The SAP Business Data Cloud is an advanced SaaS platform for managing and using data from internal and external sources. This page answers all questions about the solution.
The SAP Business Data Cloud (SAP BDC for short) is a new, fully managed SaaS solution for data management introduced in 2025. Companies can use the platform to merge, standardize and manage data from SAP systems and external sources. This creates a solid data basis for well-founded business decisions. The data pool is also a very good basis for the reliable operation of AI-based applications and analyses.
The SAP Business Data Cloud is the result of a partnership between SAP and Databricks. Databricks is a US company that specializes in data processing with regard to AI applications. The provider’s core product is a cloud-based lakehouse platform with which large volumes of data can be managed and analyzed in real time. As part of the partnership, SAP has integrated this technology into the SAP Business Data Cloud.
As far as the product portfolio is concerned, SAP BDC is part of SAP’s Data & Analytics Suite. This is a comprehensive collection of different solutions that support companies in managing and analyzing data. These include SAP Datasphere, SAP Analytics Cloud, SAP Business Warehouse and SAP BW/4HANA, Private Cloud Edition. The SAP Business Data Cloud accesses these partial solutions, whereby existing SAP data management solutions are supported and BW-based business data can also be integrated.
Companies that use SAP BW on HANA in particular benefit from the SAP Business Data Cloud. This is because the platform enables a step-by-step transformation to BW/4HANA. Existing data structures, reports and data models are not lost in the process. This migration is important because older BW versions will no longer be supported by SAP in the long term. BW/4HANA also has an open architecture that can be linked more easily with cloud platforms and third-party tools.
However, even companies without an SAP BW system can benefit from using the SAP Business Data Cloud. This is because SAP BDC can access data not only from BW, but also from sources such as SAP Datasphere, third-party clouds and on-premise systems. By combining Insight Apps (front end) and the Business Data Fabric (back end), SAP BDC enables the implementation of data strategies without being dependent on SAP BW.
SAP BDC can be used in almost any business area to carry out analyses and forecasts. Five central application areas of the platform, including typical use cases, are presented below.
The SAP Business Data Cloud optimizes financial processes through real-time analyses and AI-supported forecasts. This enables companies to make informed decisions in a short space of time and minimize risks.
Examples of specific use cases:
SAP BDC also increases transparency and efficiency in the supply chain through real-time operational insights. AI also helps to identify risks at an early stage in this area.
Examples of specific use cases:
SAP BDC also gives companies transparency over their purchasing processes. They can also minimize costs and risks in procurement.
Examples of specific use cases:
SAP BDC also links personnel data, performance and business objectives to optimize talent management and HR analyses.
Examples of specific use cases:
Last but not least, SAP BDC helps companies to harmonize customer data and create personalized experiences.
Examples of specific use cases:
SAP BDC comes with a number of advantages. For example, companies have often built up a complex data landscape over many years, which cannot easily be moved to a modern cloud environment. This is where SAP BDC comes in. It enables a gradual transformation from BW on HANA (on-premise) to BW/4HANA (cloud) without companies having to make a radical cut. Furthermore, the SAP Business Data Cloud can be easily integrated into existing cloud data landscapes thanks to its highly flexible and open architecture.
In addition to the technological advantages, the solution naturally also has business benefits. First and foremost, it enables better, data-based business decisions through real-time analysis and planning functions. Important decisions are no longer based on internal historical data, but on up-to-date information from multiple sources (internal and external).
SAP BDC also integrates machine learning (ML) and generative AI (GenAI) technologies from Databricks. Numerous use cases can be realized with ML. Some examples are:
Generative AI from Databricks goes beyond the scope of ML models. Instead of just recognizing existing patterns, GenAI can independently generate new content or recommendations. Some examples of use cases are:
The SAP Business Data Cloud is the core of the modern SAP Data & Analytics Suite. It harmonizes decision-relevant data from SAP and non-SAP business applications to support data engineering and enable business analytics. The platform is compatible with data sources in both the private cloud and the public cloud. It can also read company data from on-premise systems.
Data Lake Files – an extension of the SAP HANA Cloud Data Lake – acts as the storage technology for SAP BDC data. It is a scalable storage solution within the SAP HANA Cloud that has been specially developed for storing large volumes of data. Thanks to Data Lake Files, the HANA in-memory capacities do not have to be burdened, which saves resources and reduces financial expenses.
The functionality of the SAP Business Data Cloud is also based on several sub-applications. The following components are particularly important:
The SAP Analytics Cloud (SAC) is the integrated business intelligence (BI) and planning platform in the SAP BDC. It enables companies to perform real-time data analyses, create interactive dashboards and use AI-supported forecasts.
SAP Datasphere is the data management and virtualization layer within the SAP Business Data Cloud. It enables the integration of SAP and non-SAP data sources without having to physically move them.
SAP Databricks brings advanced machine learning (ML) and artificial intelligence (AI) capabilities to SAP BDC. Thanks to the close integration with the Databricks Lakehouse platform, companies can efficiently process and analyze large volumes of data and use it for automated decision-making processes.
Joule AI is an AI engine from SAP that has been integrated into the SAP Business Data Cloud. It uses Generative AI (GenAI) to provide automated recommendations and analyses. It can also generate decision templates independently.
The SAP Business Data Cloud (SAP BDC) and the SAP Business Technology Platform (SAP BTP) exist in parallel. They pursue different goals, but complement each other in many areas. While SAP BDC serves as a central data management and analysis platform, SAP BTP is a technological platform for application development, integration and enhancements in the SAP ecosystem.
SAP BTP can use data from SAP BDC for business applications. SAP Datasphere (a building block of the BDC) acts as a link here. Companies can also train AI models in SAP BDC (e.g. using Databricks) and then use the results in SAP BTP applications.
SAP relies on a model with two components for the SAP Business Data Cloud:
This means that companies initially pay for the resources they use within the BDC. Billing is based on capacity units, or CUs for short. Their calculation is in turn based on the following factors:
In addition to costs for basic data processing, SAP charges fees for the use of extended analysis tools (insight apps). These ready-made applications contain analyses and dashboards for specific business areas or processes. They include all the necessary data products, semantic models and reports to analyze specific topics. They are only necessary if companies want to implement analyses that go beyond the standard functional scope of the BDC.
The SAP Business Data Cloud (BDC) also leads to a fundamental change in the licensing of SAP BW/4HANA: In future, BW/4HANA will no longer be licensed as a standalone product, but will be offered exclusively under the license terms of the SAP Business Data Cloud. This means that as part of the BDC, BW/4HANA will also be billed via capacity units – and therefore based on usage.
There is currently (as of March 2025) no official test version of the SAP Business Data Cloud available. Instead, the platform has been in “controlled general availability” (GA) since the first quarter of 2025. This means that it is initially only accessible to selected SAP customers. Anyone interested in getting to know the functions of SAP BDC can view interactive product tours and demos on the SAP website. SAP is also expected to organize various webinars and events in which SAP BDC will be presented in more detail.
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