Understanding the benefits and impact of SAP Business Data Cloud

In Q1 this year, SAP and Databricks joined forces to launch SAP Business Data Cloud (BDC), a huge step forward in how enterprises manage their data. To find out more about the benefits and potential of SAP Business Data Cloud, we went into discussion with Christian Schreurs from Emixa, which is an official implementation partner of both SAP and Databricks.

To start with, what exactly is SAP Business Data Cloud?

SAP Business Data Cloud is an integrated solution that unites SAP Datasphere, SAP BW/4HANA, and SAP Analytics Cloud with SAP Databricks. The latter is a specially managed version of Databricks within the SAP ecosystem.

In practical terms, this means you can leverage Databricks’s artificial intelligence and machine learning capabilities while keeping all your data within a secure, SAP-managed environment. SAP BDC offers pre-configured data products and dashboards, supports the Delta Sharing protocol for seamless data sharing without duplication, and delivers real-time, consistent insights.

For businesses with extensive SAP-driven data landscapes, this opens up the possibility of making faster, more informed decisions using real-time analytics.

What problem does SAP Business Data Cloud solve?

Many businesses aim to become more data-driven but are still relying on outdated SAP BW systems or legacy SQL servers. While these systems work well for traditional reporting, they lack the flexibility and power needed for modern analytics and AI applications. Integrating SAP data with modern Lakehouse platforms such as Databricks, Snowflake, or BigQuery is often expensive and time-consuming.

SAP Business Data Cloud bridges this gap. It provides a fully SAP-managed environment where SAP and non-SAP data are integrated seamlessly without unnecessary data duplication or complex migrations.

The news was received with huge excitement. Why is this big news?

SAP Business Data Cloud is a fully integrated cloud platform where SAP solutions are directly connected to a SAP-managed version of Databricks. This means businesses can securely harness AI and machine learning capabilities without moving data outside the SAP environment.

SAP BDC builds upon the previously introduced Business Data Fabric concept in SAP Datasphere but adds enhanced integrations and ease of use. The Business Data Fabric approach eliminates the need to copy data to a central location. Instead, data remains accessible across multiple sources simultaneously. This is a technique known as federated data access. It reduces duplication, lowers costs, speeds up processes, and simplifies maintenance.

With SAP BDC, businesses can work within a single modern and scalable environment. If you’re looking to modernise SAP data without major migrations, this is an excellent solution.

What does this mean for existing SAP solutions?

Contrary to some assumptions, SAP BDC does not replace SAP Datasphere. Instead, it integrates with it – as part of a broader platform. SAP Datasphere and SAP Analytics Cloud remain the essential components of BDC, ensuring businesses’ existing investments are protected.

For companies using SAP BW, SAP BDC offers a migration path. SAP BW 7.5 and BW/4HANA will be supported until 2030 and 2040, respectively. However, SAP advises moving to SAP BW Private Cloud Edition (PCE), which integrates fully with BDC. This allows businesses to continue using their current systems while gaining access to new AI and data-sharing capabilities. Rather than replacing existing SAP solutions, SAP BDC enhances and modernises them.

How should SAP-using companies explore if SAP Business Data Cloud is valuable for their business?

At Emixa, we have a developed the FAST methodology which helps understand the benefits and impact and plots a path forward. FAST stands for:

Fact-Finding. Assess the current data and AI architecture. This includes analysing existing systems, data structures, and integrations while evaluating the organisation's data and AI maturity. Make sure that the right people are involved in this process.

Assessment. Compare SAP BDC with alternative solutions, such as SAP BW, SAP Datasphere, or other Lakehouse platforms. Make sure to not just look at the tools but also at the business processes. Additionally, evaluate the impact on existing processes and costs.

Solution Blueprint. Design a future-proof data architecture that will best support your company's situation. Also detail how this integrates into your business processes, IT systems, and the organisation as a whole.

Transformation Planning. Develop a roadmap for implementation and adoption. A gradual migration often reduces risks and maximises benefits, but some cases may require a faster transition.

Headquartered in the Netherlands, Emixa is a digital transformation consulting firm with a focus on the manufacturing sector. The firm has over 530 staff across several European markets.