SAP and Microsoft bring their Partnership to the Next Level

The News

On November 27 SAP and Microsoft announced a new level of their strategic partnership.

  • Microsoft is committed to SAP and will upgrade its internal financial systems to S/4 on Azure
  • SAP will move a dozen (unspecified) “key internal business critical systems” to Azure
  • SAP and Microsoft will “co-engineer, go to market together with premier solutions and provide joint support services to ensure the best cloud experience for customers”
  • SAP and Microsoft will both provide documentation about their internal projects “to provide customers with guidance and enterprise architecture for deployment of SAP applications on Azure”

The Bigger Picture

I do not remember that SAP has made a joint announcement to this depth with AWS. An additional swipe at AWS is that this announcement got made on day one of AWS re:INVENT, which is one of, if not THE premier AWS conference. This is a fairly clear sign that, while SAP pursues a multi cloud strategy there are clouds that may be more important to SAP than others. And vice versa, that there are business workloads that should be more important to the IaaS providers than others.

  • SAP and Salesforce are running multi cloud strategies that do not seem to have a focus on AWS

MyPOV and Advice

The announcement of SAP and Microsoft is backed by not only one or two, but four joint customers of global reputation: Coca Cola Company, Costco Wholesales, Columbia Sportswear, and Coats. Apart from this being a fairly high number it also is a strong indication that this announcement is not a shoot from the hip but well prepared and bases on (beta) tested functionality.

  • There is no real focus on becoming a key IaaS player themselves
  • Microsoft is a key contender for the top spot of running heavy business workloads securely and in a scalable way
  • Public cloud, and if so, which one

Helping businesses to improve in Digital Transformation, Customer Engagement, Customer Experience, CRM, Innovation

Helping businesses to improve in Digital Transformation, Customer Engagement, Customer Experience, CRM, Innovation