Alibaba Group and SAP SE have formed a strategic partnership to integrate enterprise software with artificial intelligence (AI) and cloud infrastructure, with potential implications for B2B ecommerce in China and emerging markets.
The agreement enables Alibaba Cloud to host SAP’s enterprise applications, including cloud-based ERP and supply chain software. It also expands both companies’ presence in B2B digital infrastructure. The partnership initially targets China, with expansion planned for Southeast Asia, the Middle East, and Africa. All those are regions where B2B ecommerce is growing and digital supply chains are underdeveloped or undergoing transformation.
Under the deal, Alibaba Cloud will join SAP’s Infrastructure as a Service (IaaS) Certification Program, becoming a certified provider for hosting SAP Cloud ERP and Integrated Business Planning (IBP) systems. This allows Alibaba to support SAP workloads locally, where data sovereignty and regulatory compliance are essential for cross-border and domestic B2B transactions.
How Alibaba and SAP are using the cloud and AI
Alibaba will also adopt SAP’s suite of enterprise software internally. That includes:
- Tools for HR (SuccessFactors)
- Procurement (Ariba)
- Travel and expense (Concur)
- Marketing automation (Emarsys)
This signals an effort by Alibaba to standardize operations across its ecosystem, including its wholesale marketplaces and logistics platforms that power B2B ecommerce transactions.
For B2B sellers and manufacturers, the integration of SAP’s ERP and AI platforms with Alibaba Cloud could streamline procurement, inventory, and fulfillment processes. SAP’s enterprise software underpins supply chains globally, and its closer alignment with Alibaba’s cloud and marketplace infrastructure could lead to more real-time visibility and automation in B2B transactions, particularly for companies using Alibaba’s platforms such as 1688.com and Alibaba.com.
The partnership also sets the stage for broader use of generative AI in B2B ecommerce. SAP is exploring the integration of Alibaba’s Qwen large language model into its AI Core platform. This could enable local-language AI applications for tasks such as order tracking, demand forecasting, and customer service — critical tools for scaling B2B operations in multilingual, high-volume markets.
A joint go-to-market strategy will promote SAP’s “RISE with SAP” and “GROW with SAP” offerings, which help businesses of diverse sizes migrate to the cloud. These models are particularly relevant for mid-sized manufacturers and wholesalers in developing markets looking to digitize legacy operations and participate in online B2B trade.
While financial terms were not disclosed, the agreement positions both companies to influence how cloud infrastructure and enterprise software shape the future of B2B ecommerce — especially in regions where digital platforms and supply chains are rapidly evolving.
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