Transforming Enterprise AI with Innovation and Business-Centric Solutions

IBM has long been a pioneer in AI, from Watson’s early innovations to today’s enterprise AI solutions. IBM’s AI strategy rests on two pillars: IBM Software, which provides security-focused and transparent enterprise AI, cloud, security, and automation solutions, and IBM Consulting, which drives large-scale business transformation, technology implementation, and managed services, leveraging IBM and ecosystem partner technologies. In fact, IBM is one of few major technology companies with a global consulting business at scale, which is a key differentiator when it comes to helping clients deploy AI. IBM’s AI book of business has grown to over $5 billion across software and consulting, with 80% of bookings coming from IBM Consulting.

Oracle’s AI strategy is built on over 40 years of enterprise technology and applications expertise, seamlessly integrating AI into both data platforms and business processes —Jody Clayton Group Vice President, Advanced Technology- SaaS Technology, Analytics, AI & Emerging Technology at Oracle

Oracle also has a long history with AI and innovative technologies, embedding AI directly into Oracle Fusion Cloud Applications Suite, offering a robust, scalable AI solution with tight control over data security and governance. With over 100 generative AI-driven capabilities already live and 50 ready-made AI agents across the suite, Oracle enables business users to change the way work gets done with AI through enhanced decision-making, workflow automation, and improved productivity. As Jody Clayton, group vice president, Advanced Technology – SaaS Technology, Analytics, AI & Emerging Technology at Oracle, emphasizes, “Oracle’s AI strategy is built on over 40 years of enterprise technology and applications expertise, seamlessly integrating AI into both data platforms and business processes. Our cloud infrastructure is engineered for performance and cost efficiency, making it the preferred choice for running AI workloads. By having a complete infrastructure, data, and application cloud platform, Oracle is able to drive AI services and embedded intelligence across the enterprise, helping improve the efficiency of all employees.”

Oracle’s AI strategy is anchored in three critical components. First is high-quality, context-rich data, which is essential for AI success, and Oracle’s data platforms provide a solid foundation for AI-driven automation. Second is a cost-efficient AI infrastructure, as Oracle’s cloud infrastructure is optimized for AI workloads, which can help reduce training and deployment costs while helping to enhance processing power. And third is deep connectivity across critical business processes, as Oracle integrates AI across key business functions, including finance, HR, supply chain, and customer experience. Rod Johnson, executive vice president, cloud applications, Oracle, says, “A prime example of Oracle’s AI-driven transformation is its own financial operations. With Oracle Fusion Cloud Enterprise Resource Planning (ERP) and Oracle Fusion Cloud Enterprise Performance Management (EPM), Oracle has achieved a record-fast financial close cycle, consistently reporting earnings in under ten days. In addition, Oracle has saved approximately 80,000 hours annually through AI-enhanced forecasting and budgeting. For businesses, these capabilities translate to tangible improvements, such as increased accuracy in demand planning, enhanced decision-making, and greater operational efficiency.”1

“The synergy between IBM and Oracle extends beyond automation into AI model integration. Oracle customers can leverage IBM’s watsonx AI models within Oracle Cloud applications, combining IBM’s granite models with Oracle’s AI stack and cohere models.” —Shobhit Varshney, VP & Sr. Partner, Americas AI Leader at IBM

Oracle’s AI solutions offer customers the opportunity for significant productivity gains and operational efficiencies. Whether optimizing finance, HR, or supply chain operations, AI in Oracle Fusion Applications is intentionally embedded into business processes to help deliver real-world impact, optimize workflows, and maximize revenue potential.

Co-owning Enterprise Transformations

Collaboration is at the heart of IBM Consulting’s strategy, with a strong focus on collaborating with industry leaders like Oracle to deliver AI-powered solutions that can help drive measurable business outcomes. With an open ecosystem approach, IBM Consulting meets clients where they are, leveraging AI models from IBM, Oracle, and other business partners to enhance business processes and bring together the strengths of both companies to help deliver optimized enterprise solutions.

