IBM and SAP: Innovate. Transform. Lead.

More than ever, people are making information and personal interaction an integral part of their lives. The question is, how best to seize the opportunities created by this trend?

Vast quantities of data are being generated every moment of every day. People and

businesses rely on instant access to this information—and they’re also using it in new

ways, through mobile technology and social media, along with analytics that enable

better, more timely decisions. It’s a new environment that holds great potential for

those with the foresight to put the pieces together in the right way. The wealth of data

can deliver on its promise only if companies can effectively gather, analyze and react

to it by leveraging deep ERP, analytic and collaborative capabilities.

IBM and SAP are at the forefront of these changes, with visions that dovetail and

complement one another to help enterprises innovate, transform themselves and lead

their industry. IBM sees the world becoming smarter and is leading the charge to help

make it happen through research, technology, industry expertise and global business

transformation capabilities. SAP is developing new ways for businesses to run better,

with powerful enterprise tools. These two approaches come together in the IBM and

SAP alliance to help clients run smarter.

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The shared agenda of CxOs

IBM and SAP understand how to meet the needs of their clients because they go

to the source—the clients themselves. For years, IBM has been surveying business

leaders around the world to find out what’s at top-of-mind for them. What do they see

as their greatest challenges? What actions are planned? It’s a fascinating look into the

minds of CxOs across industries and around the world.

The latest studies highlight a striking trend. CxO agendas are converging. They’re all

starting to look at the world from a common viewpoint, centered on how technology

can help create better business outcomes.

•CEOs—For the first time, technology tops the list of external forces impacting

organizations. More than half of CEOs are planning to use technology to facilitate

partnering and collaboration, both inside and outside the organization.

•CMOs—Marketers feel unprepared to deal with the explosion of data, social media

and device choices. Nearly three quarters of CMOs see investment in technology as

critical, followed closely by the need to integrate insights and understand analytics.

•CIOs—IT leaders are sharing the agendas of the CEOs and CMOs. For them, busi-

ness analytics, mobility solutions and virtualization are the top agenda items for

setting the vision of their IT strategy.

Enterprise executives are always on the lookout for differentiating innovation. The

convergence of CxO agendas points the way to this transformation. Technology is

seen as an enabler, helping to leverage information, tap into new channels and pro-

vide the flexibility to run the business better and serve customers more effectively.

The IBM and SAP Alliance: A combined focus on client success

IBM and SAP are dedicated to finding new ways to help clients tap into information

assets and infuse insight into every action, every day—and through it, build a busi-

ness that can outpace the competition. The alliance delivers on this commitment

through joint solutions for every size of organization, delivered quickly, cost-effectively

and with minimal risk.

The IBM and SAP contribution to making businesses run smarter might take the

form of streamlined business processes supported by high-performance enterprise

applications and systems. It could be help in executing a mobile strategy to access

information and SAP systems from the field, transforming the nature of how enter-

prise computing generates value for the enterprise. Or, it might be a fresh combina-

tion of analytic power and existing enterprise data to drive performance and good

decision making like never before.

SAP knows how to build advanced business processes and has the leading software

to enable them. IBM has a deep understanding of business innovation, breakthrough

technology, transformation, strategy and what it takes for organizations to be suc-

cessful in a shifting environment.

IBM also helps make the ownership of SAP solutions easier with offerings from

IBM Global Financing. Highly competitive rates and flexible terms can accelerate the

break-even point for the whole solution—consulting services, software and hardware

from IBM and non-IBM IT suppliers alike.

A relationship renowned the

world over

SAP has awarded IBM its prestigious

Pinnacle awards every year since

inception—a record total of 28. The

strength of the IBM and SAP relation-

ship is also widely acknowledged

within the industry. According to The

Forrester Wave “IBM offers extensive

strategy and business consulting,

technical implementation skills, and

post-implementation support. And as

a hardware vendor with a financing

arm, it can often bundle together inno-

vative deals and pricing arrangements

for its clients.”1

IBM and SAP: Innovate. Transform. Lead.4

5

“We could run the

eight largest SAP

customers today

on the [100 TB SAP

HANA™ proof-of-

concept] server.

We asked IBM: Can

you build such a

computer? And they

said yes. Can you ship

such a computer?

And they said yes.

And can it be a

decent price? And

they said yes.”

