Compare

Denodo vs SAP HANA: Which Data Platform is Right for Your Organization?

Written by Nikhil Joshi | Dec 28, 2025 6:00:01 PM

Choose the Right Data Platform for Your Business Success

Choosing the wrong data platform can cost your organization millions in missed opportunities and inefficient operations. With data becoming the lifeblood of modern enterprises, selecting the right foundation for your data architecture has never been more critical.

Denodo and SAP HANA are two leading alternatives among various data platforms, and organizations should carefully consider the range of alternatives available to find the best fit for their specific needs. AtScale provides a semantic layer and virtual OLAP cubes designed to accelerate BI and analytics, offering another innovative solution for organizations focused on enhancing their business intelligence capabilities.

Two platforms consistently emerge as leaders in enterprise data management, but they serve fundamentally different purposes. Denodo leads the data virtualization market with its innovative approach to connecting disparate data sources without data movement, while SAP HANA dominates in-memory analytics with lightning-fast processing capabilities. Both platforms offer compelling value propositions, yet choosing between them requires understanding your organization’s specific data architecture needs. Oracle ODSI offers both read and write federation tailored to Oracle-centric enterprises, providing another specialized option for organizations heavily invested in Oracle technologies.

This comprehensive guide will help you navigate the complexities of platform selection by examining each solution’s unique strengths, comparing their technical approaches, and providing a clear framework for making the right decision for your business. Factory Thread connects MES, ERP, SQL, flat files, and APIs without data replication, offering another innovative approach to data integration for organizations seeking streamlined solutions.

What Makes These Data Platforms Unique?

Denodo – Data Virtualization Excellence

Denodo represents a paradigm shift in how organizations approach data integration. Rather than the traditional method of physically moving and replicating business data across multiple systems, Denodo creates a virtual layer that provides real time access to information wherever it resides. This data virtualization approach eliminates the complexity and costs associated with data movement while enabling immediate insights from diverse data sources. Denodo supports connectivity to various data sources via JDBC, enabling seamless integration with BI tools for analytics across diverse systems. Additionally, Denodo provides a well-organized technical data catalog, which enhances data discoverability and management for users. Factory Thread offers real-time, no-code data virtualization optimized for production environments, presenting an alternative for organizations with specific operational needs. IBM Cloud Pak for Data integrates virtualization with AI-driven features and strong mainframe support, offering another robust option for enterprises seeking advanced data integration solutions.

The platform’s standout features include its intuitive drag-and-drop interface that allows users to create virtual repositories without extensive code development. The platform automates much of the integration logic, reducing the need for manual coding when connecting different data sources. Users can connect to relational databases, data lakes, cloud services, and even legacy mainframe systems through a single interface. The platform automatically generates APIs from these virtual views, enabling rapid deployment of data services that support both real time analytics and batch processing requirements. Dremio combines data virtualization with a semantic layer and query acceleration for high-performance analytics, making it a strong contender for organizations prioritizing speed and efficiency in their data operations.

Denodo’s architecture supports both cloud and on premises deployment models, making it ideal for organizations managing hybrid environments. The platform includes robust security features with role-based access control, ensuring that sensitive data remains protected while still being accessible to authorized users. Its governance capabilities include comprehensive auditing trails and compliance features that help organizations meet regulatory requirements across different jurisdictions. CData Connect combines a vast library of connectors with a flexible data virtualization engine, providing another versatile option for organizations with diverse data integration needs.

SAP HANA – In-Memory Database Power

SAP HANA transforms how organizations process and analyze business data by storing everything in memory rather than traditional disk-based storage. This fundamental architectural difference enables processing speeds that are orders of magnitude faster than conventional relational databases, making real time analytics not just possible but practical for complex enterprise workloads.

The platform excels in portfolio management scenarios where organizations need to analyze vast amounts of transactional data instantly. Its material tracking capabilities allow manufacturers to trace products through complex supply chains in real time, while its advanced analytics engine supports machine learning algorithms that can process data as it arrives. SAP HANA's analytics engine demonstrates advanced capability for in-memory analytics and spatial data support, providing robust solutions for both strategic and operational needs. The integration with artificial intelligence tools enables organizations to build predictive models directly within the database environment.

