CloudWorld sees Oracle & IBM strengthen AI and supply chains

Oracle CloudWorld 2024 took over Las Vegas last week, pitching up in The Venetian Convention and Expo Center to showcase the latest updates regarding Oracle’s software and its ecosystem. The flagship event for Oracle is also worth watching for more “purple shaded” news when it comes to the Oracle-IBM partnership, and the latest in the relationship between Big Red and Big Blue.

The big news is, as one might expect, AI based, but with an added twist. While AI is a prominent theme, less prominent perhaps has been the implementation and upskilling when it comes to AI on the end user level. The average cost of compute spend is expected to increase by 89% between 2023 and 2025, according to new research from IBM’s Institute for Business Value. In addition, IBM shares, 42% of executives report concern that inadequate expertise could preclude progress with generative AI, or GenAI.

In response, IBM Consulting is launching an expanded network of consultants to support Oracle clients, as certified across core Oracle technologies – such as OCI Generative AI, OCI AI Services, and OCI Data Science – as well as being skilled in the IBM watsonx AI and data platform.

The plan will see consultants help clients extend high value GenAI use cases coupled with traditional AI and automation solutions, aimed, IBM says, to maximize their return-on-investment and optimize compute and implementation costs. This includes helping clients choose and deploy the right fit-for-purpose AI models for their unique requirements, including enterprise-grade models such as IBM Granite, open source or other third-party models.

Utilizing skills in IBM watsonx and technologies from IBM’s open ecosystem of business partners, IBM sees its consultants as a crucial link in guiding clients’ critical decisions around technology architecture, GenAI and software licensing, data and analytics architecture, security risks and more to enhance automation of their workflows. The promise is to also help establish a stronger and more cost-efficient technology foundation for developing and deploying generative AI applications, a fitting move considering the current question marks around ROI on AI investment.

“Generative AI continues to be the topic of conversation in the news and the boardroom. Research from the IBM Institute for Business Value reports that 64 percent of CEOs say they face significant pressure from investors, creditors and lenders to accelerate adoption of generative AI” Anindya Chaudhuri, senior partner at IBM Consulting UKI, recently wrote in thought leadership for ERP Today. “With pressures from external stakeholders to innovate and various economic and geopolitical pressures impacting business, organizations must balance the value generative AI can create against the investment it demands and the risks it introduces.

“To help tackle that, consultancies are leveraging the power of generative AI to help clients in their Oracle ERP transformation journeys. For example, by embedding generative AI into IBM’s Oracle transformation programs, it is possible to unlock value early, improve user experience and enhance productivity.

“Generative AI has the potential to transform the way organizations approach ERP transformation. By combining the power of AI with the capabilities of Oracle ERP systems, clients can achieve greater efficiency, productivity and value from their technology investments,” Chaudhuri concluded.

IBM to acquire Oracle consultancy Accelalpha

Last week also saw IBM announce its intent to acquire Accelalpha, the global Oracle Cloud Applications consultancy, bulking out its supply chain management capabilities.

Having nurtured an almost 40-year partnership with Oracle, IBM said it hopes the acquisition will accelerate its capabilities in the supply chain, logistics, finance, EPM and CX-CPQ skills, helping clients’ Oracle cloud application adoption. 

Headquartered in Bellevue, Washington, Accelalpha’s expertise focuses on the distribution, industrial and financial sectors across Oracle advisory, implementation and managed services. As an Oracle Cloud Excellence Certified Implementer, Accelalpha boasts the largest Oracle logistics practice globally and was the first Oracle partner to implement Oracle Fusion Financials.

Upon close of the deal, set to take place in the fourth quarter 2024, the Accelalpha team of consultants across North America, Europe, Asia, the Middle East and South America, are set to onboard at IBM, helping clients further modernize with Oracle Cloud Applications.

“Many enterprises depend on Oracle to run the workflows that are at the heart of their enterprise,” said Kelly Chambliss, senior vice president, IBM Consulting, Americas. “With our acquisition of Accelalpha, IBM will be even better positioned to help our clients deploy and manage Oracle solutions, including generative AI and cloud technology, for competitive advantage.”

Accelalpha’s consultants bring expertise across the Oracle Cloud Applications Suite including Oracle Supply Chain Management (SCM) and Logistics, Oracle Cloud Enterprise Resource Planning (ERP), Oracle Cloud Enterprise Performance Management (EPM), Oracle Cloud Customer Transformation (CX), and Oracle Configure, Price, Quote (CPQ). 

Nat Ganesh, CEO, Accelalpha commented: “IBM’s client and employee-centric culture and long-established scale and reach in more than 175 countries is a great fit for the next stage of our growth. 

“We’re thrilled to bring our expertise in Oracle Cloud solutions and targeted domain and industry knowledge to bear together with IBM’s strength in generative AI and hybrid cloud. With Accelalpha’s history of being a pioneer in Oracle Cloud and IBM’s deep-rooted dedication to innovation that matters, we can further accelerate value creation for our clients.”