No. ILM does not offer a new functionality in this area. For data reduction within BW nearline storage systems are used.
However, using the solution ILM Retention Management Storage Option for SAP IQ, you can store your archiving indices and archive files on SAP IQ.
In combination with the storage of analytical data from the SAP NetWeaver® Business Warehouse (SAP NetWeaver BW) application via SAP NetWeaver BW’s nearline storage interface, you can consolidate your storage infrastructure on a single platform and thus reduce the complexity of your system landscape and the associated costs.