SAP is to offload its European external hosting customer base to T-Systems, in a deal expected to close in about six weeks.

The companies said that as a result of the transaction, hosting support for SAP software applications of nearly 90 SAP customers will be transferred to T-Systems. 

Analysts view the move as an indication of SAP’s intention to add focus to its nascent software-as-a-service business, as opposed to offering standard hosting services.

In contrast, T-Systems is building a position as a leading SAP hosting and service provider.

Earlier in the month it boosted its hold in Switzerland with the takeover of the SAP consultancy division of Logica Switzerland. At the same time, it became a certified SAP partner for hosting services in the Netherlands.

Multinational groups such as Shell, MAN and Linde procure their SAP applications on demand over the T-Systems network. Continental Automotive Group is one of the company’s latest customer wins, with the business using it to merge and operate its entire SAP environment.

Olaf Heyden of T-Systems said of this latest deal, “The takeover of SAP external hosting business fits precisely to T-Systems’ global SAP strategy.”