Microsoft & SAP: How They Work Best Together

Why Microsoft & SAP Matter  

Think back to 2015. Enterprise software was fragmented. Companies ran SAP systems for operations and finance, yet their data lived siloed difficult to access, impossible to analyze in real time, and disconnected from the modern tools their workforce actually used. 

Fast forward a decade. The enterprise landscape has shifted fundamentally. 

Today's business leaders face a critical challenge: how do you modernize mission-critical SAP systems without disrupting operations? The answer isn't choosing one platform over another. It's understanding how these market leaders complement each other to create something neither could achieve alone. 

Microsoft and SAP have built a partnership that solves this exact problem. And the results are reshaping how enterprises approach digital transformation. 

Understanding the Partnership 

Best suited for: Enterprise architects, transformation leaders, and IT decision-makers evaluating cloud strategies 

The SAP-Microsoft partnership represents over 30 years of collaboration. But recent years have accelerated this relationship exponentially. 

Here's what's actually happening: 

The Core Elements: 

• RISE with SAP is SAP's cloud ERP offering that moves enterprises to SAP S/4HANA Cloud 
• Microsoft Azure provides the cloud infrastructure, AI services, and modern workplace tools to extend SAP's capabilities 
• Integration points now connect SAP's Joule AI copilot with Microsoft 365 Copilot, enabling seamless workflows 
• Broader ecosystem includes Power Platform, Dynamics 365, and Microsoft Teams native integration with SAP applications 

Unlike older technology partnerships built on reluctant compatibility, this collaboration is intentional. Both companies recognized that enterprises need: 

• Reliable cloud infrastructure (Azure's strength) 
• Mission-critical ERP functionality (SAP's core) 
• Modern workplace tools (Microsoft 365) 
• Advanced AI capabilities (both companies' innovation) 
• Unified security and governance (joint focus) 

The result? Enterprises can now build integrated digital ecosystems instead of managing disconnected technology silos. 

What is SAP on Azure?  

Best suited for: IT directors, infrastructure teams, and organizations evaluating SAP Azure certification paths 

When we talk about "SAP on Azure," we're describing a specific architecture: running SAP workloads primarily S/4HANA on Microsoft's cloud infrastructure. 

Let's break down what this actually means: 

The Infrastructure Layer: SAP on Azure means your SAP S/4HANA runs on Azure virtual machines, leveraging Azure's: 

• Compute resources (optimized for SAP's specific performance requirements) 
• Storage solutions (high-performance databases for transaction processing) 
• Networking (connecting global offices with low latency) 
• Security frameworks (encryption, compliance, identity management) 

Why Azure Specifically? 

• Microsoft achieved rare technical certification to run SAP workloads at enterprise scale 
• Azure provides SAP Azure documentation with implementation blueprints 
• Performance is optimized for the specific demands of ERP systems 
• Integration with Azure services (analytics, AI, security) extends SAP's native capabilities 

The Real Value: Unlike running SAP on-premises, Azure-based SAP workloads give you: 

• Scalability: Automatically adjust resources based on seasonal demand (peak inventory season, year-end close) 
• Disaster recovery: Built-in redundancy eliminates manual backup complexity 
• Cost optimization: Pay only for resources you use; no overprovisioning for peak capacity 
• Modern connectivity: Seamless integration with cloud-native tools (Teams, Power BI, Dynamics 365) 

Key Integration Scenarios 

Best suited for: Operations teams, functional leaders, and anyone managing SAP-Microsoft workflows 

The power of the partnership isn't theoretical; it shows up in daily workflows. 

Scenario 1: SAP Integration with Microsoft Teams 

Imagine a procurement manager reviewing a purchase order. 

The old workflow: 

1. Log into SAP → find purchase order 
2. Switch to Outlook → compose approval email 
3. Manual follow-up if message gets buried 
4. No audit trail 

With integration: Teams native SAP apps allow users to: 

• View purchase orders directly in Teams 
• Approve orders without leaving the collaboration platform 
• Automatic notifications to relevant stakeholders 
• Complete audit trail built into Teams conversation history 

Real-world impact: A global manufacturing organization integrated SAP purchase order approvals into Teams, reducing approval cycle time by 40% and eliminating lost approval requests. 

Scenario 2: Real-Time Analytics on SAP Data 

The challenge: SAP holds transactional data (orders, inventory, finance), but modern decision-makers need real-time dashboards. 

The solution: Extract SAP data to modern analytics platforms. 

Using Microsoft Fabric and Power BI with SAP data integration: 

• Finance teams monitor cash flow in real time (no more end-of-day closings) 
• Supply chain visibility shows inventory levels across locations instantly 
• Sales dashboards track pipeline health as deals move through the system 
• Executive dashboards connect SAP financial data with operational metrics 

One global organization modernized their SAP data into Microsoft Fabric, cutting their month-end close process from 8 days to 3 days while improving reporting accuracy by 25%. 

