SAP and Snowflake Partner to Power Enterprise AI with Business Data Fabric

SAP SE and Snowflake have teamed up to blend Snowflake’s AI Data Cloud with SAP’s Business Data Cloud (BDC). This partnership wants to build a unified business data fabric. It will improve enterprise AI and analytics.

What the News Covers?

According to the press release, SAP Snowflake: Solution Extension for SAP BDC will allow customers to use Snowflake’s platform directly as an extension of SAP’s data ecosystem-offering cloud-scale compute and storage, governance, zero-copy sharing, and integrated semantically rich data models. Key highlights include:

Zero-copy data sharing: lets you access data in SAP Business Data Cloud and Snowflake’s AI Data Cloud. You can do this without duplicating data. This simplifies data workflows and minimizes storage issues.

Unified business data fabric: It blends SAP application data-such as finance, procurement, HR, and supply chain—with non-SAP data. Connecting to Snowflake’s analytics and AI engine lets companies create smart apps more quickly.

Open choice and flexibility: Enterprises can choose Snowflake for compute/storage while retaining SAP’s trusted business-process context and governance. “Bringing Snowflake to SAP Business Data Cloud empowers our customers with openness and choice,” said Irfan Khan of SAP.

Scheduled availability: SAP Snowflake is slated for general availability in Q1 2026, and SAP BDC Connect for Snowflake in H1 2026.

Why It Matters for the Cloud Platform Industry

This partnership holds significant implications for the cloud platform industry at large:

1. Cloud Platforms Move Toward Data-First & AI-Native

Cloud platforms are evolving from simple infrastructure to intelligent ecosystems. By combining Snowflake’s data and AI capabilities with SAP’s process-rich business data, the solution reflects a shift toward platforms that are data-first and AI-native, rather than just compute-first.

2. Business Data Fabric Becomes a Strategic Differentiator

The concept of a “business data fabric” is emerging as a requirement for enterprises. By enabling seamless data flow, governance and intelligence across SAP and non-SAP systems, the partnership shows how cloud platforms must deliver more than raw compute-they must deliver context, integration and business value.

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3. Vendor Ecosystem & Platform Collaboration Deepen

Major cloud-platform players collaborate to co-build integrated stacks, owning no single layer. Cloud platform companies work together to create a unified experience. This helps customers mix and match the best services available.

4. Governance, Scale & Consumption Models Matter More

Features like zero-copy sharing, unified governance frameworks and cloud-scale compute show that platform-features such as data duplication avoidance, cost-efficiency, governance and consumption-based pricing are rising to the top of platform selection criteria.

Effects on Businesses Operating in Cloud Platforms

For businesses operating in or leveraging cloud platforms-spanning solution providers, ISVs, enterprise IT organisations-the announcement brings several operational and strategic consequences:

Operational Advantages

Faster time to insight: Unifying business data with high-scale compute cuts latency. This leads to quicker AI and analytics rollouts.

Reduced overhead & duplication: Zero-copy sharing and unified governance lower integration costs. There are fewer silos and less waste from duplicate datasets.

Choice & flexibility: Organizations using Snowflake, SAP, or both can integrate easily. They won’t need a full platform migration, making the transition smoother.

Strategic Benefits

Competitive Differentiation: Companies using integrated, AI-powered data fabrics can go beyond basic analytics. They can build AI apps, like smart agents and predictive workflows. This helps them stay ahead of their competitors.

Platform vendors need to change. Cloud providers will focus more on ecosystem integration, data-fabric features, and AI speed. They won’t just compete on raw infrastructure. Businesses must evaluate whether their platforms support these fabric-capabilities.

New business models for ISVs: Independent software vendors and system integrators can use this integrated fabric. They can create modular applications that access SAP process data and Snowflake’s AI/analytics engine. This opens up new revenue streams.

Challenges & Considerations

Data Maturity & Cleanliness: To support a unified data fabric, organizations must have clean, organized, and well-governed data. Many still face challenges with data silos and poor hygiene.

Change management and skills: Building AI-driven apps and overseeing federated governance need new skills. This includes data engineers, analytics experts, and MLOps. Organizational change is also necessary.

Cost and Consumption Risk: Cloud-scale compute and data-fabric services can quickly increase consumption. Businesses must closely monitor usage, cost models, and total cost of ownership (TCO).

Vendor dependency and integration risk: Organizations need to assess lock-in risks, even with promised interoperability. They should also consider how data transfers between platforms over time.

Looking Ahead

To take full advantage of this development, business and IT leaders should consider:

Audit your data landscape: Find key business data, both SAP and non-SAP. Check how well it is catalogued, governed, and usable. Connect this to your AI or analytics goals.

Plan for AI-driven application strategy: With a unified framework, define where AI or smart agents can add value. Focus on use cases like predictive supply chain, customer insights, and finance planning.

Check cloud-platform readiness: Ensure it supports data fabric features such as zero-copy sharing, hybrid access, and unified governance. Ensure vendor stacks meet enterprise needs.

Develop Data Governance & Lifecycle Capability: As data grows in importance, establish governance frameworks. Embrace data-product thinking and effectively manage the lifecycle of business data.

Develop data governance & lifecycle capability: Get ready for ecosystem integration. Partnerships like SAP and Snowflake highlight the benefits of ecosystems. Check your vendor stack. See how platforms and apps connect. Aim for open ecosystems instead of closed ones.

Conclusion

The partnership between SAP and Snowflake marks a big step in cloud platforms. It moves from separate data and computing to a smart, unified business data fabric. For businesses, this means faster insights, more flexibility, and a strong base for building AI-powered apps. Cloud platform vendors and ecosystem participants need to focus on a few key areas. Data fabric, governance, AI readiness, and open ecosystem integration are essential right now. Organizations that adapt well will thrive in the data-driven world.