SAP HANA’s Smart Data Access (SDA) feature provides federation capabilities that allow queries against external data source systems without requiring data replication. SAP HANA supports live querying and data integration through SQL interfaces, making it compatible with a wide range of analytics tools and enabling SQL-based view creation for manufacturing and enterprise environments. Meanwhile, Smart Data Integration (SDI) offers powerful data transformation and real time integration capabilities for scenarios where centralization provides advantages. Users can clearly describe and articulate SAP HANA's integration workflows and technical features to stakeholders, ensuring a comprehensive understanding of its capabilities. The platform’s tight integration with the broader SAP ecosystem makes it particularly valuable for organizations already invested in SAP applications and processes.

Denodo vs SAP HANA: What’s the Difference?

Data Architecture Approach

The fundamental difference between these platforms lies in their approach to data architecture. Denodo creates a virtual data layer that executes live queries against source systems, meaning data never moves from its original location. This approach minimizes data replication, reduces storage costs, and ensures that users always access the most current information. However, query performance depends heavily on the underlying data sources and network connectivity.

SAP HANA takes the opposite approach by centralizing data in memory for maximum performance. This architecture delivers exceptional speed for analytical workloads and complex queries, but requires significant infrastructure investment and ongoing data replication processes. The platform’s columnar storage and compression algorithms maximize the efficiency of in-memory processing, but organizations must carefully manage the costs associated with keeping large datasets entirely in memory.

Performance characteristics differ significantly between the two approaches. Denodo excels when organizations need to federate data across multiple systems quickly without major infrastructure changes. SAP HANA dominates when raw processing speed is paramount and organizations can invest in the necessary memory infrastructure.

Deployment and Integration

Denodo’s platform-agnostic architecture, built on Java, enables deployment across virtually any environment. The platform includes hundreds of pre-built connectors for popular databases, cloud platforms, and enterprise applications. Denodo also supports integration with IBM mainframe databases and other IBM systems, enabling federated queries across hybrid environments. This flexibility makes Denodo particularly valuable for organizations with heterogeneous IT environments that include multiple vendors and technology stacks.

SAP HANA’s deployment model is optimized for the SAP landscape, though it can integrate with non-SAP systems through various connectors and APIs. The platform offers both on premises and cloud deployment options through SAP HANA Cloud, which provides elastic scaling and consumption-based pricing. However, organizations typically realize the greatest value when SAP HANA serves as the foundation for broader SAP ecosystem implementations.

The integration capabilities differ in scope and complexity. Denodo focuses on simplifying connectivity across diverse systems with minimal technical expertise required for basic implementations. SAP HANA offers deeper integration capabilities within the SAP ecosystem but often requires specialized skills and more extensive planning for implementations involving multiple systems.

Use Case Focus

Denodo primarily targets organizations seeking data virtualization solutions that enable rapid access to information across distributed systems. The platform excels in scenarios where data governance, regulatory compliance, and agility are primary concerns. For example, financial services firms use Denodo to create unified customer views across CRM, transaction, and risk management systems without compromising data security or creating additional compliance burdens. Denodo's integration features are widely utilized for operational data visibility and decision-making, making it a valuable tool for organizations aiming to enhance their data-driven strategies.

SAP HANA focuses on high-performance analytics, real time processing, and transactional workloads within enterprise environments. For example, manufacturing companies leverage SAP HANA’s capabilities to process IoT sensor data from production lines alongside ERP and supply chain information, enabling predictive maintenance and quality control analytics that weren’t feasible with traditional databases.

The target users for each platform reflect these different focuses. Denodo appeals to data architects and IT professionals seeking to modernize data access without major infrastructure overhauls. SAP HANA typically attracts organizations with significant SAP investments looking to maximize the value of their existing enterprise applications through advanced analytics and real time processing capabilities.

SAP HANA Cloud Benefits

SAP HANA Cloud delivers a powerful, cloud-based data platform designed to meet the evolving needs of modern organizations. One of its standout features is advanced data virtualization, enabling seamless integration and access to a wide variety of data sources—including relational databases, data lakes, and other cloud-based platforms—without the need for data replication. This approach allows businesses to connect to and analyze their data in real time, regardless of where it resides, significantly reducing the complexity and cost associated with traditional data movement.