With a legacy of AI leadership, IBM embeds generative AI capabilities into its implementation methodologies and platforms to help customers with Oracle deployments. A key enabler of this strategy is IBM Consulting Advantage, an AI-powered delivery platform that equips consultants with generative AI agents, assistants, and applications to augment their work supporting clients. IBM Consulting Advantage leverages IBM and business partner technologies and provides predefined frameworks, industry templates, business process flows, and intelligent workflows that streamline implementation and reduce manual effort through automation. Chacko Thomas, Americas Oracle Leader, IBM, highlights, “Oracle customers get out-of-the-box AI-powered SaaS, but as implementers, that is just our starting point. At IBM, we aim to enhance the entire implementation lifecycle by helping clients boost their productivity from design to testing. With IBM Consulting Advantage agents, assistants, and applications, our consultants are leveraging AI-powered tools to streamline processes and reduce manual effort, like generating test scripts. It is about delivering the best of Oracle Fusion Applications for clients while optimizing implementation with IBM’s productivity tools.”

IBM Consulting’s deep industry expertise helps organizations align AI adoption with their sector-specific challenges, helping clients navigate Oracle’s existing AI capabilities and identify where custom AI solutions are required. IBM’s acquisitions of Accelalpha and Applications Software Technology LLC have expanded its Oracle consulting expertise across industries such as supply chain and logistics, finance, and the public sector to support clients in their digital transformations with Oracle Fusion Applications. By enhancing Oracle Fusion Applications with industry-specific expertise, frameworks, and additional AI solutions, IBM Consulting enables Oracle customers to maximize efficiency and innovation while reducing time-to-value.

Additionally, with multi-cloud flexibility—including Red Hat OpenShift, certified on Oracle Cloud—IBM helps organizations deploy AI-driven automation across hybrid and multi-cloud environments, enabling scalability and adaptability. As Shobhit Varshney, VP & Sr. Partner, Americas AI Leader, IBM, emphasizes, “The synergy between IBM and Oracle extends beyond automation into AI model integration. Oracle customers can leverage IBM watsonx AI models within Oracle Fusion Applications, combining IBM Granite models with Oracle’s AI stack. IBM watsonx Orchestrate further enhances this ecosystem, enabling digital labor coordination across platforms so that organizations can tailor AI-powered automation to their unique business needs.”

Starting the Transformation Journey

For many organizations, the biggest challenge with AI-driven automation is knowing where to start. Oracle makes this easier with hundreds of built-in AI capabilities in Oracle Fusion Applications, many of which can be activated with minimal effort. IBM further simplifies the process by helping customers optimize these AI-driven capabilities, accelerating adoption and immediate value realization.

“Oracle customers get out-of-the-box AI-powered SaaS, but as implementers, that is just our starting point. At IBM, we enhance the entire implementation lifecycle—boosting productivity from design to testing.” —Chacko Thomas, IBM’s Americas Oracle Leader

Oracle has long been at the forefront of business process automation, with over 100 generative AI and machine learning capabilities embedded in its applications. Now, the company is advancing further with the release of new AI agents and its AI Agent Studio for Oracle Fusion Applications, which combines large language models (LLMs) with other technologies to accomplish complex tasks that previously could only be done by humans. This shift represents a major transformation in automation, moving beyond rigid, rule-based workflows to intelligent decision-making. By embedding AI-driven workflows within its enterprise applications, Oracle enables organizations to streamline operations while maintaining tight control over data governance and security. IBM provides consulting services and solutions to help clients implement and derive greater value from Oracle Fusion Applications, leveraging IBM Consulting Advantage to accelerate AI transformation.

Conclusion

As AI adoption accelerates, enterprises seek solutions that integrate intelligence while providing security, scalability, and efficiency. IBM and Oracle offer distinct yet complementary AI capabilities to help drive business transformation. IBM specializes in AI consulting and secure, enterprise-specific AI models designed for transparency and control. Meanwhile, Oracle embeds AI directly into all layers of the technology stack, helping enhance automation, decision-making, and operational performance.
Together, they create a robust AI-enabled enterprise ecosystem, combining Oracle’s built-in AI with IBM Consulting services to drive business transformation, technology implementation, and managed services . This synergy enables organizations to harness AI confidently, helping to drive efficiency, agility, and competitiveness in an increasingly intelligent business landscape.

References
1 https://www.oracle.com/playbook/financial-excellence/

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The dream started with a movie—Hackers.

