Microsoft has agreed to deploy SAP S/4HANA on Azure for its own internal financial management needs, a move that will help the company move on from its legacy SAP finance applications. The companies have been working to get SAP's software and services running on Azure for several years.
"Building on our longtime partnership, Microsoft and SAP are harnessing each other's products to not only power our own organizations, but to empower our enterprise customers to run their most mission-critical applications and workloads with SAP S/4HANA on Azure", commented Satya Nadella, CEO of Microsoft, in a November 27 announcement.
"Microsoft benefits because it adds more legitimacy to its cloud operations". According to research firm Gartner, two-thirds of all business leaders believe that their companies must pick up the pace of digitalization to remain competitive.
The long-time partners said the latest integration of their products was created to encourage more of their joint customers to run SAP software on Microsoft Azure cloud services.
Meanwhile, Microsoft said it's also planning to "connect SAP S/4HANA to Azure AI and analytics services" in order to drive more efficient financial reporting.
Although they are stalwart competitors in the business software space, Microsoft and SAP have found common ground in the fast-growing market for enterprise cloud services. "Azure is a truly global infrastructure that is flexible, scalable and developer-friendly and it has helped us to better serve our customers". SAP S/4HANA is an ERP system designed for large enterprises.More news: Inside tour: First lady decorates White House for Christmas
SAP, meanwhile, will be moving more than 12 of its business-critical systems and processes to Azure. This includes the SAP S/4HANA software supporting Concur, an SAP company.
Microsoft and SAP plan to document these internal projects and make them available to customers who want to deploy SAP on Azure for guidance purposes.
He continues, "The value of aligned engineering, sales and delivery between these two strategic partners will allow our system to accelerate our digital agenda". "This is a very positive and exciting development for us".
The deal is a win-win for both Microsoft and SAP, said Marty Puranik, CEO of cloud hosting provider Atlantic.Net. This step is a part of their plans of producing cloud based products together for the mutual customers.
Microsoft Corp.is expanding its long-running partnership with German enterprise software giant SAP SE. If customers choose to run SAP on Azure infrastructure, they'll be billed according to virtual machine time and other Azure services they use.
Microsoft isn't the only major cloud provider touting its partner ecosystem this week.