SAP & Alibaba Group accelerate AI-powered digital transformation

New collaboration marks a key step in enterprise AI integration

Add bookmark

Listen to this content

Audio conversion provided by OpenAI

Michael Hill
05/28/2025

SAP and Alibaba Group have announced a strategic partnership aimed at accelerating artificial intelligence (AI) powered digital transformation.

The collaboration combines SAP’s industry-leading enterprise software with Alibaba Cloud’s secure, scalable cloud infrastructure and cutting-edge AI capabilities. As part of the latest SAP Infrastructure as a Service (IaaS) Certification Program, Alibaba Cloud will fully support customers running SAP’s enterprise cloud solutions.

According to the announcement, Alibaba Group will also leverage SAP Cloud ERP Private Edition for its enterprise infrastructure as part of the collaboration.

Don't miss any news, updates or insider tips from PEX Network by getting them delivered to your inbox. Sign up to our newsletter and join our community of experts.

Supporting global AI-powered digital transformation

The collaboration will initially target the China market, with expansion planned for Southeast Asia, the Middle East and Africa. The goal is to help enterprises implement SAP Integrated Business Planning (IBP) and advance their RISE with SAP and GROW with SAP initiatives.

As a certified hyperscaler for SAP workloads, Alibaba Cloud will support the deployment of SAP Cloud ERP and SAP Cloud ERP Private solutions on its infrastructure.

The two companies also plan to launch a joint go-to-market strategy, offering scalable, intelligent solutions tailored to local business needs across industries. Alibaba Group intends to adopt a broad range of SAP solutions – including SAP Business AI, SAP Business Technology Platform, SAP Ariba, SAP IBP, SAP SuccessFactors, SAP Concur and SAP Emarsys – to enhance its digital infrastructure, agility and resilience.

Join us at All Access: AI in Business Transformation 2025 to future-proof your business and accelerate growth with the right strategy and latest technology

A key step in enterprise AI integration

The partnership marks a significant advancement in enterprise AI integration. SAP is exploring the integration of Alibaba’s large language model, Qwen, into the SAP generative AI hub within SAP AI Core in China. This would enable localized generative AI capabilities for SAP applications and custom AI solutions. SAP is also considering deploying its AI Foundation on Alibaba Cloud to provide customers in China with scalable, powerful AI tools.

“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.”

The collaboration with Alibaba Group is a testament to the power and flexibility of SAP’s cloud solutions, added Christian Klein, CEO of SAP SE. “Our joint go-to-market strategy can unlock new opportunities for enterprises by providing them with 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."

Data governance in the age of generative AI & agentic AI: Industry report

Data Governance in the Age of Generative & Agentic AI Industry Report

As AI capabilities accelerate, strong data governance is no longer optional—it’s essential. This report explores how organizations are redefining governance strategies to keep pace with generative and agentic AI.

Inside, you'll discover: