We are experiencing some temporary issues. The market data on this page is currently delayed. Please bear with us as we address this and restore your personalized lists.
SAP Launches RISE With SAP on IBM Power Virtual Server Offering
SAP SE SAP has announced the forthcoming release of “RISE with SAP on IBM Power Virtual Server.” This new hyperscaler solution offers IBM Power customers a streamlined and efficient pathway to accelerate their enterprise resource planning (ERP) transformation journey. Designed for businesses transitioning to SAP S/4HANA Cloud, the solution aids in the seamless transition to cloud as well as enhanced cloud-based ERP modernization, including artificial intelligence (AI)-powered business processes. RISE with SAP on IBM Power Virtual Server" will be available in the second quarter of 2025, featuring a customized investment program from IBM.
RISE with SAP delivers “outcome-driven services,” cloud ERP capabilities and robust platforms to help businesses rethink their operating models. RISE with SAP on IBM Power Virtual Server is designed to minimize risks and significantly accelerate SAP S/4HANA Cloud migration from IBM Power Systems on-premises to the cloud, achieving completion within just 90 days.
The IBM Power Virtual Server is a cloud-based extension of the IBM Power server platform renowned for mission-critical on-premises ERP operations, which enables customers to transition their SAP ERP systems to the cloud swiftly. This transformation enhances business agility and modernizes processes.
SAP SE Price and Consensus
SAP SE Price and Consensus
SAP SE price-consensus-chart | SAP SE Quote
IBM's extensive expertise in SAP S/4HANA Cloud modernization and managed services was demonstrated in one of the largest and most complex SAP S/4HANA Cloud modernization projects to date. According to SAP, IBM successfully migrated its global quote-to-cash and record-to-report processes to RISE with SAP on the IBM Power Virtual Server. This project impacted more than 150,000 users across 175 countries and was completed within 18 months.
The transformation resulted in a 30% reduction in infrastructure costs and operational expenses by optimizing the server and data footprint while enhancing process automation based on IBM results from worldwide migration to SAP S/4HANA and RISE with SAP. IBM Consulting managed the entire transformation, leveraging its technical services, implementation expertise and application management capabilities to ensure a secure and seamless transition.
Customers can accelerate their transformation to SAP S/4HANA Cloud by working with IBM Consulting or any SAP partner. IBM is also working with global systems integrators and service providers to design, implement and migrate RISE with SAP projects efficiently, providing greater flexibility to customers.
This announcement represents a significant milestone in SAP's enduring partnership with IBM, providing customers with a well-defined pathway to the cloud that ensures faster time-to-value, greater flexibility and ongoing innovation.
Rise With SAP Mainstay of SAP’s Cloud Business
SAP is gaining strength across its cloud business, especially with rising demand for the Rise with SAP and Grow with SAP solutions. Its cloud revenues rose 25% year over year to €4.35 billion, driven by momentum in the Cloud ERP Suite sales. Amid a volatile macro, it is making significant strides in Business AI initiatives, with innovations like SAP Knowledge Graph. Synergies from WalkMe’s acquisition and ongoing restructuring efforts is a tailwind. SAP's strong operating profit and free cash flow in the last reported quarter position it well for growth. Witnessing the momentum, the company updated the 2024 outlook. It now expects cloud and software sales in the €29.5-€29.8 billion band, up from the prior view of €29.0-29.5 billion.
However, softness in the Software license and support business segment remains a concern. In the third quarter, Software licenses and support revenues totaled €3.08 billion, which decreased 4% (down 3% at cc) year over year. Software license revenues of €0.28 billion declined 15% (down 14% at cc).
SAP’s Zacks Rank & Stock Price Performance
SAP currently carries a Zacks Rank #4 (Sell). Shares of the company have soared 25.7% in the past six months compared with the industry's decline of 1.1%.
Zacks Investment Research
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are BlackBerry Limited BB, Gilat Satellite Networks Ltd. GILT and RADCOM Ltd. RDCM. BB carries a Zacks Rank #1 (Strong Buy), GILT & RDCM presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackBerry’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 131.25%. In the last reported quarter, BB delivered an earnings surprise of 200%. Its shares have surged 63.3% in the past six months.
The Zacks Consensus Estimate for Gilat Satellite’s 2024 earnings per share (EPS) is pegged at 48 cents, unchanged in the past 30 days. In the last reported quarter, Gilat Satellite delivered an earnings surprise of 75%. Its shares have jumped 39.8% in the past six months.
The Zacks Consensus Estimate for RADCOM’s 2024 EPS is pegged at 80 cents, unchanged in the past seven days. RDCM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 25.36%. Its shares have surged 57% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
