SAP Business Data Cloud Architecture Overview 

Let’s explore the architecture of SAP Business Data Cloud (BDC)—how it works under the hood to unify data from across your business and deliver it in a trusted, business-ready format for analytics and AI.
Beginner
June 17, 2025

Why The Architecture Matters:

Understanding how BDC is structured will help you see: 

  • How data flows from your source systems into the cloud 
  • How it is transformed and organized 
  • How it becomes accessible to your users through dashboards, AI apps, and more 

High-Level Architecture Flow

At a high level, you can view SAP Business Data Cloud architecture as four key layers: 

1. Source Systems

Business Data Cloud connects to data from across your business: 

  • SAP Applications 
    • Examples: SAP S/4HANA Cloud, SAP SuccessFactors, SAP Business Warehouse (BW), SAP Ariba 
  • Non-SAP Applications 
    • Examples: External CRM, finance systems, databases, data lakes, file stores 
  • Structured & Unstructured Data 
    • Business Data Cloud supports both structured transactional data and unstructured data (such as documents) through its Foundation Services and integrations. 

2. Foundation Services

This is the “data lake” and processing layer of BDC. Foundation Services handles: 

  • Data Ingestion & Replication 
    • Bringing source data into the Business Data Cloud environment. 
  • Data Harmonization & Transformation 
    • Aligning data from different sources into consistent formats and applying business rules. 
  • Creation of Data Products 
    • Foundation Services outputs trusted, governed Data Products—business-ready datasets that can be used across the rest of the architecture. 

Key Concept: Data Products 

Think of Data Products as pre-packaged, reusable datasets that are curated and enriched by SAP (or your organization). They are business-friendly and ready for use in analytics and AI. 

Types of Data Products: 

  • SAP-managed (provided by SAP) 
  • Customer-managed (created by your organization) 
  • Partner-managed (provided by SAP partners) 

3. Data & Administration Layers

Once Data Products are created, they flow into both advanced modeling environments and administrative tools: 

SAP Datasphere 

  • Core modeling layer 
  • Creates semantic models 
  • Manages metadata and access controls 
  • Provides a unified semantic layer across the ecosystem 

SAP Databricks (Integrated/Optional) 

  • Advanced AI/ML development environment 
  • Enables data scientists to train models and enrich Data Products with AI insights 
  • Supports iterative loop of model building → insights → back into Business Data Cloud 

SAP BW / SAP BW/4HANA (Integrated) 

  • Legacy SAP BW objects can be brought into BDC as Data Products 
  • BW models can be extended and combined with other data in Business Data Cloud 

SAP Business Data Cloud Cockpit 

  • Central administration hub 
  • Allows users to: 
    • Browse, deploy, and manage Intelligent Applications 
    • Install Data Packages 
    • Assign user permissions 
    • Manage integrations (such as SAP Databricks) 

4. Intelligent Applications & Analytics

The final layer is where most business users will experience Business Data Cloud in action: 

Intelligent Applications 

  • Pre-built, AI-powered business apps created by SAP 
  • Designed for popular business scenarios (forecasting, financial planning, sales optimization, etc.) 
  • Visual, interactive, and highly user-friendly 
  • Customizable for company-specific needs 

SAP Analytics Cloud (SAC) 

  • Primary business analytics and visualization tool 
  • Delivers dashboards, visualizations, planning, forecasting, and AI-powered insights 
  • Enables collaboration across business functions using the trusted Data Products in BDC 

Architecture Summary

Business Data Cloud is designed to provide an end-to-end platform that enables organizations to transform raw, fragmented data into trusted insights and intelligent outcomes. The architecture helps organizations: 

  • Unify SAP and non-SAP data into one governed foundation. 
  • Transform raw data into trusted, reusable Data Products. 
  • Support both traditional analytics and advanced AI/ML use cases through an integrated ecosystem. 
  • Deliver insights to business users through dashboards and Intelligent Applications—driving better decision-making across the business. 

Closing Notes

By understanding this architecture, you can better see how Business Data Cloud helps your organization: 

Simplify complex data landscapes 

Unify SAP and non-SAP data sources 

Accelerate AI development on trusted business data 

Empower business users with actionable insights 

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