Insight

How SAP Business Data Cloud transforms your Data Intelligence strategy

Published July 28, 2025

  • SAP

In brief

  • SAP Business Data Cloud unifies Datasphere, SAP Analytics Cloud, and Business Warehouse into a single cloud-native platform
  • Organizations can modernize fragmented data landscapes without disruption through seamless integration
  • Embedded AI capabilities and SAP Databricks enable scalable Business AI adoption
  • Flexible migration paths protect existing investments while enabling cloud transformation

This page has been automatically translated from German to improve accessibility. If anything seems unclear, we recommend checking the original version.

 

Many organizations are dealing with fragmented data systems that increase costs and limit AI potential. The SAP Business Data Cloud (BDC) represents the next logical step in  SAP’s technology evolution, offering a powerful and fully managed SaaS platform for modern, intelligent data management. It unifies the capabilities of SAP Datasphere, SAP Analytics Cloud and SAP Business Warehouse (BW) into a single, cloud-native ecosystem. Data products, Insight Apps and embedded SAP Databricks for advanced ML and AI complement the solution. BDC supports both existing SAP landscapes and forward-looking innovation strategies, enabling organizations to modernize their data environments without disruption.

Companies struggle with fragmented data landscapes that block AI potential

Many organizations struggle with a fragmented analytics architecture that spans multiple systems, such as SAP S/4HANA, SAP BW, and a mix of non-SAP platforms and Hyperscalers. This complexity not only increases operational costs but also creates data silos, inconsistencies, and governance challenges that limit the value of enterprise data. To enable Business AI, companies must move beyond disparate systems and establish a harmonized, scalable, and business-centric data foundation. This means aligning data across all environments into a unified framework that preserves context, reduces duplication, and accelerates time to insight.

Only with this level of data harmonization can organizations unlock reliable, real-time insights and enable truly intelligent, AI-powered decision-making at scale.

 

SAP Business Data Cloud (BDC) Architecture

What is SAP Business Data Cloud?

SAP Business Data Cloud delivers a fully managed, cloud-native data platform that brings all your analytics components and the semantically enriched data into one seamless environment.

This fully managed SaaS solution integrates core analytics capabilities, like SAP Analytics Cloud and SAP Datasphere into a single platform. What sets SAP BDC apart is its business-centric data foundation, specifically designed to maximize the impact of Business AI and power transformation across the three following key areas, enabling a scalable and intelligent enterprise:

1. Transform your business with insights

Accelerate decision-making with integrated meta data, prebuilt applications and industry best practices. SAP BDC empowers organizations to tap into SAP’s domain and industry knowledge. By using harmonized data products and deploying ready-to-use Insight Apps, businesses can immediately generate value from their data. Core capabilities, such as business semantics, planning and analytics, data engineering and BW modernization work in concert to drive actionable insights. Whether through embedded planning features or ML pipelines in SAP Databricks, teams gain a full-spectrum view of the business in real time.

To accelerate time-to-value and enable immediate business impact, BDC provides:

  • SAP-managed data products: Pre-defined, domain-specific and industry-aligned datasets that maintain consistent semantics across all business processes, ensuring trusted, business-ready data from day one.
  • Insight apps: Ready-to-deploy, out-of-the-box applications combining analytics and planning capabilities, enabling faster, smarter decisions without heavy customization or setup.

2. Seamless data integration from SAP and non-SAP Systems

SAP Business Data Cloud harmonizes data into a single, governed environment, eliminating the typical friction of cross-system data movement. Instead of relying on replication or complex ETL processes, BDC and its native integration with SAP Databricks use zero-copy data sharing and federation to connect diverse data sources while preserving semantic integrity and business context. This approach ensures trusted, high-quality data that supports compliance and reliable decision-making, while remaining extensible to cloud platforms, and partner ecosystems. 

3. Enable meaningful and scalable AI adoption

Value-adding Business AI requires more than algorithms, it relies on clean, contextual, and governed data. SAP Business Data Cloud provides that foundation, empowering SAP Business AI solutions like SAP Joule to power intelligent applications with accurate, context-aware insights. Its AI and ML-ready infrastructure, including native support for pro-code environments through SAP Databricks, makes it easy to operationalize AI at scale. Data scientists and engineers can build, deploy, and manage ML models within the platform, accelerating innovation while maintaining full governance and security.

Migration paths for SAP BW and SAP Datasphere to SAP Business Data Cloud

With the launch of SAP Business Data Cloud, customers running SAP BW face different migration paths to the cloud. For BW customers, the BW Private Cloud Edition (PCE) offers a modernization strategy that both protects your BW investments and extends them into a fully managed SaaS. Native BW functions, including data models, queries, and transformations, operate without re-engineering, while new cloud-native capabilities become immediately available. Over time, you can harmonize and rationalize your data landscape at your own pace, using the transparency, and operational simplicity of SAP’s end-to-end Business Data Cloud.

Current BW on HANA (7.5) customers can lift their existing SAP BW NetWeaver 7.5 or BW/4HANA data warehouses as-is into PCE without re-engineering, thanks to the simple lift-and-shift capability of the BDC.

 

With guaranteed maintenance for SAP BW 7.5 on HANA until 2030, the available timeframe can be strategically used to transition use cases to the cloud, avoiding the need to allocate time and budget to a BW/4HANA migration. Meanwhile, BW/4HANA customers can directly lift their BW into PCE to benefit from the added value and services of BDC or migrate to SAP Datasphere.

Unified foundation for SAP Datasphere and SAP Analytics Cloud

Existing SAP Datasphere and SAP Analytics Cloud customers can continue using their current environments without interruption, or rewire their tenants to join the Business Data Cloud framework. There’s no immediate pressure to switch, and upcoming tenant-rewiring services will make the transition seamless, without disruption to existing operations or APIs. Today, a separate SAP Datasphere tenant is required to onboard into BDC, but SAP is actively exploring options for automatic upgrades. Ultimately, SAP Datasphere and SAC will become fully integrated components of BDC’s unified architecture, bringing together data orchestration, modeling, ML/AI, visualization and planning into one high-performance analytics platform. All this while giving you the flexibility to adopt at your own pace. This consolidation not only boosts performance and simplifies administration but also enables the conversion of SAP Datasphere compute units (CUs), so they can be fully used within the BDC in the future.

Conclusion

The SAP Business Data Cloud represents the evolution of SAP’s Data and AI portfolio, delivering a powerful, flexible solution for modern data management. By embedding Databricks, SAP underscores its strategic shift toward open, interactive data platforms that give organizations greater control over their data.

 

More than a legacy standalone data warehouse system, SAP BDC functions as a comprehensive ecosystem. Deep integration with SAP Analytics Cloud, SAP Datasphere, and third-party data platforms provides enterprises with exceptional flexibility in using their data infrastructure. In addition to SAP-native use cases, the platform supports hybrid scenarios with best-of-breed Hyperscaler technologies. Standardized interfaces and APIs simplify data access, enabling companies to modernize their existing IT landscapes incrementally and prepare for future business requirements.

 

Our Data Intelligence experts are ready to accelerate your journey with hands-on enablement, industry expertise and ongoing support, empowering organizations to fully realize the potential of SAP Business Data Cloud and scale AI-driven insights across the enterprise.

Authors

  • Steffen Müller

    Associate Partner – Germany, Cologne

    Wavestone

    LinkedIn
  • Julia Pfirrmann

    Senior Consultant – Switzerland, Zurich

    Wavestone

    LinkedIn
  • Anil Olgun

    Consultant – Germany, Hamburg

    Wavestone

    LinkedIn