SAP and IBM Team to Deliver Solutions to Small and Midsize Businesses

Global Alignment of Key Products and Strategies Includes mySAP(TM) All-in-One, SAP(R) Business One, and IBM Express Software to Help SMBs Achieve Competitive Advantage

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ORLANDO, Fla - 17 Jun 2003: SAP AG and IBM today announced that they have expanded their existing strategic alliance to deliver SAP® solutions for small and midsize businesses (SMBs) globally with IBM and its business partners while leveraging IBM's Express software portfolio, IBM eServer, and IBM Storage technology. The announcement was made at SAPPHIRE® '03, SAP's international customer conference being held in Orlando, Florida, June 16-18. (Photo: )

Under the agreement, IBM will work with SMB customers to help them realize the benefits of mySAP(TM) All-in-One industry-specific solutions and SAP® Business One worldwide. IBM and a network of select business partners will offer mySAP All-in-One solutions globally. The companies are already jointly piloting mySAP All-in-One offerings in some European countries as well as Japan and Australia. These offerings deliver SMBs complete end-to-end solutions, starting with industry and business best practices coupled with installation and project implementation services. The agreement also outlines IBM's expanded commitment to support SAP Business One through reseller recruitment, technology, marketing support, and bundling further IBM services to the SAP Business One offering such as DB2 software, financing, and hardware.

Research from IBM and SAP suggests that SMB companies are poised to invest in systems that can help them improve the efficiency of their core business processes. Today's businesses are looking for ways to operate in a more responsive, flexible, and variable way -- to better serve customers, grow revenue, reduce inventory levels, or take costs out of their supply chain. The agreement between SAP and IBM teams two global industry leaders to meet these needs.

mySAP All-in-One
IBM and its Business Consulting Services division have built the industry's largest mySAP All-in-One solution portfolio, with twenty-seven vertical and horizontal solutions already offered in select geographic markets throughout the world. IBM and its network of business partners can now leverage this expertise and portfolio through offerings worldwide through the agreement with SAP. mySAP All-in-One vertical solutions incorporate industry best practices developed by SAP and its partners. This best practices approach will allow SAP and IBM to deliver superior functionality in affordable and easy-to-implement packages tailored to the specific business processes of vertical industries.

Among the numerous mySAP All-in-One vertical industry solutions introduced this year by an IBM business partner is a new ceramic industry solution offered in Spain. The launch of the new solution enabled INSA to sign five ceramic deals -- several days after the solution was qualified by SAP.

"Building industry-specific solutions based on proven mySAP All-in-One technology has helped us enter new markets and reach new segments of customers due to the industry knowledge we can now bring to the table," said Diego Fernandez Casado, managing director, INSA.

IBM and its business partners together with SAP will jointly market the mySAP All-in-One solutions. IBM will provide customers with the option to bundle additional offerings, including those from the IBM Express software family, with their implementation.

IBM will also introduce a new pre-packaged, accelerated solution for the wholesale distribution industry based on mySAP All-in-One in the United States. The offering is designed to serve electrical goods wholesalers, hardware plumbing and heating suppliers, machinery equipment suppliers, and miscellaneous durable goods suppliers. The IBM solution will help customers manage key business processes (such as finance, sales, production planning, and logistics) more efficiently. This offering is available directly from IBM with implementation services provided by IBM Business Consulting Services. IBM business partners can complement the solution with the necessary hardware and software as well as receive fees for lead opportunities closed by IBM.

Customers deploying mySAP All-in-One solutions will also have the option of deploying offerings from IBM's WebSphere Express platform and IBM DB2 Express through IBM or an IBM business partner. The platform is easy to deploy and manage while extending IBM WebSphere's strengths in open standards, security, and reliability. IBM's and SAP's support of open standards and their development of integration capabilities allows customers to take advantage of the open SAP NetWeaver(TM) technology platform. IBM and SAP can also support customers interested in deploying mySAP All-in-One on the open standards-based Linux platform.

IBM -- New Support for SAP Business One
Globally, IBM will offer increased support for SAP Business One, an affordable, easy-to-use business automation solution for small businesses. IBM will work with its global network of business partners to identify new resellers for SAP Business One and will support the channel development with innovative hardware and financing options. Specifically, IBM will promote channel-ready SAP Business One packages with IBM eServer xSeries and storage technology with IBM Global Financing. IBM resellers will offer the solution globally. Financing through IBM is already available in markets where SAP Business One has been introduced.

In the United States, IBM is already working with one of SAP's strategic partners for SAP Business One, American Express Tax and Business Services Inc., to deliver a combination of the SAP Business One solution and the IBM eServer xSeries to small businesses. IBM and American Express are also working together to foster synergistic relationships among their respective partners. This arrangement reinforces IBM's ongoing commitment to leverage business partners such as consultants and integrators to reach the SMB marketplace.

As a part of today's announcement, SAP intends to deliver its SAP® Business One software for SMBs to run on IBM's DB2 Express database software in the first quarter of 2004. IBM DB2 Express is a new, full-function database with an entry price of under $500. DB2 Express offers customers the convenience of a one- or no-click silent, unobtrusive database installation.

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