Modernizing SAP BW with SAP Business Data Cloud

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Introduction: How to Truly Unlock the Value of Your SAP Data

Many companies across industries struggle with limited usability of their SAP BW and S/4HANA data. Traditional data-warehouse systems are reaching their limits:

• Reports and analytics are delivered too slowly for business units that need them for decision-making
• Data landscapes are fragmented, making it difficult to combine SAP and non-SAP data
• IT teams face high effort to implement new requirements or prepare data for AI/ML scenarios
• Business units that rely on self-service analytics are restricted by the limitations of existing systems

The SAP Business Data Cloud addresses these challenges. It combines the stability and depth of your SAP BW data with the flexibility of modern cloud platforms such as SAP Datasphere and SAP Databricks. This gives business units direct access to data while IT retains control over governance and security. As a result, companies can fully leverage their data for intelligent analytics, AI/ML-driven insights, and flexible reporting.

With the SAP Business Data Cloud, a rigid  Business Warehouse environment becomes an agile, future-proof data ecosystem that empowers business users to make faster decisions while protecting existing BW investments.

What Are the Benefits of Integrating BW into the SAP Business Data Cloud?

Strategic Benefits

• Full integration into the SAP Business Data Cloud with governance and security
• Open data management for SAP and non-SAP data
• Unified platform for applications and operations from a single provider
• Future-proof technology

Technical Benefits

• Scalable cloud platform that grows with increasing data volumes and requirements
• End-to-end integration of SAP BW & S/4HANA into data products
• Support for out-of-the-box and custom scenarios 
• BDC Connect & Delta Share enable zero-copy data exchange with other platforms
• Object Store for flexible provisioning and processing of large data volumes
• Metadata analysis via Catalog provides transparency and traceability

Operational Benefits

• Resilient hyperscaler infrastructure that reduces TCO
• Managed services that relieve the burden on IT teams
• Flexible provisioning through interfaces (OData, ODBC/JDBC & BDC Connect) and front ends (SAC, Analysis for Office)

How It Works: Three Phases of BW Modernization

For modernizing your SAP BW landscape into the SAP Business Data Cloud, we recommend a clear, structured three-step approach: “Lift – Shift – Innovate.”
This ensures that existing BW investments are preserved while taking full advantage of a modern, flexible cloud platform.

Figure 1: Lift, Shift, Innovate 

Phase 1: Lift – Moving SAP BW into the Cloud

The process begins by migrating your existing SAP BW system to the Private Cloud Edition (PCE). This approach allows you to continue using your familiar BW applications while simultaneously unlocking the first benefits of the SAP Business Data Cloud.

Through the Data Product Generator, your BW InfoProviders are integrated into SAP Datasphere, where they are made available as data products. These can be further refined in dedicated modeling areas called Spaces.

Using this technology, both legacy and new data can be seamlessly combined within a modern SQL-based modeling approach. As a result, business units can immediately leverage this information for reporting, analytics, and initial AI or ML scenarios.

The Object Store additionally enables flexible provisioning of large data volumes, while BW metadata remains fully transparent via the Catalog.

Phase 2: Shift – Immediate Benefits from SAP Business Data Cloud 

With your BW system successfully moved to the cloud, phase two begins: immediate access to the SAP Business Data Cloud. Business units can now directly access the data products without waiting for lengthy modernization steps.

Legacy BW data is replicated using the Data Product Generator, making it available in Datasphere for analytics and self-service modeling. Standard (“out-of-the-box”) scenarios can now be extended to better meet individual requirements, while more complex third-party data is handled through custom scenarios.

BDC Connect, combined with Delta Share, provides zero-copy access to external data platforms, enabling flexible data exchange and combination across systems.

Phase 3: Innovate – Full Transition to the SAP Business Data Cloud 

In the third phase, your BW environment is fully transitioned into the cloud. Selected data products are gradually either completely migrated to SAP Datasphere or replaced with SAP-managed data products.

This approach allows you to fully leverage the strengths of SAP Business Data Cloud, SAP Datasphere, and SAP Databricks. The platform supports advanced analytics scenarios, including AI/ML models and intelligent applications for reporting and planning.

Traditional BW applications can be phased out step by step without losing existing data or business logic. Business units continue to benefit from self-service capabilities, while IT centrally manages governance and security requirements.

Zero-copy data provisioning via Delta Share ensures that even large data volumes can be efficiently utilized and shared across various systems.

Figure 2: SAP BW on premise vs. SAP Business Data Cloud 

Conclusion: Modernizing Your SAP BW Paves the Way for a Flexible Data Future

Modernizing your SAP BW landscape with the SAP Business Data Cloud offers far more than a simple lift into the cloud. This approach enables your organization to efficiently leverage existing data assets, integrate new technologies, and maintain full control over governance, security, and data quality.

The three-phase “Lift–Shift–Innovate” approach transforms SAP BW systems step by step: you preserve your existing investments, gain immediate access to modernized data products, and simultaneously build a flexible platform for future requirements. Business units benefit from self-service models, while IT retains centralized control. With the integration of AI/ML and intelligent applications, a truly data-driven enterprise emerges—one that does not simply collect information but actively uses it to generate value.

The SAP Business Data Cloud provides the foundation for a modern, scalable data architecture: large datasets can be used, analyzed, and distributed flexibly. At the same time, operational effort for maintenance, updates, and interfaces is reduced, making collaboration between IT and business units more efficient and transparent.

Key Takeaways for Your Company 

1. Future-Proof SAP BW Modernization
   The three-phase “Lift–Shift–Innovate” approach transitions traditional BW systems step by step into the cloud. This methodology preserves existing investments while unlocking new analytics and reporting capabilities.
2. Flexible Data Usage with Object Store and Zero Copy
   Large data volumes can be centrally used or distributed within the SAP Business Data Cloud—without the need to create data copies. This simplifies the combination of BW, non-SAP, and third-party data and makes AI/ML applications immediately usable.
3. Self-Service and Customization for Business Units
   Intelligent Applications and Spaces allow business units to independently model, adapt, and use data products for their specific reporting needs—without waiting for IT resources.
4. Integration of AI/ML and Data Science
   The platform enables direct use of data for AI and machine-learning scenarios, enabling faster, more precise, and more predictive analytics.
5. Efficient Governance and Centralized Control
   Your IT department retains control over security and access rights, while metadata, data catalogs, and data products remain transparent. This strengthens compliance, traceability, and unified data management across the organization.
6. Immediate Results with a Gradual Approach
   With the structured transition, companies can benefit immediately from modernized data products without having to overhaul their entire BW environment at once. The outcome: reduced risk and higher user adoption.

Now it’s your turn:
What is your strategy for future-proofing and modernizing your SAP BW data? What challenges do you see in moving to the cloud?
Share your experiences, questions, or best practices with us. Your insights help enrich the discussion and open new opportunities to fully unlock the potential of enterprise data.