SAP OData vs REST APIs: Which is Better for Integration?

Introduction

In the dynamic world of enterprise applications, integrating SAP systems with other platforms has become a necessity. With the surge of cloud solutions, mobile applications, and third-party tools, businesses must enable smooth data exchange across their ecosystems.

Two popular approaches often surface in SAP integration discussions:

• SAP OData Services
• REST APIs

While both serve the common purpose of data communication and integration, they are distinct in architecture, flexibility, scalability, and implementation complexity.

In this blog, we’ll explore:

• The fundamentals of SAP OData and REST APIs
• Their key differences
• Use cases
• Strengths and weaknesses
• Which option fits better for different SAP integration scenarios

Understanding SAP OData Services

What is OData?

OData (Open Data Protocol) is an open protocol initiated by Microsoft that allows the creation and consumption of queryable and interoperable RESTful APIs.

What are SAP OData Services?

• SAP OData Services provide a standardized way to expose SAP data and functionalities as RESTful services.
• Native to SAP NetWeaver Gateway, SAP S/4HANA, and SAP Cloud Platform Integration Suite.
• Automatically maps SAP data models (ABAP CDS Views, RFCs, BAPIs) to OData services.

Key Features:

• Supports CRUD (Create, Read, Update, Delete) operations via HTTP methods (GET, POST, PUT, DELETE).
• Deep integration with SAP authorization and security models.
• Data model exposure directly from SAP backend with minimal custom development.
• Supports metadata for automatic service discovery.

Understanding REST APIs

What are REST APIs?

• REST (Representational State Transfer) is an architectural style for building web services.
• REST APIs are widely used across industries, not limited to SAP.

Key Features:

• Language-agnostic and platform-independent.
• Operates over standard HTTP methods.
• Supports JSON, XML, or any media type.
• Flexible design — allows highly customized APIs.
• Lightweight and efficient for modern web/mobile apps.

REST in SAP Context:

• REST APIs can be custom-built in SAP using SAP Gateway, SAP Business Technology Platform (BTP), or third-party middleware.
• SAP BTP also supports RESTful ABAP programming (RAP).

Technical Comparison

Ideal Scenarios:

1. SAP Fiori Apps Development

   • SAP Fiori relies heavily on OData services for UI5 apps.

2. Quick SAP-to-SAP Integrations

   • Seamless integration with SAP S/4HANA, ECC, BW.

3. Internal SAP Data Exposures

   • Rapidly expose SAP tables, CDS views, BAPIs.

4. Low-Code Development

   • Business users can expose data with minimal development.

5. SAP Business Suite Extensions

   • Extending SAP standard apps with minimal risk.

Limitations:

• Less flexible for non-SAP consumers.
• May require additional layers for complex integrations.

Use Cases for REST APIs

Ideal Scenarios:

1. Cross-Platform Integrations

   • Integrating SAP with third-party platforms like Salesforce, ServiceNow, AWS, etc.

2. Mobile Application Development

   • Lightweight, responsive APIs for mobile consumption.

3. Custom Business Logic

   • Build highly customized data flows and business processes.

4. Microservices Architecture

   • Create stateless, loosely coupled services for modern cloud environments.

5. IoT and AI Integrations

   • Efficient for handling massive volumes of data exchanges.

Limitations:

• Requires more development effort in SAP context.
• Governance and version control must be well-planned.

Security & Performance Considerations

Security

SAP OData Services:

• Tight integration with SAP authorization roles.
• Supports OAuth 2.0, SAML, and SAP Identity Provider.

REST APIs:

• Flexible — OAuth 2.0, JWT, API gateways, custom token strategies.

Performance

SAP OData Services:

• Optimized for SAP data structures.
• Supports paging, filtering, and server-side query optimizations.

REST APIs:

• Performance depends on developer design.
• Can implement caching, load balancing, and parallel processing.

Developer Experience

1. Define CDS view or RFC
2. Generate OData service in SEGW
3. Activate service
4. Consume in Fiori/UI5 app

REST API Development Flow

1. Design API contract (OpenAPI)
2. Develop using BTP, Java, Node.js
3. Secure and deploy on API Gateway
4. Consume via any HTTP client

Future Trends

SAP’s Direction:

• SAP is heavily investing in both OData (Fiori, S/4HANA) and RESTful ABAP Programming Model (RAP).
• Cloud-first applications favor REST APIs for broader integrations.
• SAP BTP promotes multi-cloud, open integration patterns using REST APIs.
• OData remains critical for Fiori UI5-based applications.

Market Trends:

There’s no one-size-fits-all answer.

Evaluate your current SAP landscape, skill set, and integration needs.

Often, a hybrid approach works best:

Use OData for SAP-centric apps.

Use REST APIs for external, cross-platform, and advanced business integrations.