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

It is the big question. SAP in the cloud versus on premise . In the case of the cloud, this is the model where SAP software cloud and users access it over the Internet.

This is not an easy question to answer quickly. For most people, it's very comfortable to keep your current setup and the way you've always used your systems. Perhaps, the general feeling is that everything is working fine. But have you ever asked your employees how software their day-to-day work?

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

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

How does SAP on premise ?

SAP on premise represents the use model where each company uses its physical 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 amount to have good equipment that can meet the demand of each organization. But, in addition to the main servers, it is necessary to pay for all the peripheral equipment connected to the servers.

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

SAP on premise

See which characteristics mark the SAP on premise :

  • Extra care for security: in 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 against various threats, such as viruses;

  • IT team: if you don't have an internal IT team to manage the server, know that it will be indispensable to control the entire data center ;

  • backup : Having SAP on premise means you don't have to go to the trouble of backing up your data. And don't forget to test the backup regularly;

  • Downtime: What if your server crashes? Your business can suffer if it spends time with system downtime. That is why it is also necessary to have a team prepared to carry out the repairs, in addition to a support server.

How SAP works in the cloud

Unlike the on premise , SAP in the cloud has a completely different way of working. With it, the system is migrated to the data center of the cloud service provider. With this, each company now has access to all data via the internet, without worrying about having a high volume of expenses in the acquisition of its own equipment.

Features of SAP in the Cloud

See now which characteristics mark the SAP model in the cloud:

  • 24-hour support: by hiring the SAP service in the cloud, you can be completely unconcerned with the most technical issues. There is a 24-hour support team to solve any problems;

  • Specialized team: when using the cloud model, your company automatically has a team of specialists, ready to meet any demands that arise, in addition to being specialized in the area;

  • Billing per user: in this way of using SAP, the amount used to contract the solution is calculated based on the number of users that 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 data centers , guaranteeing the confidence of having complete security in the movement of data.

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

To facilitate the job of choosing the model you are going to use in your company, it is important to take into account all these characteristics 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 on the management side. In the cloud, the focus is on the ultimate goal of performing the complete migration without any issues. Therefore, the role of the company hired to carry out the work should be much more like an agent of change.

So be very clear when selecting an implementation partner who is aware of the challenges that may come your way and can provide the resources to combat them.

investment volume

Do you prefer to see your IT solution as an in-house asset, which received a high investment to structure, 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. Perhaps a stable monthly cost, such as implementing SAP in the cloud, is more suitable for your company, offering access to full support from a trusted provider, which will ensure the system is always up to date.

ease of use

Simplicity can give your business the advantage of staying ahead of your competitors and the ability to quickly adapt when needed.

That is, keeping your main solution as simple as possible involves choosing the model that will allow you to have the most facilities. Aspects such as support and security can become major headaches if you cannot have an easy-to-adjust model.


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 skipped puts your company at risk of encountering crashing errors in the system, the database and also the SAP executable layers.

This could result in higher levels of system downtime. In some cases, 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. on premise model , you must be very careful not to miss any new updates and 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 ! Get to know all the details of the tool that allows you to migrate 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.