As a sign of their intensified cooperation, the two companies have also announced their intention to use the partner's cloud solutions internally in the future. As part of this partnership, Microsoft and SAP plan to jointly develop and market powerful solutions as well as provide joint support services.
The integration of Hana Enterprise Cloud, SAP's managed cloud service for private cloud environments, and Microsoft's Azure cloud platform allows customers to run S/4 in a secure managed cloud.
To support internal financial processes, Microsoft will also deploy S/4 Hana via Azure, while SAP will migrate business-critical internal systems to Azure in return.
Ariba is also already using Azure and plans to migrate its procurement applications to the Microsoft cloud. Together, SAP and Microsoft will help companies get the most out of running SAP applications in the cloud.
"New technologies are transforming every business, every industry. Organizations are therefore looking for the right platforms and trusted partners to drive their digital transformation"
says Microsoft CEO Satya Nadella.
"Based on the long-standing partnership that unites SAP and Microsoft, we are not only leveraging each other's solutions to strengthen our own business. We are empowering our business customers to run their most critical business applications with S/4 Hana on Microsoft Azure."
As market leaders in enterprise software, SAP and Microsoft are now joining forces to guide customers on a secure and reliable path to a digital future.
"With the new ability to run S/4 Hana on Microsoft Azure, we are entering a new phase of our partnership"
says SAP CEO Bill McDermott.
"The world's most important companies rely on Microsoft and SAP. Together, we help customers set a course for success through growth."
Both SAP and Microsoft will use S/4 Hana on Azure for their enterprise operations. Microsoft is currently rebuilding its internal systems and will implement S/4 Hana Central Finance on Azure in the process.
In addition, Microsoft plans to connect S/4 Hana to Azure artificial intelligence and analytics services to more efficiently create financial reports and strengthen data-driven decision-making processes.
SAP is migrating more than a dozen business-critical systems to Azure to take advantage of the platform's optimal efficiency, flexibility and innovation. This migration includes the S/4 system of Concur, an SAP company.
Both companies will use the internal projects to provide their customers with guides and an enterprise architecture for implementing SAP applications on Azure.