SAP MDG (on-premise) vs SAP MDG Cloud.

 SAP Master Data Governance (MDG) comes in two main variants: SAP MDG (on-premise) and SAP MDG Cloud. Here’s a breakdown of their key differences:

1. Deployment Model

• SAP MDG (On-Premise): Installed and managed on your own infrastructure or on a private cloud. You have full control over the environment and the data.

• SAP MDG Cloud: Deployed on SAP’s cloud platform (SAP Business Technology Platform, BTP). SAP handles the infrastructure, offering scalability and reduced management overhead.

2. Flexibility & Customization

• SAP MDG (On-Premise): More flexibility in customization and integration with existing on-premise systems. You can tailor the solution to a greater extent.

• SAP MDG Cloud: Less flexibility in customization compared to the on-premise version. It's designed to be more standardized, which makes it faster to implement but limits deep customizations.

3. Functionality & Updates

• SAP MDG (On-Premise): You need to handle updates and upgrades yourself. You can decide when and how to apply new versions and patches.

• SAP MDG Cloud: Regular updates are managed by SAP, with new features and improvements being delivered more frequently in the cloud version.

4. Scalability

• SAP MDG (On-Premise): Scaling requires more effort and additional infrastructure management.

• SAP MDG Cloud: Easier to scale as it is hosted in the cloud, and SAP manages scalability automatically.

5. Integration

• SAP MDG (On-Premise): Typically integrates well with on-premise SAP and non-SAP systems, as it’s closely tied to your existing IT infrastructure.

• SAP MDG Cloud: It can integrate with both on-premise and cloud applications, but it is especially optimized for SAP cloud applications and other BTP services.

6. Cost Model

• SAP MDG (On-Premise): Typically requires upfront capital investment for hardware and licensing costs. You also incur ongoing maintenance costs for infrastructure and software.

• SAP MDG Cloud: Operates on a subscription model, which could be more cost-effective for businesses that don’t want the overhead of infrastructure management.

7. User Experience

• SAP MDG (On-Premise): Traditional user interfaces, although they are improving with newer versions and Fiori apps.

• SAP MDG Cloud: Focuses on modern, cloud-based user experiences, often with a more streamlined and intuitive interface, leveraging Fiori and other cloud-native capabilities.

8. Security & Compliance

• SAP MDG (On-Premise): Security and compliance are handled internally, which might be beneficial for highly regulated industries or businesses with specific security requirements.

• SAP MDG Cloud: SAP ensures security and compliance, but you may need to ensure the cloud platform aligns with your organization’s compliance needs (e.g., data residency).

9. Implementation Time

• SAP MDG (On-Premise): Typically takes longer to implement due to its complexity and need for deeper customization.

• SAP MDG Cloud: Faster to implement, thanks to pre-built integrations and templates, and a more standardized approach.

Conclusion:

• If your organization requires a highly customizable, on-premise solution and has the resources to manage the infrastructure, SAP MDG (On-Premise) might be the better choice.

• If you prefer a faster, scalable, and lower-maintenance solution with regular updates and are okay with some limitations on customization, SAP MDG Cloud would be ideal.

The decision between the two depends on your organization’s existing IT infrastructure, business needs, and the level of customization required.