Microsoft and ServiceNow, in an increasingly expanding strategic partnership, on Tuesday announced new integration and optimization of their products and platforms that will benefit enterprise companies in certain highly regulated industries, as well as government customers.

ServiceNow also will use Azure Cloud, in addition to its own private cloud. With the agreement, ServiceNow becomes a strategic Microsoft partner in its global ISV strategic alliance portfolio. 

Microsoft’s Satya Nadella

“This is an enormous opportunity for customers – including in the public sector – to apply the power of the cloud to become more efficient and responsive,” said Satya Nadella, Microsoft CEO. “Our partnership combines ServiceNow’s expertise in digital workflows with Azure, our trusted cloud, so that customers can accelerate their digital transformation while meting their security and compliance needs.” 

This latest announcement follows last fall’s news that the two companies entered into a strategic intellectual property (IP) agreement that promotes ServiceNow’s adoption of Azure Cloud and provides access to Microsoft’s Azure IP Advantage program. That announcement broadened an already existing alliance between the two vendors to deliver digital workflows through Microsoft’s Azure Government Cloud.  

With ServiceNow now adding Azure Cloud as part of its preferred cloud platform for certain highly regulated industries, U.S. government agencies will be able to leverage compliance coverage across regulatory standards available through Azure.

Microsoft built Azure Government as a dedicated cloud for government customers (U.S. federal, state and local government) and their partners who need to meet government security and compliance requirements. Azure Government offers security, protection and compliance services. 

Azure Government offers deeply integrated cloud services, data and advanced analytics, and an open application platform that provides the building blocks to rapidly develop, deploy and manage intelligent solutions, according to the vendor. 

Availability for ServiceNow will begin with the Azure regions in Australia and Azure Government in the U.S., with additional market rollouts in the future. 

Microsoft said it’s also buying into ServiceNow for its own business. ServiceNow’s IT & employee experience workflow products will be implemented across Microsoft to improve operations, enhance employee experiences and deliver stronger business outcomes.