Microsoft adds SAP as strategic ally in cloud war against Amazon

  • Microsoft adds SAP as strategic ally in cloud war against Amazon

Microsoft adds SAP as strategic ally in cloud war against Amazon

At the same time, Microsoft will use SAP S/4 HANA, the company's business suite that includes enterprise resource planning (ERP), running on Azure as part of its own internal financial systems.

As leaders in enterprise software, SAP and Microsoft are aligning closely to provide customers with the safe and trusted path to digital transformation.

"Building on our longtime partnership, Microsoft and SAP are harnessing each other's products to not only power our own organisations, but to empower our enterprise customers to run their most mission-critical applications and workloads with SAP S/4HANA on Azure", Microsoft CEO Satya Nadella says.

The two companies agreed 18 months ago to work together to integrate Microsoft Office 365 productivity software into SAP, while SAP would run its HANA database software on Azure.

Both companies will document the internal projects to provide customers with guidance and enterprise architecture for deployment of SAP applications on Azure. By the same token, SAP agreed to run its HANA database software on Azure. Together, SAP and Microsoft will help companies make the most of running SAP applications in the cloud.

"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.

Last year, that market was said to be worth US$22.16 billion, with Amazon Web Services taking a 44 percent share, and Microsoft's Azure service holding a 7.1 percent share, the paper said, citing data from Gartner. Using Azure infrastructure to run SAP's solutions entails paying for Azure virtual machine time and any other Azure services used. "Azure is a truly global infrastructure that is flexible, scalable and developer-friendly and it has helped us to better serve our customers". The companies share customers such Coca-Cola Company, Columbia Sportswear Company and Costco Wholesale Group. SAP said it will run more than a dozen of its business-critical systems on Microsoft's Azure cloud platform.

The partnership is also a major win for customers, Mueller said. However, he warned that Microsoft and SAP still need to show they can deliver on customer traction, value and success. They also are working on co-marketing efforts.