Moving at the Speed of Clouds with S/4HANA Cloud

Cloud computing is increasingly making inroads in today’s fast-paced business environment as it fulfils the growing demand for more speed, agility, connectivity, and simplicity. As organizations prepare for this transformative shift, SAP has introduced SAP S/4HANA Cloud, an enriched software-as-a-service (SaaS) version of S/4HANA, offering new and enhanced features.

More agility for less cost

As businesses transition to SAP S/4HANA Cloud, they will experience a shift in the way contracts are made. Instead of traditional licensing agreements, companies will benefit from an annual subscription that includes core licenses, hosting, and box-level support. This comprehensive subscription model allows businesses to pay a single annual fee that covers all components without additional charges for using specific software features. Moreover, the flexible nature of the all-inclusive subscription model means that businesses can scale up or down as required, adjusting their subscription to meet their changing needs. This model ensures that enterprises can maintain cost efficiency while still having access to the critical functionalities to drive business development. 

By migrating to a more cloud-native environment, companies can significantly reduce their investment of time and resources in managing infrastructure and platforms. Although S/4HANA Cloud is less customizable than traditional on-premise solutions, it offers advanced data processing and analytics functionality. Moreover, S/4HANA receives continuous updates, eliminating the need for frequent hardware and software upgrades. As a result, application support costs are reduced, potentially resulting in an 11% to 17% reduction in overall IT costs [1]. With the cloud solution running on the software provider's external servers, businesses can avoid the need for local on-premise installations or individual hardware infrastructure, which keeps initial investments low.

Intelligent tools for intelligent businesses 

Businesses increasingly rely on predictive analytics as a powerful solution to meet evolving customer demands. By leveraging past data, predictive analytics enables organizations to anticipate future trends and behaviors, empowering effective and optimized operations. According to research by Gartner, 45% of organizations have been deploying predictive analytics to meet customer demands, with a further 43% planning to integrate AI-powered demand prediction within two years [2]. SAP S/4HANA Cloud comes with integrated advanced machine learning capabilities, harnessing the power of historical data to identify patterns and predict future outcomes. This cutting-edge cloud solution also features intelligent services driven by AI/ML algorithms, seamlessly incorporating SAP Cash Application software for automated invoice matching processes and highly precise forecasts that circle back into SAP S/4HANA Cloud.

Process automation is another vital aspect of modern cloud-based enterprise applications, and SAP is at the forefront of this innovation with its latest offering, SAP Process Automation. The SAP Process Automation automates manual forms-based steps for data collection and multi-step approvals. Therefore, businesses can automate complex and repetitive tasks, which reduces human errors and improves efficiency. SAP process automation would include tools such as SAP BPM and SAP Process Orchestration, with SAP RPA being the most common approach. According to Deloitte’s fourth edition of the Global Robotics Survey, 95% of organizations with RPA implementation acknowledged improved employee productivity [3]. Thanks to the intuitive drag-and-drop tools and pre-built elements, SAP Process Automation makes it easy for business users to build workflows and automate tasks. 

Enhanced cybersecurity is a necessity 

Cybersecurity attacks have become an inevitable reality in today's digital landscape. As a staggering 60% of the world's corporate data is stored in the cloud [4], the potential for these attacks has grown exponentially. Despite the inherent risks, 51% of companies fail to use encryption or tokenization to protect their data [5]. To address the challenges posed by these threats, SAP S/4HANA Cloud is leading the charge by offering robust measures to reinforce cybersecurity:

  • Identity and Access Management: SAP S/4HANA Cloud provides robust identity and access management (IAM) capabilities, enabling organizations to manage user access and authentication. For 75% of organizations, using IAM solutions significantly reduced unauthorized access incidents [6]. The solution supports single sign-on (SSO) and multi-factor authentication (MFA), helping to prevent unauthorized access to systems and data. S/4HANA Cloud also includes data protection and privacy features, such as data encryption, data masking, and data anonymization, to help organizations protect sensitive data from unauthorized access. 
  • Continuous Monitoring and Threat Detection: SAP S/4HANA Cloud monitors systems and networks for potential threats, using advanced threat detection and response technologies to detect and respond to security incidents in real time.
  • Compliance and Governance: SAP S/4HANA Cloud offers features that enable businesses to comply with industry regulations and data protection laws such as GDPR and SOX. The solution helps businesses comply with local regulatory requirements with support for tax, accounting rules, and preconfigured audit reporting. Additionally, it addresses legal compliance by meeting data residency requirements as per regional needs. With quarterly releases, businesses can stay up-to-date on compliance regulations without privacy concerns. Finally, with built-in disaster recovery, they can ensure business continuity without risking their vital financial processes. 


A cloud-native solution for a digital-driven business

With the ongoing adoption of Cloud technology, Gartner forecasts that 51% of IT spending will have shifted from traditional solutions to the public cloud by 2025 [7]. Businesses are advised to adopt SAP S/4HANA Cloud as a holistic platform to remain competitive in today's rapidly evolving digital landscape. With its agility, scalability, predictive analytics capabilities, and robust cybersecurity measures, SAP S/4HANA Cloud empowers enterprises to prioritize delivering tangible value to their customers. The solution ensures that organizations are ahead with optimized operations, anticipated future demands, and data-driven navigation in the ever-evolving digital landscape.



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