International Business Machines Corp. (NYSE: IBM) and Germany-based software company SAP, announced that they will team up in an aim to modernize the cloud technology of IBM, once the technology is integrated with the software and cloud services of SAP. These 2 tech corporations intend to attract enterprise clients that are planning to go digital with public clouds.
The IBM-SAP collaboration will combine the cognitive computing power of Big Blue and cloud systems with the HANA Cloud Platform of SAP to deliver an integral role in this project. The two tech giants will work hand in hand on certain aspects, including extensions for cognitive computing, deployment of on-premise computing, cloud applications for the different industries, as well as the customized user experience development.
The objective of this project is to speed the transformation process for customers who are looking for strong cognitive computing. This bolstered partnership between the International Business Machines and SAP will also help entice those firms, that have thus far felt some apprehension about outsourcing operations. Aside from that, this can also cater to those corporations that don’t trust a total shift to public clouds and seek to operate a hybrid network, wherein part of the data is shared between self-run data centers and cloud.
This project’s resources are said to be equally allocated at the home base of SAP in Walldorf, Germany as well as in the offices of IBM located in Palo Alto, California. IBM and SAP’s joint collaborative platform will also be presented at the two tech companies’ own innovation centers.
It can be said that the partnership of the two companies is profitable for both. For the Germany-based software company, it will increase the exposure of the HANA cloud software. By taking advantage of memory chip gains, HANA will manage to boost the computing speeds for databases, in comparison to data run on traditional disk drivers. On the other hand, IBM is looking to minimize its reliance on the conventional hardware networking business to explore and consider bigger opportunities in the other segments, including cognitive computing, cyber security, cloud, and consultancy.
During the last few months, Big Blue has also perfomed several takeovers of cloud-based firms in order to support its transformation process. Just recently, it purchased Bluewolf Consulting LLC. This San Francisco-based company aids in connecting up to 9,000 enterprise users all over the world, including Salesforce.com, with their target consumers by using cloud technology. Bluewolf Consulting is anticipated to be combined into the IBM Interactive Experience—a support service for customers that already make use of the softwares of SAP.
The acquisition of Bluewolf and the new deal with SAP are aimed at maximizing the computing process for clients who are willing to make a transition to cloud computing. International Business Machines has displayed stagnant growth in terms of revenue for over 3 years. The new techniques promise substantial yields in the long term, as the capital expenditure may be subject to pressure in the short term.
As of 10:47 AM GMT-4 on April 7, the stock of IBM is changing hands at $148.56, lower by 0.97 percent or 1.46.