With the announcement of the SAP Business Data Cloud (BDC), SAP sets a new milestone in the realm of enterprise data management. The platform builds upon SAP Datasphere and offers an innovative solution to seamlessly connect, manage, and leverage data for AI applications.
SAP BDC is a direct response to the growing complexity of enterprise data landscapes and builds on existing technologies such as SAP Datasphere and SAP Analytics Cloud. Particularly noteworthy is the strategic partnership with Databricks, which significantly expands the potential for advanced AI-powered analytics and open data architecture.
Data Products – Simplified Data Utilization
One of the most compelling innovations is Data Products – pre-structured datasets from SAP applications that enterprises can leverage immediately. The advantages are evident:
- Managed by SAP: Enterprises no longer need to concern themselves with maintenance and updates.
- Plug-and-Play: Eliminates manual extraction or cleansing efforts.
- Deep Integration with Databricks: Ideal for AI-driven analytics and business decisions.
While previous approaches often failed to meet individual business requirements, SAP has learned from past experiences and is now focusing on a truly pragmatic solution.
Implications for SAP Business Warehouse
With the introduction of SAP Business Data Cloud, the future of SAP Business Warehouse (SAP BW) comes into question. SAP BW customers have the option to migrate their existing systems to the cloud, particularly by leveraging the Private Cloud Edition (PCE). This facilitates the transfer of current BW 7.5 or higher versions into a cloud environment. Integration proceeds similarly to previous methods, with BW objects being incorporated as remote objects within SAP Datasphere.
Additionally, SAP BW PCE within the Business Data Cloud offers a tool for generating data products and integrates data from SAP BW into the ObjectStore under SAP Datasphere. This modernization strategy enables enterprises to safeguard their existing BW investments while simultaneously benefiting from the enhanced functionalities of the Business Data Cloud. The native availability of BW functionalities in the Business Data Cloud allows enterprises to progressively modernize their data landscape and capitalize on the advantages of a fully managed SaaS solution.
Partnership between SAP and Databricks Enhances AI Capabilities
Through the integration of Databricks, SAP expands its portfolio with advanced data analytics and AI functionalities. Databricks contributes its expertise in Data Lakehouse architectures to the partnership, enabling enterprises to benefit from enhanced data integration capabilities. This facilitates a seamless connection between structured and unstructured data sources, which is particularly advantageous for applications in machine learning and advanced analytics.
Furthermore, the SAP Business Data Cloud, through its integration with Databricks, provides powerful tools for the development and utilization of AI models. Enterprises can create and productively deploy generative AI applications based on business data. The platform establishes a trusted foundation for production-ready AI applications that are reliable, responsible, and relevant. Additionally, the Business Data Cloud enhances efficiency in data processes through automation. With the aid of AI, including SAP's generative AI copilot Joule, cross-functional tasks can be automated, insights gained, and critical information structured and summarized.
Pricing of the SAP Business Data Cloud
Our Assessment of SAP Business Data Cloud
With the Business Data Cloud (BDC), SAP has made a strategic move that holds the potential to deliver numerous benefits to customers. The platform unifies modern data management approaches with robust integration into existing SAP and non-SAP systems. The following aspects are particularly noteworthy:
Data Products – Accelerated Development Cycles
The introduction of Data Products could represent a paradigm shift in how enterprises interact with their data. Pre-structured, SAP-managed datasets enable faster implementation and rapidly generate tangible business value. This significantly shortens development cycles. Whether and to what extent this will alter the long-term requirement profile for developers remains to be seen. Nevertheless, we consider this step a significant milestone.
Integration of Machine Learning & AI – Collaboration with Databricks
Instead of developing its own ML/AI solution, SAP is focusing on a close partnership with Databricks, a leading provider in this domain. This strategic decision enables enterprises to seamlessly integrate powerful AI applications with SAP data. The deep integration establishes a robust foundation for leveraging advanced analytics and automation within the enterprise environment.
SAP Now Offers a Lakehouse Architecture
With the Business Data Cloud, SAP introduces a complete Lakehouse architecture for the first time, combining data warehousing and data lakes. This presents enterprises with new opportunities to efficiently store, analyze, and leverage large volumes of data for various use cases. The integration of structured and unstructured data within a unified system represents a significant step forward.
SAP BW Bridge? No – Focus on SAP Business Warehouse
It is becoming apparent that the BW Bridge will no longer be actively promoted, and SAP is instead prioritizing SAP BW Private Cloud Deployments to migrate BW systems to the cloud. Many customers had opted against the BW Bridge due to its limitations. Therefore, it is encouraging to see SAP re-evaluating and evolving its strategy. Nevertheless, this shift in direction could introduce uncertainties for some customers.
Conclusion
The SAP Business Data Cloud is a logical evolution of existing SAP technologies and offers a powerful, flexible solution for modern data management. The integration of Databricks underscores SAP's strategic realignment toward more open, interactive data platforms that give companies more control over their data.
