Nokia has signed a multi-year agreement with SAP to move more of its enterprise resource planning environment to SAP S/4HANA on Microsoft Azure.
The agreement was concluded at the end of 2025, according to SAP. It will use the RISE with SAP Methodology, covering Nokia’s ERP processes, data, applications, and operating models.
The work is part of Nokia’s existing effort to consolidate multiple ERP systems into a single SAP S/4HANA landscape. The programme covers finance, logistics, warehouse management, trade services, and order fulfilment functions.
RISE with SAP is SAP’s cloud ERP transformation programme, covering methodology, migration tools, and managed services.
SAP to manage S/4HANA cloud environment
Under the agreement, SAP will operate and manage Nokia’s SAP S/4HANA environment in the cloud. Microsoft’s documentation for SAP RISE on Azure says SAP RISE environments on Azure run in SAP-owned Azure subscriptions, with SAP managing the subscription and related Azure resources.
Nokia selected Microsoft Azure as the cloud platform for the programme. SAP said Azure will provide the scale, security, and performance needed to support Nokia’s business-critical enterprise workloads.
Azure supports the ERP migration
Microsoft’s Azure guidance for SAP S/4HANA covers high-availability and disaster-recovery architectures for running S/4HANA and Suite on HANA on Azure.
In early May, SAP and Microsoft announced an expansion of the global RISE with SAP on Microsoft Azure initiative, which the companies described as a joint programme providing technical expertise, support, and innovation for RISE with SAP on Azure customers.
Nokia already runs parts of its SAP landscape on Azure. The new agreement places more of its ERP work on the same cloud platform.
SAP said Microsoft will work with SAP and Nokia on migration and ongoing optimisation activities. The companies did not provide a migration timetable or disclose the value of the agreement.
AI details remain limited
At SAP Sapphire 2026, SAP announced SAP Business AI Platform and SAP Autonomous Suite as part of its wider enterprise software portfolio. SAP did not link those SAP Sapphire products to Nokia’s agreement.
The SAP environment involved in the programme includes SAP S/4HANA for central finance, SAP Master Data Governance, SAP Extended Warehouse Management, SAP Global Trade Services, and SAP S/4HANA Cloud for advanced ATP.
Advanced ATP, or available-to-promise, is used to check product availability and support order fulfilment decisions.
SAP said AI-enabled functions embedded in its cloud applications will be adopted gradually as part of Nokia’s RISE with SAP journey. The companies did not identify specific AI use cases, deployment dates, or expected operational outcomes.
Manos Raptopoulos, global president for customer success in Europe, APAC, the Middle East, and Africa at SAP, said the agreement gives Nokia a structured road map and integrated toolchain for the migration.
Raptopoulos also said the programme is intended to support Nokia’s ERP modernisation and clean core approach. SAP uses the term clean core to describe keeping ERP systems close to the standard version and limiting heavy customisation.
Nokia has used SAP systems for decades. In recent years, the company has been consolidating multiple ERP systems into a unified SAP S/4HANA environment through its next-generation ERP programme.
Marek Očkay, vice-president and global head of IT procurement and vendor management at Nokia, said the agreement builds on Nokia’s existing work with SAP and Microsoft. He said the company is using RISE with SAP on Azure to simplify its ERP landscape and support core business operations.
Joacim Damgard, corporate vice-president for Europe North at Microsoft, said the project brings SAP S/4HANA, Azure, and RISE with SAP together for Nokia’s enterprise systems.
Separate Microsoft infrastructure deal
The ERP agreement is separate from Nokia’s infrastructure work with Microsoft. In November 2024, Nokia announced a five-year expansion of its agreement to supply Microsoft Azure with data centre routers and switches across more than 30 countries.
The SAP deal concerns Nokia’s internal ERP systems, while the Azure data centre agreement involves Nokia supplying network equipment for Microsoft’s cloud infrastructure.
Nokia’s wider cloud business
In its Q1 2026 interim report, Nokia said AI and Cloud comparable net sales, on a constant currency and portfolio basis, grew 49%, accounted for 8% of group sales, and generated EUR 1 billion in orders during the quarter.
That business is separate from Nokia’s internal SAP migration. Reuters also reported in April 2026 that Nokia’s comparable operating profit rose 54% to EUR 281 million in the first quarter, supported by sales to AI and cloud customers.
(Photo by Paul Siewert)
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