—Hasso Plattner, SAP founder

Tuning the enterprise for today’s needs

CxOs see new opportunities in today’s data-rich, collaborative environment. They

believe technology can enable deeper insight and enhance collaboration. It’s about

being more responsive with the right tools and information, whether they’re in a

traditional office setting or out in the field.

“I do not see why anyone running SAP would use anything other than IBM DB2

as its database engine.”

—Tom DeJuneas, IT Team Manager, Coca-Cola Bottling Co. Consolidated

A business that runs smarter can seize those opportunities by building new capabili-

ties, using the robust SAP and IBM enterprise platform as the foundation for extended

solutions based on deep industry knowledge. Decades of experience have been

captured as best practices—detailed development roadmaps and reference archi-

tectures for a number of industries. This can give IBM and SAP clients a faster start,

thanks to preconfigured and optimized application suites and solution infrastructure.

Our combined portfolio can span a wide array of business management activities—

from traditional ERP applications to customer and supplier relationships, contract

lifecycles, transportation, warehousing and beyond. Many of our solutions are also

available as cloud-based services, simplifying deployment and reducing the need for

capital investment.

IBM and SAP: Innovate. Transform. Lead.6

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IBM DB2®: A leading database, tuned

for SAP

IBM DB2, a key development platform

for both IBM and SAP, is built from

the ground up for high performance

and strong value. It is the database

of choice for more than 10,000 SAP

customers worldwide.

Delivering higher value at lower cost,

IBM DB2 provides:

●● Over 40 product features specifically

built for SAP

●● Lower costs, with license pricing at

8 percent of SAP Application Value

versus 15 percent for Oracle.2

●● Storage space savings of up to

65 percent3

●● Infrastructure cost savings of

37 percent compared to Oracle4

8 IBM and SAP: Innovate. Transform. Lead.8

Plugging in to the power of analytics

Every day, businesses gather valuable input on everything from customers to key

performance indicators. Through real-time analytics, an organization can know

the answers to critical questions before the competition and understand not only

what is happening, but why—and collaborate to act faster, with greater confidence.

This business differentiator is often out of reach because of an inability to handle

enormous amounts of data quickly and efficiently. The SAP HANA platform helps

eliminate this barrier with a hardware-software appliance. The benefit is near-

immediate insight, unhindered by relatively slow hardware. This ability to transparently

leverage information keeps the focus where it should be—on running the business.

SAP HANA and SAP Business Suite that runs on it uses the speed of powerful

IBM hardware to allow queries of billions of records with a response time well under a

minute. SAP HANA enables data to be accessed, explored, modeled and analyzed in

real time, without impacting existing applications or systems. That makes using infor-

mation and insight to run the business smarter not only possible but also practical.

IBM also helps keep the vital enterprise data used by SAP HANA more readily avail-

able. The IBM General Parallel File System (GPFS™) provides optimal performance,

virtually unlimited scaling, integrated high availability and disaster recovery features.

This makes it the preferred file system for many of the world’s largest supercomput-

ing implementations as well as performance-intensive applications like SAP HANA.

IBM DB2 is also SAP-optimized to replicate data into SAP HANA for faster analysis of

critical information.

SAP HANA: Scaling to stay ahead of

the data explosion

Powerful analytics platforms can best

deliver lasting value if they can keep

up with growing demand. To find out

if SAP HANA running on IBM systems

is up to the task, IBM and SAP teamed

to build a proof-of-concept to demon-

strate scalability and reliability. In less

than 30 days, the team put together a

highly available, reliable system able

to hold 100 terabytes of data in main

memory simultaneously—the largest

SAP HANA implementation to date.

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By combining the performance, scalability and cost-effectiveness of IBM infrastruc-

ture with SAP software in one optimized offering, SAP HANA represents another

example of the value that our collaborative solution development brings to busi-

nesses. The SAP HANA appliance on industry-leading IBM hardware can be eas-

ily and seamlessly added to any SAP implementation to deliver a fast return on

investment.

To help SAP HANA deliver on the promise of greater insight, IBM offers dedicated

consulting services for SAP analytics focused on solving real-world business prob-

lems. These services help maximize the use of business intelligence by applying it in

new and innovative ways.

SAP HANA on

IBM infrastructure

sped data query

execution sevenfold

for Usha International

Limited.

10 IBM and SAP: Innovate. Transform. Lead.10

The wave of the future: simple, cloud-based, collaborative and mobile

IBM PureSystems: Bringing simple IT

to SAP clients

IBM makes enterprise computing

simpler for SAP users through the

IBM PureSystems™ family of expert

integrated systems. It’s a new

approach in business computing—

servers that come fully optimized,

with built-in management capabili-

ties and operating environments. The

outcome: a much faster, simpler path

to value.

