SAP HANA on Cloud vs On Premise Compared

SAP HANA on Cloud vs On Premise


Understanding the difference between SAP HANA on Cloud vs On Premise 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 when we discuss SAP HANA on Cloud vs On Premise, 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:

SAP HANA on Cloud vs On Premise


HANA On-Premise

HANA Cloud Edition


Hardware is commissioned and managed by SAP Customer. In other words, customer is responsible for the hardware upgrade.

It is commissioned 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. Normally software upgrades incurs substantial costs because set of planned activities to be performed. A thorough testing should be performed to make sure sanity of solution. 

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. Getting new standard feature is as easy as buying a new subscription. However, getting a custom feature is a tough nut where you may need to develop a custom API.

Another important key differentiator is Compliance, Data Privacy, and Security concern. In a cloud-based system, separate HANA instances of the same system may be shared among different clients. 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. Here, 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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