Microsoft, SAP, and Databricks Expand Partnership with Launch of Business Data Cloud on Azure

SAP, Microsoft, and Databricks have announced a strategic expansion of their collaboration with the planned launch of SAP Business Data Cloud (BDC) and SAP Databricks on Microsoft Azure, expected to be available in Q3 2025. This initiative is designed to help enterprises unify their SAP and non-SAP data environments and enable advanced analytics and AI use cases across Microsoft’s cloud platform.

SAP BDC and SAP Databricks on Azure will support a zero-copy data sharing connector that enables users to query and analyze data across both platforms without having to replicate or move it—preserving data integrity and reducing storage and compute overhead. This capability is intended to address long-standing data integration challenges faced by enterprise IT teams working across siloed systems.

According to Michael Kiermaier, SVP of Business Strategy and Operations at Databricks, the new joint solution is intended to unlock the full value of SAP and non-SAP data on Azure by combining Databricks’ analytics and AI engines with Microsoft Azure’s native security, scalability, and integration capabilities.

A key differentiator of the joint offering is that SAP Databricks on Azure will utilize Microsoft’s first-party Azure Databricks service, as opposed to third-party implementations available on other hyperscalers. This allows customers to take advantage of features such as seamless Power BI integration, Microsoft Entra ID-based access control, and enterprise-grade compliance measures.

Customers will also benefit from joint engineering and unified billing, simplifying procurement and support processes. The offering positions Azure Databricks as a native part of the Microsoft ecosystem, offering a tightly integrated environment for data-driven SAP scenarios, including finance, supply chain, and customer analytics.

What this means for SAPinsiders

Real-world customers are beginning to explore integrated solutions. The joint offering from SAP-Microsoft-Databricks is designed to help enterprises unify SAP and non-SAP data, apply advanced analytics and AI, and take advantage of Azure’s native security, performance, and integration capabilities. While specific customer case studies have not yet been published, the inclusion of a zero-copy sharing connector suggests that organizations will be able to streamline data access and reduce duplication across platforms. Early adopters are expected to benefit from reduced data movement, more efficient analytics workflows, and simplified governance.

Strategic planning starts with identity and governance. To fully realize the benefits of the SAP–Microsoft–Databricks partnership, SAP customers should begin with a clear data strategy—but just as critically, they should address security, compliance, and identity integration from the outset. Microsoft Entra ID (formerly Azure Active Directory) provides native identity management for Azure Databricks, enabling secure, role-based access control across SAP and non-SAP data environments. Prioritizing this integration early in the deployment process could help to avoid costly rework, ensures alignment with enterprise compliance policies, and lays the groundwork for consistent governance.

Enterprise analytics is growing at a rapid pace. The market for unified analytics and AI platforms is accelerating as organizations seek to extract more value from their operational and transactional data. Solutions that bridge traditional ERP systems with AI-ready cloud platforms—like SAP BDC and Azure Databricks—are positioned to grow as enterprise data strategies become more centralized. As data volume and complexity rise, SAP customers will increasingly look for scalable, secure, and low-latency environments that support cross-platform data integration and machine learning at scale.