- Nokia has signed a multi year agreement with SAP to continue its enterprise transformation using RISE with SAP Methodology.
- SAP S/4HANA will run on Microsoft Azure, giving Nokia a cloud based ERP platform with improved scalability and security.
- The partnership will gradually introduce embedded AI features across Nokia’s finance, logistics, and business operations.
- SAP, Microsoft, and Nokia will jointly manage the migration to support continuous innovation and long term business transformation.
Nokia is taking another major step in its enterprise modernization journey through a new multi year agreement with SAP, supported by Microsoft Azure. The partnership is designed to help the telecom giant simplify its business operations, modernize its enterprise resource planning systems, and create a stronger foundation for AI powered innovation.
The agreement, finalized at the end of 2025 and announced by SAP, extends Nokia’s long standing relationship with both SAP and Microsoft. At the center of the transformation is the adoption of RISE with SAP Methodology, with SAP S/4HANA running on Microsoft Azure. The move reflects Nokia’s broader strategy of using cloud technologies to improve efficiency while preparing its business for future AI driven capabilities.
Nokia moves its ERP transformation into the cloud
Rather than treating the migration as a straightforward technology upgrade, Nokia is positioning the project as a business wide transformation. By adopting RISE with SAP Methodology, the company aims to modernize not only its ERP software but also the processes, applications, data, and operating models that support its global operations.
SAP describes the methodology as a structured framework that guides organizations through large scale ERP modernization projects. Instead of focusing on a one time migration, it emphasizes continuous innovation and operational improvements while maintaining what SAP refers to as a clean core. This approach allows businesses to adopt new capabilities over time without creating unnecessary complexity in their enterprise systems.
Under the agreement, SAP will manage Nokia’s SAP S/4HANA cloud environment, allowing the company to spend less time maintaining infrastructure and more time improving business performance. The cloud based ERP platform is expected to help standardize business processes across the organization while making future updates and AI features easier to deploy.
Microsoft Azure becomes the backbone of Nokia’s cloud strategy
Microsoft Azure will serve as the cloud platform supporting Nokia’s SAP environment throughout the transformation. Nokia already runs parts of its SAP infrastructure on Azure, making the decision a natural extension of its existing cloud strategy.
By consolidating enterprise workloads onto a single hyperscale cloud platform, Nokia expects improvements in scalability, security, system resilience, and operational performance. The company also believes the move will simplify infrastructure management while supporting global business operations more efficiently.
Microsoft will work alongside SAP and Nokia during the migration process, helping with deployment, optimization, and long term cloud operations. The three companies see the collaboration as an example of how enterprise software, cloud infrastructure, and AI technologies can work together to support large scale digital transformation.
The project also aligns with Microsoft’s broader strategy of positioning Azure as the preferred cloud platform for enterprise SAP workloads, particularly as organizations increasingly invest in AI enabled business applications.
AI will play a larger role in Nokia’s business operations
Artificial intelligence forms an important part of Nokia’s long term plans under the agreement. Instead of introducing AI as a standalone product, the company will gradually adopt AI capabilities that are built directly into SAP’s cloud applications.
Nokia has already invested heavily in its next generation SAP S/4HANA environment, covering areas such as finance and logistics. The broader ecosystem includes SAP Central Finance, SAP Master Data Governance, SAP Extended Warehouse Management, SAP Global Trade Services, and SAP S/4HANA Cloud for advanced ATP.
As the migration progresses, embedded AI features within these applications are expected to automate business processes, improve operational decision making, and support faster execution across departments.
For Nokia, this represents a continuation of a transformation that has been underway for several years rather than the beginning of a completely new initiative. The company has spent considerable time consolidating multiple ERP systems into a unified SAP environment, and the latest agreement provides a structured roadmap to continue that work.
The partnership also highlights a growing trend among global enterprises that are looking beyond simple cloud migration projects. Organizations increasingly want cloud platforms that support continuous innovation, integrated AI capabilities, and long term business flexibility instead of isolated infrastructure upgrades.
For SAP, the agreement reinforces the growing adoption of RISE with SAP among large multinational customers seeking predictable and structured ERP modernization. For Microsoft, it strengthens Azure’s position as a key cloud platform for enterprise applications.
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