IBM, SAP Cloud Deal a Major Step for Enterprise Cloud Adoption

IBM's new cloud deal with SAP will not only connect IBM's fast-growing cloud with SAP's HANA in-memory computing capabilities, but also will tap IBM's large consulting arm to benefit customers of both companies.

IBM cloud SAP

IBM landed its biggest cloud deal to date, partnering with SAP to provide cloud infrastructure to the enterprise software provider and leveraging IBM’s $1.2 billion investment to expand its global cloud footprint in every major market.

Both companies come up winners in the partnership, as SAP selected IBM as a premier strategic provider of cloud infrastructure services for its business-critical applications--accelerating customers’ ability to run core business in the cloud.

The SAP HANA Enterprise Cloud offering is now available through IBM’s cloud. SAP HANA Enterprise Cloud will expand to major markets with the addition of the IBM cloud data centers. This is expected to enable customers to deploy their SAP software around the globe in a faster and more secure environment that is backed by IBM's cloud capabilities.

“This is the kind of move we expected when IBM bought SoftLayer,” longtime IBM watcher and industry analyst Rob Enderle told eWEEK. “IBM can provide an enterprise-class cloud service now that is fully compliant with IT policy, and this is generally also a requirement when deploying products from enterprise companies like SAP. You should anticipate other deals like this for similar reasons with other vendors of all sizes that want access to enterprise buyers and need to supply cloud services while remaining compliant with corporate policies on security and access. IBM’s brand is tightly connected to the enterprise and it is well regarded when it comes to compliance so IT shops know their decisions to use cloud products on IBM’s services generally won’t be challenged by audit as aggressively as they might be had they used a service like Amazon’s instead.”

Big Blue officials said that together, IBM and SAP have the expertise, solutions and cloud infrastructure to deliver SAP business solutions on the IBM Cloud. SAP brings the power of real-time through in-memory computing capabilities of SAP HANA combined with the ability to run mission-critical business applications, like SAP Business Suite, in a cloud environment.

IBM brings enterprise depth and the open architecture of IBM Cloud Managed Services and SoftLayer — enabling customers to securely manage SAP workloads from trial to production on a consistent infrastructure, with transparency and control over where data resides.

In addition, customers will benefit from the technology and services from both companies including IBM consultants who offer industry-specific best practices, enabling customers to transform their organizations. SAP and IBM customers of all sizes will benefit from this joint collaboration of two of the most trusted companies in the industry.

"We look forward to extending one of the longest and most successful partnerships in the IT industry,” said Bill McDermott, CEO of SAP, said in a statement. “The demand for SAP HANA and the SAP Business Suite on SAP HANA in the cloud is tremendous and this global agreement with IBM heralds a new era of cloud collaboration. We anticipate customers will benefit from this collaboration and expansion of SAP HANA Enterprise Cloud."