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Is IBM's Power Play with SAP a Game Changer?
IBM and SAP partner to accelerate cloud migration for IBM Power customers with RISE with SAP on IBM Power Virtual Server.
- IBM and SAP have partnered to launch RISE with SAP on IBM Power Virtual Server.
The offering aims to accelerate cloud migration for IBM Power customers running SAP S/4HANA.
IBM claims customers can transition to the cloud within 90 days with this new offering.
IBM Consulting and an ecosystem of partners will support customers in their cloud transformation journeys.
This partnership underscores the growing trend of hybrid cloud adoption and the importance of strategic partnerships in facilitating complex digital transformations.
The News:
IBM and SAP have announced the upcoming release of RISE with SAP on IBM Power Virtual Server, a new offering designed to accelerate the migration of SAP S/4HANA workloads from on-premises IBM Power Systems to the cloud. This offering aims to simplify and expedite cloud transformation for IBM Power customers, enabling them to move their ERP systems to the cloud within 90 days. IBM has successfully leveraged this approach for its own internal SAP S/4HANA Cloud modernization project, realizing a 30% reduction in infrastructure costs and related operations. Find out more here.
Analyst Take:
I regularly speak with Tom McPherson and his leadership team on the direction they are driving for IBM Power and I continue to be impressed with the dual execution model of hardware innovation at the chip and system level while they are executing on a cloud drive roadmap with Power VS. If you want to check out my most recent on screen discussions you can click here and here. This announcement is yet another point on the curve, and represents a significant development in the enterprise cloud market for mission critical workloads. It reflects a growing trend among organizations to embrace hybrid cloud strategies and modernize their mission-critical applications, such as ERP systems. SAP S/4HANA Cloud has emerged as a default choice for many businesses seeking to transform their ERP operations, and this partnership between IBM and SAP aims to streamline that transition for IBM Power customers.
What was Announced:
RISE with SAP on IBM Power Virtual Server is a newly launched offering designed to facilitate the migration of SAP S/4HANA workloads from on-premises IBM Power Systems to IBM Power Virtual Server in the cloud. This solution aims to leverage the existing capabilities of IBM Power Systems, known for their security, scalability, and reliability, and extend them to a cloud environment. The offering is intended to enable a rapid transition to the cloud, with IBM claiming a migration timeframe of within 90 days. This accelerated migration process is supported by IBM Consulting and a network of partners who will provide expertise and guidance throughout the journey.
This offering also includes access to the IBM Transformation Suite for SAP Applications, a bundle of tools and services designed to aid in the migration process. These resources include assessment tools for evaluating existing environments, data migration capabilities, and automated testing functionalities.
This partnership between IBM and SAP is noteworthy for several reasons. First, it underscores the increasing importance of strategic partnerships in the technology industry, and SAP and IBM have long been strategic partners, both for hardware and for consulting services. Complex digital transformations, such as migrating mission-critical ERP systems to the cloud, often require a collaborative approach involving technology providers, consultants, and system integrators. This offering provides a comprehensive solution that encompasses all these aspects, potentially simplifying the process for customers.
Second, it highlights the growing prominence of hybrid cloud strategies. Organizations are increasingly recognizing the value of a hybrid approach, leveraging both on-premises and cloud infrastructure to optimize their IT operations. This offering caters to this trend by providing a pathway for IBM Power customers to extend their existing infrastructure investments to the cloud.
Finally, it emphasizes the ongoing evolution of the ERP landscape. SAP S/4HANA Cloud remains a power house in the ERP space, and offers enhanced capabilities as well as a cloud-native architecture. This partnership aims to facilitate the adoption of SAP S/4HANA Cloud, potentially accelerating the modernization of ERP systems across various industries.
Looking Ahead:
Based on what I am observing, this announcement signifies a notable trend in the enterprise cloud market: the rise of comprehensive solutions designed to simplify complex digital transformations. The key trend that I am going to be looking out for is the adoption rate of RISE with SAP on IBM Power Virtual Server versus on-premises deployments and the impact it has on IBM's and SAP's market share in the cloud ERP space.
Also when you position this in the context of a refreshed Power architecture that is likely due this year, it will be interesting to see the trajectory. The wider trend is that when you look at the market as a whole, the announcement indicates a growing recognition of the importance of strategic partnerships and hybrid cloud strategies in facilitating successful cloud transformations. HyperFRAME will be closely monitoring how the company does in future quarters, particularly in terms of customer adoption, migration success rates, and the realization of anticipated cost savings and operational efficiencies.
Steven Dickens | CEO HyperFRAME Research
Regarded as a luminary at the intersection of technology and business transformation, Steven Dickens is the CEO and Principal Analyst at HyperFRAME Research.
Ranked consistently among the Top 10 Analysts by AR Insights and a contributor to Forbes, Steven's expert perspectives are sought after by tier one media outlets such as The Wall Street Journal and CNBC, and he is a regular on TV networks including the Schwab Network and Bloomberg.