Over the last decade, enterprise software has steadily moved from on-premise deployments to cloud-based models, and eCommerce is no exception. Products like SAP Commerce Cloud, Salesforce Commerce Cloud, Adobe Experience Cloud, and others are shaping how companies deliver online experiences.
The term “cloud” means different things to different people. In SAP eCommerce, it generally comes down to two key questions:
Who owns and manages the hardware?
Who owns and manages the software?
The answers define the deployment model, each with its own pros, cons, and cost implications.
On-Premise Model
In the on-premise model, a company purchases the SAP Commerce (Hybris) license and runs it entirely on their own hardware. The IT team manages everything, from installing and configuring the software to patching servers and upgrading infrastructure.
Pros: Maximum control over customization, performance tuning, and integrations. Ideal for organizations with large, skilled IT teams and strict data residency or compliance requirements.
Cons: High upfront capital costs, ongoing maintenance burden, and limited scalability without significant infrastructure investments.
Public or Private Cloud Model
Here, the company still owns the SAP Commerce license but rents cloud infrastructure from providers like AWS, Google Cloud, Microsoft Azure, or Oracle Cloud. The IT team installs and manages the software, while the cloud provider handles physical hardware, networking, and uptime.
Pros: Flexible scaling during peak seasons, reduced hardware management, and faster provisioning compared to on-premise.
Cons: The organization still maintains the software and must handle updates, patches, and application-level issues. Reliance on the cloud provider means downtime or network issues are outside your control.
Vendor Cloud Model
In the vendor cloud model, companies rent both the software and the hosting environment from the vendor. Examples include SAP Commerce Cloud running on SAP’s managed infrastructure or Salesforce Commerce Cloud running in Salesforce’s cloud. The vendor manages scalability, updates, and much of the day-to-day system operation.
Pros: Lower barrier to entry, faster time-to-market, predictable subscription pricing, and the ability to align operating costs with revenue. Vendors increasingly offer AI-driven monitoring, automated scaling, and integrated security compliance out of the box.
Cons: Less flexibility for deep customization, as vendors often limit changes that could impact performance or security for other tenants in the shared environment.
Hardware Ownership | Software Ownership | Model |
|---|---|---|
Own | Own | On-Premise |
Rent from Amazon/Google/Microsoft | Own | Public/Private Cloud |
Rent from Vendor (e.g., SAP, Salesforce) | Rent from Vendor (e.g., SAP, Salesforce) | Vendor Cloud |
The Hybrid and Composable Shift
In 2025, many organizations are moving toward hybrid or composable commerce approaches. Rather than relying on a single deployment model, they mix and match cloud services for different parts of the customer journey. For example, a business may use SAP Commerce Cloud for core transactions but rely on a separate headless search engine, personalization tool, or checkout microservice.
This flexibility is made possible by API-first architectures, which allow companies to innovate without being locked into a single vendor for every function.
Final Thoughts
Selecting the best model depends on your priorities such as control, cost, scalability, compliance, or speed.
Large enterprises with strict customization or security needs may lean toward on-premise or private cloud.
Growth-focused companies that want to launch quickly and reduce IT overhead often benefit from vendor cloud.
Innovative brands seeking agility may prefer hybrid or composable commerce to keep options open.
At WECO, we specialize in SAP-integrated eCommerce solutions that give you the best of both worlds, with deep SAP integration, flexibility in deployment, and the scalability to grow with your business. Whether you are migrating from on-premise, optimizing your public cloud setup, or launching a vendor-hosted platform, our team can guide you through the process and help you start generating ROI faster.
Ready to Simplify Your SAP eCommerce?
WECO Software specializes in deeply integrated SAP commerce experiences, without the middleware.
Contact us to talk to an expert or learn more.
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