A three-year deal to help business move on to the cloud has been met as the global tech giant, Microsoft, announced it will be teaming up with the business software group, SAP, Reuters reports.

The partnership will be known as “Embrace” and is being created to enable customers to run operations hosted at remote servers supported by SAP’s database.

The partnership

Speaking to reporters about the news, Jennifer Morgan, the new Co-Chief Executive of SAP and the first female to be head of a German Blue-chip DAX index, said, “We bundled SAP’s cloud platform services to support customers around the extension, integration and orchestration of SAP systems,”

Morgan added that Microsoft will be acting as a re-seller for the product and that it’s expected the business firm will make around £65 million in the deal.

SAP claim to have a 10% increase in this quarter compared to last.

A growing business

Last year, SAP acquired the customer experience platform, Qualtrics. Experts criticised the $8 billion deal as being overpriced. However, Morgan praised their performance and suggested that it had added over 300 customers in less than 6 months.

Part of the reason for the partnership is that many SAP customers have complained that it is too hard to move from traditional on-premises models to remotely hosted services. However, it’s believed that the new deal has helped SAP double cloud bookings in the financial year’s third quarter.

The agreement will strengthen the relationship between the two firms cloud services.