SaaS: Everything you need to know

Preface – This post is part of the ABAP Beginner series.

What is SaaS: SAP Software-as-a-Service

SaaS stands for software-as-a-service. It is a way of delivering applications/apps over the web/internet. Customers can access SaaS apps right from any web browser via any of their devices (mobile, PC, tablet), which means there is no requirement to buy, install, maintain, or update any hardware or software. The SaaS provider (here it is SAP) will take care of every next required operation– and the customer will always have the latest version of the application.
Following are the major SaaS products:

  •  SAP SuccessFactors HR Solutions
  •  SAP Hybris Cloud for Customer
  •  Ariba Network: Sourcing, Procurement, & Finance
  •  Concur: Travel & Expense Management

SAP SaaS: SAP on cloud

What is SAP On-Cloud?

SAP recently came with a service called SaaS, i.e. Software AS A Service. It is nothing different, but the SAP S/4-Cloud platform for the entire ERP suite it has. Following are some of the SAP versions, both on-cloud as well as on-premise.

SAP On-Premise SAP S/4-Cloud
SAP HCM SAP SuccessFactors
SAP FSCM SAP Ariba Network
SAP CRM SAP Hybris Cloud

What is SaaS


What to choose between On-Premise and Cloud?

This is a very important question regarding service selection. SAP provides ECC & ERP services in two ways. Both of them have HANA Database. The selection is purely based on the requirement of the customer. In the given table, we will explain possible conditions where these two services are applicable:

Feature SAP On-Premise SAP On-Cloud
Infrastructure It is installed within the premise. You have to pay for infrastructure installation. It is a cloud-based service. You need to pay for the service as per your use.
Support The support team of the enterprise can handle it. Total support dependency is on SAP.
Upgrade Every year new upgrades will be required. The on-cloud service is upgraded by SAP itself.
Functional Full ERP solution is available Limited ERP solution is available
Investment Hardware, Software and support team Payment as per service and time


You can even choose a hybrid version where you can have functionality and the advantage of both on-premise and on-cloud. For more information click here.



  • Barry Allen

    A Full Stack Developer with 10+ years of experience in different domain including SAP, Blockchain, AI and Web Development.


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