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SAP and Microsoft are continuing to strengthen ties. The two have been collaborating this year and now SAP says Microsoft is adopting its HCM solution SuccessFactors. The company will use the service to provide human resources and improve employee engagement.

This is a big partnership for SAP as Microsoft has 114,000 full-time employees. Of course, Microsoft has its own similar service in Dynamics AX HCM. However, the company opted to go for SAP’s SuccessFactors.

There is a good reason why Microsoft has gone with an outside solution. SuccessFactors is the market leader in cloud-based HCM services. It integrates social business, collaboration tools, learning management systems (LMS), and onboarding.

Other features include performance management, applicant tracking software, succession planning, talent management, and HR analytics. The solution gives HR teams tools to analyze and deploy business strategies.

Other benefits of SuccessFactors include maximizing employee performance, team execution, and implementations in companies of all sizes.

Microsoft’s Vivan Mirchandani, senior director, Business Operations at Microsoft explained the decision to use SAP:

“While Dynamics 365 has a robust enterprise offering, key modules in [the] scope of the implementation, including succession planning and learning, are not part of our current offering, given Microsoft’s business needs and requirements, it makes sense to partner with a company that extends our cloud platform and integrates with our ecosystem.”

Microsoft and SAP

The two companies have been expanding their partnerships this year. Just last month, the pair increased public cloud services for SuccessFactors. The solution will be available in Microsoft Azure for the next five years. This is an Azure exclusive for the time being and the first time SAP has made its solution available to third-party cloud providers.

Earlier in the summer, the enterprise software providers said SAP’s HANA in-memory database will be made available on Microsoft’s Azure public cloud platform. Specifically, HANA will be available for machines with dense RAM configuration, while Office 365 will now have Ariba, Concur, SuccessFactors, and Fieldglass (all from SAP) integrated.