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SAP, IBM & IBM Business Partners to Drive Innovation with Industry Solutions for Small and Midsize Enterprises |
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Extended Portfolio of Industry-Specific mySAP™ All-in-One Solutions
ORLANDO, Fla. - May 17, 2006 - SAP AG (NYSE: SAP) and IBM (NYSE: IBM) today announced the expansion of their relationship to serve the $500 billion small and midsize enterprise (SME) market, leveraging the IBM Business Partner channel. The companies have entered a new reseller, referral and solution relationship for mySAP™ All-in-One solutions to help U.S. clients in specific industries become more innovative and productive. The announcement was made at SAPPHIRE® ’06, SAP’s international customer conference, being held in Orlando, Florida, May 16-18.
While significantly extending the market reach of SAP and its mySAP All-in-One partners, the new agreement will allow IBM and its Business Partners to focus on the wholesale distribution, life sciences, industrial machinery and construction, and food and beverage distribution industries, delivering comprehensive, end-to-end solutions that address these customers’ specific business problems.
Both SAP and IBM work with channel partners to create new customer opportunities and deliver services capabilities to customers in the midmarket. This announcement reflects the value of combining the industry-leading capabilities of IBM Global Business Services, which will serve as a reseller for mySAP All-in-One solutions, with the skills and local presence of IBM Business Partners. IBM Business Partners may also be eligible to earn a fee for referring opportunities for industry solutions to SAP and its other mySAP All-in-One partners, allowing them to reach a broader section of the market.
“We will deliver to SME clients high value solutions that are targeted to the unique business needs of their respective industries,” said Marc Lautenbach, general manager, IBM Americas. “We’ll accomplish this through an expanding network of highly qualified IBM Business Partners who have strong local presence, long-term client relationships and a proven ability to deliver innovative, end-to-end solutions.”
“In my view, this is the most significant SME announcement coming from IBM in recent memory,” said Kevin Jinks, senior vice president of DYNAX Solutions, Inc. “Our goal is to deliver complete solutions that help our clients to achieve competitive advantage, expand revenue streams, improve operational efficiencies and reduce technology costs. With this announcement, we can fulfill that goal by offering world-class solutions backed by two industry leaders: IBM and SAP. The combination of pre-configured business processes, predictable implementation schedule and SME price tag is a win-win for us and our customers.”
Focusing initially in the United States, the expansion of the alliance builds on an extensive relationship under which IBM and its Global Business Services division have built an industry leading mySAP All-in-One solution portfolio, with 35 vertical and horizontal solutions available in 12 countries across the world.
mySAP All-in-One vertical solutions incorporate industry best practices developed by SAP and its partners and gained from more than 30 years of experience in serving businesses of all sizes. This leading practices approach enables SAP and IBM to deliver superior functionality in affordable and easy-to-implement packages tailored to the specific business processes of vertical industries. Customers can benefit from expertise built into the software that lets them manage core processes such as project order management in wholesale distribution, direct store delivery in food and beverage, and regulatory reporting in life sciences. This built-in expertise allows customers to focus resources on the unique attributes of their businesses that can help them gain competitive advantage in the marketplace.
“The team of IBM and SAP provided a thorough and comprehensive, value-engineered solution for KRC,” said Michael Doyle, Sr., senior vice president, Operations, Kawasaki Rail Car, Inc. “It began in the selection process and carried through the implementation through highly qualified teams with tremendous knowledge, experience and integrity.”
SAP and its partners offer more than 30 mySAP All-in-One industry solutions in the United States and a growing portfolio of nearly 600 solutions from a network of more than 752 partners worldwide. More than 8,000 small and midsize enterprises worldwide run their businesses with mySAP All-in-One solutions, members of an ever-increasing customer base that grew by more than 28 percent in 2005.
“As small and midsize enterprises increasingly recognize SAP as the provider of choice for proven business management solutions based on industry best practices, we are teaming with IBM to expand the market reach of SAP and our partners,” said Bill McDermott, president and CEO, SAP Americas. “This agreement builds on our already successful partnership with IBM so we can provide total business management solutions for small and midsize enterprises, incorporating expertise from two of the industry’s leading providers.”
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