IT managers looking for the best ERP solution always have one question in mind: is it better to use a local solution, with the software installed from the internal server and its own computing infrastructure, or should they opt for a cloud solution?

It's the big question. SAP in the cloud versus on premise. In the case of the cloud, this is the model where SAP software is deployed and managed using cloud technology and users can access it via the Internet.

This is not an easy question to be answered quickly. For most people, it is very comfortable to keep your current configuration and the way you have always used the systems. Perhaps, the general feeling is that everything is working well, but have you ever asked your employees how is the influence of software in their daily work?

Many are surprised to learn of problems that are not reported – most of them for not thinking well before choosing to use SAP in the cloud or SAP on premise.

To help you with this, we have prepared this complete content presenting how each model works.

How does SAP on premise work?

SAP on premise represents the usage model where each company uses its equipment and hardware, usually placed in an exclusive space, to function as a data center and handle all the information and data traffic of the application.

With this model, it is necessary to invest a high value to have good equipment that can meet the demand of each organization. But, in addition to the main servers, it is necessary to bear all the peripheral equipment to connect to the servers.

All the company's attention must be in this specific area, since any problem that happens needs to be solved as soon as possible so that there is no risk of having the entire operation stopped.

SAP on premise features

Check out which features are part of the SAP on premise model:

  • Take extra care to be safe: at SAP on premise data security is in your hands. It is critical that you have security policies and procedures in place to protect your IT infrastructure from various threats, such as viruses;
  • IT staff: if you do not have an internal IT staff to manage the server, know that it will be indispensable to control the entire data center area;
  • Data backup: having SAP on premise means that you must take the trouble to manually back up your data. And don't forget to test your backup solution regularly;
  • Downtime: what if your server crashes? Your company can suffer if you spend some time with the system downtime. Therefore, it is also necessary to have a team prepared to make the repairs, in addition to a support server.

How SAP works in the cloud

Unlike the on premise model, SAP in the cloud has a totally different way of functioning. With it, the system is migrated to the cloud service provider's data center, so that each company now has access to all data over the internet, without worrying about having a high volume of expenses in the acquisition of its own equipment.

SAP in the cloud features

Check out which features are part of the SAP in the cloud: 

  • 24-hour support: with SAP's cloud service contracting, you can be completely unconcerned with the more technical issues. There is a 24-hour support team to solve any problem;
  • Specialized team: when using the model in the cloud, your company automatically has a team of specialists, ready to meet all the demands that arise, in addition to being specialized in the area;
  • Charging per user: in this way of using SAP, the amount used to contract the solution is calculated based on the number of users who use the system. This makes it easier to identify the investment and also helps to reduce costs;
  • Security: all the required certifications are already present in cloud data centers, guaranteeing the confidence of having complete security when moving data.

How to choose the best option: SAP in the cloud or SAP on premise?

To facilitate the work of choosing the model that you will use in your company, it is important to take into account all these features that we have seen so far. But, in addition to them, it is important to compare the functioning of each one in the following topics:  


These two distinct models also require a completely different approach to management. In the cloud, the focus is on the ultimate goal of carrying out the complete migration without any problems. Therefore, the role of the company hired to do the job must be much more as an agent of change.

Considering this, you need to be very clear when selecting an implementation partner, who is aware of the challenges that may come your way and who can offer the resources to combat them.

investment volume

Do you prefer to see your IT solution as an internal asset, which received a high investment for structuring, or do you prefer a stable monthly cost?

In practice, you want to have your own solution to hire a team to manage and control or have specialists available 24 hours a day, whenever you need them – even when you don't need them. Perhaps a stable monthly cost, such as implementing SAP in the cloud, will be more suitable for your company, offering access to full support from a trusted supplier, who will ensure the system is always up to date.

ease of use

Simplicity can help your business with the advantage of always being ahead of your competitors and the ability to adapt quickly when needed.

In other words, keeping your main solution as simple as possible involving choosing the model that will allow you to have more facilities. Aspects such as support and security can become major headaches if you are unable to have an easy to adjust model.


The best practice for your ERP is to follow a regular schedule of updates for all major components of your SAP system. Allowing these updates to be ignored puts your company at risk of encountering system, database, and SAP executable layer errors.

This could result in higher levels of system downtime. In some case , the lack of an update schedule can cause security vulnerabilities.

For all these reasons, the SAP model in the cloud helps to have updates made automatically, without worrying directly about the IT area. In the on premise model, on the other hand, you must be very careful not to miss any new updates and already recommend the installation by those responsible for the IT area.

To be able to use the SAP application in the cloud, it is important to look for the best tool to make this migration quickly and safely.

That solution is Auto.Sky Business One ! Find out all the details of the platform that allows you to migrate from the SAP system to the cloud in an agile and secure way, without complexity, and delivering everything you need for the proper functioning of the SAP system.

Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.