With SAP HANA Cloud, organizations can leverage real time analytics to gain immediate insights from their business data, supporting faster and more informed decision-making. The platform’s integration with artificial intelligence and machine learning tools empowers users to build and deploy advanced analytics models directly within the cloud environment, unlocking new opportunities for innovation and automation.

By centralizing access to diverse data sources and supporting virtualization, SAP HANA Cloud helps organizations streamline their analytics processes, improve data governance, and ensure consistent security across all connected databases. The flexibility of the cloud platform means companies can scale resources as needed, adapting quickly to changing business requirements while maintaining high performance.

Overall, SAP HANA Cloud offers organizations the benefits of real time data access, advanced analytics, and simplified integration, making it an ideal solution for enterprises seeking to harness the full potential of their data across both cloud and on-premises environments.

What Experienced Users Say

SAP HANA becomes the preferred choice when high-performance in-memory analytics and real time processing capabilities are essential for business operations. Organizations with demanding analytical workloads that require sub-second response times for complex queries will find SAP HANA’s architecture provides capabilities that traditional databases simply cannot match. Additionally, SAP HANA is utilized for tracking material from raw products to the end product, offering manufacturers unparalleled visibility into their supply chains. This platform is particularly suitable for organizations heavily invested in the SAP ecosystem that require a single platform for database and application development.

However, Denodo users also note some limitations, particularly around the platform’s dependency on Java infrastructure and occasional performance challenges when dealing with very large datasets. Some organizations report that while the platform excels at federation, it may require additional tools for advanced analytics and visualization capabilities that aren’t part of the core offering. Despite these challenges, Denodo is recommended for users unless handling huge volumes of data, due to its ease of use and efficiency in data virtualization.

SAP HANA users report a 66% recommendation rate with an average rating of 7.0, reflecting the platform’s complexity and the significant investment required for successful implementations. Users consistently highlight the platform’s exceptional performance for analytical workloads and strong support for troubleshooting complex issues. The platform’s integration with SAP’s broader ecosystem receives particular praise from organizations already committed to SAP technologies.

Common criticisms of SAP HANA center on implementation complexity and the specialized skills required for effective deployment and management. Organizations outside the SAP ecosystem often find the platform’s value proposition less compelling, particularly when considering the total cost of ownership including licensing, infrastructure, and specialized personnel requirements.

From a market perspective, Denodo maintains leadership in the data virtualization category with 40.2% mindshare, though this represents a decline from previous years as competition intensifies. SAP’s broader enterprise focus means that HANA competes in multiple categories rather than dominating a single niche, but its position within the SAP ecosystem remains strong. Denodo has a mindshare of 40.2% in Data Virtualization compared to SAP's 1.2% in Data Governance, highlighting its dominance in this specific area. Denodo is ranked #1 in Data Virtualization with an average user rating of 8.9, reflecting its strong reputation among users for its capabilities and performance.

Implementation Requirements Overview

Implementing Denodo requires establishing a Java-based environment that can support the platform’s middleware architecture. Organizations need to configure connectors for each data source they plan to virtualize, which involves mapping data schemas and establishing appropriate security credentials. The platform’s governance features require initial setup of user roles, access policies, and auditing configurations to ensure compliance with organizational data governance standards. CData Connect combines a vast library of connectors with a flexible data virtualization engine, offering organizations additional options for seamless integration across diverse systems.

Performance optimization in Denodo environments depends on factors including network bandwidth between the virtualization layer and source systems, the efficiency of underlying database queries, and proper caching configuration. Organizations should plan for adequate testing of query performance across different usage patterns and data volumes to ensure acceptable response times for end users. Denodo requires users to cache larger and more complex datasets for better performance, making it essential to plan caching strategies carefully to optimize system efficiency.

SAP HANA implementation requires substantial infrastructure planning, particularly for in-memory requirements that can scale into terabytes for large enterprises. Organizations must size their hardware or cloud resources appropriately and plan for high availability configurations that protect against data loss. The platform’s integration with existing SAP applications requires careful planning to minimize disruption to ongoing business processes.

