Alibaba Group and SAP SE have entered a strategic partnership to help businesses accelerate digital transformation by using cloud and artificial intelligence (AI) tools.
The partnership combines SAP’s enterprise software with Alibaba Cloud’s infrastructure and AI services. Under the deal, Alibaba Cloud will join the SAP Infrastructure as a Service (IaaS) Certification Program to support SAP’s cloud customers. Alibaba Group will adopt SAP Cloud ERP Private as part of its internal systems.
“By combining SAP’s enterprise software with Alibaba Cloud’s robust infrastructure and AI capabilities, we are enabling customers to build smarter, more agile operations,” said Joe Tsai, chair of Alibaba Group.
The initial focus of the partnership will be in China, with plans to expand to Southeast Asia, the Middle East, and Africa. Businesses in these regions can expect support for SAP Integrated Business Planning (IBP), RISE with SAP, and GROW with SAP programs. Alibaba Cloud’s infrastructure will also host SAP Cloud ERP and SAP Cloud ERP Private solutions.
As part of the collaboration, the two companies will set up a joint go-to-market approach to deliver AI-enhanced, scalable tools tailored to regional needs. Alibaba Group also plans to use a range of SAP services internally, including SAP Business AI, SAP Business Technology Platform, SAP Ariba, SAP SuccessFactors, SAP Concur, and SAP Emarsys.
“Our joint go-to-market strategy can unlock new opportunities for enterprises by providing them with access to a comprehensive suite of tools and services,” said Christian Klein, CEO of SAP SE.
The partnership includes exploring the integration of Alibaba’s large language model, Qwen, into SAP’s generative AI hub in China. This will give enterprise users access to localized AI features within SAP tools. SAP is also looking into deploying its SAP AI Foundation on Alibaba Cloud to offer AI tools for users in China.
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