What are some characteristics of public cloud?

Comprehensive and Detailed 150 to 250 words of Explanation From SAP S/4HANA Cloud Public Edition, Management Accounting documents:

The public cloud model, specifically SAP S/4HANA Cloud Public Edition, is defined by its shared infrastructure and subscription-based approach. A primary characteristic is the multi-tenant server architecture1. In this environment, multiple customers share the same physical server and software instance, though their data is strictly isolated2. This multi-tenancy allows SAP to manage updates and innovations centrally, ensuring all users benefit from the latest features simultaneously.

Another defining factor is a lower total cost of ownership (TCO). Because the service provider (SAP) handles the underlying infrastructure, maintenance, and regular upgrades, customers avoid the massive upfront capital expenditures associated with hardware and data center management . Instead of a perpetual license (typical of on-premise systems), public cloud utilizes a subscription model, allowing for more predictable operational spending6. This model simplifies the IT landscape, letting organizations focus on business processes rather than technical system administration.