Nunez’s journey into ERP security began with a penetration test on an SAP application, where he discovered a massive security blind spot—business-critical ERP systems from major vendors were highly vulnerable to attacks yet were largely unprotected. Unlike traditional security approaches, like user access and segregation of duties controls, he examined these systems from a threat actor’s perspective and uncovered attack vectors that allowed unauthorized access even without credentials. As ERP systems moved to the cloud, the risks intensified, yet defenders lacked the expertise to secure them while cybercriminals were already exploiting these weaknesses.  Recognizing this gap, Nunez founded Onapsis in 2009 to proactively protect the world’s most critical business systems. Today, Onapsis is a leader in ERP security, helping enterprises safeguard their most valuable assets against an evolving threat landscape.

Since its founding, Onapsis has tracked a dramatic shift in threats targeting ERP systems.  Traditionally, ERP security ensured employees had appropriate access to business data and functions. However, attackers have now shifted to exploit unpatched vulnerabilities, insecure configurations, and flaws in custom code. These attacks bypass traditional security controls, leaving no traces in audit logs and creating a dangerous blind spot. The consequences are severe, ranging from payroll fraud and financial theft to ransomware attacks that cripple manufacturing and supply chains. Beyond financial losses, regulatory penalties and reputational damage further compound the risks. In this environment, ERP security is about protecting the foundation of business operations. Organizations must adopt proactive, modern security strategies to stay ahead of increasingly sophisticated threats.

Traditional Security Measures Fall Short

A common misconception among ERP users is that traditional security, such as firewalls and segregation of duties controls, is sufficient. While these controls are necessary, they are not designed to detect or prevent cyberattacks targeting application layers. Many organizations that have experienced breaches had these security measures in place yet still fell victim to attacks because they lacked visibility into application-level threats.

Cybercriminals have become highly sophisticated, often targeting ERP systems directly. The transition of ERP systems to the cloud has significantly increased exposure to cyber threats, presenting a growing risk. Threat actors are acutely aware of this shift and are actively exploiting vulnerabilities in cloud-based environments. Recent findings from the Onapsis Research Labs highlight a 400% increase in ransomware attacks targeting SAP systems and data, alongside a 490% surge in discussions on criminal forums regarding SAP vulnerabilities and exploits. This sharp escalation in threat activity underscores the urgent need for organizations to strengthen their cybersecurity posture.

As organizations transition to the cloud, they must move beyond perimeter defense and adopt a more proactive security approach. One of the key priorities is application-layer security, ensuring that ERP systems are properly hardened against attacks. Equally important is continuous monitoring, which enables real-time threat detection tailored specifically for ERP systems. Organizations must also focus on custom code security, regularly assessing code for vulnerabilities that attackers could exploit.

In cybersecurity, it is not about competition; it is about collective defense.

While ERP vendors such as SAP typically secure the underlying cloud infrastructure, including the network, hypervisor, and operating system layers, customers remain accountable for securing their applications and data. Nunez emphasizes, “Early cloud transitions often led to misconceptions that SAP would handle all security aspects, leaving organizations exposed to unaddressed vulnerabilities. However, SAP has further clarified the shared security responsibility model, emphasizing that while it safeguards the cloud infrastructure, customers are responsible for their application configurations, patches, secure integrations, and custom code security. Additionally, application threat monitoring is essential—not just to track access but to proactively identify incidents.”

Rather than treating security as a one-time implementation, companies must integrate it into continuous compliance and risk management frameworks. Cloud migration enhances ERP security, but only if businesses take a proactive stance in safeguarding their most critical assets. A robust security posture requires a multi-layered approach, emphasizing application-layer defenses. Nunez asserts, “This risk is not SAP-specific, affecting all business-critical applications, including supply chain, HR, and treasury systems. Cybercriminals are exploiting these gaps, bypassing basic cloud and legacy security approaches. We’re working to expand beyond SAP, bringing the same level of security and compliance protection to other essential business applications from various vendors and manufacturers.”

Cracking the Code: How Onapsis is Redefining ERP Security

Onapsis was founded to fill a critical technology gap with protecting SAP and ERP systems.  Recognizing this vulnerability, the company developed the Onapsis Platform, a purpose-built solution that integrates advanced security capabilities to safeguard these essential systems from evolving cyber threats. At its core, Onapsis provides a comprehensive, three-pronged approach to securing ERP environments.

