SAP BW to Datasphere Migration: When and Why to Move

Maksim Ablameiko, Senior BI & Analytics Consultant at ACBaltica

SAP has officially started the countdown for SAP Business Warehouse (BW). Support for this trusted platform will end in 2040, marking the close of an era. But this isn't the end of the world. Many organizations have relied on it for years because it’s stable, structured, and reliable. However, SAP is now promoting SAP Datasphere as the next big step in data management. It promises flexibility, cloud scalability, and easy integration with both SAP and non-SAP systems. 

Let's take a look at the current state of SAP's data warehouse landscape, which includes BW, BW/4HANA, SAP BW/4HANA Private Cloud Edition (PCE), and Datasphere. In this article, we'll discuss how SAP's strategy is shifting towards the cloud, what this means for current BW users, and how businesses can adapt before support ends.

SAP BW

Introduced in 1997, SAP BW became one of the most well-established tools for enterprise data management and reporting. It was designed for a time when most corporate systems were SAP-based and data volumes were smaller and more structured. BW's strengths lie in its reliability, stability, and integration with SAP business logic.

However, BW's architecture reflects its time. It relies heavily on rigid Extract, Transform, and Load processes (ETL), complex data models, and scheduled batch loads. While this provides strong data control and governance, it can be difficult to adapt quickly when new data sources or analytics requirements emerge. Maintenance and upgrades often require significant IT involvement, and flexibility for self-service analytics is limited.

SAP BW/4HANA

SAP BW/4HANA, released in 2016, is an evolution rather than a complete departure from classic BW. It was redesigned to run exclusively on the SAP HANA in-memory database, significantly improving performance and enabling real-time or near-real-time analytics. The data modeling layer was simplified, and integration with SAP tools, such as SAP Analytics Cloud, became more streamlined.

At the same time, BW/4HANA retains many of the conceptual structures of traditional BW, including InfoProviders, data flows, and governance mechanisms. BW/4HANA still relies on IT-driven data modeling, so it remains a controlled, centralized approach rather than a fully open data platform. For companies with large, established BW landscapes, BW/4HANA offers a logical modernization path. This path avoids the disruption of moving to a completely new architecture.

SAP BW/4HANA Private Cloud Edition (PCE)

SAP BW/4HANA PCE is a version of BW/4HANA that is hosted in the cloud. It was introduced alongside BW/4HANA in 2016 and offers the same HANA-optimized, simplified architecture, but with SAP managing infrastructure, updates, and basic administration. It's a middle step between traditional on-premises solutions and full cloud options.

This edition provides near real-time, in-memory performance and streamlined modeling. Since SAP handles the cloud environment, companies can reduce the burden of hardware, upgrades, and infrastructure maintenance. However, the system remains mostly IT-led, and while some business-friendly tools exist, flexibility for broad self-service analytics is more limited than in fully cloud-native solutions. It’s suitable for organizations that want BW/4HANA’s performance and architecture benefits but prefer a managed, cloud-hosted setup rather than on-premises deployment.

Note: SAP BW/4HANA and its Private Cloud Edition let you move your BW system to the cloud and transition to SAP Datasphere step by step, keeping your operations running smoothly.

SAP Datasphere

SAP Datasphere, launched in 2023 as a rebranded version of SAP Data Warehouse Cloud, is SAP’s response to the growing demand for open, integrated, cloud-based data environments. SAP Datasphere is designed to handle both SAP and non-SAP data. This allows organizations to maintain information in different systems while providing a unified semantic layer for analytics and planning.

Datasphere does not require all data to be stored physically in one place. It supports federated access, so users can work with live data from different systems without replication. Datasphere also introduces business-friendly modeling, enabling non-technical users to explore and combine data with reduced IT dependency. However, adopting Datasphere requires rethinking existing data architectures and sometimes adjusting governance models, so it is best suited for companies ready for broader cloud transformation rather than those simply looking to upgrade an existing warehouse.

Comparing SAP BW, SAP BW/4HANA, SAP BW/4HANA PCE and SAP Datasphere: What really sets them apart

Each of these SAP data warehouse platforms was built for a different time and purpose. Now, let's see how they stack up in terms of speed, flexibility, integration, cost, and future potential.

