Deployment Options for SAP MDG Implementation: How to Select the Best Fit for Your Organization

SAP Master Data Governance (MDG) is a critical tool for managing master data in a centralized, efficient, and compliant manner. However, implementing SAP MDG requires careful consideration of deployment options to ensure that it aligns with an organization’s IT landscape, business requirements, and future growth plans.

The right deployment strategy for SAP MDG is essential for achieving optimal performance, scalability, and cost-effectiveness. In this blog, we will discuss the different deployment options for SAP MDG, factors to consider when selecting the best-suited deployment model for your organization, and how to leverage SAP MDG experts to guide the decision-making process.

SAP MDG deployment options

SAP MDG can be implemented in different deployment environments depending on an organization’s needs, infrastructure, and goals. The primary deployment options include on-premise, cloud, and hybrid models. Each option comes with its advantages, challenges, and considerations.

On-premise deployment

On-premise deployment refers to the traditional model where SAP MDG is installed and run on servers within the organization’s data center. This option gives organizations complete control over their SAP MDG system, allowing them to customize the solution according to their needs.

Benefits of on-premise deployment:

• Full control: Organizations have complete control over the hardware, software, and data security, which can be crucial for sensitive data management.
• Customization: Greater flexibility to tailor the solution to meet the organization’s unique requirements, including specific configurations for master data governance processes.
• Integration with existing infrastructure: Easier integration with legacy systems and other on-prem applications, especially for businesses with a significant SAP infrastructure.

Challenges of on-premise deployment:

• High initial investment: On-prem deployment requires significant upfront infrastructure, hardware, and license costs.
• Ongoing maintenance: Organizations are responsible for the management, updates, and patches of their SAP MDG environment, which can require dedicated resources and expertise.
• Scalability limitations: Scaling the system for future growth may require additional hardware and investment, which could be resource-intensive.

Cloud deployment (SaaS)

With cloud deployment, SAP MDG is hosted on a cloud platform through SAP S/4HANA Cloud or SAP Business Technology Platform (BTP). This model offers organizations a flexible and scalable environment for managing their master data without significant capital investment in infrastructure.

Benefits of cloud deployment:

• Lower upfront costs: Cloud-based solutions typically operate on a subscription basis, reducing the need for a significant initial investment in hardware and infrastructure.
• Scalability and flexibility: Cloud deployment allows organizations to quickly scale their SAP MDG environment based on evolving data governance needs.
• Reduced IT maintenance: SAP handles much of the infrastructure maintenance, including updates, patches, and security management, allowing internal IT teams to focus on other tasks.
• Accessibility: Cloud deployment allows users to access SAP MDG from anywhere, making it an excellent option for organizations with a global or distributed workforce.

Challenges of cloud deployment:

• Data security and compliance: Some organizations may have concerns about storing sensitive data off-prem, especially in highly regulated industries. However, SAP offers robust security features to mitigate these risks.
• Dependence on Internet connectivity: Cloud solutions require reliable Internet access. If the internet connection goes down, access to the system could be interrupted.
• Customization limitations: While SAP MDG on the cloud offers flexibility, it may not provide the same level of customization as an on-premise solution.

Hybrid deployment

A hybrid deployment combines both on-prem and cloud environments, allowing organizations to take advantage of the benefits of both models. Critical or sensitive business partner data might be maintained on-premise, while less sensitive data or new data management processes may be handled in the cloud.

Benefits of hybrid deployment:

• Flexibility and best of both worlds: Organizations can retain control over sensitive data with on-premise solutions while leveraging the cloud’s scalability and flexibility for less critical data.
• Optimized resource allocation: Businesses can optimize resource allocation using cloud infrastructure for high-volume or less critical processes while keeping sensitive master data secure on-premise.
• Gradual transition to the cloud: A hybrid model provides a phased approach for organizations transitioning to the cloud, allowing time to migrate specific processes or business units while keeping others on-prem.

Challenges of hybrid deployment:

• Complex integration: Managing a hybrid environment can be more complicated, especially when integrating on-premise and cloud-based systems. It requires seamless data exchange and governance across environments.
• Higher costs: Hybrid environments can be costlier in the long term due to the need to manage and maintain two separate infrastructures.

How to select the best deployment option for your organization

Selecting the most suitable deployment option for SAP MDG depends on several key factors. Here are some considerations that will help guide the decision-making process:

Business requirements and goals

Begin by understanding your organization’s business requirements and long-term goals. Some key questions to ask include:

• Do you need complete control over your infrastructure, or can you rely on cloud-based solutions?
• Are you looking to scale quickly, or are you primarily concerned with managing sensitive data securely?
• Do you need to integrate with many legacy systems, or are you looking to adopt a more modern, cloud-first approach?

IT infrastructure and resources

Evaluate your current IT infrastructure and resources:

• Do you have an existing on-premise SAP system that you want to extend with SAP MDG, or are you willing to transition to a cloud environment?
• Do you have the internal expertise to manage an on-premise system, or would you prefer a cloud solution that reduces IT maintenance requirements?

Data security and compliance

If your business operates in a highly regulated industry or deals with sensitive customer or financial data, understanding data security and compliance will provide you with security. This knowledge will be a significant factor in your decision-making process:

• On-premise deployment provides more control over security and compliance, but cloud providers like SAP offer robust security features and certifications to ensure regulatory compliance.
• Evaluate whether your company needs to comply with specific data residency regulations or whether the cloud provider’s offerings meet these needs.

Cost considerations

Cost is always a significant factor when selecting a deployment option:

• On-premise: Higher initial costs for infrastructure, hardware, and licensing, but potentially lower long-term operational costs.
• Cloud: Lower upfront costs with subscription-based pricing, but ongoing costs for cloud services, which can scale with usage.
• Hybrid: A combination of the two, with some upfront costs and ongoing cloud subscriptions.

Evaluate your budget and the Total Cost of Ownership (TCO) for each option to make an informed decision.

Conclusion

Selecting the right deployment option for SAP MDG ensures that your master data governance processes are optimized for your organization’s needs. Whether you choose an on-premises, cloud, or hybrid deployment model, it is essential to consider your business requirements, IT infrastructure, data security needs, and cost constraints.

SAP MDG experts at Mastech Digital can help organizations navigate these options and determine the best deployment strategy based on your unique requirements. With extensive experience in SAP MDG implementations, Mastech Digital’s experts can guide you through the entire process—from evaluating deployment models to executing a smooth and successful SAP MDG implementation. Their knowledge of industry best practices and understanding of the complexities of data governance can ensure that your SAP MDG deployment aligns with your long-term business goals, helping you achieve improved data quality, governance, and overall operational efficiency.