Issue

As ERP Rebuild evaluates its functional deployment for future state SAP S/4HANA, the decision between utilising a public cloud or a private cloud environment, on which to build business capability, is a critical consideration. This document (when completed post reviews) will provide a clear concise comparison of the primary options to inform this decision. 

Recommendation

Option A) SAP S/4HANA Private Cloud Edition

SAP S/4HANA Public Cloud, with its benefits of low touch maintenance and standardised business processes, presents a simple and straightforward solution. However, for a global chemicals company like Syensqo, the realities of running a scaled operation with multinational compliance obligations  and potential for future acquisition/divestments challenge the viability of this option in it's current offering from SAP. While SAP S/4HANA Public Cloud offers cost efficiency, the need for enhanced security, additional compliance, and control over Syensqo data favours the SAP S/4HANA Private Cloud Edition. Additionally, SAP S/4HANA Private Cloud Edition provides flexibility in project deployment options, allows Syensqo to determine its own schedule for maintenance and adoption of new technologies and business capabilities (such as generative AI), that are rapidly emerging and will advance during the lifecycle of the ERP Rebuild. Changing position on capabilities through deployment lifecycle is a likely scenario that is not supported under the constrains of SAP S/4HANA Public Cloud.

Finally, SAP S/4HANA Public Cloud is generally used for new greenfield deployments, especially for emerging companies without significant standing investments in SAP solutions. Given Syensqo's extensive implementation of SAP dating back to 2001, transitioning to SAP S/4HANA Public Cloud is not feasible. Our existing infrastructure and substantial investments in on-premises SAP solutions necessitate a tailored approach that ensures advancement in business capability that leverages on existing deployed assets and Syensqo IP. 

Background & Context

In recent years SAP has been marketing and constructing it's product offerings towards cloud subscription models, including SAP S/4 upon which it offers multiple configurations of which customers may consume, broadly these models are either public or private options. 

Assumptions

1) building on-premise data center capability is out of the question due to there being no indicators that this would be a preference and ERP Rebuild charter alignment means building a modern future proof solution which aligns with cloud.

2) Syensqo 

Constraints

Impacts

Business Rules

Options considered

Option A: SAP S/4HANA Public Cloud

Option B: SAP S/4HANA Private Cloud Edition

Option C: 

Option D: 

Evaluation

	Option A -SAP Public Cloud	Option B - SAP Private Cloud
Ownership and Control	Con You do not own or control the underlying solution, relying on SAP for maintenance and update on their own schedule	Pro You have control over the solution with a dedicated cloud provider.
Security and Compliance	Con Security and compliance are primarily the responsibility of the cloud provider.	Pro Syensqo have greater control over implementing our own security measures and compliance policies to suit international regulations.
Scalability and Performance	Pro	Con
Customisation and Integration
Deployment
Management
Customisation
Updates
Cost
Integration
Data Residency
Vendor Lock-in
Performance

See also

Change log

Workflow history