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SAP closes three-year cloud deal with Microsoft

(Image credit: Image Credit: Everything Possible / Shutterstock)

Microsoft and SAP have strengthened their already strong partnership with a new three-year deal that aims to help businesses move their data to the cloud. In a deal that was disclosed in SAP’s third quarter financial update, it was said that many of SAP’s customers complained how difficult it was to move from their on-premise model to remote servers.

“Microsoft will bundle SAP cloud services into a bundle we call Embrace, and they’ll sell these directly through their field organization to their customers who will run SAP the in Azure cloud,” Jennifer Morgan, SAP co-CEO said on a call with investors Monday.

This doesn’t mean, however, that SAP won’t be partnering with Microsoft’s competitors in the cloud industry. Both Amazon and Google will remain SAP’s partners in other fields, it was added.

“As always, choice will prevail as we recognize that many of our customers also run SAP on AWS and GCP, for example,” Morgan said. “Customers will still have benefits of the best-run SAP in their public cloud of choice.”

Still, the partnership with Microsoft seems to be a lucrative one. According to the financial update for the third quarter, SAP says that its partnership with the Redmond giant accounted for 18 per cent out of the 39 per cent year-on-year growth for cloud businesses.

Microsoft aside, SAP has had almost $7.6 billion in revenue for the quarter, 13 per cent up compared to the same period last year.