This week at SAP Sapphire 2025 we are excited to share several new announcements and key strategic updates from Microsoft and SAP for our joint customers, built on the foundation of our 30 years of partnership to help thousands of joint customers accelerate their business transformation.
We are committed to accelerating the journey to the Cloud so customers of all sizes can meet their unique business requirements while gaining a platform for future innovation. At the same time, we’re enabling key Data and AI capabilities designed to create competitive advantages for organizations by unifying data estates and unlocking faster, more actionable insights through the power of agentic AI. Here’s what’s new:
- SAP Business Suite Cloud ERP packages and SAP Business Technology Platform (BTP) will be available on Microsoft Azure Marketplace
- SAP Business Data Cloud and SAP Databricks will be available on Microsoft Azure in Q3 2025, and will leverage our 1P Azure Databricks service.
- The general availability of Joule in Microsoft 365 Copilot allows employees to get more done in the flow of their work through seamless access to information from business applications in SAP as well as Microsoft 365.
- SAP Business Network Material Traceability on Azure, a new solution that enables effective supply chain tracking, is now available.
- Global Acceleration program for RISE with SAP on Microsoft Azure is expanding with updated guidance and recommendations from Microsoft and SAP Enterprise Cloud Services (ECS), aimed at accelerating and complementing the adoption of RISE with SAP.
As we strengthen our strategic partnership and expand joint innovation, we continue to prioritize delivering a cloud platform you can trust to run your most mission-critical SAP applications and data, and are also excited to share these important updates:
- New European digital commitments from Microsoft that underscore our respect for sovereignty, while promoting economic opportunities, and strengthening cybersecurity on both sides of the Atlantic.
- New capabilities in Microsoft Sentinel and Microsoft Defender for SAP customers.
Let’s take a deeper look at each of these announcements.
Unlocking exceptional business value with SAP Business Suite, SAP Business Technology Platform (BTP), and Microsoft Cloud
SAP and Microsoft are working to bring SAP Business Suite Cloud ERP packages to the Microsoft Azure Marketplace in the United States. This will enable customers to adopt a modern, intelligent ERP system designed for agility, scalability, and innovation. This brings together the best of SAP Cloud ERP (through the GROW with SAP journey) and Microsoft Cloud with integrations between SAP Business Suite and Microsoft Teams, M365 Copilot, and Azure AI, unlocking greater efficiencies for customers and new growth opportunities for partners. Details about the packages will be available later this year.
Together with SAP, we are expanding regional availability of SAP Business Technology (BTP) on Azure to ensure our customers can use the latest BTP services in their preferred Azure regions.
This week, SAP has announced the intent to make SAP BTP available in the Azure marketplace in the US in H2 2025, adding a new way for customers to easily purchase and unlock the full potential of their AI, data, and applications with the BTP platform.
SAP BTP is now available in 10 Azure regions, and the catalog offers 70 services with more coming. You can view all the existing BTP services and regions on Azure on the SAP Discovery Center. To learn more about the benefits of SAP BTP on Azure, review our on-demand webinar.
Unleash transformative insights with SAP Business Data Cloud and SAP Databricks on Microsoft Azure
We are thrilled to deepen our longstanding partnerships with SAP and Databricks, supporting SAP’s latest innovations with the launch of SAP Business Data Cloud (BDC) and SAP Databricks on Azure, available in Q3 2025. Furthermore, those looking to leverage the full stack capabilities of both SAP BDC and Azure Databricks together for their SAP and non-SAP data will have the ability to use a zero-copy sharing connector between both platforms.
Unlike other cloud providers, SAP Databricks on Azure, will utilize Microsoft’s first party Azure Databricks service. This means customers benefit from the robust security, AI and analytic capabilities, and seamless integrations that customers expect from native Azure services. This includes:
- Azure Databricks natively integrates with Microsoft Entra ID, enabling managed access control and authentication effortlessly.
- Unlike Databricks offerings on other hyperscalers, Azure Databricks offers the most optimized way to integrate with PowerBI, bringing performance advantages like no other platform does.
- Azure provides robust scalability and performance capabilities for Azure Databricks through a variety of compute options and worldwide regional availability.
- As a first party service, Microsoft ensures all the enterprise grade security and compliance measures of Azure apply to Azure Databricks.
- Lastly, one of the standout attributes of Azure Databricks is the unique partnership between Databricks and Microsoft which unlocks joint engineering, Microsoft support, and unified billing for customers.
“Databricks is proud to deepen our partnership with Microsoft and SAP to help organizations unlock the full value of their SAP and non-SAP data on Azure. By leveraging Azure Databricks, customers can seamlessly integrate their data, apply advanced analytics and AI, and take advantage of native security, governance, and performance available on Azure.”
