What is a key characteristic of a side-by-side extension in SAP S/4HANA?

A key characteristic of a side-by-side extension in SAP S/4HANA is that it can integrate data from various SAP solutions. This approach allows organizations to leverage existing data across multiple systems while still maintaining the core functionalities of SAP S/4HANA. By integrating data from different sources, businesses can create a more comprehensive and flexible environment that supports various applications and services.

This integration capability is particularly beneficial in a landscape where organizations often utilize multiple SAP cloud applications alongside their on-premise systems, thereby promoting seamless data flows and enhanced operational efficiency. As organizations aim to extend their solutions, the side-by-side extension model facilitates the ability to incorporate data and functionality from various SAP offerings, enabling a cohesive user experience and improved business processes.

The other options suggest limitations or restrictions that do not apply to this extension model. While it is important that enhancements align with standards and best practices, the integrative nature of side-by-side extensions is a defining feature, making it a versatile tool for businesses adapting to evolving needs.