SAP SE (NYSE: SAP) and NTT Inc. today announced their intention to cooperate in the areas of SAP Sovereign Cloud and SAP Business AI.

The planned collaboration aims to bring together SAP’s enterprise application portfolio, SAP Sovereign Cloud and SAP Business AI capabilities with NTT’s global infrastructure, full-stack integrated operations, deep industry AI expertise and global customer reach to help customers benefit from cloud and AI innovation while retaining control over sensitive data, operations, technology and security. The planned collaboration reflects the shared ambition of SAP and NTT to advance secure, resilient and sovereign digital transformation for regulated industries.

Supporting Sovereign Cloud Requirements

As an initial area of cooperation, SAP and NTT plan to work together to provide a broad set ofsovereign capabilities that combine the SAP Sovereign Cloud On-Site offering with NTT-managed infrastructure and operations to customers in key markets.

SAP Sovereign Cloud On-Site is SAP’s deployment offering for customers with stringent sovereignty, regulatory and compliance requirements. It enables SAP-managed cloud solutions to be operated in a customer-owned or customer-selected data center. This provides organizations with a high degree of sovereignty across local physical control, data residency and operational assurance, while helping customers address applicable local legal and regulatory requirements.

By combining the capabilities of SAP Sovereign Cloud with NTT’s global reach and expertise in advising, designing, delivering and operating secure infrastructure, the companies intend to support customers in geographies where strong local control is required. These capabilities are intended to help governments, defense organizations, defense industry companies, critical infrastructure operators and other regulated enterprises modernize mission-critical processes while maintaining control over sensitive data and operations and addressing compliance requirements.

Exploring the Value of AI

Building on this foundation, SAP and NTT intend to explore broader opportunities to help governments, critical infrastructure operators and highly regulated industries modernize mission-critical processes and adopt AI in a secure, responsible and sovereign manner.

“With this cooperation, SAP and NTT aim to give customers a practical path to cloud and AI innovation while maintaining the control, governance and trust they require,” said Dominik Asam, member of the Executive Board and Chief Financial Officer, SAP SE. “For public sector organizations and regulated industries, sovereignty is not just a compliance requirement, it is the foundation for resilience, competitiveness and the responsible adoption of AI. Together, we want to help customers innovate while meeting their sovereignty requirements.”

“Our customers are looking for practical ways to use AI to solve real business challenges and create new value,” said Yutaka Sasaki, Representative Member of the Board, Senior Executive Vice President and Chief Financial Officer, NTT. “By combining SAP’s business applications and AI capabilities with NTT’s deep understanding of industry needs and mission-critical operations, we aim to help organizations transform how they work, make better decisions and accelerate business outcomes through AI.”

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