—Michael Kiermaier, SVP of Business Strategy and Operations, Databricks
Accelerate enterprise productivity with Microsoft 365 Copilot and SAP Joule
Today, we are excited to announce the general availability of Joule in Microsoft 365 Copilot. This milestone is a result of the valuable feedback from customers during the limited preview as well as the amazing collaboration between Microsoft and SAP.
Users can now work within Microsoft 365 Copilot to combine enterprise data residing in SAP (via Joule) with contextual knowledge from Teams, Outlook, Word, and more, delivering richer insights for better decision-making. The Joule custom engine agent is expected to be available in the Agent Store by the end of Q2 2025. The bi-directional integration will be completed later this year with the planned availability of Microsoft 365 Copilot in SAP Joule—this capability is currently in preview.
Microsoft’s new European digital commitments
In a time of geopolitical volatility, Microsoft is committed to helping provide digital stability. In this context, we recently announced new commitments aimed at enabling every country and government to fully use Microsoft Cloud to strengthen their economic competitiveness. These new investments are especially relevant for customers running SAP on Azure, given many of them have operations in Europe as well as SAP’s prominent presence in the region.
The announcements include an expansion of our cloud and AI infrastructure in Europe with a 40% increase in our European datacenter capacity over the next two years and sovereign cloud initiatives in France (via a joint venture named Bleu along with Capgemini, Orange) and in Germany through a partnership between Microsoft, SAP, and Arvato Systems (a Bertelsmann IT subsidiary), through SAP’s subsidiary, Delos Cloud BmBH. You can read about these and more in our blog: Microsoft announces new European digital commitments—Microsoft On the Issues.
Secure your SAP and non-SAP landscape
Microsoft and SAP remain committed to providing robust and innovative security measures for SAP applications on Microsoft Cloud.
Microsoft Sentinel Solution for SAP: Offers top-tier security for SAP business applications. We have launched a new agentless data connector that simplifies onboarding by reusing customers’ SAP BTP estate. Strategic third-party solutions from SAP SE like LogServ and other Independent Software Vendors like SecurityBridge enhance Sentinel’s effectiveness as a SIEM for SAP workloads.
Microsoft Defender for Endpoint for SAP (MDE): Is now SAP HANA aware, providing seamless and secure protection for SAP landscapes. MDE accurately identifies SAP HANA binaries and data files, treating them as trusted entities.
Microsoft Defender for Cloud Apps: Integrates with SAP LeanIX. This integration enhances IT security and enterprise architecture. LeanIX uses Microsoft Entra ID to discover enterprise apps and SSO setups, improving threat detection and compliance. Learn more here.
Microsoft Entra ID Governance for SAP: Has introduced several new features aimed at enhancing productivity and security. The Lifecycle Workflows feature now supports Custom Security Attributes as triggers and scope filters and includes the ability to automatically revoke access tokens when employees move within or leave the organization. The product scope continues to evolve based on last year’s announcement and recommendation by SAP to move from SAP IDM to Microsoft Entra ID Governance. In addition to SAP Identity Access Governance (IAG) and SAP Cloud Identity Services, SAP Access Control (AC) will be integrated to initiate access requests and provisioning fulfillment for SAP apps from Entra ID Governance, and perform real-time access risk analysis when provisioning users to SAP AC.
Microsoft Entra Private Access: Now elevates security and compliance for SAP GUI by enabling an identity-centric Zero Trust Network Access (ZTNA) strategy with Continous Access Evaluation (CAE) and Multi-Factor-Authentication from Entra Conditional Access. Learn more here.
Learn more about SAP on Microsoft Cloud
We have a lot more to share about today’s exciting announcements. Here are ways to learn more, either online or by joining us at SAP Sapphire in Orlando and Madrid:
- Visit us at SAP Sapphire this week: Booth #409 in Orlando and #333 at Hall 9 in Madrid and register for the Microsoft sessions.
- Read our product blog for additional details on the announcements.
- Read more about how customers are unlocking AI innovation and business transformation with SAP and Microsoft Cloud.
- Skilling: Business transformation starts with skilling your team to prepare for and manage the cloud journey with SAP. Access Microsoft’s newest online learning resources, workshops, and instructor-led offerings to maximize the value of migrating and modernizing your SAP landscape with Microsoft Cloud—share with your teams and start your learning today.
- Want to get started with SAP and Microsoft integration? See all the possible scenarios.
- Learn more on our website: To learn more about why Microsoft Cloud is the leading cloud platform for SAP workloads, visit our website.
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