In which type of extensibility is SAP Business Technology Platform used to host a custom extension?

Side-by-side extensibility refers to a model where custom applications or extensions are developed and hosted outside the core SAP S/4HANA system, typically leveraging the SAP Business Technology Platform (BTP). This approach allows organizations to enhance their SAP solutions by building new functionalities that can interact with the core system while maintaining a clear separation of the custom logic from the standard SAP processes.

This model takes advantage of the flexibility and scalability of the SAP BTP, enabling developers to use various services, such as databases, integration capabilities, and analytics tools, to create, deploy, and manage custom applications. With side-by-side extensibility, changes can be made without impacting the core system’s upgrade path, ensuring smoother updates and better maintenance of standard functionalities.

The other types of extensibility focus on different approaches. Developer extensibility usually refers to additional coding and building extensions directly within the SAP ecosystem. Key user extensibility is centered around self-service options for business users to customize their applications using tools provided by SAP without deep technical skills. Classic extensibility typically indicates older methods of modifying the SAP standard codebase or structures, which are not recommended in modern S/4HANA implementations due to potential issues with upgrades and system stability.