SAP and Microsoft bring Partnership to Next Level

On November 27 SAP and Microsoft announced a new level of their strategic partnership.

Their key messages are that

·      S/4 is fully ready to run on Azure

·      Microsoft is committed to SAP and will upgrade its internal financial systems to S/4 on Azure

·      SAP will move a dozen (unspecified) “key internal business critical systems” to Azure

·      SAP and Microsoft will “co-engineer, go to market together with premier solutions and provide joint support services to ensure the best cloud experience for customers”

·      SAP and Microsoft will both provide documentation about their internal projects “to provide customers with guidance and enterprise architecture for deployment of SAP applications on Azure”

Of route it is not plenty of a wonder to SAP ?Connoisseurs? That SAP isn't always on foot its enterprise on in reality one example in their personal S/4 systems ? Nevertheless, twelve is a reasonably significant variety to migrate to Azure. It is also not a variety of a surprise that Microsoft is an essential and dedicated SAP ECC patron. As such Microsoft, of route, has plans to improve to S/4.

All in all this is the long due follow-up announcement to the 2016 SAP and Microsoft announcement of “empowering organizations to advance their digital transformation”. Back in the day I wrote that this announcement shows a lot of potential for the customer and that Microsoft likely will have more advantages to Microsoft than for SAP. In 2016 the announcement was also about Fiori. There is no word about it anymore today.

As an exciting aside, Microsoft introduced that it will use Azure AI (Cortana) and it?S evaluation offerings for ?Greater green monetary reporting and greater effective selection making?. This, of course, offers them a flow-promote opportunity as Azure AI, if working on their very personal systems, may be productized without problems.

I do no longer don't forget that SAP has made a joint statement to this intensity with AWS. An extra swipe at AWS is that this assertion were given made on day considered one of AWS re:INVENT, this is one in each of, if now not THE maximum efficient AWS conference. This is a fairly easy sign that, while SAP pursues a multi cloud approach there are clouds that can be extra crucial to SAP than others. And vice versa, that there are business enterprise workloads that have to be greater critical to the IaaS providers than others.

Salesforce has announced a deeper cooperation with Google as major news the recent Dreamforce 2017 conference, as I covered in my analysis of the event.

Oracle nonetheless prefers their very own cloud services, although it is viable to run Oracle on AWS.

While SAP runs its personal cloud with big investments this announcement moreover sheds a slight on SAP now not being an IaaS participant at coronary coronary heart however having its middle at the application degree, this means that PaaS and SaaS.

Yet.

The buildup of a global IaaS infrastructure is not only expensive (as one can regularly see and hear in SAPs quarterly reports and analyst briefings) but also takes time. While SAP runs data centers all over the world the company is certainly behind the key IaaS players. And I am not clear about whether SAP will (want to) run non-SCP applications in its cloud.

All this shows a persevering with trend of the software powerhouses far from AWS:

·      Microsoft, Oracle, and Salesforce do not really need AWS

·      SAP and Salesforce are running multi cloud strategies that do not seem to have a focus on AWS

And then we didn?T even talk approximately the Alibaba cloud.

The construct-up of camps has now not only began, however also intensified. ?Commonwealths of Self Interest? Are rising.

The announcement of SAP and Microsoft is backed by now not best one or , however 4 joint customers of worldwide popularity: Coca Cola Company, Costco Wholesales, Columbia Sportswear, and Coats. Apart from this being a reasonably excessive amount it is also a strong indication that this statement isn't a shoot from the hip however well prepared and bases on (beta) tested functionality.

An observation that almost has the quality of a running gag by fellow analyst and friend Holger Mueller in his analysis is that these customers’ names all start with a ‘C’ and hence may be only a part of the full list of early customers.

But extra to the topic it's far in reality a sign that SAP is migrating an awesome variety of their key internal systems from their personal (or their subsidiaries!) information facilities into Microsoft?S.

The signal is that SAP itself is happy that

·      The cost of running their applications on Microsoft is not more expensive than using their own data centers

·      There is no real focus on becoming a key IaaS player themselves

·      Microsoft is a key contender for the top spot of running heavy business workloads securely and in a scalable way

SAP with this bypass essentially confirms my view that Microsoft will become the essential aspect IaaS organisation for larger business workloads within the the front of AWS.

Microsoft?S announcement of the use of its personal Azure AI to decorate selection making opens a few thrilling situations. First, it offers alternatives, after Microsoft linked Azure AI to S/four. Second, and greater curiously, Azure AI can become a part of SAP Leonardo via using embracing its capabilities. Connecting Azure AI to SAP systems opens up a treasure trove of more statistics that SAP does no longer have get right of entry to to. This information can be applied in all forms of advertising, earnings, and issuer scenarios ? In addition to in-house situations. It may be thrilling to take a look at this area.

SAP customers need to now evaluate their options and compare the associated value, cloud viability and migration alternatives.

·      No or private cloud

·      Public cloud, and if so, which one

Especially groups which is probably closely invested in both, SAP and Microsoft, should probable benefit from strolling SAP on Azure.

We are no extra speakme about reliability or protection. Effectively cloud shipping is at the least as reliable and constant as going for walks IT in residence. With an emphasis on ?At the least?!

On the longer run businesses want to have a have a look at whether or not or now not they'll leverage brokering systems that permits them to shift their workloads from one cloud to the opposite counting on modern-day pricing. Being capable of use one-of-a-type clouds moreover has a bonus in catastrophe restoration ? It's a ways pretty no longer likely that two clouds pass down on the identical time.

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