Google Cloud will be a strategic partner for SAP's RISE program, which aims to accelerate the migration to the cloud for the enterprise software giant's customer base.
Under the partnership, SAP RISE customers will be able to leverage Google Cloud's services, including artificial intelligence and machine learning. With SAP's RISE effort, initially outlined in January, the company is looking to simplify its deployments and move to a subscription model. Enterprise customers, who have often customized SAP's applications, are trying to move to more standard models and see RISE as an avenue to transform business processes. SAP is doubling down on the idea of modular cloud ERP and is extending RISE with modules for human experience management, analytics, and governments. The plan is to add more modules over time.
In its second-quarter earnings report, SAP touted the momentum for the RISE program. With Google Cloud, customers will be able to use multiple SAP services and products on Google Cloud. SAP added that SAP Analytics Cloud and SAP Data Warehouse Cloud would be available with Google Cloud.
SAP and Google launched programs to land joint customers this year, including Energizer, MSC Industrial, and AES Corp. For instance, Energizer used the RISE program to implement SAP S/4HANA on Google Cloud for its central finance operations.
Brian Duffy, who leads the RISE with SAP effort as president of SAP Cloud, said SAP and Google Cloud have joint customers in multiple industries, but the offering from the two companies is broader. "This is a general offering relevant to all customers," said Duffy. "It's not one industry specifically."
Duffy said the roadmap with Google Cloud and RISE is a work in progress, but both partners have complementary offerings. "Our sweet spot is ERP. This is what we do. Google Cloud is in its sweet spot," said Duffy. "We both know where our swim lanes are and both of us are clearly listening to our customers."
Rob Enslin, president of Google Cloud Sales, said the collaboration with SAP is about adding artificial intelligence, data management, and machine learning services on top of SAP HANA and other technologies.
Enslin said the two companies have a roadmap for more integration as well as a joint go-to-market strategy. It also doesn't hurt that Google Cloud executives are familiar with SAP since many of them -- including Enslin -- are alum of the enterprise software giant. The partnership with SAP also advances Google Cloud's focus on industries.
"Our focus on industries is AI, big data, and ML. SAP is focused on processes. We can add value and augment some of those processes," said Enslin. "BigQuery and SAP HANA are very complementary."
Google Cloud brought in $4.63 billion in sales for the second quarter of 2021, Google's parent company Alphabet reported Tuesday. That's up 54 percent from $3 billion the year prior.
The cloud business posted an operating loss of $591 million, compared with a loss of $1.43 billion a year prior.