When an SAP Analytics Cloud (SAC) model utilizes a live connection, the data is not stored within SAP Analytics Cloud itself. Instead, the data resides entirely in the source system. This means that SAC directly queries the data from the connected system (e.g., SAP HANA, SAP BW, SAP S/4HANA, or SAP Datasphere) in real-time every time a user interacts with the story or application. Only metadata, such as dimension definitions and measure aggregations, is stored in SAC. This approach offers several significant advantages: it ensures that users always work with the most current data, eliminates the need for data replication, and often addresses data privacy and security concerns by keeping sensitive data within the customer's secure landscape. The "live" nature means that any changes in the source system are immediately reflected in SAC.