HANA On-Premise and Cloud Compared


Understanding the difference between HANA On-Premise and HANA Cloud edition becomes very important when it comes to buying a HANA digital core from the SAP. Both versions differ in terms of function, cost and even how they are managed throughout their life-cycle. Of course, there is no good-bad comparison, however, their fitment to customer’s requirement is vital to select one of the approaches.

Good Read:

A quick look on HANA On-Premise

HANA as a “Service” or HANA Cloud

Let’s see how they differ:



Cloud Edition


It is commisioned and managed by SAP Customer. A customer is responsible for the hardware upgrade

It is commisioned and managed by SAP. Cloud provider is responsible for the hardware upgrade.


Traditional License cost

Subscription-based cost. This may be a key differentiator for cost-sensitive customers because the subscription-based model may be appealing due to no one-time huge cost.


As per Customer’s need

Automatic upgrades without Customer’s intervention. These upgrades are meant to be based on best practices, bug fixes, and industry standards.



Difficult to deviate from the Standard process


Bundled features come with the license

Features available as per the subscription

Another key matrix is Compliance, Data Privacy, and Security. In a cloud-based system, separate HANA instances of the same system may be shared among different clients whereas, in On-Premise systems, there is no such issue may arise.


Hybrid Model

Apart from On-Premise and Cloud Editions, there is also an option of a Hybrid model where e.g. Customer can choose to keep data on their private servers as On-Premise model and Subscribe to Cloud services like Ariba or Fieldglass services.


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