“SAP S/4HANA on-premise edition is an internal platform, located on your servers, maintained by your company.”

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• SAP upgrades are released annually but have to be implemented and tested by your team

• It has a traditional licensing, which means a preliminary purchase with annual maintenance

• The license fee allows the company to own the software and reduces the current maintenance fee. But the cost of the upgrade will be high

• The cloud edition has a subscription license, which means that one predictable monthly payment covers everything from infrastructure to system upgrades

• With S/4HANA on-premise, your team has to plan, test and control all system upgrades which happen yearly. All changes are under the organization’s control, while the cloud edition automatically upgrades the software quarterly without customer’s participation.