IBM PureSystems are certified for

SAP and can boost productivity

through combined management of

infrastructure and applications. The

SAP NetWeaver Landscape Virtualiza-

tion Manager (LVM) is the administra-

tive interface for the SAP application

environment. It blends seamlessly

with the IBM PureSystems toolset,

giving you “single pane of glass” man-

agement of both IT and applications

from a simple, unified console.

Through our discussions with business leaders, we’ve learned a great deal about

what they need. They require the ability to adapt to changing business models like a

more mobile workforce. Information generated and delivered at the speed of thought

to improve insight. Close connections to customers and partners to promote collabo-

ration. These are what lie beneath the shared agenda of CxOs.

IBM and SAP are responding, helping clients boost productivity and collaboration by

placing enterprise functionality and information anywhere it needs to be. We’re doing

it in a way that simplifies, rather than complicates, enterprise computing.

Using the cloud to enhance flexibility

Cloud computing can improve everything from enterprise data storage and access

to service delivery and application development. It’s a key part of a new, scalable and

collaborative IT landscape, which is why business and technology executives are

making cloud computing part of their immediate plans. For many, cloud is an ideal

path to achieve enterprise goals without heavy capital investment.

Despite the benefits of cloud computing, many businesses are concerned about

the impact on operations and information security. As an SAP Certified cloud pro-

vider, IBM delivers SAP applications tuned for faster provisioning, greater flexibility,

improved service delivery and quality, with lower risk of data compromise. IBM and

SAP solutions can also capitalize on the comprehensive IBM portfolio of cloud com-

puting offerings to provide integrated and seamless management across architec-

tures and all delivery models, and for both large & mid-size organizations.

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Supporting the move to mobility

Mobility and pervasive collaboration represents an important change in the way

organizations run. Rather than coming from the top down, it is being led by end users.

Employees are bringing personal devices from home and finding ways to use them at

work. This represents a rare chance to dramatically improve productivity and agility, if

the organization can find a way to securely support and integrate mobile devices and

collaborative processes into the business.

The combination of IBM infrastructure technology and SAP NetWeaver Gateway is

helping to build a critical link from enterprise systems to mobile and collaboration

platforms. Enabling direct access to SAP applications from the field marks a fun-

damental shift in the way they are used to generate business value, spreading both

information and the ability to act on it across the value chain, inside and outside the

enterprise.

“We achieved the exact

same performance on

SAP using only half

of the compute and

memory resources of

the legacy solution.”

— Paulette Scheffer, Senior Director

of Core Infrastructure and Service

Management, Adobe Systems.

12 IBM and SAP: Innovate. Transform. Lead.12

Mid-sized businesses: Unique needs demand dedicated solutions

Mid-market companies, like larger organizations, are looking to technology for every-

thing from mobile workforce enablement to more effective marketing. However,

without large IT staffs or budgets, they need the ability to leverage information and

transform the business using technology that is affordable and easy to own. That’s

the purpose of the IBM Express portfolio™.

IBM Express offerings are qualified SAP Business All-in-One solutions designed spe-

cifically to bring the value of SAP enterprise applications and data-driven insight to

mid-sized businesses. They take preconfigured IBM infrastructure and SAP software

and combine them with industry best practices. The result is simplified, economical

access to SAP functionality that makes it easier for organizations to focus on using

information to run the business smarter. IBM Express solutions also build on the

added expertise of SAP specialists within the IBM Business Partner ecosystem, as

well as experts within IBM Global Business Services®.

Express offerings are available as services on the IBM SmartCloud® with pay-as-

you-go delivery model. This plan allows payments for SAP Business All-In-One solu-

tions to be made quarterly, on a three-, four- or five-year schedule, to help ease cash

flow management and speed time to value.

13

CxOs see technology-enabled business innovation as vital to their future, but they

know that it’s not an “off the shelf” endeavor. Whether the aim is to generate insight

from big data, enable enterprise collaboration from any location or improve core

enterprise business processes, getting the right SAP solution in place is essential.

That takes intimate knowledge of SAP offerings along with deep technology exper-

tise, global business transformation experience and extensive industry knowledge.

IBM experts know SAP applications inside and out—from the core enterprise appli-

cation platform and database to enhanced capabilities like business analytics. That

allows IBM to design, build and manage the SAP solution best suited to the client’s

needs.

