Microsoft has announced an expansion of its partnership with SAP to improve supply chain and Industry 4.0 solutions.

SAP is one of the leading enterprise software providers, and the two companies are expanding their partnership “to help customers design and operate intelligent digital supply chain and Industry 4.0 solutions.” The two companies are also working together to promote interoperability in the industry.

The partnership will allow customers to run SAP’s Digital Supply Chain solutions on Microsoft Azure. The solution will run as software-as-a-service (SaaS) on Azure, giving customers the ability to scale as needed and reap the benefits of the cloud.

SAP is excited to bring our proven and innovative solutions to Microsoft Azure for our manufacturing and digital supply chain customers. This partnership gives our customers the ability to subscribe to our digital supply chain and manufacturing solutions in the cloud and enhances our offerings for Industry 4.0. Building on this, SAP solutions will soon be available at the edge in factories, plants, and automated warehouses in close proximity to sensors, machines, and control systems. —Franz Hero, SAP Senior Vice President for Digital Supply Chain Solutions.

The partnership should be a big win for both Microsoft and SAP customers.