The most significant part of the deal will allow SAP to run its HANA Enterprise Cloud, which is the company's private, managed cloud service, on Azure.
In an effort to compete with Amazon in the cloud market space, Microsoft announced it is expanding its partnership with German enterprise software company SAP.
Microsoft and SAP already have several joint customers, including Coca-Cola, Columbia Sportswear and Coats and Costco Wholesale.
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 Redmond-based firm announced Tuesday it has engineered SAP's cloud and enterprise resource planning software to run on its Azure cloud, as it bids to steal some of the limelight from Amazon Web Service Inc.'s cloud conference this week. Both companies will document their projects so they can share their application deployment experiences with customers. Additionally, SAP agreed to run its HANA in-memory database on Azure. Together, SAP and Microsoft will help companies make the most of running SAP applications in the cloud.
"We are excited to partner with Microsoft on its Azure Location Based Services", said Christopher Cappelli, vice president of Global Business Development and Sales, Esri.
"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.
Under the partnership, SAP and Microsoft provide support for their respective products and services. Microsoft also plans to connect S/4HANA to Azure AI and analytics services for use in finance, officials said.
In addition to partnering on ERP from the cloud, Microsoft and SAP also are using each other's products.
According to SAP Chief Executive Bill McDermott, customers frequently ask the company which technology they should use. However, he warned that Microsoft and SAP still need to show they can deliver on customer traction, value and success. In turn, SAP will shift some key internal business systems, including its Concur expense management application, to Azure.
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