SAP SE and Alibaba Group Join Forces to Enhance Cloud and AI Capabilities for Global Enterprises
(IN BRIEF) SAP SE has formed a strategic partnership with Alibaba Group to accelerate cloud transformation globally. The collaboration will integrate SAP’s enterprise software with Alibaba’s cloud and AI technologies to enhance operational efficiency and innovation. Alibaba will use SAP Cloud ERP Private and deploy various SAP solutions, including SAP Business AI and SAP Business Technology Platform. This partnership will start in China and expand to Southeast Asia, the Middle East, and Africa, with Alibaba serving as a certified hyperscaler for SAP workloads. SAP is also exploring the integration of Alibaba’s Qwen AI model into SAP’s generative AI hub. Both companies aim to provide scalable, secure, and innovative solutions to drive digital transformation.
(PRESS RELEASE) MADRID, 27-May-2025 — /EuropaWire/ — SAP SE (NYSE: SAP) has announced a strategic partnership with Alibaba Group (NYSE: BABA, HKEX: 9988) to drive forward the cloud transformation journey. This collaboration aims to enhance the digital experience for enterprises, combining SAP’s enterprise software with Alibaba’s robust cloud and AI infrastructure.
As part of the agreement, Alibaba Group will utilize SAP Cloud ERP Private to strengthen its enterprise infrastructure. The partnership also includes a joint go-to-market strategy designed to deliver exceptional value for customers worldwide. Alibaba will integrate SAP Business Suite to streamline maintenance, simplify upgrades, and enable seamless AI integration into core business processes. Furthermore, Alibaba Group intends to deploy a wide range of SAP solutions, including SAP Business AI, SAP Business Technology Platform, SAP Ariba, SAP Integrated Business Planning, SAP SuccessFactors, SAP Concur, and SAP Emarsys, enhancing the company’s technological backbone and promoting greater agility in serving its vast business ecosystem.
Joe Tsai, Chairman of Alibaba Group, highlighted that the partnership is a key step in empowering businesses globally. “Combining SAP’s world-class enterprise software with Alibaba Cloud’s robust infrastructure and AI capabilities will enable businesses to operate more efficiently and with greater agility,” Tsai said.
This collaboration marks a new phase in the longstanding relationship between SAP and Alibaba, focused on improving operational efficiency and driving innovation for joint customers. Initially targeting the China market, the partnership will allow enterprises to adopt SAP Integrated Business Planning, along with the RISE with SAP and GROW with SAP programs. The initiative is expected to expand to Southeast Asia, the Middle East, and Africa, with Alibaba Group serving as a certified hyperscaler for SAP software workloads. This will enable Chinese enterprises to access SAP Cloud ERP and SAP Cloud ERP Private solutions, providing scalable, secure, and intelligent solutions tailored to their specific needs.
In a major step toward integrating AI, SAP is exploring the use of Alibaba’s Qwen large language model in SAP AI Core to offer localized generative AI capabilities for enterprise users. Additionally, SAP plans to deploy its AI Foundation on Alibaba Cloud to provide powerful AI tools for customers in China. Alibaba will also participate in SAP’s infrastructure-as-a-service certification program, supporting customers who run SAP enterprise solutions.
Christian Klein, CEO of SAP, emphasized the power of SAP’s cloud solutions in fostering innovation. “Our collaboration with Alibaba opens up new possibilities for enterprises, providing access to a comprehensive suite of tools to drive operational improvement, innovation, and competitive advantage. We look forward to continuing our work with Alibaba to shape the future of cloud-driven digital transformation,” Klein stated.