehouse Cloud is a data warehouse built upon features from existing SAP data warehousing tools SAP BW, SAP BW/4HANA, and SAP HANA.
SAP Digital Manufacturing Cloud is a collection of three applications (SAP Digital Manufacturing Cloud for insights, SAP Digital Manufacturing Cloud for execution, and SAP Digital Manufacturing Network) built to complement or replace the existing SAP Manufacturing Execution and SAP Plant Connectivity solutions.
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 HANA Data Enterprise Cloud is PaaS solution for customers to utilize SAP HANA in a cloud hosted by SAP or one of its strategic suppliers. Customers utilizing SAP HANA Enterprise Cloud get expert insight on how to run SAP HANA, and can easily manage their operations and scale as desired.
SAP Integrated Business Planning is a collection of supply chain planning applications that is based on the SAP HANA platform: SAP IBP for sales and operations, SAP IBP for inventory, SAP Supply Chain Control Tower, SAP IBP for demand, SAP IBP for response and supply, and SAP IBP for demand-driven replenishment. From a functional perspective, it serves as the successor to SAP Advanced Planning and Optimization.
A suite of five cloud-based enterprise asset management solutions: SAP Asset Intelligence Network, SAP Asset Strategy and Performance Management, SAP Predictive Maintenance and Service, SAP Predictive Engineering Insights, and SAP Mobile Asset Management.
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 an across-the-board suite of human capital management applications. It incorporates core HR and talent management features such as recruiting, onboarding, learning, and succession planning. It was initially an independent company before SAP acquired it in 2012.
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, with additional functionality such as an HR line of business being planned for delivery in 2022.
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, SAP CoPilot, 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.
Q: What is the difference between SAP BTP and SAP S/4HANA Cloud?
A: 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.
Q: Does SAP still offer on-premise ERP systems?
A: 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.
Q: What are the benefits of using SAP cloud solutions?
A: 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.
Q: What does “hybrid cloud” mean in the SAP context?
A: 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.
Q: Is RISE with SAP mandatory for moving to the cloud?
A: No. RISE with SAP 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:
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