Scenario 3: Employee Productivity with Copilot 

The emerging frontier: Generative AI integrated into SAP workflows. 

SAP Joule (their AI copilot) is now integrating with Microsoft 365 Copilot, enabling: 

• Natural language queries on SAP data ("Show me Q3 revenue by region") 
• Automated insights from unstructured data (analyzing customer feedback) 
• Intelligent workflow suggestions (recommend next steps in approval processes) 
• Summarization of complex business documents 

This is early-stage, but the trajectory is clear: knowledge workers will ask questions in natural language rather than navigating complex systems. 

RISE with SAP on Azure 

Best suited for: CIOs, transformation sponsors, and organizations considering SAP modernization 

RISE with SAP on Azure deserves dedicated attention because it's fundamentally reshaping how enterprises migrate to cloud ERP. 

What is RISE? 

RISE with SAP is SAP's cloud transformation offering. It's not just about moving servers to the cloud it's about modernizing your entire operating model. 

RISE includes: 

• SAP S/4HANA Cloud (next-generation ERP) 
• Pre-built industry solutions and best practices 
• Implementation support and accelerated onboarding 
• Ongoing cloud management and optimization 
• Regular feature updates (no more multi-year upgrade cycles) 

Why Azure? 

RISE works on multiple cloud providers, but RISE with SAP on Azure has specific advantages: 

• Native integration: SAP AI Core runs natively on Azure in West Europe, US East, and Sydney 
• Extended capabilities: Azure OpenAI Service connects SAP data to generative AI 
• Power Platform synergy: Power Apps and Power Automate extend SAP without heavy coding 
• Microsoft 365 unification: Teams, Copilot, and collaboration tools work seamlessly with SAP 

Real-World Example 

A multinational manufacturing company completed RISE with SAP on Azure in 18 months (vs. the typical 3-4 year on-premises SAP implementation). 

What they gained: 

• $2.3M annual savings (from cloud elasticity and reduced infrastructure costs) 
• 45% faster month-end close (through cloud-native processes) 
• Real-time visibility into global supply chain (via Power BI dashboards on SAP data) 
• Ability to quickly launch new business units (using SAP's pre-built industry solutions) 

Real-World Applications 

Best suited for: Business leaders, function heads, and anyone curious about practical outcomes 

The partnership works differently across industries. Let's look at concrete examples. 

Finance & Operations 

The challenge: SAP manages core finance processes, but data lives in silos. CFOs can't see real-time cash positions until the end of month. 

The solution: Modern data platform integrating SAP financial data. 

Organizations building their finance foundation on SAP + Azure are achieving: 

• Real-time cash flow visibility (updating throughout the day) 
• Predictive forecasting (using historical patterns to anticipate needs) 
• Automated variance analysis (highlighting budget vs. actual discrepancies) 
• Connected reporting (linking SAP financials with operational KPIs) 

Impact: One insurance company reduced their close cycle by 5 days and improved forecast accuracy by 30% through SAP-Azure data integration. 

Supply Chain & Procurement 

The challenge: SAP tracks inventory and orders, but supply chain teams struggle with visibility across suppliers and distribution networks. 

The solution: Real-time supply chain dashboards and AI-powered insights. 

By connecting SAP procurement data to modern analytics: 

• Procurement teams identify cost-saving opportunities (consolidate suppliers, negotiate volume discounts) 
• Logistics tracks shipments and predicts delays before they impact operations 
• Inventory optimization reduces working capital requirements 
• Supplier risk analysis surfaces concentration risks automatically 

Customer Service & Support 

The challenge: Service teams need SAP order history to help customers, but switching between systems creates delays. 

The solution: Native SAP apps in Teams and automated workflows. 

Organizations are enabling field service and support teams to: 

• Access SAP customer order history in Teams (without logging into SAP separately) 
• Auto-create service orders from Teams conversations 
• Update customers on order status through Teams notifications 
• Escalate complex issues with complete SAP context preserved 

Modernizing Your SAP Data  

Best suited for: Data leaders, analytics teams, and organizations struggling with SAP data accessibility 

Here's something important: SAP is great at managing transactions, but modern enterprises need modern analytics. 

