IBM and SAP extend partnership to revamp business operations

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International Commercial Machinery Society IBM recently expanded its partnership with SAP SE SAP will use SAP’s Rise with SAP solution to transform business operations. Under the terms of the expanded partnership, IBM will now transition to SAP S/4HANA, SAP’s next-generation ERP software, to centralize and standardize data worldwide.

SAP S/4HANA ERP software is holistic, modular ERP software critically designed to meet the specific and unique requirements of each business. Using the SAP HANA database, data will be shared in real time and over 375TB of data can be moved to IBM Power on Red Hat Enterprise Linux on the IBM cloud.

IBM’s rapid move to this software will be accompanied by a consolidated delivery framework from SAP, which will include the SAP Value Assurance program and SAP Model Service Company. Enterprise customers will benefit from increased choices, controls and accelerated digital transformations and will use the new platform much faster than a traditional deployment plan. This will result in simplification of complex and time-sensitive business functions, which include real-time planning, execution, reporting, analysis and forecasting drawn from live data. This will ultimately result in better AI-supported decision making and automated workflows.

Although the expanded partnership is in the rollout phase, customers benefit from simplified billing and payment systems. An added benefit for customers is that global standards will help them secure SAP applications and data and comply with a regulatory framework.

IBM is poised to benefit from strong demand for hybrid cloud and AI, driving software and consulting growth. The company’s growth is expected to be primarily driven by analytics, cloud computing and long-term security. The combination of a better business mix, improved operating leverage through productivity gains and increased investment in growth opportunities will contribute to profitability.

IBM has lost 7.4% over the past year compared to industrydown 12.2%.

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InterDigital IDCC, also sporting Zacks Rank #1. He has a long-term earnings growth rate expectation of 15%.

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Silicon motion technology SIMO, carrying Zacks Rank #2 (Buy), is another great choice for stock investors. It has a long-term earnings growth rate of 9% with an earnings surprise of 0.96% on average.

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International Business Machines Corporation (IBM): Free Inventory Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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