With the announcement of the SAP Business Data Cloud (BDC), SAP is setting a new milestone in the world of enterprise data management. The platform is based on SAP Datasphere and offers an innovative solution for seamlessly connecting and managing data and making it usable 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-supported analyses and an open data architecture.
Data Products - Simplified data usage
One of the most exciting innovations are the Data Products - pre-structured data records from SAP applications that companies can use immediately. The advantages are obvious:
- Managed by SAP: Companies no longer have to worry about maintenance and updating.
- Plug-and-play: No manual extraction or cleanup effort.
- Deep integration with Databricks: Ideal for AI-supported analyses and business decisions.
While previous approaches often did not meet individual business requirements, SAP has learned from the past and is focusing on a truly practical solution.
Effects on the SAP Business Warehouse
The introduction of the SAP Business Data Cloud raises the question of the future of SAP Business Warehouse (SAP BW). SAP BW customers have the option of migrating their existing systems to the cloud, in particular by using the Private Cloud Edition (PCE). This makes it possible to migrate current BW 7.5 or higher versions to a cloud environment. Integration is carried out in a similar way to before, with BW objects being integrated as remote objects in SAP Datasphere.
In addition, SAP BW PCE in 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 allows companies to protect their existing BW investments while benefiting from the extended functions of the Business Data Cloud. The native availability of BW functionality in the Business Data Cloud allows companies to modernize their data landscape incrementally while taking advantage of a fully managed SaaS solution.
Partnership between SAP and Databricks improves AI capabilities
With the integration of Databricks, SAP is expanding its offering with advanced data analysis and AI functionalities. Databricks brings its expertise in data lakehouse architectures to the partnership, enabling companies to benefit from improved data integration capabilities. This enables a seamless connection of structured and unstructured data sources, which is particularly beneficial for machine learning and advanced analytics applications.
In addition, the SAP Business Data Cloud offers powerful tools for the development and use of AI models through the integration of Databricks. Companies can create generative AI applications based on business data and use them productively. The platform creates a trusted foundation for production-ready AI applications that are reliable, responsible and relevant. The Business Data Cloud also enables increased efficiency in data processes through automation. With the help of AI, including SAP's generative AI co-pilot Joule, cross-divisional tasks can be automated, insights gained and important information summarized in a structured manner.
Pricing of the SAP Business Data Cloud
Our assessment of the SAP Business Data Cloud
SAP has taken a clever step with the Business Data Cloud (BDC), which has the potential to offer numerous benefits for customers. The platform combines modern data management approaches with strong 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 the way companies work with their data. Pre-structured data sets managed by SAP enable faster implementation and quickly create real business value. This can significantly shorten development cycles. Whether and to what extent this will change the requirements profile of developers in the long term remains to be seen. Nevertheless, we see this step as a significant milestone.
Integration of machine learning & AI - cooperation with Databricks
Instead of developing its own ML/AI solution, SAP is relying on a close partnership with Databricks, one of the leading providers in this field. This strategic decision enables companies to seamlessly link powerful AI applications with SAP data. The deep integration creates a strong foundation for the use of advanced analytics and automation in the enterprise environment.
SAP now offers a Lakehouse architecture
With the Business Data Cloud, SAP is offering a complete lakehouse architecture that combines data warehousing and data lakes for the first time. This opens up new opportunities for companies to efficiently store and analyze large volumes of data and make it usable for various applications. The combination of structured and unstructured data in a standardized system is an important step into the future.
SAP BW Bridge? No - focus on SAP Business Warehouse
It is becoming apparent that the BW Bridge will no longer be pushed and SAP will instead rely on SAP BW Private Cloud Deployments to transfer BW systems to the cloud. Many customers had decided against the BW Bridge due to its limitations. It is therefore positive that SAP is questioning and further developing its strategy. Nevertheless, this change of direction could lead to uncertainty 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 towards 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. The close integration with SAP Analytics Cloud, SAP Datasphere and external data science platforms gives companies a high degree of flexibility in the use of their data infrastructure. In addition to SAP's own solutions, the platform supports hybrid scenarios with third-party technologies. Standardized interfaces and APIs facilitate access to data, allowing companies to gradually modernize their existing IT landscapes and prepare them for future requirements.
With this new solution, companies can not only improve their data management, but also open up new opportunities for AI-supported innovation.
