Alibaba Group and SAP SE have announced a strategic partnership aimed at accelerating enterprise innovation and digital transformation using advanced cloud and AI technologies. This collaboration combines SAP's enterprise software with Alibaba Cloud's infrastructure, which is known for its security, scalability, and cutting-edge AI capabilities.
Under this partnership, Alibaba Cloud will join the latest SAP Infrastructure as a Service (IaaS) Certification Program to support customers running SAP’s enterprise cloud solutions. Additionally, Alibaba Group plans to utilize SAP Cloud ERP Private for its enterprise infrastructure.
Initially focusing on the China market, the collaboration plans to expand into Southeast Asia, the Middle East, and Africa. This expansion aims to help enterprises implement SAP Integrated Business Planning (IBP) while embarking on their RISE with SAP and GROW with SAP journeys. With Alibaba Cloud certified as a hyperscaler for SAP workloads, businesses can deploy both SAP Cloud ERP and SAP Cloud ERP Private solutions on Alibaba's infrastructure.
The two companies intend to establish a joint go-to-market strategy to offer scalable and intelligent solutions tailored to local needs across various industries globally. Furthermore, Alibaba Group will integrate several of SAP’s solutions such as Business AI, Technology Platform, Ariba, SuccessFactors, Concur, Emarsys into its technological framework.
This partnership also represents progress in integrating AI within enterprises. In China, there are plans for incorporating Alibaba’s large language model Qwen into the SAP generative AI hub in SAP AI Core. This integration aims to provide localized generative AI capabilities within SAP applications. Additionally, deploying the SAP AI Foundation on Alibaba Cloud is being explored to deliver scalable AI tools for Chinese customers.
Joe Tsai, Chairman of Alibaba Group stated: “Our collaboration with SAP reinforces our commitment to empowering global businesses with world-class technologies.” Christian Klein, CEO of SAP SE added: “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.”