SAP SE (SAP - Free Report) recently augmented SAP HANA (or high-performance analytic appliance) database with robust capabilities. The new innovations include enhanced memory capacity, and in-database machine learning (ML) enhancements, among others.
SAP HANA is enriched with improved memory capacity with extended support to Intel’s (INTC - Free Report) latest Optane DC Persistent Memory solution. Notably, SAP HANA application utilizes in-memory database computing technology to process and analyze enormous amount of critical data on a real-time basis.
The company also added new R and Python ML APIs have also been added to boost intelligence and ML capabilities, allowing data scientists to carry out analytical processes with more ease on SAP HANA platform.
Furthermore, SAP HANA raised the bar in database management with multi-cloud support to facilitate on-premise, hybrid cloud and public cloud deployments. Additionally, the latest SAP HANA provides comprehensive data privacy management capabilities.
Support to Intel’s Persistent Memory solution is expected to assist enterprises with accelerated application performance. The users are anticipated to witness lower total cost of ownership (TCO) from reduced hardware requirements.
In fact, per management, utilizing Intel’s persistent memory solutions, SAP HANA performance improved approximately 12.5X in startup time.
What Investors Should Know?
We believe that enhancing the functionalities of SAP HANA with cloud-based capabilities, security and API enhancements, and augmented memory capacity, bodes well. Per SAP estimates, around 28,000 customers are utilizing SAP HANA to accelerate their business processes.
Notably, per Gartner, enterprise software spending is likely to experience the highest growth of 8.3% in 2019. Cloud software is likely to grow more than 22% this year compared with 6% growth for all other Software forms, adds Gartner.
Moreover, higher adoption of database as a service ("DBaaS") and Internet of Things ("IoT") are fueling growth in database market. Per Market Research Future estimates, “The global cloud database market is expected to reach USD 21.66 billion growing at 46.78% CAGR over the forecast period 2018–2023.”
We believe new enhancements to enhance SAP HANA platform will drive robust adoption, consequently favoring top line growth. This in turn, is expected to aid SAP to strengthen its competitive position in the database management market against Oracle (ORCL - Free Report) , IBM (IBM - Free Report) , among others.
SAP 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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