Unveiling the Latest SAP Breakthroughs on Microsoft Cloud
At SAP Sapphire 2025, Microsoft and SAP have unveiled a host of fresh updates, advancing their partnership and delivering new value for joint customers.
This week’s SAP Sapphire 2025 event brings a wave of exciting news from Microsoft and SAP. Built on over 30 years of collaboration, these announcements are designed to help joint customers accelerate digital transformation and drive better results for their organisations.
Microsoft and SAP remain focused on making it easier for businesses of every size to move to the Cloud. By combining efforts, the two companies deliver a secure platform for innovation while enabling advanced Data and AI solutions. These solutions streamline operations and unlock insights quickly and efficiently, especially with the power of agentic AI. Explore what’s coming next:
- SAP Business Suite Cloud ERP packages and SAP Business Technology Platform (BTP) launching on Microsoft Azure Marketplace
- SAP Business Data Cloud and SAP Databricks debut on Microsoft Azure from Q3 2025, powered by Azure Databricks
- Joule now generally available in Microsoft 365 Copilot, giving teams seamless access to information across SAP and Microsoft 365, increasing productivity
- SAP Business Network Material Traceability on Azure, offering new supply chain tracking capabilities, is available now
- Global Acceleration programme for RISE with SAP on Microsoft Azure gets enhanced, with added guidance from Microsoft and SAP Enterprise Cloud Services to help customers succeed with RISE with SAP
By strengthening this alliance, SAP and Microsoft ensure a trusted cloud platform that can handle even your most critical SAP workloads and data. These additional significant launches include:
- New European digital commitments from Microsoft, reinforcing data sovereignty, boosting economic opportunities, and improving cybersecurity
- Advanced features in Microsoft Sentinel and Microsoft Defender tailored to safeguard SAP customers
Let’s break down each key announcement from SAP Sapphire 2025.
Boosting Business Value with SAP Business Suite, BTP, and Microsoft Cloud
SAP and Microsoft plan to bring SAP Business Suite Cloud ERP packages to the Microsoft Azure Marketplace for customers in the United States. This move offers businesses a chance to modernise their ERP system for greater scalability, flexibility, and ongoing innovation. When SAP Cloud ERP (via GROW with SAP) is combined with Microsoft’s Cloud, plus integrations across SAP and Microsoft Teams, M365 Copilot, and Azure AI, users benefit from increased operational efficiency and fresh growth opportunities for partners. Full package details will arrive later this year.
The partnership is expanding access to SAP Business Technology Platform (BTP) across more Azure regions, letting customers utilise the latest BTP services right where they need them.
SAP also confirmed plans to make SAP BTP available in the Azure Marketplace across the US in the second half of 2025. This makes it easier than ever to purchase BTP and gain access to leading AI, data, and application capabilities within a single platform.
Currently, SAP BTP is present in 10 Azure regions, featuring a growing catalogue of over 70 services. For a complete overview of available BTP services on Azure, visit the SAP Discovery Center. If you want to see how SAP BTP on Azure can support your business goals, check out our on-demand webinar.
Unlock Transformative Insights with SAP Business Data Cloud and SAP Databricks on Microsoft Azure
The collaboration between SAP, Microsoft, and Databricks steps up a gear with the introduction of SAP Business Data Cloud and SAP Databricks on Azure from Q3 2025. Organisations will soon be able to take advantage of both SAP BDC and Azure Databricks—connecting SAP and non-SAP data and using a zero-copy sharing connector, simplifying data workflows.
Unlike other clouds, SAP Databricks on Azure will make use of Microsoft’s first party Azure Databricks service. Customers benefit from enhanced security, built-in AI and analytics, and seamless compatibility with Azure’s range of services. Key features include:
- Simple, secure access control and authentication, natively with Microsoft Entra ID
- Optimised integration with PowerBI for rapid, powerful data analytics
- Scalable performance options across Azure’s worldwide regions
- Full enterprise security and compliance, as part of Azure’s robust environment
- Unique collaboration between Microsoft and Databricks provides joint support and unified billing
“Databricks is proud to deepen our partnership with Microsoft and SAP to help organisations unlock the full value of their SAP and non-SAP data on Azure. Leveraging Azure Databricks, customers can integrate data, apply analytics and AI, and enjoy native Azure security, governance, and performance.”
