One of the early challenges of SAP implementation is picking the right delivery model. There are three choices in this regard: 

• You can lease computing power, hardware, and storage space in the cloud. You can then run your applications there short- or long-term. This type of option is known as IaaS (Infrastructure as a Service). 
• The PaaS option (Platform as a Service) allows you to access a cloud-hosted platform. This platform offers you the programming tools to develop and to run your applications. 
• If you choose the SaaS (Software as a Service) model, you will access the applications offered by your service provider through the cloud. You can use, manage, and even upgrade these cloud-hosted applications. 

In this article, we take a look at: 

• What the difference is between hosting and SaaS.
• What types of SAP implementations are there?  
• Comparing different SAP cloud implementations. 

The Benefits of Cloud Computing

Why should you opt for the SAP cloud services? What benefits do these implementation models offer your organization?

• Through the cloud, you can deliver features to your users instantaneously. The cloud effectively does away with any implementation delays. 
• You pass on the burden of maintenance and operation to the provider. This goes for hardware as well as software. 
• You will have full control over licensing and several options. You can use the features on a pay-per-use basis, as well as in a subscription-based manner. 
• Assuming that you want your company to grow and expand, you will need SAP to be scalable. SAP cloud services accommodate scaling, changing business models and innovation effortlessly. 

Is There a Difference Between Hosting and SaaS? 

The lines between application hosting and SaaS are rather technical and blurred. Application hosting has been all the rage lately, among IT service providers. These days, this term covers hardware outsourcing and hosted software. What this means, is that from the perspective of the customer (your organization), there is hardly any distinction. 

Often, IT providers do not even bother their customers with licensing issues. They hold the licenses and offer subscription-based access to the services. 

The bottom line is that from your perspective, the distinction hardly matters. 

Types of SAP Implementations

There are three types of SAP implementations: 

o On-premise. 
o Hosted. 
o Cloud services. 

Of these, the SAP cloud services are by far the most flexible and advantageous. Cloud implementation lets SAP handle everything, from hardware upgrades to software operation and implementation. This type of implementation does not bother customers with licensing issues. 

What Types of SAP Cloud Services Are There? 

SAP offers three options in this regard, starting off the common foundation of the SAP Cloud Platform. 

o The Public Cloud offers solutions for various departments such as human resources, finance, and sales management.
o The Private Cloud is a managed solution. 
o The Marketplace lets customers and partners procure additional solutions.