First, organizations need visibility into vulnerabilities before they become breaches. With Onapsis Assess, businesses can identify ERP application-level risks, prioritize threats, and remediate security issues. By taking a proactive stance, companies can reduce their attack surface and strengthen overall security posture. Second, cyber threats are persistent and increasingly sophisticated.  Onapsis Defend provides real-time monitoring, detection, and response capabilities, ensuring that both insider threats and external attacks are quickly identified and mitigated. With automation-driven incident response, organizations can stay ahead of potential breaches while maintaining the integrity of environments. Third, as companies expand their landscapes, customizations can introduce hidden security gaps. Onapsis Control addresses this by allowing businesses to identify and remediate vulnerabilities early in the development cycle. It also automates fixes for legacy code security risks, ensuring compliance and resilience.

Nunez emphasizes, “Onapsis serves leading enterprises where security is mission critical. Our platform is especially vital for highly regulated industries such as energy, utilities, pharmaceuticals, and manufacturing. In organizations where SAP manages critical business data and processes, and SAP underpins essential operations, Onapsis ensures they can maintain resilience, security, and compliance at scale across cloud and on-prem environments.”

Going Beyond Technology

Beyond the technology itself, Onapsis has established a robust approach to cybersecurity. Onapsis is the SAP application cybersecurity solution officially endorsed by SAP, underscoring its critical role in securing enterprise systems against evolving threats. To enhance cyber resilience, SAP and Onapsis have also recently partnered to strengthen incident preparedness and response for SAP environments. This collaboration equips organizations with advanced threat intelligence and proactive defense mechanisms, ensuring they can detect, mitigate, and recover from security incidents with greater speed and efficiency.

The company’s in-house Onapsis Research Labs also plays a crucial role in staying ahead of cyber threats. By continuously analyzing attack vectors and emerging risks, vital intelligence is provided on how ERP systems are targeted. This research is embedded directly into the platform, equipping organizations with proactive defense mechanisms. To further strengthen the security ecosystem, Onapsis launched the SAP Defenders Community, a network bringing together some of the world’s largest SAP customers. This initiative fosters a confidential environment where members can collectively enhance their defense capabilities. By facilitating knowledge-sharing, the community empowers organizations to build more resilient security programs.

Nunez reinforces, “Cybersecurity is about staying ahead of threats, and our research labs make that possible. We work with business application vendors to uncover and mitigate zero-day vulnerabilities, having discovered and mitigated over 1,000 critical issues to date. Our threat intelligence provides real-time visibility into attacker tactics, helping customers strengthen defenses before an attack occurs. Beyond technology, our SAP Defenders Community fosters collaboration among the world’s largest SAP customers—sharing intelligence, best practices, and mitigation strategies. In cybersecurity, it is not about competition; it is about collective defense.”

Nunez also recognizes that cybersecurity is about expertise and process optimization. The company, with its certified partners including many of the world’s leading system integrators, helps companies bridge the gap between traditional information security teams and ERP administrators. This support is particularly crucial during transformation projects, where different teams must work together to implement security effectively. By fostering collaboration between audit, application, and compliance teams with cybersecurity professionals, Onapsis ensures that security measures are clearly defined, operationalized, and sustainable.

The Future of ERP Security: Integrating Security from the Start

Onapsis helps organizations secure their environments, prevent financial losses, and enhance operational efficiency. Under the leadership of CEO Mariano Nunez, the company has proven that proactive security accelerates transformation as well as mitigating risk. A major retailer with $6 billion in revenue used Onapsis to integrate security controls from the start of their ERP migration, enabling them to finish six months early and under budget. In another case, a chemical manufacturer uncovered a long-hidden insider fraud where a former developer had siphoned confidential financial reports for stock trading advantages—an issue only detected thanks to Onapsis’ advanced monitoring when it was deployed years later. These success stories highlight how Onapsis goes beyond traditional cybersecurity, empowering businesses to move faster, operate securely, and protect their most valuable assets.

A critical aspect of cloud security is understanding the shared security responsibility model.

