2. On the functional side
SAP S/4 HANA in the cloud is a slimmed-down version of the on-premise solution. The deployment is faster, but the offering is far more limited. It is a template-based solution, focusing on a limited number of key processes, with only a reduced set of customization options. Choosing the cloud edition is in fact a decision to adapt your processes, such as procure-to-pay and order-to-cash, to the way in which they are defined in the tool. Any additional functionality you want should be developed on a separate development platform for subsequent connection. S/4 HANA on-premise, on the other hand, offers the full range of functionality. Anything you require can be provided. If you pay for it, that is.