It is essential to understand the technical architecture of side-by-side extensions and how they exchange data with SAP Sales and Service Cloud Version 2 because these extensions operate in a separate environment. The image below illustrates the overall architecture used in this training.

Developers access SAP Build Apps, running as a subscription service on SAP BTP, to develop the extension app. In the easiest case, the finished app is deployed to and runs in an HTML5 Repository on the same subaccount. Both, SAP Build Apps and the extension app use the Destination service of SAP BTP to access data of the connected solution via APIs (Application Programming Interfaces). This e-learning connects SAP Sales and Service Cloud Version 2 using REST services, but the approach would be the same for other cloud solutions, such as SAP S/4HANA Cloud.
While the extension app communicates with the cloud solution via APIs to exchange data, the front-end of the app will be displayed embedded into the screen of the cloud solution using a mashup, which results in an iFrame element. Using this approach, end users can use the app seamlessly within SAP Sales and Service Cloud Version 2 without needing to switch platforms.
Since the extension app runs on a different platform, end users need to log in to the app in addition to logging in to SAP Sales and Service Cloud Version 2. This can be streamlined using Single Sign-On (SSO). In our case, I'll use SAP Identity Services as the Identity Provider (IdP) for both, the cloud solution and the extension app.
Using the same IdP to access both, the extension app and SAP Sales and Service Cloud Version 2 is an essential aspect of the integration architecture as this ensures a common user base and access permissions across the landscape. The section "Destination Authentication" later in this lesson, explains that in more detail.