Discovering the AI & Data Foundation with SAP HANA Cloud

Objectives

After completing this lesson, you will be able to:
  • Discover the value of SAP HANA Cloud.
  • Describe other SAP BTP database services.

SAP HANA Cloud

Data as the Foundation for AI

AI and DATA Foundation

In the age of artificial intelligence, data is more critical than ever. However, enterprise data is often fragmented across systems, stored in different formats, and lacks semantic business context. This makes it difficult for AI solutions to deliver accurate, relevant, and trustworthy results. SAP Business Technology Platform addresses this challenge by providing an Data & AI Foundation that connects data, AI capabilities, and applications in a governed way.A critical part of this foundation is SAP HANA Cloud. It acts as the central data platform that connects business data with AI use cases, intelligent applications, and autonomous agents.

What is SAP HANA Cloud?

SAP HANA Cloud is a fully managed in-memory multi-tier cloud database as a service (DBaaS). As the cloud-based data foundation for SAP Business Technology Platform, SAP HANA Cloud integrates data from across the enterprise, enabling faster decisions based on live data. SAP HANA Cloud is one of the four pillars of SAP Business Technology Platform and provides the data services to handle constantly growing data volumes in a central place.

SAP HANA Cloud Value Proposition

Visualization of the SAP HANA Cloud Value Proposition.
Multi-Service Database

Combining the known SAP HANA qualities like in-memory, multi-model, hybrid transaction, and analytics processing in real-time with high volume and extreme transactionally focused services.

Data On Demand

All data, regardless of size, category, and complexity, available to you whenever you need it.

Easy Integration

A unified access layer to simplify data processing while consolidating and harmonizing data integration to your intelligent applications.

Power Of The Cloud

Cloud qualities like low TCO, elasticity, serverless principles, high availability, resilience, and autonomous behavior.

Streamlined Access

Simplified data-access, which connects all your information without demanding that all data be loaded into a single storage solution.

Developer Experience

SAP HANA Cloud provides an integrated development environment in which the developer can develop and model custom applications.

Use Cases for SAP HANA Cloud

SAP HANA Cloud is central to SAP's strategy of providing a next-generation digital platform that can power both existing and new applications, either on-premise or cloud or hybrid. These applications can be either SAP or non-SAP applications. SAP HANA Cloud can be used in a large number of different IT scenarios. Let's take a look at some examples of where SAP HANA Cloud can be used:

  • To provide the database for next generation applications that require super-fast performance on huge data volumes at scale.
  • To extend the data storage and processing capacities of on-premise applications, for example, when large numbers of new users are on-boarded.
  • To extend the functionality of existing SAP applications using cloud-based services.

SAP HANA Cloud Modeling

Pushing Down Data Processing to Data Base

Traditional databases provided storage capabilities and offered limited (if any) data processing capabilities. This means that applications would read raw data from the database and, using application code such as ABAP or JAVA, develop complex data processing code to run on the application server.

SAP HANA Cloud database provides sophisticated, multitier data storage and, also, advanced data processing capabilities so that instead of an application requesting raw data from the database, it can request information. Data processing is now pushed down from the application layer to the in-memory database of SAP HANA Cloud. This means, not only is data processing faster, applications are leaner as they do not have to handle data processing logic. Leaner applications means more agility.

Advanced Multi-Models with SAP HANA Cloud

Advanced Multi-Models with SAP HANA Cloud

Calculation views are defined on top of tables to provide the data processing layer. Calculation views are usually stacked so that the lower calculation views provide opportunities for reuse by defining only the basic data layer. On top of those are more calculation views that add further calculations and semantics until they are ready for consumption by clients. Calculation views do not persist data but calculate results on-the-fly based on live data in source tables. Source tables can be local tables in SAP HANA Cloud database or remote tables in any database.

SAP HANA Cloud includes advanced data processing engines that combine with calculation views to natively store and process spatial, graph, hierarchy, and predictive data:

Predictive

Develop predictive models using in-built algorithms including machine learning.