As one of the world’s leading SAP service providers with a presence in 160 countries,

IBM Global Business Services has that knowledge and more. With consistent delivery

worldwide and an unmatched ability to manage SAP initiatives, IBM Global Business

Services works with clients to integrate virtually all of their business and IT opera-

tions—wherever they may be—for a consistent view across the organization.

“In the past, establishing a business process for a new product could take

up to a year. Now we are able to innovate, validate and action new offerings

quickly, helping us enter new markets more rapidly and cost effectively than

before and also thanks SAP and IBM.”

—Maurice Koot, Chief Operating Officer and Chief Financial Officer, ABN AMRO Lease

IBM Global Business Services: Deeper knowledge, better outcomes

14 IBM and SAP: Innovate. Transform. Lead.14

Hubs for IBM and SAP expertise: Delivering knowledge and business results

The strong alliance between SAP and IBM is demonstrated at over 35 dedicated

facilities for collaborative development, education, solution delivery and innovation.

The IBM SAP International Competence Center (ISICC), located near SAP headquar-

ters in Walldorf, Germany, focuses on infrastructure and technical enablement.

The ISICC provides:

●●●● Customer executive briefings and technical expert workshops

●●● SAP-specific technical enablement activities for customers and business partners

●●Customer assistance with sizing their SAP application landscape and infrastructure

Complementing the ISICC is a worldwide network of IBM Client Centers, many

featuring a Lab for SAP Solutions.

At the IBM Client Center – Lab for SAP Solutions, customers explore new ways of

thinking about, working with and managing information to bring new innovations to

their business. The lab offers on-site, remote and mobile access to the latest tech-

nologies, development tools, research labs and technical expertise—all powered by

the IBM cloud. It uses IBM Research and services capabilities to develop innovative

solutions.

The IBM Client Center – Lab for SAP Solutions focuses on:

●●●● Developing cutting edge solutions leveraging the latest technology and deep

industry/functional expertise

●●● Show-casing real-world industry use cases to accelerate understanding of

business value success

●●● Defining customized adoption road maps together with clients to help ensure

success

15 IBM and SAP: Innovate. Transform. Lead.15

Experience as rich as our history

Cooperative dedication is what makes the IBM and SAP alliance so valuable to our

clients worldwide. Leading industry analysts like Gartner and PAC consistently rec-

ognize us for the strength of our relationship.5,6 Our alliance is a sustained investment

that reflects a longstanding commitment to target business leaders’ top-of-mind

issues—a promise on which we have consistently delivered for over 40 years. We’ve

stood beside our customers at every stage of the technology revolution, from the

beginnings of enterprise computing to the incredible environment of today—a land-

scape of knowledge, connectivity and pervasive information unimagined when we

first joined forces.

As alliance partners, IBM and SAP have seen first-hand the power of technology

to transform the world and make businesses not only more efficient, but smarter

and better. Continuing that evolution through insight and collaboration has been a

long-term goal of both companies—a motivation that today is shared by our clients

worldwide.

To learn more about how the IBM and SAP alliance can help you excel in a world

where information and collaboration is the currency of success, contact:

The IBM SAP International Competence Center

Altrottstrasse 31

D-69190

Walldorf Germany

Email: ISICC@de.ibm.com

Phone: +49 6227 731099

You can also visit our alliance website at: ibm-sap.com

© Copyright IBM Corporation 2013

IBM Corporation New Orchard Road Armonk, NY 10504 U.S.A.

Produced in the United States of America April 2013

IBM, the IBM logo, ibm.com, DB2, and Global Business Services are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml

Other company, product, or service names may be trademarks or service marks of others.

THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.

1 Forrester Research, Inc. The Forrester Wave: SAP Service Providers, Q2 11. April 2011. The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester’s call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

2 Performance claims source: Value Proposition for IBM DB2 9.7: Cost/Benefit Case for SAP Enterprise Migrations. International Technology Group. December 2011.

3 ibid.

4 ibid.

5 “Magic Quadrant for SAP Application Service Providers, Europe”—Gilbert van der Heiden, Khalada De Souza & Christopher Ambrose Dec 14th, 2011 G00217466. The Magic Quadrant is copyrighted 2011 by Gartner, Inc. and is reused with permission.

6 PAC RADAR Report “Leading Providers of SAP Hosting in Germany 2011/2012”, December 2011

SPB03001-USEN-08

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SAP, SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

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