SAP has agreed to make its HANA Enterprise Cloud available on premises for the first time, in the face of pressure from customers amid ongoing data sovereignty, industry compliance and risk tolerance concerns surrounding the cloud. 

The offering will be available via HPE GreenLake — the company’s infrastructure as-a-service, pay-per-use model for customers wanting to keep hardware on-premises but shift to an OpEx rather than a CapEx model for IT consumption.

Peter Pluim, global head of enterprise cloud services, SAP said: “The new deployment… is a direct response to customers who want the flexibility and service level of a managed private cloud, but need to keep their systems in their own data centers. We are planning to make that possible with cloud services from HPE GreenLake and white-glove operations and application management services from SAP, which will help unlock value and create new experiences for our joint customers.”

See also: SAP Buckles on S/4 HANA Deadline: Extends ERP Support to 2027

The new “SAP HANA Enterprise Cloud, customer edition” comes as research from IDC shows that 70 percent of applications remain outside of the public cloud, owing to “application entanglement, data gravity and sovereignty, security and compliance concerns, and the unpredictable and high costs of the public cloud.”

HPE said in a release: “SAP will be enabled to offer the customer edition of SAP HANA Enterprise Cloud with a consistent, automated cloud experience and their flexible subscription-based as-a-service model… SAP chose HPE because of HPE’s global reach and their trusted established brand with our joint customers.”

The HPE architecture will include compute, storage and networking technologies that are certified and pre-configured for SAP software.

 The SAP HANA Enterprise Cloud, customer edition will be delivered as a turnkey, OPEX, cloud subscription offering, that will be available through SAP.