Nunez emphasizes, “In the cloud, customers are still responsible for securing their applications and data. A key part of cloud security is understanding the shared responsibility model—the distinction between what ERP vendors secure in cloud environments and what remains the customer’s responsibility. While cloud hyperscalers have long followed this model, the ERP space has historically been more ambiguous. Still, many customers only fully grasp these security gaps after experiencing an incident or audit finding. Proactively educating organizations on these responsibilities and ensuring security controls are designed with them in mind is essential to preventing costly security breaches. As cloud and AI adoption accelerate, organizations must recognize that cybersecurity is not inherently ‘baked in’ but requires a proactive strategy. Security teams must go beyond default protection, ensuring comprehensive risk management, compliance, and governance frameworks are in place to safeguard ERP environments effectively.”

In 2025 and beyond, cloud adoption continues to shape the enterprise landscape. While cloud solutions continue to drive transformation, security concerns remain a primary obstacle, particularly for large enterprises moving their ERP systems to the cloud. AI is also gaining traction, with organizations increasingly focused on leveraging it securely and ensuring critical data is not compromised. The challenge lies in balancing AI innovation with strong security measures, making confidence in AI-driven processes a key priority for businesses. Onapsis is eliminating these barriers, empowering organizations to securely accelerate and de-risk their ERP cloud and AI transformations.

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Oracle’s decision to make its Fusion Cloud Applications Suite available on Oracle EU Sovereign Cloud is a significant step in addressing the increasing demand for data residency and sovereignty compliance within the European Union. As more organizations, particularly in the public sector and regulated industries, shift to the cloud, they require solutions that align with strict regional data privacy laws while also enabling AI-driven innovation. This positions Oracle as a key provider for EU-based organizations looking to balance cloud adoption with regulatory requirements. With data residency and security now at the forefront of business concerns, Oracle’s end-to-end cloud applications—covering finance, HR, supply chain, manufacturing, and customer experience—offer a unified, compliant platform for organizations that previously faced barriers to cloud adoption due to sovereignty concerns.

Addressing a Growing Market Need

The demand for sovereign cloud solutions is driven by an evolving regulatory landscape, where governments and enterprises seek greater control over their data. With AI adoption accelerating, organizations are increasingly prioritizing security, operational independence, and compliance in their cloud strategies. Oracle’s expansion meets these needs by providing a fully managed cloud environment that ensures data remains within EU borders, reducing complexity for businesses navigating stringent compliance requirements.

The latest development strengthens Oracle’s competitive edge in the European cloud market, particularly against hyperscale cloud providers that may require additional configurations or third-party solutions for compliance. By integrating AI-driven process optimization with strict sovereignty measures, Oracle is appealing to businesses that require both technical innovation and regulatory assurance.

As cloud adoption continues to rise across the EU, Oracle’s fully sovereign cloud applications provide an attractive path for businesses looking to modernize while maintaining compliance with GDPR and other evolving data governance frameworks. This expansion signals a broader shift in enterprise cloud strategies, where sovereignty, compliance, and AI-driven efficiencies are no longer separate considerations but critical, interdependent factors in cloud transformation.

What is in for ERP Insiders

Prioritize Data Sovereignty and Compliance in Cloud Strategies: ERP customers operating in the EU must ensure that their cloud adoption aligns with stringent data residency and sovereignty regulations, such as GDPR and other local governance frameworks. Oracle’s EU Sovereign Cloud provides a structured solution for organizations requiring data to remain within the EU while leveraging AI-driven innovations.

How to Apply & Adapt:

• Evaluate your compliance needs: Conduct an internal audit to assess your organization’s data governance requirements, ensuring they align with EU regulations.
• Leverage Oracle’s sovereign infrastructure: Migrate ERP workloads, particularly finance, HR, and supply chain applications, to Oracle’s EU Sovereign Cloud to ensure compliance while maintaining cloud efficiency.
• Implement a risk-mitigation strategy: Use Oracle’s dual-region disaster recovery framework to enhance business continuity and minimize downtime.

Leverage AI-Driven ERP Enhancements Without Compromising Security: AI-driven cloud applications are transforming ERP functionalities, enabling automation, predictive analytics, and operational efficiencies. However, organizations in regulated industries must ensure these AI capabilities do not introduce compliance risks.

