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What does the future of SAP BW look like?
SAP BW has proven itself over the years as a mature solution for many companies in core areas such as data management, reporting, and analytics. Looking to the future, SAP Datasphere (formerly known as SAP Data Warehouse Cloud) is now positioned as the strategic successor in the cloud.
SAP Datasphere is a cloud-based data warehouse solution that is part of the SAP Business Technology Platform (BTP). This means it also leverages the advantages of SAP HANA Cloud, such as performance and scalability. The focus is on combining the strengths of a traditional data warehouse approach with flexibility and self-service. The increased integration of artificial intelligence and data platforms such as Databricks also supports a future-oriented setup.
SAP Business Data Cloud (BDC), the newest strategic product, goes one step further. It unifies existing technologies such as SAP Datasphere, SAP Analytics Cloud (SAC), and Databricks to provide harmonised, seamless data for analytics, planning, and AI-driven use cases.
Is SAP BW at the end of its lifecycle?
SAP has officially announced that the classic SAP BW 7.5 will continue to be maintained until 2027 based on the current status. Maintenance is therefore scheduled to end in 2027, although an optional extension until 2030 is possible. As a result, SAP BW is increasingly moving into the background. However, SAP has stated that its successor, SAP BW/4HANA, will still be supported until 2040. For this reason, many companies continue to rely on this solution and are still running stable, high-performance SAP BW systems in their data landscape.
This means SAP BW/4HANA will remain relevant for the coming years and is not yet at the end of its lifecycle. Nevertheless, the strategic shift of SAP toward the cloud and the announced end of maintenance should be taken into account when planning your company’s long-term data and analytics strategy.
Will SAP BW be replaced by SAP Datasphere?
Unlike SAP BW, SAP Datasphere provides a cloud-based data management platform with a strong focus on self-service, data integration, and data federation. Thanks to cloud technology, data no longer always needs to be physically replicated in order to be included in a central data model. In many cases, it can remain in the source system.
Data modeling itself has also evolved and now differs significantly from modeling in SAP BW/4HANA both in terms of concepts and in terms of objects and tools. However, in terms of functionality, SAP Datasphere does not yet have the same level of maturity as an SAP BW/4HANA system. This means it still cannot cover every scenario 1:1 in the cloud, as some features are still missing.
Looking ahead, we can say that SAP BW will definitely be replaced in the long term by its strategic successor, SAP Datasphere. However, this will not be a direct one-to-one replacement, because the two solutions differ too much in their architecture and how they work. SAP Datasphere should instead be seen as a forward-looking evolution of the traditional data warehouse approach.
When does it make sense to switch to SAP Datasphere?
It’s difficult to give a general answer to this question, because the decision depends on various factors that differ from one company to another, such as:
- current system complexity
- IT strategy
- know-how within the team
- short-term and long-term goals
Nevertheless, some concrete recommendations can already be made for certain scenarios.
Should I still invest in SAP BW/4HANA?
Many customers are currently asking themselves whether it still makes sense to invest in SAP BW/4HANA from a long-term perspective. For companies that already have an SAP BW system (for example, version 7.5) or are not yet planning a move to the cloud, an investment in SAP BW/4HANA can absolutely be reasonable in order to remain well positioned in the near future with a mature, stable, on-premise data warehouse solution.
However, as mentioned before, you should keep the end of maintenance in 2040 in mind and also consider that SAP is currently focusing its innovation and further development mainly on cloud solutions. In other words, many new features — especially those related to artificial intelligence — will likely no longer be released for SAP BW/4HANA.
Should I move directly to SAP Datasphere?
A move to SAP Datasphere is especially relevant if an existing SAP BW system (e.g. 7.x) is due for modernisation anyway and the overall data strategy is shifting toward the cloud. The use of other cloud solutions such as SAP Analytics Cloud can also be a strong argument for moving directly to SAP Datasphere, in order to enable a future-oriented interplay of both solutions (for example, seamless planning scenarios) in the area of analytics.
Another reason to choose SAP Datasphere could be a self-service approach or the need to integrate multiple data sources with a federated data access model. Business departments are becoming increasingly involved in BI topics, and this is exactly where SAP Datasphere comes in with the Business Builder, which provides users with an intuitive user interface for modeling. The integration of both cloud and on-premise data sources, as well as the general goal of making data broadly available in the spirit of data democratization, is becoming more and more important for companies — especially in the context of growing system landscapes and AI.
SAP Datasphere supports this by offering connectors and virtual (real-time) access to data, which helps avoid unnecessary data replication.
It is also worth mentioning that SAP Datasphere is a core component of SAP’s newest solution, Business Data Cloud. This means it forms the foundation for a modern, future-ready cloud data architecture. With so-called data products and the concept of a Business Data Fabric, all relevant company data should be made available to end users as easily as possible, in the right context.
Am I planning a hybrid architecture?
To continue leveraging existing SAP BW investments while moving toward the cloud, many companies choose a hybrid approach. In this setup, both SAP BW and SAP Datasphere run in parallel within the architecture, and existing data models and processes are gradually transferred to SAP Datasphere. The main advantage of this approach is that you can proceed selectively and at your own pace — and at the same time clean up legacy structures. However, some caution is necessary, because more complex logic often cannot be migrated 1:1 and may require additional effort.
For the migration itself, the SAP BW Bridge tool can support users in enabling a smooth transition to the cloud, although there are certain restrictions to be aware of.
How do I migrate from SAP BW to SAP Datasphere?
In general, there are four migration scenarios that are relevant in this context:
- Remote Conversion
Selected data models are transferred to the SAP BW Bridge using the Transfer Cockpit to enable a remote data transfer. Users can decide which objects should be moved into the new system. It’s also important to note that the related data, along with the metadata, is transferred as well. Alternatively, you can use the BW/4HANA Model Transfer to move BW models and BW queries from BW/4HANA systems into the corresponding Datasphere objects. - Shell Conversion
With the Shell Conversion, the existing data models are also transferred to the SAP BW Bridge. However, no transfer or synchronisation of existing datasets takes place. Afterwards, the user can decide whether to load specific data from the source system, or for example, to do without historical data in the new system. - Greenfield Approach
This approach is a new implementation without carrying over existing structures and processes. It is especially suitable for customers who do not yet have SAP BW, or for companies that want to simplify an already complex system landscape by using SAP Datasphere as a new data warehouse in the cloud. - Cloud Approach
The SAP BW PCE (Private Cloud Edition) solution offers the full functional scope of SAP BW/4HANA, is operated by SAP in the cloud, and is mainly suited for moving from on-premise systems to the cloud without having to fundamentally change existing data models. Together with SAP Datasphere, this enables a hybrid data management architecture that supports a flexible, step-by-step migration.
Further details on the individual approaches — as well as a decision matrix to help you choose the most suitable migration path — are available in the following checklist.
Checklist "Fom SAP BW or SAP BW/4HANA to SAP Datasphere"
Our checklist helps you find the right migration path from SAP BW or BW/4HANA to SAP Datasphere.
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Conclusion
In summary, moving to SAP Datasphere is currently worthwhile for companies that want to pursue a long-term cloud strategy focused on self-service and flexibility, or that want to move away from outdated SAP BW systems. Different migration approaches can be used to achieve this.
At the same time, SAP BW/4HANA will continue to provide a mature data warehouse solution for many companies until the end of maintenance in 2040, especially for those that have already invested heavily in this landscape or are not yet ready to move their systems to the cloud. As a forward-looking and flexible alternative, hybrid scenarios are also an option: both systems are operated in parallel, with a gradual migration to the cloud.
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