SAP, Microsoft intend closer ties

AMSTERDAM: U.S. software giant Microsoft and German business software maker SAP announced plans to work closer together to improve products and simplify access over the Internet.

The two software behemoths, both leaders in their respective fields and which both compete and collaborate in different areas, said the deal was a response to customers demanding better and cheaper interoperability between computer systems.

"Our work together is a strong example of open collaboration and innovation on behalf of customers in the Information Technology industry," SAP board member, Shai Agassi said in a statement.

The announcement was made around SAP conference, which currently takes place in New Orleans.

Part of SAP's systems, which help automate manufacturing and other production and administration processes, run on Windows operating software made by Microsoft.

The two companies agreed that SAP will support technology that Microsoft uses in its .NET products, for better interoperability when using SAP software over the Internet.

SAP and Microsoft will also work together to make it easier to use SAP systems with Microsoft's Office software applications, such as Excel, as well as with smart devices such as pocket PCs powered by Microsoft Windows software.

In addition, SAP will support Microsoft programmers to develop software that works with SAP's systems.

The two companies agreed to cross-license some of their technology, as part of their expanded alliance.

Apart from providing operating and office software that works in conjunction with SAP software, Microsoft also makes its own enterprise planning software. Unlike SAP however, which sells big systems to help automate major enterprises, Microsoft targets small and medium-sized companies with standard software.

© Reuters