International Business Machines Corp (IBM, Financial) and SAP SE have announced the launch of "RISE with SAP on IBM Power Virtual Server," a new offering designed to facilitate the migration of SAP S/4HANA workloads from IBM Power Systems on-premises to the cloud within 90 days. Announced on January 7, 2025, this collaboration aims to help organizations modernize their ERP environments, reduce infrastructure costs, and support AI-powered business processes. IBM's own modernization project, which supported 150,000 ERP users, resulted in a 30% reduction in infrastructure costs over 18 months.
Positive Aspects
- IBM and SAP's collaboration offers a fast and secure migration path to the cloud.
- The new offering promises a 30% reduction in infrastructure costs, as demonstrated by IBM's internal project.
- RISE with SAP on IBM Power Virtual Server is designed to enhance business agility and process automation.
- IBM Power servers are highly secure, scalable, and reliable, ranking #1 in availability among SAP-certified infrastructure.
Negative Aspects
- The success of the migration depends on customer collaboration around network integration and testing.
- There may be risks and uncertainties associated with the transition, as noted in the forward-looking statements.
Financial Analyst Perspective
From a financial standpoint, IBM's partnership with SAP to offer RISE with SAP on IBM Power Virtual Server is a strategic move to capture a larger share of the cloud ERP market. The potential for significant cost reductions and increased efficiency could enhance IBM's value proposition to its clients, potentially leading to increased revenue streams. The 30% reduction in infrastructure costs achieved in IBM's own modernization project serves as a compelling case study for prospective clients, highlighting the financial benefits of adopting this new offering.
Market Research Analyst Perspective
As a market research analyst, the collaboration between IBM and SAP represents a significant development in the cloud ERP landscape. The ability to migrate SAP S/4HANA workloads to the cloud within 90 days positions IBM and SAP as leaders in facilitating digital transformation. This offering is likely to appeal to enterprises seeking to modernize their ERP systems quickly and efficiently. The emphasis on AI-powered business processes and enhanced security further strengthens the market appeal of this solution, potentially driving increased adoption among IBM's existing and new customers.
Frequently Asked Questions
What is the new offering announced by IBM and SAP?
RISE with SAP on IBM Power Virtual Server, designed to facilitate the migration of SAP S/4HANA workloads to the cloud.
What are the expected benefits of this offering?
It promises a 30% reduction in infrastructure costs, enhanced business agility, and support for AI-powered processes.
When will RISE with SAP on IBM Power Virtual Server be available?
It is planned to be available in the second quarter of 2025.
How does this offering impact IBM's position in the market?
It strengthens IBM's position as a leader in cloud ERP solutions, offering a fast and secure migration path for enterprises.
Read the original press release here.
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