SAP S/4HANA is one of the most common Enterprise Resource Planning (ERP) systems in the marketplace. A business suite launched as the next-generation ERP, S/4HANA is designed to run exclusively on the HANA database.
S/4HANA is built for the cloud but can also be deployed on-premise or as a hybrid of the two environments.  

SAP S/4HANA On-premise Edition
This option works for maximum control. SAP S/4HANA on-premise edition is an internal platform, located on your servers, maintained by your company. SAP upgrades are released. On-premise edition has a traditional licensing, which means a preliminary purchase with annual maintenance. The license fee allows the company to own the software and reduces the current maintenance fee. But the cost of the upgrade will be high.

SAP S/4HANA Cloud Edition
The cloud edition is Software as a Service (SaaS) hosted on SAP’s servers and is maintained by SAP. The option works well for fast time-to-value. Software upgrades happen quarterly. The cloud version is available to enterprises in both private and public sectors and has a subscription license, which means that one predictable monthly payment covers everything from infrastructure to system upgrades.

SAP S/4 HANA Hybrid Delivery
This model supports both on-premise and on-cloud scenarios in one setup.