SAP Business Data Cloud — Making Data Work Together

5 min read1 day ago

In this article we will talk about SAP BDC platform and how that can help to integrate with 3rd party data to unleash the full value of enterprise data for Business AI

1. What is SAP Business Data Cloud (SAP BDC)?

SAP Business Data Cloud is the newly launched analytics platform of SAP. It brings together what SAP already offered in Analytics and adds what was missing: a modern data (engineering & AI) platform — now enabled in partnership with Databricks: i.e. through SAP Databricks.

SAP Business Data Cloud thus combines SAP Datasphere, SAP Analytics Cloud, the link to SAP BW and a new component: “SAP Databricks”.

2. Motivation Behind SAP BDC

From SAP standpoint, while individual components like Datasphere and SAP Analytics Cloud was existing, but there was need for enterprises can integrate and analyze data from multiple sources more efficiently, eliminating the hassle of juggling disconnected tools. The result: faster, more reliable insights to make better business decisions.

Simplicity: Instead of manually stitching together data from different systems, BDC automates data integration using a concept called “Data Products.”

Out-of-the-Box Insights: BDC provides pre-built “Insight Apps,” which let you see and explore your data right away.

Openness: BDC can bring in data from both SAP and non-SAP sources. You get a more comprehensive picture of your organization’s data without dealing with multiple, siloed solutions.

3. Components of SAP Business Data Cloud

Source Systems: This comprises of both SAP and non-SAP data needed for building customer business data and making it available for analytical use cases.

Foundation Services: Data once ingested from into BDC platform is harmonized with relevant business data from multiple applications and create data products which gets stored in SAP HANA cloud and Lakehouse

SAP Datasphere: This works as central component in BDC by creating consumption ready data models on top of Data Products while also managing analytical roles, access controls etc.

SAP Databricks: Component to extend analytical capability to AI/ML while enabling data sharing between SAP BDC Catalog and Databricks Unity Catalog.

SAP BW Ecosystem: SAP BDC facilitates connection between legacy SAP BW or SAP BW /4HANA allowing BW objects to be accessible to BDC platform.

SAP Insights Apps: These are managed SaaS applications to enable business derive actionable insights.

SAP Analytics Cloud: This leverages Insight Apps and used for out of the box ad-hoc analysis, reporting, dashboarding and AI driven insights.

Cockpit: This acts as the user interface to navigate through the insights apps or Data Products to make data accessible across the organization.

4. SAP BDC — Rebranding or New Capability?

Though apparently it may sound more of a marketing banner with some new technology but certainly there are few additional advantages to it even if it’s mostly repackaging of SAP BW variants, DataSphere, SAC and reporting insights under BDC alongside Databricks. I’m listing few of them below:

Future proofing BW system: With the BDC, you benefit from an extended transition period for existing SAP BW systems until 2030. This gives you more time to migrate the data landscape strategically and without pressure to the SAP Datasphere.

Built-In Business Semantics: Because SAP data already carries deep business context and semantics, Databricks can provide powerful analytics and machine learning without forcing customers to re-invent data pipelines or guess at the meaning of fields.

Unified Data Platform: The BDC combines the strengths of SAP BW, SAP Datasphere and SAP Analytics Cloud (SAC) in a central solution. This enables you to achieve seamless integration and consistent access to all data — for well-founded, data-driven decisions in real time.

Accelerated AI Adoption: Native integration with Databricks opens the door to advanced AI, including GenAI and agentic AI. It empowers businesses to solve more complex problems, from modernizing data estates to orchestrating multi-step workflows across the entire SAP Business Suite.

Optimized cost and efficiency: Thanks to the bundled license, you not only save costs, but also simplify the management of your data and analytics platform. The BDC reduces complexity, increases efficiency and supports an agile data strategy.

Global B2B Data Marketplace: A major goal is to establish one of the world’s largest B2B data marketplaces, enabling companies to tap into broader data sets and accelerate innovation through AI-driven insights.

5. SAP BDC vs It’s Individual Components — Is there Conflict of Interest?

There would be obvious eyebrows around why SAP is introducing SAP BDC platform when they already have a SAP DataSphere? Well, while SAP Datasphere and SAP Business Data Cloud both aim to consolidate data for analytical purposes; they differ significantly in their deployment models. Datasphere operates as a platform-as-a-service (PaaS), allowing users to take charge of the platform management. In contrast, Business Data Cloud is offered as a software-as-a-service (SaaS) solution, which includes enhanced features such as data governance and artificial intelligence capabilities that are overseen by SAP. This effectively integrates the functionalities of Datasphere with additional services into a comprehensive, fully managed platform.

If you are familiar with Microsoft Fabric hopefully you can understand the analogy better. While they had ADF, SQL Databases, Synapse DWH, Synapse Data Engineering and Data Science tools available separately as PaaS services within Azure eco-system, they surfaced new product Fabric as SaaS solution which is built on top of all these PaaS components with common pricing model i.e. Fabric CU providing users with end-to-end analytical experience.

6. Tighter Integration with Databricks

One of the most significant developments is SAP’s enhanced collaboration with Databricks, now referred to as SAP Databricks. This partnership empowers organizations to integrate structured SAP data with unstructured external data, facilitating more robust analytics and artificial intelligence capabilities.

Combine structured and unstructured data effectively
Enhance AI and machine learning models
Eliminate cumbersome data transfers

This initiative was part of the original strategy when SAP revealed its partnership with Databricks last year, although progress appeared to stall for an extended period.

We have anticipated the implementation of bi-directional reading and writing capabilities between Databricks and Datasphere for some time, and it appears that this functionality is finally on the horizon.

SAP Business Data Cloud now supports Delta Sharing, an open protocol designed for secure data sharing. This advancement allows for seamless collaboration across various cloud platforms without the need for intricate integrations. The recently announced delta lake table is now understood in this context.

7. Final Thoughts

SAP Business Data Cloud represents a significant advancement in the management of enterprise data. By integrating SAP Datasphere, SAP BW, Databricks, and AI-driven analytics, SAP is establishing a comprehensive solution for reliable business data. For organizations aiming to transition to the cloud while still reliant on on-premises BW, this may present a viable path forward. However, uncertainties persist, particularly concerning pricing, licensing, and the extent to which integration with SAP Databricks will provide a distinct advantage.

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