How to choose the right SAP S/4 HANA cloud deployment for your HR & global payroll needs

June 16, 2025

Trying to figure out the right SAP S/4 HANA deployment for your organization’s specific needs can be a challenging task. The stakes are high: This choice determines not just your immediate operational effectiveness, but also your long-term innovation potential and ability to stay ahead of shifting compliance demands.

So, which is the best fit for you and your organization—On-Premise, SAP HANA Private or Public Cloud? If you’re struggling to make this decision while also juggling the complexities of managing global payroll, HR operations, and multi-country compliance, you’re not alone. Organizations worldwide are facing the same dilemma. Fortunately, looking closely at the different options available to you—their benefits and functionalities— can help give you the clarity you need to make a confident decision.

On-premise: Is it still viable?

Historically, on-premise installations, like On-Premise SAP S/4 HANA, were the go-to for large enterprises because they offered the utmost control over infrastructure, upgrade cycles, and customizations. Companies could modify ABAP code, host data on their own servers, and integrate third-party systems. But there’s a catch:

SAP mainstream maintenance for SAP ERP 6.0 EHP 0–5 on-premise systems will end by 2025.

SAP’s mainstream maintenance for SAP ERP 6.0 EHP 6–8 on-premise systems will end by 2027, with extended maintenance upon request till 2030.

Past this point, companies with on-premise systems will have limited access to updates, patches, and new features. These systems will essentially become frozen in time, making it almost impossible to maintain a modern HR and payroll infrastructure. Relying on an outdated, static platform in a world of rapidly evolving labor laws, changing tax regulations, advanced analytics can leave you behind the competition.

Furthermore, on-premise solutions demand a hefty investment of resources—big-ticket servers, robust networking equipment, specialized IT teams, and around-the-clock support. This might make sense for organizations with extremely strict data residency or compliance rules that simply cannot be met by the cloud. For most businesses, however—especially those aiming to streamline HR and global payroll—staying on-premise can result in technology stagnation.

The SAP HANA Private cloud: A happy medium for companies seeking customization

The SAP S/4 HANA Cloud Private Edition is ideal for companies seeking robust customization without the headaches of having to manage their own data center, offering such benefits as:

Extended Flexibility: Keep your ABAP customizations, partner add-ons, and your company’s specialized, time-tested and use-perfected payroll logic.

Longer-Term Support: The Private Edition enjoys feature releases until 2040, offering a smoother, more extended runway for your organization’s strategic roadmap.

Subscription-Based Cloud Economics: Instead of pouring capital into hardware and ongoing maintenance, pay a regular subscription fee for SAP and its partners handlethe infrastructure behind the scenes.

If your organization needs customization—e.g. country-specific compliance logic or intricate pay-scale configurations—Private Edition might be your best option. Providinga cloud-based environment with a high degree of autonomy, the Private Edition also offers more longevity, freeing you from concerns about the 2030 deadline that looms over on-premise systems.

The SAP HANA Public Edition: Lean, mean, and innovation-friendly

SAP S/4 HANA Cloud Public Edition is for companies who want to stay on the cutting edge, where automation, AI, and real-time analytics reign supreme. Run on SAP’s multi-tenant software-as-a-service platform, the Public Edition offers:

Reduced maintenance: SAP rolls out updates for the entire user base, so you’re always on the latest release.

Lower overhead: Since it’s multi-tenant, you share infrastructure with other customers. That means cost savings and operational efficiencies you just can’t get on-premise.

Rapid deployment: Because the system is highly standardized, you can get up and running much faster.

Companies in need of extensive customizations may find the Public Edition a bit restrictive. That’s why SAP offers in-app extensibility, plus side-by-side extensions using SAP Business Technology Platform (BTP), to deliver more flexibility than many businesses expect, especially if your payroll processes are relatively standard or if you’re willing to adopt established best practices.

Beyond deployment: Post-go-live support

It’s important to remember that choosing the best S/4 HANA deployment for your company is only half the story. Selecting the right technology is crucial, but post-go-live support can make or break your day-to-day HR and payroll operations. Even the smoothest rollout can’t guarantee long-term success without proper maintenance and user adoption strategies. That’s where tiered support models, such as Strada’s, come into play, offering:

Customer care support: Ideal for routine queries—like how to handle a once-in-a-while payroll correction, or how to fix an incorrect data entry in your HR records

HR, benefits, and payroll administration: For organizations needing deeper functional support, support teams handle the complexities of local compliance, multi-currency payroll issues, or benefits administration.

Technical assistance: If you run into integration hiccups or require advanced configurations—whether it’s linking up another HR module or refining your global payroll logic—technical experts have you covered. The advantage of a tiered model is that it offers a midular approach, letting you decide how much help you need without overpaying for services you won’t use.

Putting it all together: choose your path wisely

Your global payroll and HR operations are central to your competitive advantage, so why settle for guesswork in your technology choices? Make an informed decision, weighing the pros and cons, benefits and capabilities of your available options:

On-Premise: Not recommended solution with 2030 maintenance deadline.
Private Edition: Great if you want a cloud experience while retaining more control and customization—plus extended maintenance until 2040.

Public Edition: Ideal for organizations seeking the simplest approach to upgrades, cutting-edge innovation, and minimal overhead.

Once you’ve selected the technology that’s right for you, make sure you have experienced and knowledgeable go-live support to help you maintain your new system.

Ready for the next step?

SAP’s timelines and the rapid evolution of payroll regulations mean the clock is ticking. If you stay on your current platform without a clear strategy for the future, you could find yourself grappling with outdated technology, compliance risks, or lost opportunities for AI-driven efficiency.

In a world where every minute counts, don’t let indecision slow you down. Reach out to Strada and let us guide you through the pros and cons of each SAP S/4 HANA cloud path. Whether you’re leaning toward Private Edition for greater autonomy or enticed by the Public Cloud’s automatic updates and broader ecosystem integrations, we can help you navigate each stage. Make the right move for your business, your people, and your future.