Frequently asked questions
We have the answers
Strategy
SAP Datasphere and SAP Analytics Cloud continue to be the key pillars of the SAP Business Data Cloud strategy. Customers currently using SAP Datasphere and SAP Analytics Cloud services can continue without interruption and, over time, will have the option to migrate their current solution to a fully managed solution with SAP Business Data Cloud.
SAP Business Data Cloud is the target solution for on-premises SAP Business Warehouse (SAP BW) and SAP BW/4HANA customers. Customers can protect their investments and continue to use their data in the cloud by migrating to the Private Cloud Edition of SAP BW in SAP Business Data Cloud. In addition to the familiar features of SAP BW on-premises, customers will be able to use existing SAP BW data as data products and benefit from the latest features, such as bi-directional 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 almost in real time via delta queues. The big advantage: the responsible application itself makes the data available in a central object store - there is no need for an additional copy. Technologically, access is based on various mechanisms such as CDS views or tables - the decisive factor, however, is that data is provided in a harmonized and consistent manner.
"The application itself fetches this data into our object store ... The data is simply there." Said speaker Matthias Stemmler in minute 20 of our webinar "SAP Business Data Cloud - Update on the further development of SAP Datasphere "
SAP also refers to this architecture as "zero copy" - it is provided without redundant storage.
For onpremise-systems, the established approach still applies: Data is transferred via CDS viewstables or extractors. It is important to adhere to the "clean core" principle in order to ensure future compatibility with cloud strategies.
"If they are developed in clean core mode, they can be integrated." Said speaker Matthias Stemmler in minute 20 of our webinar "SAP Business Data Cloud - Update on the further development of SAP Datasphere "
SAP is pursuing an open architecture approach with the BDC. The Open Data ecosystem enables the seamless integration of third-party providers such as Databricks, Collibra or Snowflake. Data products can not only be used within the SAP world, but are also available to external platforms via standardized interfaces.
"We work with the Open Data ecosystem ... Data products can be combined with external systems." Said speaker Matthias Stemmler in minute 11 of our webinar "SAP Business Data Cloud - Update on the further development of SAP Datasphere "
BW & data architectures
Currently, the officially supported maximum for BW instances in the BDC is 12 terabytes. An increase in this limit is already being planned. SAP also refers to the possibility of directly coordinating individual requirements.
According to SAP, BW 7.5 will remain in the maintenance window until at least 2027. This leaves sufficient time for the strategic further development of existing BW solutions within the BDC. For SAP BW systems that are hosted in BDC (BW PCE), the deadline is 2030.
You can find the SAP Maintenance Strategy here .
Insight apps & user experience
Many Insight apps are based on the SAP Analytics Cloud (SAC). However, the specific technology used depends on the application in question. SAP deliberately leaves it open as to whether SAP UI5 or other technologies are used.
"The first apps run a lot on SAC ... the application decides." Said Sprecher Matthias Stemmler in minute 24 of our webinar "SAP Business Data Cloud - Update on the further development of SAP Datasphere "
Insight apps are designed to be consumed in a standardized way as well as individually extended. Users can use custom extensions and their own development logic to build on existing data products and create customized applications.
This analogy aptly describes the plug-and-play principle of Insight apps: Anyone who has access to a corresponding data product can immediately run a suitable app - without any additional configuration. The app brings the entire required data and context structure with it.
"The app is consumed ... the entire environment is provided." Said speaker Matthias Stemmler in minute 51 of our webinar "SAP Business Data Cloud - Update on the further development of SAP Datasphere "
External integration & expandability
The integration of Databricks-environments as before - via standardized interfaces. However, SAP is planning a deeper, native integration via Delta tables. According to the roadmap, this should be available by the end of 2025 and also enable the connection of external Databricks-instances.
There will be a strong integration via Delta Tables ... planned for the end of the year." Said speaker Matthias Stemmler in minute 35 of our webinar "SAP Business Data Cloud - Update on the further development of SAP Datasphere "
Data products can always be extended. Customer-specific fields - such as Z fields from the material master - can be integrated into existing data products. The prerequisite for this is development in line with the Clean Core.
Status: April 2025 | Source: Webinar with Matthias Stemmler (SAP) and Christopher Kampmann (ISR)
Any more questions?
Your contact person
Christopher Kampmann
Senior Manager
SAP Information Management
christopher.kampmann@isr.de
+49 (0) 151 422 05 448
