Summary: SAP confirmed a partnership with Microsoft as part of its 3Q19 earnings. It is part of ‘Project Embrace’ which aims to help SAP customers migrate from their legacy ERP platforms to running in-memory HANA on hyperscale cloud infrastructure. SAP embarked on Embrace in May and already has AWS and Google signed up, but according to the disclosure, Microsoft seems to be the preferred partner. Interestingly, as part of this agreement, Microsoft will resell components of SAP Cloud Platform alongside Azure. At the same time SAP reported revenues were up 13% y/y to €6.79b. Most of that growth came from cloud revenues, which rose 37%. SAP reported its tie-up with Microsoft contributed to 20% of its new cloud bookings.
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