I am also not sure if it would be possible to still run BCS 4.0 with BI 7.0.
Regarding SAPs official statement (SEM-BCS 6.0 bases on BI 7.0) I would trend to upgrade on the one hand BW 3.5 to BI 7.0 and otherwise SEM 4-0 to SEM 6.0.
IMHO, what SEM-BCS 4.0 needs from the SAP/BW systems is the infoobjects/cubes/ODS objects (I believe that they are the same in 3.5 and 7.0). BEx frontend works with both versions.
Just use the proper FINBASIS. Looks to me that that's enough for compatibility.
We asked that specific question to SAP when planning the BI upgrade and they made it clear that if there is a shared instance for SEM & BW, then you must upgrade both.
If there is a separate instance for each, then the separate BI instance may be upgraded and the BCS data may be transferred to the upgraded BI for reporting.
By shared instance I mean that the BW and SEM are not on separate systems.
The term "instance" is one that I've heard used a lot over the years working with SAP. I am not a BASIS expert and they would certainly provide a better technical explanation, but as I understand it a single instance is one system - ECC and R/3 may have multiple clients in a single instance.
Separate instances would therefore be separate, independent systems where one BW system resides in one instance and SEM/BW resides in another, separate instance.
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