Microsoft and SAP expand partnership to use each other's cloud services

In what it calls a "bold show of commitment," Microsoft has announced that it and SAP have expanded their partnership and will be deploying each other's cloud services and products internally. The move will see Microsoft running SAP S/4HANA on Azure to run its internal finance processes. Meanwhile, SAP will run internal financial systems on Microsoft's Azure 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," said Satya Nadella, CEO of Microsoft. "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."

Microsoft and SAP say that they will both document their internal projects to help guide customers on the deployment of SAP applications on Azure. Shared customers currently include the likes of The Coca-Cola Company, Columbia Sportswear Company, and Costco Wholesale Corp. The expansion of the two firms' partnership comes as Microsoft's cloud business has become an increasingly important part of its portfolio, driving growth in recent quarterst.