SAP-Microsoft Tie-up – Tech Giants Expand their Cloud Horizons

On October 21, SAP and Microsoft announced their alliance under Project Embrace, where the tech giants will collaborate for SAP S/4 HANA’s cloud adoption through Microsoft Azure.

The partnership is for three years, where Microsoft will act as a reseller for SAP Cloud Platform offerings (including SAP HANA Cloud services as an integrated platform with SAP Data Warehouse Cloud, SAP HANA Cloud and SAP Analytics Cloud) and its ERP and SAP S/4HANA migration to Azure. As for its other partners under Project Embrace – Google Cloud, Amazon Web Services (AWS) and SAP’s other global strategic service partners (GSSPs) – they will be serviced directly by SAP to support migration to hyperscale cloud providers.

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Cloud capabilities have seen arch-rivals becoming bedfellows since a couple of years. Microsoft’s partnership with Adobe and more recently, with competitor Oracle, AWS collaborating with VMWare is clearly indicative of the multi-cloud alliance building up in the tech industry. SAP’s Open Data Initiative (ODI) announced at Ignite 2018 was a move from the ERP giant to make inroads into the cloud market by coalescing with data and analytics leaders Adobe and Microsoft. For this, SAP and Adobe will integrate their software and bring SAP business databases to Azure. ODI brings together the three technology giants through a consortium of sorts, so enterprises can interface their data with diverse applications of multiple technology providers and bring it together in a comprehensive manner to deliver a seamless customer experience.

Providing good customer service is also one of the primary reasons for SAP’s recent collaboration with Microsoft Azure. SAP, known for its robust on-prem ERP product, needed to attend to the growing demand from its enterprises to move their business operations to the cloud or risk losing their loyalists to competing cloud startups.

The leadership for both SAP and Microsoft reiterate their commitment to a customer-first vision.

Enterprises aim to ease the migration of their businesses to the cloud at minimal cost while getting the best-in-class technologies aligned to their revenue goals. Considering a gamut of cloud players entering the market, tech leaders like Microsoft, SAP, Adobe, Oracle, IBM and others find collaboration the ideal path to retain their customer base while also ensuring they are in the reckoning for prospective enterprises too.

Also, with the experience economy driving every aspect of doing business, there’s little choice for tech stalwarts but to come together to consolidate their markets. And this they are doing by strategically battling out at various technology tiers, while also integrating with competitor offerings at some levels. Co-opetition is a necessity today, so tech leaders needn’t spend time and resources to re-architect new solutions for enterprises, while also offering customized packages to them by collaborating with competitors. This way of business is bound to grow more by the end of 2020. Enterprises, be it small, medium or large, will need to make sense of this overwhelming cloud landscape and find proficient, professional partners to support them and extract the best from their complicated cloud IT applications. Like Don Johnson, Executive Vice President of Oracle Cloud Infrastructure, had put it succinctly at the time of their partnership with Microsoft in June this year:

Katalyst Technologies is driven to execute digital transformation initiatives for global businesses, being the leading SAP and Microsoft reseller for cloud migrations and software integrations based on AI, IoT, blockchain and emerging technologies. 

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