Microsoft, SAP to expand use of each other's cloud services

Business software giants Microsoft and SAP have agreed to expand the use of each other’s cloud-based products and services delivered via the internet, they said on Tuesday, as they laid out a common product road map for joint customers.

In a joint statement, Microsoft said it would use SAP’s S/4 HANA database to help run its core internal financial planning functions — replacing older SAP software, while SAP said it would run more than a dozen of its critical internal financial systems on Microsoft’s Azure cloud service. The long-time partners said the latest integration of their products was designed to encourage more of their joint customers to run SAP software on Microsoft Azure cloud services. Mutual customers include Coca-Cola, Columbia Sportswear, Coats and Costco Wholesale.

SAP encourages its customers to run its products not only on Microsoft Azure but also on rival cloud platforms from Amazon , Google, IBM and SAP’s own in-house cloud services.

The two companies agreed 18 months ago to work together to integrate Microsoft Office 365, the cloud-based version of Microsoft’s flagship productivity software, into SAP, while SAP agreed to run its HANA database software on Microsoft Azure.