Furthermore, the SAP Business Data Cloud is not an isolated system but is designed as a comprehensive ecosystem. Its tight integration with SAP Analytics Cloud, SAP Datasphere, and external data science platforms provides enterprises with significant flexibility in leveraging their data infrastructure. Beyond SAP's proprietary solutions, the platform supports hybrid scenarios involving third-party technologies. Standardized interfaces and APIs facilitate data access, enabling enterprises to progressively modernize their existing IT landscapes and prepare for future requirements.
With this new solution, enterprises can not only enhance their data management but also unlock new opportunities for AI-driven innovations.
Frequently Asked Questions
We Have the Answers
Strategy
SAP Datasphere and SAP Analytics Cloud remain the core pillars of the SAP Business Data Cloud strategy. Customers currently utilizing SAP Datasphere and SAP Analytics Cloud services can continue operations without interruption and will eventually have the option to transition their current solution to a fully managed solution with SAP Business Data Cloud.
SAP Business Data Cloud is the target solution for on-premise SAP Business Warehouse (SAP BW) and SAP BW/4HANA customers. Customers can protect their investments and continue to leverage their data in the cloud by migrating to the Private Cloud Edition of SAP BW within SAP Business Data Cloud. In addition to the familiar functionalities of SAP BW on-premises, customers will be able to utilize existing SAP BW data as data products and benefit from the latest features, such as bidirectional data sharing and support for data engineering, data science, and AI/ML workloads in SAP Databricks.
Data Integration & Persistence
Data from S/4HANA is transferred to the Business Data Cloud in near real-time via so-called delta queues. The significant advantage is that the responsible application itself provides the data in a central object store, eliminating the need for an additional copy. Technologically, access is based on various mechanisms such as CDS Views or tables; however, it is crucial that data is provided in a harmonized and consistent manner.
“The application itself retrieves this data into our object store … The data is simply there.” Said speaker Matthias Stemmler at minute 20 of our webinar “SAP Business Data Cloud – Update on the Evolution of SAP Datasphere”
This architecture is also referred to by SAP as “Zero Copy” – data provision occurs without redundant storage.
For on-premise systems, the established approach remains: data is connected via CDS Views, tables, or extractors. Adherence to the “Clean Core” principle is crucial to ensure future compatibility with cloud strategies.
“If they are developed in Clean Core mode, they can be integrated.” Said speaker Matthias Stemmler at minute 20 of our webinar “SAP Business Data Cloud – Update on the Evolution of SAP Datasphere”
With the BDC, SAP pursues an open architectural approach. The Open Data Ecosystem enables seamless integration of third-party providers such as Databricks, Collibra, or Snowflake. Data products can not only be utilized within the SAP ecosystem but are also available to external platforms via standardized interfaces.
“We collaborate with the Open Data Ecosystem … Data products can be combined with external systems.” Said speaker Matthias Stemmler at minute 11 of our webinar “SAP Business Data Cloud – Update on the Evolution of SAP Datasphere”
BW & Data Architectures
Currently, the officially supported maximum for BW instances in the BDC is 12 terabytes. An increase of this limit is already planned. SAP also refers to the option of directly aligning individual requirements.
According to SAP, BW 7.5 will remain within the maintenance window until at least 2027. This provides ample time for the strategic evolution of existing BW solutions within the BDC. For SAP BW systems hosted in BDC (BW PCE), the year 2030 is set as the deadline.
You can find the SAP Maintenance Strategy here .
Insight Apps & User Experience
Many Insight Apps are based on SAP Analytics Cloud (SAC). However, the specific technology employed depends on the respective application. SAP intentionally maintains flexibility regarding the use of SAP UI5 or other technologies.
“The initial apps predominantly run on SAC … the application dictates the choice.” Stated speaker Matthias Stemmler in minute 24 of our webinar “SAP Business Data Cloud – Update on the Further Development of SAP Datasphere”
Insight Apps are designed for both standardized consumption and individual extension. Users can build upon existing data products using Custom Extensions and proprietary development logic, thereby creating tailored applications.
This analogy accurately describes the plug-and-play principle of Insight Apps: Anyone with access to a corresponding data product can immediately execute a suitable app – without additional configuration. The app inherently includes all necessary data and context structures.
“The app is consumed … the entire environment is provisioned.” Stated speaker Matthias Stemmler in minute 51 of our webinar “SAP Business Data Cloud – Update on the Further Development of SAP Datasphere”
External Integration & Extensibility
Currently, the integration of Databricks environments is performed as before – via standardized interfaces. However, SAP plans a deeper, native integration via Delta Tables. According to the roadmap, this is expected to be available by the end of 2025 and will also simplify the connection of external Databricks instances.
Es wird eine starke Integration über Delta Tables geben … geplant für Ende des Jahres.“ Stated speaker Matthias Stemmler in minute 35 of our webinar “SAP Business Data Cloud – Update on the Further Development of SAP Datasphere”
Data products are fundamentally extensible. Customer-specific fields – such as Z-fields from the material master – can be integrated into existing data products. A prerequisite for this is development adhering to the Clean Core principle.
Status: April 2025 | Source: Webinar with Matthias Stemmler (SAP) and Christopher Kampmann (ISR)
More questions?
Your Point of Contact
Christopher Kampmann
Head of Business Unit
Data & Analytics
christopher.kampmann@isr.de
+49 (0) 151 422 05 448
