Published on November 7, 2023, 1:06 pm

SAP is close to finalizing a deal with Microsoft to enhance the value of data within SAP systems. This collaboration aims to leverage large datasets for artificial intelligence initiatives, following a similar partnership between SAP and Google Cloud. The expanded agreement aligns with SAP's intention to charge premium prices for its AI and generative AI portfolio. The partnership between SAP and Microsoft will enable both companies to seize the opportunities presented by AI.

Six months after agreeing with Google Cloud to create a massive data cloud, SAP is now on the verge of finalizing a similar deal with Microsoft. This move aims to enhance the value of the data within SAP systems that drive significant portions of the global economy.

In today’s fast-paced world, companies across industries are actively seeking ways to leverage large and relevant datasets for their generative artificial intelligence (GenAI) initiatives. The collaboration between SAP-Google Cloud, which I previously discussed in an article titled “SAP and Google Sign Blockbuster Deal to Create Massive Data Cloud,” allows customers to access and gain new insights from their data sources, contributing to innovation through the combination of business data, modern cloud solutions, and AI technologies.

During SAP’s Q3 earnings call, Christian Klein (CEO of SAP) shared that he had recently met with Satya Nadella (CEO of Microsoft). Klein mentioned that Microsoft expressed keen interest in combining their data forces. It makes perfect sense for SAP and Microsoft to expand their partnership due to several factors: long-standing strategic alliance, a significant number of SAP’s cloud applications running on Azure infrastructure, SAP’s focus on providing customers with enhanced ways to exploit enterprise data effectively while leveraging partnerships established by Microsoft.

Klein’s desire for an expanded data agreement aligns with SAP’s intention to charge premium prices for its AI and GenAI portfolio. As outlined during the Q3 earnings call when asked about charging for AI-enhanced services compared to competitors who offer them for free, Klein highlighted the importance of accuracy and data quality in the B2B world. He emphasized how SAP has invested in harmonizing its data model over the years through their Business Technology Platform (BTP), resulting in high-quality data as a foundation for SAP Business AI.

The rapid changes driven by GenAI are reshaping businesses worldwide. To meet evolving customer demands effectively, companies need transformative alliances that push traditional boundaries. By joining forces and combining their data, Klein and Nadella are positioning their respective companies to seize the opportunity presented by GenAI.

In conclusion, as AI continues to create new possibilities, fostering partnerships and co-creation is essential. The SAP-Microsoft collaboration signifies a renewed focus on customer-centric innovation and a dedication to reimagining what is achievable. To learn more about the AI ecosystem and its impact, consider joining us at Acceleration Economy’s AI Ecosystem Course on December 14. Register now to be part of this transformative event.

(Source: Acceleration Economy)

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