SAP Cloud ERP: RISE With SAP and GROW With SAP

With RISE with SAP and GROW with SAP, defined transformation paths are available that address different target groups and are linked to specific operating models. In this article, we show how companies can find the right route for their ERP transformation.

RISE with SAP is primarily aimed at customers with complex system landscapes who want to modernize their ERP environment. The core component is SAP Cloud ERP Private (formerly: SAP S/4HANA Cloud Private Edition), supplemented by platform services, business Process Intelligence, and the SAP Business Network.

GROW with SAP, on the other hand, addresses new SAP customers who want to introduce a cloud ERP from scratch. It is based on SAP Cloud ERP (formerly: SAP S/4HANA Cloud Public Edition) and provides standardized best practice processes, fast onboarding, and clearly structured innovation cycles.

Classic operating models such as SAP S/4HANA On-Premise or Bring-Your-Own-License (BYOL) are still in use, but will lose relevance in the future. SAP has clearly dated the end of maintenance for classic ERP systems - mainstream support will expire at the end of 2027, with optional extended maintenance ending in 2030 at the latest. This clearly shows that anyone planning a long-term ERP strategy today will no longer be able to avoid switching to the cloud.

Companies that operate their ERP systems entirely themselves have maximum control over architecture, customizations and release dates. At the same time, however, they also bear full responsibility for operation, Patching and upgrades - with correspondingly high costs for internal IT teams or external service providers.

With SAP Cloud ERP, SAP has established two clearly differentiated editions, each of which enables different transformation paths. Both models are technologically based on the SAP S/4HANA Cloud and are covered by the SAP Business Suite, SAP's cloud portfolio. They differ in terms of flexibility, target group and implementation speed.

SAP Cloud ERP Private

SAP Cloud ERP Private is particularly interesting for companies that want to migrate their existing ERP landscape to the cloud with individual extensions. It is offered as part of RISE with SAP transformations and combines cloud operation with a high degree of flexibility. SAP provides the infrastructure and - depending on the contract - also takes over parts of the technical management. At the same time, it remains possible to retain customer-specific extensions or develop new add-ons.

The migration often takes place via a Brownfield approach. Companies can largely retain their existing processes and also benefit from cloud innovations such as business technology Platform (BTP), the functions of the business Process Intelligence or access to the SAP Business Network. Innovations such as SAP Business AI are also available. Contractually regulated upgrade cycles and SLAs mean that the environment remains predictable, while at the same time offering scope for individual requirements.

SAP Cloud ERP

SAP Cloud ERP on the other hand is a software-as-a-service model and is usually used as part of the transformation approach GROW with SAP is used. However, RISE with SAP transformations possible in the public cloud. SAP Cloud ERP is aimed at companies that are either introducing an ERP system for the first time or are consciously focusing on standardization. The focus is on predefined best-practice processes that enable rapid implementation. Adjustments are only possible within the framework of clearly defined guard rails, which is why projects are usually set up as greenfield implementations.

SAP operates the Public Edition completely itself; takes care of operation, updates and the regular release waves. These are scheduled at short intervals and ensure that all customers benefit from innovations at the same time. Tools for test automation and release-Governance support the transition to new versions. For companies, this means: lower total cost of ownership, fast time-to value and direct access to modern functions such as SAP Business AI or extensions via the BTP - but with significantly less freedom for individual customizations.

When choosing the operating model, there are four key points to consider:

Cost structure:

• SAP Cloud ERP Private = higher flexibility, but also higher operating costs

• SAP Cloud ERP = schedulable Opex and low TCO

Compliance & Data sovereignty:

• Check industry-specific requirements

Add-on compatibility:

• Branch solutions and custom-Extensions do not always run unchanged on SAP Cloud ERP Private - a compatibility check before migration is mandatory

• SAP Cloud ERP relies on standardization and therefore offers little room for add-ons

Innovation services:

• Business AI, Joule and BTP-Extensions are available in both variants - but the usage scenarios differ depending on the degree of flexibility

As an experienced SAP partner, Arvato Systems supports companies in their cloud transformation and consistently pursues a "Suite & Simple" concept. Through end-to-End-viewing, integrated processes and the use of SAP Business Technology Platform enables a secure, scalable and lean implementation that protects existing customizations and facilitates the introduction of new innovations.