SAP on Microsoft Azure : Bringing Cloud and Hybrid Solutions to the Next Level

Modern businesses are complicated and rely on many operations that must be run well. Microsoft Azure makes this possible by giving businesses a platform for deploying their apps that is cheap, easy to use, and very good.

No one can argue that Microsoft Azure and SAP are the best at building ecosystems for technology. By running SAP on Microsoft Azure, you get a complete, secure, and well-organized infrastructure architecture that can quickly handle large workloads and provide cutting-edge solutions.

In this article, we’ll discuss all about SAP on Azure, how SAP Cloud Platform integrates with Microsoft Azure, real-time examples, benefits, their comparison, and much more. Hop on to find out all about SP on Microsoft Azure. 

What is SAP and How Does It Work?

The term SAP stands for Systems, Applications, and Products. It is an ERP software package. When it comes to business process management software, SAP is a global leader.

It develops products that facilitate data processing and information sharing within businesses. It integrates all the systems into a single system to flow information from different departments of any business. 

How SAP Works

Let’s find out how SAP works: 

  • The presentation tier sends a request that can be from an online user, a batch job, or others. 

  • Then the dispatcher of the SAP central instance reviews the request. 

  • The dispatcher passes this request to (M) or message processing.

  • (M) then decides whether to proceed with this request for the same instance or choose a different one. 

  • If (M) proceeds with the request in the same instance, it is assigned to the appropriate work process. 

  • The work process takes care of the request, and if any changes are to be made to the database, SAP will do so through the enqueue server (E). 

  • The requester receives the response to their inquiry in reverse chronological order.

How Can SAP Cloud Platform Integrate with Microsoft Azure?

The SAP Cloud Platform Connector lets SAP Cloud Platform securely connect to Azure services like Azure Active Directory, Azure Event Hubs, Azure Functions, and more.

This makes it possible for SAP Cloud Platform to work with Microsoft Azure. With this integration, companies can use the best parts of both platforms to build and run cloud-based apps and services.

When SAP Cloud Platform and Azure DevOps are used together, it is also possible to automate app deployment, testing, and monitoring. SAP Cloud Platform can integrate with Microsoft Azure in several ways:

  1. 1

    Connectivity Service

    It lets SAP Cloud Platform connect safely to Microsoft Azure services like Azure Active Directory and Azure SQL Database.

  2. 2

    SAP Cloud Platform Extension Factory

    Customers can now extend SAP solutions in Azure and use Azure services like Azure Machine Learning and Azure IoT Hub.

  3. 3

    SAP Cloud Platform Integration

    This allows customers to integrate SAP solutions with Azure services such as Azure Functions and Azure Event Grid.

  4. 4

    SAP HANA on Azure

    Customers can now run SAP HANA in Azure and use Azure services like Azure Site Recovery and Azure Backup.

Depending on the specific needs and use case of the customer, a customer can use a particular integration technique.

Real-World Examples of Companies That are Using SAP on Azure

The following are some of the real-world examples of companies that are using SAP on Microsoft Azure: 

  • Coca-Cola: Coca-Cola uses SAP on Azure to help in its digital transformation and enhance its supply chain operations.

  • Pfizer: The SAP platform on Microsoft Azure is used by the pharmaceutical company to facilitate worldwide operations, enhance data management, and fuel creative thinking.

  • Dow Chemical: The chemical manufacturer is using it to streamline operations, improve data management, and drive innovation.

  • Johnson Controls: Johnson Controls, a global conglomerate, is relying on it to facilitate digital transformation and strengthen its global operations.

  • AstraZeneca: The pharmaceutical company uses SAP on Microsoft Azure to support its operations, improve data management, and drive innovation.

The combination of SAP's corporate software and Microsoft's Azure cloud platform gives these businesses a competitive edge.

What are the Main Steps to Install SAP on Microsoft Azure?

The following are the main steps to install SAP on Microsoft Azure:

  1. 1

    Plan the SAP System

    This includes downloading and extracting SAP software, creating SAP profile, and preparing SAP database.

  2. 2

    Prepare the Azure Environment 

    Create virtual networks, storage accounts, and virtual machines; and set up an Azure subscription.

  3. 3

    Install the SAP System

    Set up the SAP components, such as the database, application server, and message server, on the virtual machines in Azure.

  4. 4

    Configure the Network

    Set up network connections between the different parts of SAP and make sure they can talk to each other.

  5. 5

    Install the SAP License Key

    Install the SAP license key on the Azure virtual machines so that the SAP software can be used.

  6. 6

    Configure the Backup & Recovery Solution 

    Configure a backup and recovery solution to protect the SAP data in Microsoft Azure. 