Graph

Store and query highly networked data models such as supply chains or online communities (for example, LinkedIn contacts).

Hierarchy

Query hierarchies to extract valuable semantics such as ancestors, dependents, distance between nodes, or siblings.

Spatial

Store and query geometric data to add spatial information to analytics such as mapping.

With SAP HANA Cloud, you can combine any type of data: text, geometries, IoT data, and so on, to create multi-models that power high-performance, advanced analytics.

Learn More

Learn more about modeling in SAP HANA Cloud in our learning journey.

Building on its core database capabilities like in-memory processing, multi-model support, and pushed-down data processing, SAP HANA Cloud plays a critical role in enabling AI-driven scenarios.

SAP HANA Cloud in the AI & Data Foundation Context

Explaining Why SAP HANA Cloud Is the Database for AI

Hana Cloud as Database AI

Modern AI scenarios require more than raw data to provide value in an enterprise context. To be effective, AI applications need semantic business context, unified access to different data types, scalable processing, and trusted governance. SAP HANA Cloud is designed to meet these requirements by acting as a single grounding layer for AI applications and agents.

Processing Different Types of Data in One System

The core strength of SAP HANA Cloud lies in its powerful multi-model engine. Transactional, analytical, spatial, graph, and text data can be combined with native vector capabilities in one database. This integration is especially important for generative AI scenarios where text data must be processed directly in the database to create embeddings that capture semantic meaning.

By executing similarity searches alongside SQL and graph queries, developers can significantly simplify AI workflows. Instead of managing multiple databases and complex data pipelines, they connect to a single service that supports everything from standard SQL to SPARQL and vector search, reducing overall architectural complexity.

Powering Data Analysis with Specialized Agents

SAP HANA Cloud increasingly supports AI-driven interactions through specialized database agents. These agents assist with specific tasks such as discovering relevant data artifacts, understanding complex data relationships, and supporting administrative operations. To ensure accuracy, AI scenarios are grounded on a solid foundation represented by an automatically generated knowledge graph built on custom enterprise data. This ensures that agents operate with the correct context and a deep understanding of the specific business domain.

Bringing AI Directly to the Data with MCP

To make data even more accessible to AI agents and large language models, SAP HANA Cloud supports the Model Context Protocol (MCP). This protocol allows Joule agents, custom agents, and AI models to access the rich multi-model engines of SAP HANA Cloud directly. The support for MCP enables the autonomous orchestration of tasks across the entire data ecosystem. This integration ensures that while AI agents perform complex tasks, enterprise governance and security standards are maintained at all times.

Maintaining Intelligent Conversation Context

For AI agents to deliver real value, they must maintain context across multiple interactions. SAP HANA Cloud provides persistent, long-term memory for AI agents, often referred to as agentic memory. This capability enables agents to remember important facts from previous interactions and maintain context across long-running conversations. As a result, agents can continuously improve their reasoning and decision-making processes. This leads to a more personalized and consistent user experience, where agents learn over time and act with greater precision based on historical data.

Summary

In conclusion, SAP HANA Cloud serves as the AI-native data foundation of SAP BTP, effectively connecting enterprise data with intelligent applications and agents. By utilizing its integrated multi-model engine, the platform simplifies technical architectures by processing vector, graph, and transactional data within a single system. Furthermore, the support for the Model Context Protocol enables AI agents to interact directly with the database engines, while agentic memory provides the necessary long-term context. This foundation allows agents to continuously improve their reasoning and deliver a more precise, personalized user experience over time.

Key Takeaways Of This Lesson

SAP HANA Cloud is a fully managed in-memory multi-tier cloud database as a service (DBaaS). It’s providing a next-generation digital platform that can power both existing and new applications, either on-premise or cloud or hybrid. On top of that, SAP Business Technology Platform includes data storing capabilities such as Object Store, Redis, hyperscaler option, or PostgreSQL Service.