Criteria	SAP BW	SAP BW/4HANA	SAP BW/4HANA PCE	SAP Datasphere
Release year	1997	2016	2016	2023
Deployment model	On-premise	On-premise or private cloud	Managed private cloud by SAP	Fully cloud-based
Database support	Any DB (Oracle, SQL Server, etc.)	SAP HANA only	SAP HANA only	SAP HANA Cloud
Performance	Relies on batch processing	In-memory, near real-time	In-memory, near real-time, managed infrastructure	Real-time and federated
Architecture	Layered, rigid ETL processes	Simplified, HANA-optimized	Simplified, HANA-optimized, cloud-managed	Flexible, cloud-native
Integration with SAP	Strong, mostly SAP ecosystem	Deep, optimized for S/4HANA	Deep, optimized for S/4HANA	Native connectors + non-SAP support
Non-SAP integration	Limited	Moderate (OData, APIs)	Moderate (OData, APIs)	Broad (SQL, APIs, partner connectors)
Governance & control	Centralized, IT-managed	Centralized, simplified	Centralized, SAP-managed	Shared between business & IT (Spaces)
User experience	Technical, back-end focused	Streamlined, IT-led	Streamlined, IT-led	Business-friendly, self-service
Cost & maintenance	High (infrastructure + upgrades)	Lower infrastructure, still IT-heavy	Subscription-based, SAP-managed	Subscription-based, scalable by usage
Longevity / support	Support for on-premise versions until 2027; extended support until 2030 (with fees). BW 7.5 PCE – until 2030 (no fees)	Supported until 2040	Supported until 2040	No fixed end-of-support date; SAP’s long-term strategic focus

Looking at these systems, it’s clear that SAP has been updating its tools to keep up with business needs. Each one has its strengths and works best in different situations.

What the 2040 end of support for SAP BW really means

1. No more updates or fixes: After 2040, SAP will stop providing security patches, compatibility adjustments for new databases or operating systems, bug fixes and performance updates. Your BW system may still function, but it will no longer evolve or be fully secure. Your IT team will have to manage any new compliance or security needs manually.

2. No access to official SAP support: Once support ends, you won't be able to open SAP OSS tickets or receive assistance with BW-related issues. If there's an issue, you'll have to use your own staff or hire consultants, which can cost a lot and take a long time.

3. No certification for new SAP products: Future versions of SAP S/4HANA, SAP Datasphere, and SAP Analytics Cloud will not undergo testing or certification for compatibility with BW. This will make integration and data flow between systems more fragile over time.

4. Higher security and compliance risks: Without patches and official maintenance, unsupported BW systems gradually become more vulnerable to security threats. For regulated industries, this can even raise audit or compliance flags.

The 2040 end-of-support date applies to the latest BW versions, including BW 7.5, BW/4HANA, and BW/4HANA Private Cloud Edition (PCE). Older BW versions are supported until 2027 or 2030 if you purchase extended maintenance.

To be clear, SAP will not "switch off" your BW system in 2040 (or in 2027 if you have older BW). As long as you keep it running on your servers, it will continue to function. However, SAP will no longer support it, which will leave you isolated from future innovations and integration capabilities.

SAP’s roadmap is fully cloud-oriented. The company is consolidating its data and analytics ecosystem around SAP S/4HANA Cloud for business operations, SAP Datasphere for unified data management, and SAP Analytics Cloud (SAC) for visualization and planning.

Classic BW was built for the on-premises era. By setting 2040 as the final date, SAP is giving organizations time to modernize in phases.

Planning the transition: When to move from SAP BW to SAP Datasphere

Even though 2040 may seem far away, migration projects take time. For some companies, it makes sense to start using SAP Datasphere early on. This is usually the case when your BW system is old, hard to maintain, or struggling with performance and scalability. If your organization is already investing in cloud transformation or moving ERP systems to SAP S/4HANA Cloud, early adoption allows you to take advantage of faster, more flexible analytics — especially when combining SAP and non-SAP data. Moving slowly also spreads project costs and gives your teams time to build the necessary skills before the 2040 deadline.

But not every company needs to rush. If your BW or BW/4HANA system is stable, meets your reporting needs, and your business operates in a highly regulated environment, it may make sense to plan carefully and move in phases. Even then, preparation is key: document your BW landscape, identify critical reports and data models, budget for training and licensing, and run a small pilot over the next 12–18 months to test integration and performance with Datasphere. If you start planning early, your move will go smoothly and be under control. Otherwise, you might have a last-minute scramble.

SAP BW Bridge: The key to a smooth transition

BW Bridge is one of SAP's most important tools for making the transition to the cloud easier. It creates a compatibility layer between your existing BW environment and SAP Datasphere, so you can migrate in steps instead of starting from scratch.

What BW Bridge Does:

• Reuses existing BW models and logic: You can bring over InfoProviders, ADSOs, transformations, and queries without rewriting them immediately.
• Runs your BW processes in the cloud: Your current reports and ETL workflows keep working while hosted in a modern cloud environment.
• Lets you modernize at your own pace: You can selectively rebuild or redesign data models directly in Datasphere over time.
• Reduces migration risk: Because business logic and data models remain operational, the project can proceed in smaller, safer phases.

In short, BW Bridge helps keep things going while your teams learn new tools and approaches.
BW Bridge uses additional capacity within SAP Datasphere, so it’s important to clarify pricing and licensing details early in your planning.