How to Apply & Adapt:

• Integrate AI cautiously: Use Oracle’s AI-enhanced cloud applications for automated workflows, intelligent decision-making, and improved data analytics while ensuring AI-driven processes adhere to data privacy mandates.
• Monitor AI-generated insights: Establish governance controls over AI models embedded within ERP systems to prevent bias, errors, or non-compliant data processing.
• Enhance operational transparency: Leverage Oracle’s EU-based operations and support policies to ensure clear oversight on AI use and compliance adherence.

Adopt a Cloud-First ERP Strategy for Resilience and Competitive Advantage: Organizations that migrate ERP systems to the cloud benefit from scalability, resilience, and AI-driven efficiency. Oracle’s Sovereign Cloud provides an opportunity for EU enterprises to modernize their ERP infrastructure while addressing regulatory constraints.

How to Apply & Adapt:

• Assess cloud readiness: Identify legacy ERP components that can be migrated to Oracle’s cloud suite, particularly in finance, HR, and supply chain management.
• Implement a phased cloud transition: Start with non-sensitive workloads, gradually moving mission-critical applications once sovereignty compliance is ensured.
• Strengthen security and redundancy: Use Oracle’s fault-tolerant cloud architecture and multi-region backup capabilities to enhance system reliability.

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The new Amazon Nova models offer advanced intelligence, content generation capabilities while reducing latency and providing affordability, personalization, Retrieval Augmented Generation (RAG) and autonomous capabilities. Each designed for specific needs, Amazon Nova offers four innovative models:

Amazon Nova Micro

A text-only model that provides ultra-fast responses at minimal cost.

Amazon Nova Lite

An affordable multimodal model optimized for quick processing of text, image, and video inputs.

Amazon Nova Pro

A versatile multimodal model balancing accuracy, speed, and cost across diverse tasks.

Amazon Nova Premier

The most advanced multimodal model, ideal for complex reasoning and as a top-tier option for teaching and refining custom models.

Amazon Nova Micro, Lite, and Pro are available now, while Nova Premier is set to launch in Q1 2025.

With these new capabilities, SAP has deepened its partnership with AWS and will make it seamless for businesses to access and implement advanced AI models. With Amazon Nova models now available through an interface integrated with SAP BTP, businesses will now automate workflows, create customized AI solutions, and use business context within their SAP data most effectively. SAPinsider’s research on AI reveals that SAP anticipates that by the end of 2024, end users will be able to manage 80% of the most-used SAP business transactions through Joule, SAP’s AI copilot. Integration of Amazon Nova models with SAP BTP will also allow developers to enhance SAP’s Copilot Joule’s capabilities which will aid AI in delivering accurate, relevant and actionable insights, driving impactful outcomes across various operations.

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Oracle Database@Azure will now be integrated with Microsoft Purview and will enable customers to manage, secure, and stay compliant with their Oracle data, including Oracle Exadata Service and Oracle Autonomous Database Service. Customers will have the flexibility to integrate Oracle data with other enterprise data into specific data products and set up governance using policies, controls, and data quality tools. This will allow customers to get deeper analytics and unified data governance, ensuring secure, compliant data management for smarter decisions. Public preview of Open Mirroring, a new feature that simplifies managing data updates across different sources, keeping data synced and ready for analysis in Microsoft Fabric, is also integrated with the Oracle GoldenGate integration to enable deeper, data-driven intelligence and innovation

Also announced was deeper network integration for Oracle Database@Azure with the new User Defined Routes (UDR) feature which allows customers to use Azure Firewall, third-party Network Virtual Appliances (NVAs), and secure virtual hubs to inspect traffic, meeting enterprise security needs. This will be further enhanced to enable advanced integration with Azure VNET for use in inbound Network Security Groups (NSG) for better control, connecting securely to Azure Storage and Key Vault for encryption keys through Private Link, and for enabling cross-region connections with Global VNET Peering for data replication and disaster recovery.

Additionally, Oracle Database@Azure services are now available in nine regions including Brazil South, Italy North, Australia East, Brazil South, Canada Central, East US, France Central, Germany West Central, Italy North, US West (DR) and UK South. Oracle and Microsoft are also planning to further expand their partnership to bring Oracle Exadata Database Service on Exascale Infrastructure on Oracle Database@Azure, which will allow Azure customers to run Exadata Database Service with hyper-elastic scaling and pay-per-use economics.

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