GUIDE · WHERE TO RUN SAP

SAP on AWS, RISE with SAP or on-premise: how to choose

Where SAP runs shapes cost, flexibility and who is responsible when something breaks. This guide compares the three common options for SAP S/4HANA and SAP HANA, and the questions that decide between them.

8 min readUpdated 13 November 2026By the Farrenio SAP Basis team

The three options in one paragraph each

  • On-premise: SAP runs on your own infrastructure, in your data centre or a colocation facility, on SAP HANA certified hardware. You control everything and you own the hardware lifecycle.
  • Self-managed on AWS: SAP runs on AWS infrastructure in your own AWS accounts. You or your partner design the landing zone, size the instances and operate SAP; AWS runs the physical infrastructure.
  • RISE with SAP: a subscription from SAP that bundles software licences, infrastructure on a hyperscaler and technical operations of the SAP systems, under one contract with SAP.

Who does what

The biggest difference is responsibility. On-premise, you or your partners do everything from hardware to SAP Basis. On AWS, AWS handles the physical layer and you handle the operating system, database and SAP. In RISE with SAP, SAP takes over infrastructure and many technical operations, while you remain responsible for your applications, processes, custom code and some Basis tasks, depending on the contract's responsibility matrix.

Whatever you choose, read the responsibility split carefully. Many surprises after go-live come from tasks that each side assumed the other would do.

Cost structure

  • On-premise: capital expenditure on hardware every few years, plus data centre, power, support and staff.
  • AWS: pay-as-you-go or committed spend through Savings Plans and Reserved Instances. Costs can be reduced with right-sizing and by shutting down non-production systems outside working hours.
  • RISE with SAP: a subscription that bundles software and infrastructure. It simplifies budgeting, but compare the total over the contract term with the alternatives.

Flexibility and control

On-premise and self-managed AWS give the most control over timing of upgrades, sizing, tooling and third-party software. RISE with SAP standardises much of that, which reduces effort but also reduces choice. AWS offers fast scaling, many regions and services around SAP, such as backup, analytics and disaster recovery.

Questions that decide

  1. Do you have, or want to keep, people who operate infrastructure and SAP Basis?
  2. Are there data residency, latency or regulatory reasons to stay on-premise or in a specific region?
  3. How important is control over upgrade timing and tooling?
  4. How does the total cost compare over five to seven years, not only the first year?
  5. Is a hardware refresh due anyway?

Hybrid is often the answer

Many landscapes mix options: production on-premise with disaster recovery on AWS, or non-production systems in the cloud to gain flexibility. The right design depends on your workloads, not on a single rule.

Frequently asked questions

Is RISE with SAP the same as SAP on AWS?

No. RISE with SAP is a contract with SAP that can run on hyperscalers including AWS, with SAP operating the infrastructure. Self-managed SAP on AWS runs in your own AWS accounts, operated by you or your partner.

Is SAP on AWS cheaper than on-premise?

It can be, especially with committed spend, right-sizing and scheduled shutdown of non-production systems. A proper comparison looks at the total cost over several years, including staff and hardware refresh.

Can we change our mind later?

Moving between options is possible but is a project in itself. That is why the decision deserves a clear comparison before the migration.

Written by the SAP Basis team at Farrenio. Dates and rules reflect publicly available information on 2026-11-13; check SAP's and ANAF's current terms before making decisions.

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