Main migration paths from SAP BW to Datasphere

BW Bridge isn't a single path to the cloud. SAP offers different ways to balance modernization with stability. According to SAP’s latest guidance, companies have three broad modernization paths:

• Stay & optimise – continue using BW/BW/4HANA while cleaning up, simplifying and reducing technical debt.

• Move & improve – upgrade to BW/4HANA or PCE to gain performance and modelling benefits.

• Transform & innovate – shift toward SAP Datasphere or equivalent cloud-native platforms for full modern data management

Practical migration approaches:

1. Federation-First (Quick Wins)
   This is the easiest way to start exploring the cloud. Instead of moving all your data right away, you simply connect your existing BW or S/4HANA views to SAP Datasphere. Your data stays where it is, but you can access it in real time through Datasphere for modern dashboards and analytics in the cloud. It's a great way to test integration, demonstrate value quickly, and build internal confidence before a full migration.

2. BW → BW/4HANA or PCE (Technical Modernization)
   If your company still uses a traditional BW system, switching to SAP BW/4HANA can be a practical way to modernize before moving to the cloud. This upgrade moves your data warehouse to the SAP HANA in-memory database, which makes your data faster, easier to understand, and better integrated with tools like SAP Analytics Cloud. It also keeps your system on-premise (or in a private cloud if you use PCE). Think of it as getting your system ready for the future. You'll stay in a familiar environment, but your technology will be updated to match SAP's modern standards. This will make the eventual move to SAP Datasphere easier and less disruptive.

3. BW → Datasphere via BW Bridge (Staged Cloud Migration)
   This is SAP's recommended way to manage large or customized BW systems. BW Bridge lets you bring your existing BW objects directly into the cloud. You don't have to rebuild everything from scratch. Your current data models continue to run while you gradually modernize some parts of your solution in Datasphere. This staged approach minimizes disruption, spreads costs over time, and allows your team to learn new tools safely.

4. Hybrid (Coexistence Model)
   Some organizations choose to run BW/4HANA or PCE and SAP Datasphere side by side. In this setup, core ETL processes and trusted data models stay in BW/4HANA/PCE, while Datasphere handles self-service analytics, external data sources, and cloud scalability. It's a flexible approach that combines the reliability of your current system with the agility of the cloud. This lets business and IT move at their own pace.

5. Rebuild Native (Greenfield in Datasphere)
   For organizations with small, outdated, or hard-to-maintain BW systems, starting fresh can be the most efficient choice. With this "greenfield" approach, you can rebuild your data models directly in SAP Datasphere. This allows you to take full advantage of its cloud-native features, modern data integration, and scalability. It takes more work at first, but it has the cleanest, most future-ready architecture in the long term.

A company can choose to stay on BW/4HANA on-premise, move to BW/4HANA Private Cloud Edition, or start with a staged BW Bridge migration. Later on, they will always have the option to advance to SAP Datasphere, regardless of their initial route choice. This is supported by tools like BW Bridge. Companies can change their private cloud subscriptions into public cloud subscriptions. This makes it easy to move to a fully cloud-native environment.

Practical steps for a controlled migration

Moving to Datasphere is not just a migration in the traditional BW sense. Instead, it is about making your data storage system more modern. This means changing how data is modeled, accessed, and integrated in a cloud-dased environment. If you want to successfully move to SAP Datasphere, you need to have a clear structure and discipline. Here's a simple step-by-step plan:

• Know your current BW landscape: Start by mapping your BW landscape. Find out which items are essential for the business and which are outdated or rarely used.

• Set clear priorities: Decide what needs to move first, what can wait, and what can be retired.

• Move in stages: Roll out your migration gradually, starting with lower-risk areas. This reduces disruption and builds confidence along the way.

• Start small: Pick one business area, like finance or sales, and test your chosen migration approach. Use it to learn how Datasphere fits into your existing ecosystem.

• Measure and adjust: Check data accuracy, performance, and user feedback. Apply those lessons before expanding to other domains.

• Prepare your team: Invest in training for both IT and business users as Datasphere changes how data is modeled, accessed, and governed.

• Optimize: Once new models are running smoothly, get rid of the old BW components to simplify maintenance and reduce costs.

Conclusion

Even if your current system is stable, it's worth taking the time now to plan your landscape, understand which reports and models are critical, and explore pilot projects or incremental approaches. Early planning doesn't mean rushing. It means having a clear picture of your options, understanding the risks, and creating a timeline that balances keeping things going with the slow adoption of cloud capabilities.

By thinking ahead, organizations can make sure that when the move to Datasphere comes, it is not a last-minute scramble under pressure. Instead, it will be a deliberate, informed step that protects existing investments and positions the business for flexible, modern analytics in the future.