Management consulting & technology services giant Accenture plc ACN and enterprise application software company SAP SE SAP recently teamed up to speed up the development and deployment of next-generation SAP Business Suite 4 SAP HANA (SAP S/4HANA). The new software will greatly simplify customers’ business operations.
Strengthened by an impressive SAP Fiori user experience, SAP S/4HANA is appropriate for use on mobile devices, allowing customers to access business solutions on the go. The application brings with it a host of benefits like easy churning of complex data, unmatched user experience and lower operational costs.
The joint venture formed back in Mar 2014 is aimed at building a go-to-market strategy on combined abilities and efforts of both the companies.
Accenture & SAP Success Story
According to Paul Daugherty, chief technology officer of Accenture “This strategic agreement to further advance our collaboration and integration builds on the success of the existing Accenture and SAP Business Solutions Group”.
These two companies have been working together for years. By working together, we believe they will be able to offer their customers affordable technology sooner.
The latest offering from SAP HANA is expected to revolutionize the U.S. finance industry. Experts believe that SAP S/4HANA’s ability to simplify the most complex financial data will enhance the decision making process of financial firms by analyzing both internal and external data.
Leveraging SAP S/4 HANA’s recent upgrades and technological prowess, Accenture intends to manage a whole range of mission-critical business processes including finance, human resources, manufacturing, research & development and extended supply chain.
Moreover, the solution will improve the SAP application process, reduce costs and enable high performance. Greater adoption of the service will ultimately help Accenture to grow its business and ultimately boost revenues.
Some Research
Market research company, Gartner forecasts that global spending on enterprise application software was likely to grow 7.5% to $149.9 billion in 2015, with increasing number of companies upgrading their core functionality.
Also, according to the latest reports from Research and Markets, the global ECM software market is expected to grow at a CAGR of 13.66% during 2014–2019.
Therefore, considering the growing need for cloud-based applications and software, we expect Accenture’s investments in this space to boost long-term growth.
We also believe that with the help of the new software, Accenture’s customers can avail tailor-made cloud solutions along with their existing SAP solutions.
Last Words
Though we are unable to gauge the financial benefits, we remain encouraged by the close association that Accenture enjoys with this leading enterprise application software developer. This deal extension between the two tech giants will be mutually beneficial.
Going forward, Accenture’s acquisition strategies have enabled it to enter newer markets, diversify and broaden the product portfolio and maintain a leading position. We believe that the company’s regular acquisitions will significantly contribute to the revenue stream.
In spite of regular deal wins, competition continues to increase at a steady pace, especially from companies like International Business Machines IBM. Additionally, a strained spending environment as well as significant exposure to Europe may temper growth to some extent.
Currently, Accenture carries a Zacks Rank #3 (Hold). A better-ranked stock in the broader technology sector is Integrated Device Technology Inc. IDTI, sporting a Zacks Rank #1 (Strong Buy).
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