Microsoft has fortified a partnership with SAP SE to expand the use of each other’s cloud products in its latest effort to chip away at Amazon’s market share dominance in the public cloud.
The two business software giants said they will deploy each other’s cloud solutions internally, and provide joint support services for customers. Microsoft will use SAP’s S/4 HANA database to help run its core internal financial planning functions – replacing older SAP software. Meanwhile, while SAP said it would run more than a dozen of its critical internal financial systems on Microsoft’s Azure cloud service.
“As technology transforms every business and every industry, organizations are looking for the right platforms and trusted partners to help accelerate their digital transformation,” Microsoft CEO Satya Nadella said in a statement. “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.”
Financial terms of the deal were not disclosed, but by expanding its relationship with SAP, Microsoft could have a new way to big companies to use its Azure cloud. The deal is designed to ease concerns of big firms about moving data into the hands of a cloud provider.
The two companies have partnered together for years in the software industry, but agreed 18 months ago to work together to integrate Microsoft Office 365, the cloud-based version of Microsoft’s flagship productivity software, into SAP, while SAP agreed to run its HANA database software on Microsoft Azure.
Now, Microsoft and SAP will cross-promote each other’s cloud products internally, while encouraging joint customers to run SAP software on Microsoft Azure, its hybrid cloud computing service.
Microsoft has been stepping its efforts to get more major software vendors to host their software and services on Azure.
Last year, the company signed a deal with Adobe Systems in which the two sell each other’s products products. Meanwhile, Amazon has a similar arrangement with VMWare in which companies could use both VMWare data centers and Amazon’s AWS cloud services