
Nokia has partnered with SAP and Microsoft to modernize its enterprise systems by moving its ERP portfolio to the cloud. The deal lets Nokia leverage embedded AI capabilities while outsourcing infrastructure management to SAP, freeing the company to concentrate on business strategy rather than system operations.
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Nokia inked a multi-year deal with SAP and Microsoft to migrate its ERP (enterprise resource planning) portfolio to SAP S/4HANA on Microsoft's Azure cloud platform, using SAP's RISE with SAP methodology.
Why it matters
The migration gives Nokia continuous access to embedded AI capabilities and allows the company to focus on business outcomes rather than managing cloud infrastructure itself, since SAP will operate and manage the environment.
What to watch
The portfolio migration covers Nokia's data, processes, applications, and operating models across its ERP landscape.
Nokia, a Finnish company that builds hardware and software for network infrastructure, has taken a strategic step to modernize its internal systems. The three-year partnership brings together two major enterprise technology vendors—SAP for ERP management and Microsoft for cloud hosting—to handle the complex work of migrating Nokia's data, processes, applications, and operating models to a modern cloud foundation.
This move reflects a broader business logic: by outsourcing the day-to-day operation of its ERP systems to SAP and moving to a managed cloud platform, Nokia reduces the burden of infrastructure upkeep and frees internal teams to focus on competitive priorities. The embedded AI capabilities mentioned in the deal signal Nokia's intent to gain access to automation and intelligence tools without building them from scratch. For a company positioned in connectivity and network infrastructure, this infrastructure modernization may be seen as a prerequisite for competing in what the article describes as the "AI era."
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