The generic cloud computing operating model has almost no disadvantages. The scope of features in hyperscaler clouds is impressive. And yet, this cloud euphoria has one huge drawback: it gets very expensive very quickly.
Cloud computing at hyperscalers and SAP is not only very good, but also very expensive – this junket of performance and price is often overlooked in comparison to on-prem systems. If you have been optimizing, orchestrating, harmonizing and virtualizing your own data centers for years, you probably have much more favorable cost rates than some cloud providers.
Not only are generic cloud offerings causing SAP’s existing customers a lot of grief, but SAP has not adapted the organizational form CCoE for an S/4 conversion. Some of SAP customers have been running a CCoE (formerly CCC) for over 20 years. Currently, they are at a dead end. Even the German-speaking SAP user group DSAG doesn’t know what to do at the moment.
Because of the CCoE dilemma and an interesting visit by Hewlett-Packard to our company, I created the term: Home Cloud. Explained simply: the functions and advantages of a cloud in my own data center or with an outsourcer I trust. SAP describes this concept as S/4 Hana Cloud Private Edition Customer Data Center.
At first, I didn’t understand the cloud idea of S/4 Private Edition Customer Data Center because the words “cloud” and “private” naturally reminded me of private cloud. But it needs to be read the other way around. In “S/4 Hana Cloud Private Edition Customer Data Center”, the word cloud means that existing SAP customers get cloud capabilities without having to put their systems into the clutches of a hyperscaler. “Private Edition” is meant to convey that SAP customers are responsible for their systems, and “Customer Data Center” is the subtle hint that their own data center still has a right to exist as well. In summary: SAP S/4 Hana Cloud Private Edition Customer Data Center is cloud functionality in an on-prem version.
SAP and Hewlett-Packard have developed an on-prem concept for S/4 that more than half of DSAG members want, according to research by the user group. So, I do actually have my Home Cloud as an on-prem offering for S/4 Hana. There’s no place like home!