WEDNESDAY: In tech finance sect, latest reports have brought in amazing announcements by International Business Machines Corp. (NYSE:IBM) and German business software provider, SAP (SE); who are looking to make a partnership for developing/enhancing their cloud services amid complementary technologies and services – another strategy to boost digital economy via modernizing current system infrastructure. The tech companies announced to work upon on-premise offerings, customer/user experience and cognitive capabilities.
The deal aims to combine SAP’s software and cloud platform with IBM’s cognitive capabilities; cloud and power systems. Most importantly, old partners plan to co-locate resources in Palo Alto, Calif and Walldorf, Germany – current base for SAP.
“We’re formalizing a complementary set of capabilities to simplify and speed outcomes for clients evolving to become cognitive enterprises.” – IBM Global Business Services’ senior vice president, Bridget van Kralingen
It’s worth mentioning that IBM has been putting in a lot of effort to re-invent itself on cloud computing platform. SAP that sells software for an easy management of corporate operations – i.e. manufacturing, finance and inventory – is an ideal choice for it in that case.
SAP’s collaboration with the 104-year-old tech giant appeals to established companies that have turned away from outsourcing operations (source: Market Watch). On a similar note, Business Suite 4 SAP HANA software has become one of its popular cloud offerings (source: Thomson Reuters).
INSIGHT: In year 2013, IBM became bigger participant in cloud computing when it acquired SoftLayer Corp. Following this, the companies announced SAP to use IBM-functioned services in addition to its own to deliver SAP software as a sole service over entire internet, during 2014.