New three-year deal to expedite migration of legacy SAP services to Microsoft Azure cloud hosting
Looking to expedite cloud migrations and simplify the process of cloud adoption, SAP struck a three-year deal with Microsoft to move more of its customer and cloud instances to Azure.
The Lowdown: The SAP-Microsoft partnership, dubbed “Embrace,” will move more SAP HANA S/4 workloads for large enterprises to Azure. The bundling of services will enable SAP to help enterprises quickly adopt cloud-based services for its traditional workloads built on SAP databases and applications.
The Details: SAP provided few details about the arrangements other than saying that the bundle of services includes helping large enterprises with the adoption, integration, and orchestration of SAP-based services on the Microsoft Azure cloud. Microsoft will resell components of the SAP Cloud Platform through its growing co-sell program.
The Impact: The partnership could help further accelerate SAP’s growth in cloud-based services. In its most recent quarterly financial results, SAP reported a 10% increase in revenue and 15% in operating profit from its cloud business. Chances are SAP will leverage channel partners to help with migration, integration, and customization of cloud instances.
Background: The partnership is the first major announcement by SAP since the resignation of longtime CEO Bill McDermott, who’s stepping down after nine years.
The Buzz: “This partnership is all about reducing complexity and minimizing costs for customers as they move to SAP S/4HANA in the cloud,” said Jennifer Morgan, co-CEO of SAP. “Bringing together the power of SAP and Microsoft provides customers with the assurance of working with two industry leaders so they can confidently and efficiently transition into intelligent enterprises.”
“SAP’s decision to select Microsoft Azure as its preferred partner deepens the relationship between our two companies in a differentiated way and signals a shared commitment to fostering the growth of the cloud ecosystem,” said Judson Althoff, executive vice president of Worldwide Commercial Business at Microsoft. “Today’s news also reflects our commitment to a customer-first mindset and supporting their cloud transformation, which continues to drive how we at Microsoft approach everything from partnerships to product innovation. It takes co-selling to a whole new level.”