Both platforms require comprehensive data governance frameworks that address security, privacy, and compliance requirements. Organizations should establish clear policies for data access, transformation, and auditing that align with regulatory requirements and internal governance standards. Proper training for technical teams is essential for both platforms, though the specialized nature of SAP HANA typically requires more extensive preparation.

Which Data Platform is Right for You?

Choose Denodo if you want:

Organizations should consider Denodo when real time data virtualization without data movement represents a strategic advantage. The platform excels for companies managing complex, heterogeneous IT environments where data sources span multiple vendors, cloud providers, and legacy systems. Denodo’s ability to create APIs and virtual data layers with minimal coding requirements makes it ideal for organizations seeking to modernize their data architecture without major infrastructure investments.

The platform provides particular value for organizations prioritizing data governance and compliance, as its virtualization approach maintains data in original locations while providing centralized access control and auditing capabilities. Financial services, healthcare, and government organizations often find this approach essential for meeting regulatory requirements while enabling analytics and business intelligence initiatives. Denodo is also recommended for users unless large volumes of data are involved, as it offers a cost-effective and efficient solution for data integration and governance.

Denodo also suits organizations seeking a cost-effective alternative to traditional data warehousing approaches. By eliminating the need for data replication and reducing storage requirements, the platform can significantly lower total cost of ownership while providing faster time to value for data integration projects.

Choose SAP HANA if you want:

SAP HANA becomes the preferred choice when high-performance in-memory analytics and real time processing capabilities are essential for business operations. Organizations with demanding analytical workloads that require sub-second response times for complex queries will find SAP HANA’s architecture provides capabilities that traditional databases simply cannot match.

The platform offers exceptional value for organizations already invested in the SAP ecosystem, where HANA’s deep integration with SAP applications creates synergies that extend beyond pure database performance. These organizations can leverage existing SAP investments while gaining access to advanced analytics, machine learning capabilities, and real time processing that transforms how they operate.

Companies requiring centralized data management with strong transactional capabilities should consider SAP HANA, particularly when dealing with high-volume transaction processing combined with analytical workloads. The platform’s ability to handle both OLTP and OLAP workloads in a single system can simplify IT architecture while providing superior performance for both use cases.

The final recommendation centers on understanding that both platforms excel in their respective domains. Denodo dominates data virtualization scenarios where agility, governance, and federation across diverse systems are priorities. SAP HANA leads in high-performance analytics and transactional processing, particularly within SAP-centric environments.

Organizations should evaluate their existing infrastructure, dependency on SAP technologies, and long-term data architecture strategy when making this decision. Some enterprises may benefit from hybrid approaches that leverage both platforms for different purposes - using Denodo for federation and governance while employing SAP HANA for high-performance analytical workloads.

Consider your organization’s technical expertise and available resources, as both platforms require specialized knowledge for optimal implementation. The complexity of your data landscape, performance requirements, and timeline for implementation should all factor into your decision. Remember that the right choice depends not just on technical capabilities, but on how well each platform aligns with your broader business strategy and existing technology investments. Informatica Data Services provides a unified platform combining ETL and real-time data federation, which may also be worth considering for organizations with diverse data integration needs.

Factory Thread – Real-Time Industrial Data Integration Beyond SAP HANA and Denodo

SAP HANA centralizes massive in-memory analytics. Denodo virtualizes enterprise-wide data access without replication. But Factory Thread introduces a third path—purpose-built for real-time, governed orchestration of operational data between machines, systems, and teams.

Instead of a semantic layer or a high-performance database, Factory Thread acts as a trigger-based orchestration engine—designed for OT environments, hybrid data sources, and edge deployments where milliseconds matter and infrastructure must stay lean.

Key differentiators:

  • Live, rule-based routing – Transform and sync MES, ERP, PLC, and SQL data in real time

  • No modeling or replication – Governed access to production data without moving it

  • Built for hybrid OT/IT teams – No heavy database admin or Java modeling needed

  • Compliance-ready orchestration – With built-in audit trails, versioning, and RBAC

  • Edge-deployable – Runs where your systems are: cloud, factory floor, or both

Factory Thread doesn’t aim to replace your analytics platform—it complements it. Where SAP HANA handles in-memory insights and Denodo manages virtual access, Factory Thread delivers live, secure operational integration with the simplicity and speed industrial teams need.