SAP AG (NYSE:SAP) and IBM (NYSE:IBM) have plans to extend their collaborative relationship in the areas of technology, channel and services for small and midsize businesses. Combining IBM Power Systems, System x and BladeCenter servers with SAP Business All-in-One and an optimized database and operating system, the two companies will specifically target midsize businesses in the services, trade and manufacturing industries.

Three potential offerings based on this joint solution would provide customers with the flexibility to leverage their existing IT infrastructure, while benefiting from proven and pre-tested combinations. Customers would have the option to choose between preconfigured System x or BladeCenter servers with either IBM DB2 or SAP MaxDB, and SAP Business All-in-One and SUSE Linux Enterprise Server from Novell. The IBM i InstallOption for SAP, dubbed 'KOBI,' will also be incorporated under the fast-start program.

"IBM servers are an excellent platform for innovation and to address new market segments and channels based on open standards and leading edge technology," Hans-Peter Klaey, president of SAP's Global SME and corporate officer, said in a statement.