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Microsoft Adds SAP as Cloud Partner to Challenge Amazon

Microsoft Corp. signed up business-software vendor SAP SE as a cloud partner, its latest effort at using alliances to challenge Amazon.com Inc.’s dominance in the market for web-based, on-demand computing resources.

Such tie-ups are aimed at giving big corporate customers comfort in shifting computing operations from their own data centers to companies with which they have long worked. SAP agreed to use Microsoft’s Azure cloud-computing service internally, and said it would highlight that usage to customers shopping for their own cloud services. Microsoft will move the SAP applications it runs in its own data centers to SAP’s cloud-based S/4 HANA products.

The Microsoft-SAP deal, announced Tuesday, is aimed at boosting Microsoft’s business known as infrastructure-as-a-service, where customers rent computing resources online. Last year, that piece of the market hit $22.16 billion, with Amazon Web Services accounting for 44% of it, and Microsoft’s No.2 Azure service holding a 7.1% share, according to market-research firm Gartner Inc.

A year ago, Microsoft reached a deal with corporate-software vendor Adobe Systems Inc., in which the companies cross-promote each other’s products.

The companies declined to disclose financial terms of the deal.

(source: https://www.wsj.com/amp/articles/microsoft-adds-sap-as-cloud-partner-to-challenge-amazon-1511845261)