Microsoft Azure vs SAP Cloud Platform: Features & Pricing Differences

1. Features

Microsoft Azure

SAP Cloud Platform


Computing, storage, data management, application development, among others.

ERP and business management solutions, custom application development and deployment, data management, and analytics.


Encryption, network security, identity management.

Encryption, network security, identity management.


The complexity of deployment increases with the size of the deployment. 

Deployments of all sizes are easy to complete. 


It is very flexible, scalable, and intuitive. 

It lacks flexibility in the licensing structure.


Microsoft Azure doesn’t provide good integration and support. 

SAP Cloud Platform offers the best integration with other operating systems. 


It has a number of tools for development and deployment, such as Visual Studio and Azure DevOps.

It has tools like SAP Web IDE and SAP Cloud Platform Development and Operations that can be used to build and deploy custom applications.

Machine Learning

Azure has a number of AI and machine learning services, such as cognitive services and the Azure Machine Learning service.

SAP Cloud Platform provides machine learning capabilities through its SAP Leonardo service. 

2. Pricing

Microsoft Azure

SAP Cloud Platform

Pricing Model

It’s a pay-as-you-go OPEX model. You can reserve funds. 

It offers a pay-as-you-go pricing model and yearly-subscription. 

Starting Price

The starting price is at $2

The Starting Price Is At $5

Cost Estimation

Azure provides a cost estimator tool to help customers predict their costs.

SAP Cloud Platform provides a transparent pricing model, with costs calculated based on consumption.

Cost Optimization

It is very flexible, scalable, and intuitive. 

It lacks flexibility in the licensing structure.

What are the Benefits of Running SAP on Microsoft Azure?

The following are the significant benefits of running SAP on Microsoft Azure:

  • High Security 

    SAP on Microsoft Azure offers a high level of security for your system through replication capabilities. With compelling features such as Automated Backup & DR Systems, you can witness the data and applications’ security. 

  • Cost-Reduction 

    Running SAP on Microsoft Azure can help you reduce the cost of your IT structure. A lot of customers have saved around 35%-70%. 

  • Performance

    Microsoft offers unparalleled computing power to smoothly run SAP applications. They offer pay-as-you-go services that will help you quickly scale up or scale down without breaking the bank. 

  • Flexibility 

    You can have quick access to Microsoft Azure cloud data centers. This way, no matter if you need systems for new projects, applications, or testing purposes, you can deploy new systems without wasting any time. 

How to Get the Best of Both Worlds for Your Enterprise Needs?

Does your business want to get the most out of moving SAP on Microsoft Azure? A common problem moving from an existing SAP infrastructure to Azure is keeping systems and services running.

However, Azure is built to make it not only possible but much easier to keep running the same workload you were using before the migration. It might even be realistic to expect substantial savings from such a transition.

You can save a lot of money by migrating your current SAP infrastructure to Azure because of a Hybrid Benefit licensing gap. This means that businesses can move SQL Server and Windows Server installations to Azure without having to pay for new licenses. 


In this article, we've explained all about SAP on Microsoft Azure. No doubt, SAP Cloud Platform, and Azure are also the best individually, but their integration offers remarkable benefits to organizations.

If you want to increase scalability, flexibility, and security while decreasing cost, SAP on Microsoft Azure is your best bet. 


Does SAP have a cloud platform?

Yes! SAP has its own cloud platform called the SAP Cloud Platform. Users can develop, expand, and use their apps in the cloud thanks to a multi-cloud platform known as the SAP Cloud Platform.

It has many services and tools for creating and deploying unique applications, managing data, doing analytics, and more.

Is SAP better on AWS or Azure?

SAP is better on Microsoft Azure. The advantages of running SAP on Azure over AWS include reduced downtime, better workloads, and opportunities for simple scalability.

To get the most out of your SAP investments, consider migrating them to Azure, where you can access cutting-edge management, AI, and analytics tools.

Who is SAP's biggest competitor?

The following are the biggest competitors of SAP:

  • Microsoft Dynamics

  • Net Suite

  • Oracle Business

  • Salesforce 

Will Salesforce overtake SAP?

It’s hard to predict as Salesforce and SAP operate in distinct enterprise software market segments and have different strengths and disadvantages. Salesforce has been overgrowing recently. While SAP leads ERP, it leads CRM. Both firms' success depends on their ability to adapt to market and client needs.

Does SAP have a future?

Yes, SAP has a future. Despite competition from new enterprise software companies, SAP has a history of innovation and an extensive customer base.

The corporation has invested in cloud computing, artificial intelligence, and the Internet of Things to keep up with client demands. SAP's financial performance and ERP market leadership are also promising.

About the author


Youssef is a Senior Cloud Consultant & Founder of

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