International Business Machines Corporation IBM has launched IBM Ready for SAP SE SAP Solutions to help midsize and fast-growing businesses modernize their enterprise resource planning (ERP) systems, improve productivity and support business growth.
Under the program, IBM will combine its industry expertise, fit-to-standard implementation approach and IBM Consulting Advantage, its artificial intelligence (AI)-powered consulting delivery platform, to accelerate the adoption of SAP Cloud ERP. The offering aims to simplify business processes, integrate enterprise data and help organizations manage their growing operations.
IBM helped Volumetric Building Companies reduce operational cycle times by 50% across purchasing, manufacturing and inventory processes after a three-month SAP Cloud ERP transformation. Meanwhile, the company also supported Second Nature Brands in integrating its acquired Voortman Bakery business into a common enterprise platform.
According to research from the IBM Institute for Business Value, 68% of enterprises consider accelerating ERP modernization important for improving operational efficiency and maintaining competitiveness. The findings highlight the growing importance of modern enterprise systems and reinforce the company’s efforts to help businesses streamline operations, support growth and prepare for future AI applications.
How Are Competitors Advancing?
IBM faces competition from Microsoft Corporation MSFT and Amazon.com, Inc. AMZN. Microsoft is expanding its Dynamics 365 ERP software with AI tools to automate finance, supply chain and business operations. The company is developing AI agents that can analyze data and handle routine business tasks. Microsoft aims to help businesses automate workflows, track financial performance and manage supply chain activities through its connected ERP systems.
Amazon Web Services is helping businesses integrate AI tools with SAP ERP systems to automate business tasks. The company introduced tools helping AI agents securely access enterprise data and work across business applications. Amazon is expanding its cloud and AI services to help organizations modernize legacy systems, improve data management and streamline business operations.
IBM’s Price Performance, Valuation & Estimates
IBM shares have lost 18.4% over the past year against the industry’s growth of 167.6%.
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From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 2.94, below the industry average of 4.64.
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Earnings estimates for both 2026 and 2027 remained static at $12.33 and $13.19, respectively, over the past 60 days.
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IBM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).