SAP and Microsoft want the collaboration application to drive the jump to the cloud

Microsoft and SAP have announced a new step in the strategic alliance they signed a couple of years ago: Microsoft Teams will be integrated into all SAP solutions.

Microsoft Teams will be integrated into all SAP solutions

However, this agreement is rather symbolic, since true the objective of this agreement is to reinforce the cloud services that both companies offer from the others on their respective platforms.

Microsoft and SAP signed an agreement in 2019 that was focused on accelerating the development of SAP S4 / Hana on the Microsoft Azure platform. The announcement made now implies that Teams will become integrated into the entire SAP application suite, including ERP S4 / Hana, SAP SuccessFactors and SAP Customer Experience, by the middle of this year.

According to those involved, this agreement is a way to mitigate the impact of teleworking and remote work that has been imposed after the outbreak of the Covid-19 pandemic. The CEO of SAP, Christian Klein, defends that by integrating Microsoft Team into SAP applications "we are taking collaboration to the next level", while his counterpart at Microsoft, Satya Nadella defends that with this union "we help more organizations to leverage the strength of the cloud so they can adapt and innovate faster into the future." 

In fact, this is one of the great challenges for business applications companies: that their customers decide to acquire licenses in cloud computing, leaving aside those that are installed on their own servers. However, and as Oracle has recognized, this type of on-premise licenses continue to have an important weight in the billing of these companies, since not all companies decide to transfer these critical applications for their business to cloud computing.

According to SAP and Microsoft, the Teams integration agreement in SAP not only strengthens their alliance but will make it easier for users to move from on-premises editions of SAP to ERP to Microsoft's Azure cloud.

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Nor should we lose sight of the fact that collaboration has been one of the main focuses of all software companies since the pandemic broke out. Without going any further, Salesforce (whose products compete in many cases with those of SAP), announced last month that it would buy Microsoft Teams' rival, Slack, to integrate it into its products, which compete in many cases with SAP.

It should also be remembered that, together with Adobe, SAP and Microsoft, they also launched the Open Data Initiative (ODI) for the collection of customer data. ODI is an initiative developed to improve interoperability between the applications of these three companies, so that the data so that their applications can function can be shared in an improved way.



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