Markets

SAP, IBM to Transform Transportation Industry - Analyst Blog

An image of a stock chart
Credit: Shutterstock photo

Shares of SAP AG ( SAP ) rose about 0.3% since May 29 when the company revealed its collaboration with IBM Corp. ( IBM ) to leverage customized business applications and consulting services for the transportation and logistics industry.

SAP and IBM will together develop a transportation platform comprising advanced technologies including analytics, cloud computing and mobile solutions among others. This platform will be designed to standardize the functional processes and to optimize the operational performance by driving up innovation in business processing.

The challenging needs of this competitive industry are propelling the transportation companies to transform their businesses by upgrading the IT framework and improving customer relationships. This new platform will aid such companies to efficiently achieve their goals.

SAP's software strength and its drive for co-innovation will be perfectly complemented by IBM's expertise in consultation and strategic implementation. Further, IBM has ample experience in undertaking and managing transformation across large-scale global businesses.

SAP is intending to integrate some of its applications like SAP Transportation Management, SAP Event Management, SAP Customer Relationship Management and SAP Billing and Revenue Innovation Management solutions for this platform. Alongside, IBM via its SAP Center of Competence has gained in-depth industry knowledge, which will come handy in delivering customized SAP solutions to the transportation industry.

Apart from this, the two companies will be collaborating on issues pertaining to business development, sales, sales support along with marketing and consulting strategies. The new platform will be implemented by the transport organizations in phases considering their needs while utilizing the present infrastructure.

Prior to this, in May 2014, SAP also collaborated with Microsoft Corp. ( MSFT ) to enhance the Windows Azure Infrastructure Services with SAP's business applications. According to the agreement, SAP will be using Microsoft's cloud computing platform for its business applications, including SAP Business Suite software, SAP Business All-In-One solutions, SAP Mobile Platform and others.

SAP currently has a Zacks Rank #3 (Hold). A better-ranked stock in the industry that can be considered at the moment is Blackbaud Inc. ( BLKB ), which sports a Zacks Rank #1 (Strong Buy).

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

INTL BUS MACH (IBM): Free Stock Analysis Report

SAP AG ADR (SAP): Free Stock Analysis Report

MICROSOFT CORP (MSFT): Free Stock Analysis Report

BLACKBAUD INC (BLKB): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BLKB IBM MSFT SAP

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More