Side-by-side extensibility is the recommended extensibility model for SAP S/4HANA Cloud when building advanced, decoupled, and scalable extensions. It allows developers to build and run applicationsoutsidethe S/4HANA core using SAP BTP services.

Correct Options Explained:

B – Integration with cloud and non-cloud solutions

Side-by-side extensions run on SAP BTP, which includesIntegration Suite,API Management,Event Mesh, and connectivity services.

This enables:

Integration withSAP SaaS systems(SuccessFactors, Ariba, SAP S/4HANA Cloud).

Integration withon-premise systemsvia Cloud Connector.

Communication withthird-party and non-SAP systems.

Thus, B is correct.

C – Uses a complete development platform

SAP BTP provides:

Multiple runtimes (Cloud Foundry, Kyma/Kubernetes, ABAP environment).

Database and storage options (SAP HANA Cloud, document stores).

Security, authorization, and multi-tenancy capabilities.

DevOps support (CI/CD, transport management).

Language runtimes (Java, Node.js, CAP, Python, etc.)

This makes SAP BTP afull development and operations platform, supporting the building and hosting of side-by-side extensions.

D – Support for hybrid scenarios

Side-by-side extensibility supports hybrid architectures by enabling:

Connectivity betweencloud and on-premise systems.

Event-driven integration between systems deployed across different landscapes.

APIs and events from both cloud and on-prem to be consumed and extended.

Thus, D is correct.

Why A is Incorrect:

Side-by-side extensionsdo not run in the same software stackas SAP S/4HANA.

They runoutsidethe S/4HANA core on SAP BTP, ensuring:

Loose coupling

Upgrade stability

Clean core compliance