The SAP sales team called. Or the marketing email landed in the inbox again. The message is almost always the same: SAP Analytics Cloud is the future of planning, TM1 is a thing of the past. Those who have been budgeting, forecasting, and consolidating with IBM Planning Analytics (TM1) for years are currently hearing this statement more often and are rightly asking themselves: Do I really have to switch now?
The short answer: No, not automatically. SAP Analytics Cloud (SAC) is a cloud-native planning and analytics platform from the SAP portfolio. TM1 is the established planning engine on which many controlling teams have built their budgeting, forecasting, and consolidation processes for years. Both systems can coexist if the data connection is correct. This is exactly where SAP Datasphere comes into play: as a neutral data hub between TM1 and the SAP world, including SAC, SAP BW/4HANA, and S/4HANA.
Clarify your setup now
Whether connecting to SAP Datasphere is the right path for your TM1 setup is something we’ll clarify in a free initial consultation – an honest assessment, with no sales pressure.
Why is SAP currently pushing for the switch to SAP Analytics Cloud?
SAP is increasingly aligning its portfolio with cloud-native solutions. SAP Analytics Cloud, S/4HANA Cloud, and SAP BW/4HANA are among the products that are currently being most strongly positioned in sales. For sales teams, it makes sense to propose SAC as a unified planning tool for the entire SAP landscape, even to customers who are satisfied and productive with TM1.
This creates uncertainty, but it is not a technical necessity. A change of the planning system is not a side effect of an S/4HANA migration. TM1 operates independently of the SAP core landscape and can be connected to it through an appropriate data interface, rather than replacing it.
For companies that are completely new to the SAP planning world or want to closely integrate their planning with S/4HANA Cloud, SAC can be a sensible choice. For teams with established TM1 processes, mature planning models, and internal know-how, the calculation looks different: Here, investment protection is the main concern.
What fundamentally distinguishes TM1 and SAP Analytics Cloud?
Both systems solve similar tasks, but from different starting positions. The following overview shows what really matters for existing planning teams.
The view of the table shows: The decision between TM1 and SAP Analytics Cloud is rarely purely technical. It is a matter of change effort, established processes, and investment protection. Whoever overlooks these factors significantly underestimates the effort required for a change.
How can TM1 be meaningfully integrated into the SAP world?
Instead of replacing TM1, the existing planning landscape can be connected to the SAP world via SAP Datasphere. SAP Datasphere acts as a data hub, a central, consistent data source that multiple systems can access simultaneously, rather than as its own planning application. The connection is bidirectional: TM1 loads master and transaction data from Datasphere and writes the planning results back. For most companies, this automated backwriting is the greatest benefit of the entire integration. TM1 itself remains technically unchanged.
In practice, this proceeds in the following steps:
- Current Analysis: What data flows currently exist between TM1 and the SAP source systems, such as S/4HANA or SAP BW/4HANA?
- Target architecture: Design a concept for SAP Datasphere – with separate areas for incoming raw data from SAP source systems, for processing, and for shared access, allowing both TM1 and SAC to access the data equally.
- Technical breakthrough: First data exchange tested technically via the SAP Integration Suite – TM1 automatically loads master and transactional data from Datasphere and writes planning results back.
- Implementing & Testing: Import and export logic will be implemented and tested.
- Go-Live: Handover to productive operation. TM1 remains technically unchanged, no reprogramming of the planning logic, no migration of the existing models.
That this model works in practice is demonstrated by many of our productive projects: TM1 remains the leading planning engine, SAP Datasphere takes on the role of the data hub for the rest of the SAP landscape.
Why BI2run is the right partner for connecting TM1 to SAP Datasphere
At BI2run, we have been dealing with IBM Planning Analytics for years and know what a mature TM1 system means for a company: established processes, individual expertise, often years of optimized planning models. Therefore, our first consideration is not which system has the more modern logo, but which solution truly works for your specific case.
If the initial conversation reveals that a connection via SAP Datasphere is sufficient and you can continue operating TM1 unchanged, we will say exactly that. If a switch to SAP Analytics Cloud would actually be more sensible in your case, we will also say that.
- TM1 loads master and transactional data from SAP Datasphere and writes planning results back bidirectionally.
- SAP Datasphere acts as a central data hub with separate areas for incoming, processed, and provisioned data – not as a planning application in its own right.
- The connection runs via the SAP Integration Suite, SAP’s standard toolkit for automated data exchange between systems.
- Under this architecture, TM1 remains technically unchanged, and no migration of the planning logic is required.
- The technical proof of concept, together with an as-is analysis and target architecture, can be scoped as a starter package at a fixed price of €9,900.
Glossary: The most important terms explained briefly
Frequently Asked Questions about TM1 and SAP Analytics Cloud
Do I have to replace TM1 with SAP Analytics Cloud when my company migrates to S/4HANA?
No, not necessarily. An S/4HANA migration primarily affects the operational ERP level. The planning can continue to be operated independently with TM1, provided that the data connection between TM1 and the SAP world via SAP Datasphere is set up correctly.
How does the technical integration of TM1 with SAP Datasphere work?
The connection works automatically in both directions via the SAP Integration Suite. TM1 loads master and transaction data from Datasphere and writes the planning results back. Datasphere takes on the role of the central data hub.
Will TM1 remain technically unchanged when connecting to SAP Datasphere?
Yes. The existing planning logic, the models, and the interface will remain intact. There is no migration of the TM1 application; only the data flows to the SAP world are restructured via Datasphere.
For whom is the switch to SAP Analytics Cloud still worthwhile?
For companies that do not yet have an established planning system in place or want to closely integrate their planning with S/4HANA Cloud, SAC can be a suitable choice. On the other hand, those who already operate established processes and matured models with TM1 should weigh the investment protection against the change effort of a migration.
Which companies are already using TM1 and SAP Datasphere together in production?
The integration of TM1 with SAP Datasphere can be used in productive operations. This shows: TM1 and the SAP world do not have to be contradictory.
What does the effort for connecting TM1 to SAP Datasphere depend on?
The effort primarily depends on the number and complexity of the existing data flows between TM1 and the SAP source systems, as well as on how many data areas need to be set up in Datasphere. Current analysis, target architecture, and the technical implementation can be implemented as a starter package for a fixed price of €9,900. A reliable assessment for the full implementation is always provided by an individual inventory during a personal meeting.