Most organizations we work with face this challenge: 

• SAP data is locked in proprietary formats 
• Extracting and transforming the data requires specialized skills 
• Legacy reporting tools (like older business intelligence platforms) can't keep pace with modern analytics needs 
• Finance teams manually export spreadsheets for analysis 

The Modernization Pattern 

Step 1: Extract Pull data from SAP using modern ETL tools or middleware. This includes: 

• Transactional data (orders, invoices, inventory) 
• Financial data (G/L accounts, cost centers, profit centers) 
• Master data (customers, vendors, products, employees) 

Step 2: Transform Reshape data for analytics: 

• Standardize date formats and currency conversions 
• Apply business rules (calculate margins, categorize revenue) 
• Create dimensional models for analytics 
• Apply data governance (classify sensitive information) 

Step 3: Load to Modern Platforms Store data in cloud-native analytics architecture: 

• Microsoft Fabric provides a unified analytics platform 
• Power BI enables self-service dashboards 
• Azure Data Lake scales to handle growing data volumes 
• Azure Machine Learning enables predictive analytics 

Why This Matters 

One organization extracted SAP financial and operational data into modern analytics and discovered: 

• 15% of revenue was tied to product lines that weren't actually profitable 
• Customer acquisition costs varied by 200% across regions (indicating inconsistent go-to-market strategies) 
• Inventory turnover dropped 30% in specific warehouses (pointing to supply chain inefficiencies) 

These insights would never surface in traditional SAP reporting. They only emerge when you combine clean data with modern analytics capabilities. 

Frequently Asked Questions  

How does Microsoft use SAP?

Internally, Microsoft runs a significant portion of their operations on SAP systems. This isn't a theoretical experience, Microsoft engineering teams work daily with SAP integration challenges. 

More importantly for you: this means Microsoft deeply understands what enterprises need. When they built Azure's SAP capabilities, they built them based on real organizational needs, not assumptions. 

What this means: When you run SAP on Azure, you're using infrastructure purpose-built for SAP workloads by a company that actually manages SAP at massive scale. 

Is SAP connected to Microsoft?

Yes, but "connected" has evolved significantly. 

Historically: Separate ecosystems that sometimes integrated awkwardly. 

Today: Deep, intentional partnership with: 

• Native SAP applications available in Microsoft Teams 
• SAP AI (Joule) integrating with Microsoft 365 Copilot 
• SAP Business Technology Platform running on Azure infrastructure 
• Unified identity management through Microsoft Entra ID 
• Shared commitment to industry standards and data portability 

The trajectory: Growing integration means fewer manual handoffs and more seamless workflows. 

Does SAP compete with Microsoft?

Not in the way people often assume. 

SAP focuses on: 

• Enterprise resource planning (core business processes) 
• Industry-specific solutions 
• Business intelligence within their ecosystem 

Microsoft focuses on: 

• Cloud infrastructure 
• Workplace productivity tools 
• Enterprise applications (CRM, ERP through Dynamics 365) 
• AI and analytics platforms 

Where there's overlap: Both offer ERP systems (SAP S/4HANA vs. Microsoft Dynamics 365 Finance & Operations). But these address different customer segments and use cases. 

The practical reality: Most large enterprises use both SAP (for core operations) and Microsoft (for workplace and analytics), and they work together far more smoothly than they used to. 

Does Microsoft have SAP jobs?

Yes specifically within Azure and modern workplace teams. 

If you're interested in SAP-related roles at Microsoft: 

• Azure SAP Solutions Architect roles (helping customers design SAP on Azure) 
• Integration Engineering positions (building SAP connectors and middleware) 
• Solution Engineering roles focused on SAP customers 
• Product Management roles driving SAP integration features 

Beyond Microsoft, the SAP Microsoft partnership creates demand for: 

• Solution architects who understand both platforms 
• Integration specialists 
• Data engineers building modern analytics on SAP data 
• Functional consultants implementing RISE with SAP 

If you're upskilling, SAP-Microsoft integration expertise is a valuable credential in 2025. 

Getting Started  

Best suited for: Organizations ready to explore modernization or improve existing SAP-Azure environments 

If this resonates with your business challenges, here's a practical next step: 

For SAP Modernization 

Assess your current SAP landscape: 

• Is your SAP system hosted on-premises or cloud? 
• Are you planning a major upgrade or transformation? 
• Which business processes create the most reporting challenges? 

Explore SAP on Azure Documentation, Microsoft's technical resource for SAP on Azure architecture and implementation. 

For SAP Data Modernization 

If your challenge is unlocking SAP data for analytics: 

• What reporting happens outside SAP today (exported spreadsheets, BI tools)? 
• Which data would drive better decisions if it were real-time? 
• Do you have data governance and security requirements we should address? 

Learn about Modern Data Platforms and how organizations are extracting SAP data into modern analytics architectures. 

For Microsoft Integration 

If you're looking to connect SAP with modern workplace tools: 

• Which SAP processes would benefit from Teams integration? 
• Are you considering Microsoft 365 Copilot adoption? 
• Do you need to modernize your approach to identity and security? 

Explore Business Application Solutions and integration strategies that connect SAP with Microsoft 365 and Power Platform. 

Ready to Explore? 

Modern SAP transformation requires partners who understand both the technology AND the business outcomes. 

Get Started with a Consultation. Talk with a transformation specialist who can assess your specific SAP landscape and identify the highest-impact opportunities.