SAP All Set To Spread Wings In Cloud Services
WALLDORF: SAP, one of the top software firms has announced that they will be expanding their presence in the cloud services. This is in addition to the company’s declaration to push back their operating margin by two years, reports Harro Ten Wolde for Reuters. The target growth of 35% will now be extended to 2017 from 2015 while the company concentrates on spreading out its services.
SAP’s decision to deepen their hold on cloud comes in the wake of their rival Oracle and IBM’s growing grip in the same. Market research reports have also given confidence to the industries as cloud services is predicted to be one the fastest growing industries of the future.
SAP’s entry into the cloud services was by acquiring two companies- Ariba and SuccessFactors after spending $4.3 billion and $3.4 billion respectively. The Co-Chief Executive Bill McDermott said that they haven’t ruled out meaningful acquisition but for the time being, they will continue to endeavor to grow autonomously.
He further says, “We intend to be the leader in users, revenues, and bookings in the cloud. We will simplify everything for the customer through the SAP cloud and as a result, we will be the growth story in the IT industry and software in the cloud.” He also explained that a huge amount of the IT revenue usually gets tied up in hardware services rather than innovation. But with cloud this can be saved. Banking a lot on their service, 'High Performance Analytic Appliance'(HANA) the company is planning to explore the retail industry like banking, healthcare and public sector in the future.
The whole world is going the cloud way and now SAP has braced itself for the giant stride into the growing industry.