Dell Inc. (DELL) and SAP AG (SAP) will join forces to deliver innovative cloud-based and in-memory database offerings to help organizations transform their businesses through improved availability of business information. The announcement was made at the Sapphire Conference held by SAP in Orlando.
Under the terms of the agreement, SAP’s cloud-based software applications can be deployed through Dell’s VIS Next Generation Datacenter Platform. The amalgamation will help customers to improve resiliency, performance and efficiencies of scale without increasing the overhead of traditional IT establishments.
Moreover, Dell’s customers will have access to SAP’s in-memory applications through its PowerEdge R910 rack server. In-memory computing puts data into Rapid Access Memory and avoids traditional storage. Without that storage and database layer, processing can become more real time.
To support in-memory computing, Dell’s server has to be combined with SAP’s High-Performance Analytic Appliance (HANA). The combined effort of Dell’s server and SAP’s HANA will allow customers to conduct data analytics as well as performance management and operations in a single system, thereby facilitating faster processing and decision-making.
Dell has been SAP’s global technology partner for years. The recent deal extension between the two tech giants will be mutually beneficial. Dell’s software and hardware clients will be more loyal due to their ready access to SAP’s applications.
On the other hand, SAP’s applications will have a larger podium through Dell’s channel partners. The partnership will facilitate users to help reduce IT costs while increasing operating efficiency.
We remain encouraged by the duo’s recent tie ups. The University of Kentucky also shares our opinion that the alliances will greatly benefit customers. The University is at present testing the outcome of SAP applications on a Dell cloud solution, which seems positive as of now.
Dell’s efforts to shift its focus from the traditional PC business to the higher-end data storage market or cloud computing are encouraging. However, concerns for the company include soft demand from the consumer vertical, a high debt level and stiff competition in the cloud and computing markets.
SAP is the leader in the worldwide enterprise applications market with the largest market share. Its business suite solutions help clients improve customer relationships, enhance collaboration, and improve efficiencies across their supply chains and business operations. International Business Machines Inc. (IBM) and Microsoft Corporation (MSFT) are major competitors.
Currently, both Dell and SAP shares have a Zacks #3 Rank, implying a short-term Hold recommendation.
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