Accelerate enterprise productivity with Microsoft 365 Copilot and SAP Joule
We’re thrilled to share that Joule is now generally available in Microsoft 365 Copilot. This major release is built on invaluable customer feedback and deep collaboration between Microsoft and SAP.
With Microsoft 365 Copilot and SAP Joule, you can blend enterprise data from SAP with contextual information from popular Microsoft 365 apps such as Teams, Outlook, and Word. This integration delivers enhanced insights, making decision-making simpler and more informed. The Joule custom engine agent will arrive in the Agent Store by the close of Q2 2025. Bidirectional integration—allowing Microsoft 365 Copilot to be accessed directly through SAP Joule—is also on the roadmap, with a preview already underway and full rollout expected later this year.
Microsoft’s new European digital commitments
With geopolitical uncertainties increasing, Microsoft’s dedication to digital stability is stronger than ever. Our latest digital commitments aim to help every nation and government harness Microsoft Cloud, boosting economic growth and competitiveness. This is big news for those running SAP on Azure, especially across Europe, where SAP is a key player.
Our new commitments include a significant expansion of cloud and AI infrastructure in Europe. We are increasing European datacentre capacity by 40% over the next two years, alongside sovereign cloud ventures in France (with Bleu, formed by Capgemini and Orange) and Germany (in partnership with SAP, Arvato Systems, and Delos Cloud BmBH). These innovations are designed to support businesses using SAP on Microsoft Cloud, ensuring compliance and resilience. Read the full announcement here.
Secure your SAP and non-SAP landscape
Microsoft and SAP continue to raise the bar for cloud security, especially for SAP workloads on Microsoft Cloud. If you are looking for ways to keep your SAP environment secure, explore the following solutions:
Microsoft Sentinel Solution for SAP: This advanced SIEM solution now features an agentless connector, making onboarding easier by leveraging your existing SAP BTP. Integration with third-party security tools from SAP SE, LogServ, and SecurityBridge strengthens monitoring and response capabilities for your SAP systems.
Microsoft Defender for Endpoint for SAP (MDE): With improved SAP HANA support, MDE can recognise SAP HANA binaries and data files, treating them as secure and trusted. This ensures continuous protection for your SAP landscape, reducing the risk of unrecognised or unauthorised files.
Microsoft Defender for Cloud Apps: Now integrated with SAP LeanIX, this solution enhances IT security and enterprise architecture visibility. LeanIX leverages Microsoft Entra ID for automatic application discovery and SSO setup, helping you quickly identify threats and maintain compliance. Discover more here.
Microsoft Entra ID Governance for SAP: New features make managing user access both secure and efficient. The Lifecycle Workflows tool now includes support for Custom Security Attributes and can auto-revoke access when employees leave or move roles. Progress continues to support SAP’s migration to Entra ID Governance, integrating SAP Access Control for streamlined provisioning and real-time risk analysis. For a smooth transition from SAP IDM, follow SAP’s official advice and embrace Entra ID Governance. Read the official migration blog.
Microsoft Entra Private Access: Elevate security for SAP GUI with identity-based Zero Trust Network Access (ZTNA). Entra Conditional Access now offers Continuous Access Evaluation (CAE) and Multi-Factor Authentication for SAP GUI. This reduces the possibility of unauthorised access. Learn about CAE or get started with MFA integration.
Learn more about SAP on Microsoft Cloud
Ready to dive deeper into the new updates for SAP on Microsoft Cloud? Explore the latest innovations online or join us at upcoming SAP Sapphire events in Orlando or Madrid for live demos, expert talks, and hands-on sessions. These events are the perfect opportunity to see the future of SAP on Microsoft Cloud in action.
