SAP and Alibaba Deepen Cloud Partnership to Power Chinese Enterprises

Alibaba Group and SAP have expanded their strategic partnership to accelerate cloud adoption in China. The partnership, which was unveiled during the 2025 Yunqi Conference, will see four of SAP’s core cloud solutions launched on Alibaba Cloud, the German software giant’s sole strategic public cloud partner in China.

This deepening alliance will provide Chinese enterprises with a clear and powerful path to digital transformation. It combines SAP’s leadership in enterprise applications with Alibaba Cloud’s dominant infrastructure and understanding of the local market.

Yuan Xin, President of SAP Greater China, emphasised the synergy, stating, “Chinese enterprises are embracing innovation at an accelerated pace, and we need strategic partners like Alibaba Cloud that possess both a global vision and deep local expertise to help them flexibly navigate uncertainty and seize global opportunities.”

The Solutions Hitting the Shelves

Starting immediately, the four key SAP solutions will be rolled out in batches on Alibaba Cloud, providing a comprehensive toolkit for modern management and innovation. They include:

• SAP Business Technology Platform (BTP)
• SAP S/4HANA Cloud (Public Edition)
• SAP S/4HANA Cloud (Private Edition)
• SAP Integrated Business Planning (IBP)

This collaboration also aims to deliver immediate value by removing barriers to modernisation. According to Liu Weiguang, Senior Vice President of Alibaba Cloud Intelligence Group, the goal is to provide a simpler and more efficient path to digital upgrade. “By bringing SAP’s leading solutions to Alibaba Cloud, we will help enterprises easily optimise costs, strengthen compliance, and drive innovation faster,” Weiguang said.

Looking ahead, the partnership plans to expand into Southeast Asia and the Middle East. With nearly 100 joint enterprise events planned, SAP and Alibaba have indicated that they are committed to building a robust digital ecosystem that will fuel the next wave of sustainable growth for Chinese enterprises.

What This Means for Mastering SAP Insiders

This partnership moves beyond a simple hosting agreement and offers tangible strategic advantages. They include:

1. Simplified compliance and data sovereignty. For any company operating in China, data residency and regulatory compliance are paramount. Running SAP’s core solutions on Alibaba Cloud’s local, hyperscale infrastructure directly addresses these critical requirements, reducing legal and operational risks and allowing organisations to focus on their business.
2. Accelerated cloud journey with lower TCO. The move provides a clear, supported path to the cloud. By leveraging Alibaba Cloud’s infrastructure, businesses can significantly reduce IT investment and operating costs associated with on-premise data centers. The flexible, scalable architecture ensures businesses pay for what they use while gaining the agility to adapt to market changes quickly.
3. A foundation for real-time innovation. Combining SAP BTP’s capabilities for AI and analytics with Alibaba’s powerful platform creates a foundation for true innovation. As Liu Weiguang noted, it enables companies to “improve decision-making capabilities based on real-time data,” turning ERP from a system of record into an engine for growth.