HP and SAP agree a supply chain alliance

A new alliance between HP and SAP offering supply chain management solutions will prove popular with customers despite a crowded marketplace, according to a B2B expert.

The two companies have already established centres to pre-configure and pre-test components for mySAP supply chain management software with HP hardware.

Lance Travis, SAP service director at analyst house AMR Research, believes that customers will benefit despite an already crowded marketplace.

"It appeals to customers with the HP hardware and SAP inventory planning software, which are both already seen as reliable, now available from a single source," he said.

The integration comes on the back of an existing alliance between the two companies for marketing SAP's R/3 enterprise resource planning (ERP) software.

Up to 300 HP consultants will co-operate in sales and marketing, with SAP targeting enterprises in technology, consumer products, automotive, aerospace and defence, and engineering and construction industries.

Nigel Ball, VP and general manager of HP's services partner division, said both companies plan to target their own customers initially.

However, he added that there is room for growth, citing Gartner Group predictions that the market for supply chain management software will grow between 25 and 35 per cent annually for the next five years.

Travis said such alliances are becoming more common as this type of integration allows companies to streamline their logistics and look for a faster return on investments.

He added that he does not believe the initiative will be hindered by the current dominance of companies such as Manugistics Group and i2 Technologies.

"There is still plenty of room in the marketplace," he said.