SAP cloud revenue boosted by Microsoft deal

▤ Summary

Through the partnership, said SAP, a global network of system integrators will offer holistic bundles that provide customers with unified reference architectures for S/4 Hana on Microsoft Azure, roadmaps and market-approved journeys. As part of the agreement, Microsoft plans to resell components of SAP Cloud Platform alongside Azure. “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.” Judson Althoff, executive vice-president, worldwide commercial business, at Microsoft, said: “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.” Earlier this month, Bill McDermott stepped down as CEO of SAP. At the time, Liz Herbert, a principal analyst at Forrester, noted that the company now had an opportunity to shift from a pure sales strategy to one that has more product focus. “This change will likely result in a back-to-basics, increased focus on this generational product shift of ECC moving to S/4 – which could be a good thing for the many SAP customers worried about 2025 (the minimum date SAP has committed to continue ECC support) and feeling concerned about SAP’s ability to execute on promises.”

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Microsoft

$1B+