Alibaba Group and SAP have announced a strategic partnership to accelerate enterprise innovation and digital transformation through advanced cloud and AI technologies. The partnership will combine SAP’s enterprise software with Alibaba Cloud’s secure, scalable cloud infrastructure and AI capabilities. Alibaba Cloud will be part of the latest SAP Infrastructure as a Service (IaaS) Certification Program, and Alibaba Group will leverage SAP Cloud ERP Private for its enterprise infrastructure. The collaboration will initially focus on the Chinese market, with rollout plans for Southeast Asia, the Middle East, and Africa. The companies plan to establish a joint go-to-market approach to serve global businesses with scalable and intelligent solutions tailored to local needs.

The partnership also marks a significant step forward in enterprise AI integration. SAP is exploring the integration of Alibaba’s large language model, Qwen, to the SAP generative AI hub in SAP AI Core in China, to enable enterprise users to access localized generative AI capabilities within SAP’s applications and Custom AI applications. SAP is also exploring the deployment of its SAP AI Foundation on Alibaba Cloud to bring powerful, scalable AI tools to customers operating in China.

0602.18 Alibaba Group and SAP Announce Strategic Partnership

“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 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.”