Alibaba Group and SAP SE have entered into a strategic partnership aimed at accelerating digital transformation for enterprises by integrating SAP’s enterprise software with Alibaba Cloud’s AI capabilities and cloud infrastructure as a move that positions Alibaba Cloud within SAP’s Infrastructure as a Service (IaaS) Certification Program, enabling full support for SAP enterprise cloud solutions on Alibaba’s platform.
As part of the agreement, Alibaba Group will adopt SAP Cloud ERP Private to enhance its own enterprise systems, while enterprises in China will gain streamlined access to SAP’s Integrated Business Planning (IBP) solutions, as well as SAP’s RISE and GROW programs. Expansion into Southeast Asia, the Middle East, and Africa is already on the roadmap, targeting a broader rollout of SAP solutions running on Alibaba Cloud infrastructure.
The companies are also aligning on a joint go-to-market strategy to provide scalable, industry-specific solutions tailored to local business needs. Alibaba plans to deploy a full suite of SAP technologies across its operations, including SAP Business AI, SAP Business Technology Platform, SAP Ariba, SAP SuccessFactors, SAP Concur, and SAP Emarsys, to strengthen its digital backbone and enhance operational resilience.
A significant component of the collaboration is focused on enterprise AI integration. SAP is exploring the incorporation of Alibaba’s large language model, Qwen, into the SAP generative AI hub via SAP AI Core in China. This would give enterprise users access to localized generative AI within SAP applications. Additionally, SAP is considering deploying its AI Foundation on Alibaba Cloud to further scale AI tools for Chinese customers.
“Our collaboration with SAP reinforces our commitment to empowering global businesses with world-class technologies,” said Joe Tsai, Chairman of Alibaba Group. “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.”
“Our collaboration with Alibaba Group is a testament to the power and flexibility of SAP’s cloud solutions,” said Christian Klein, CEO of SAP SE. “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. Together, we can help our joint customers drive innovation, improve operational performance, and create new competitive advantages, and we look forward to working with Alibaba to shape the future of cloud-powered digital transformation.”
