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Software-based giant SAP has notably performed strongly over the past couple of years, with a nearly 11% annual growth in revenue. The revenue growth has been seen across various segments, SAP’s Cloud business performed remarkably. It continued to dominate the Enterprise Resource Planning software market, with majority customers adopting its S/4HANA platform since the time of its inception in 2015. Nearly 80% of its customers are still making use of the older platform and is expected to shift to the newer one in the near future, there is also tremendous potential which the company does expect to tap.
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SAP does generate revenue from two segments: Cloud and Software revenue, and Services revenue. More and more companies are adopting cloud services and the overall cloud market has been expanding at a rather rapid pace. An SAP is indeed rapidly expanding its presence in the Internet of Things (IoT) space with its new products as well as partnerships. Recently there has been an addition of multiple Internet of Things (IoT) solutions to the SAP Leonardo digital innovation system thus highlighting the SAP’s renewed focus on enhancing its foothold in the IoT domain, which could indeed bolster the company’s top line in the future. An SAP is indeed strengthening its position and will fare well and move ahead despite stiff competition.
It is expected that there would in due course be more customers adopting SAP’s products. There would also be an increase in professional services such as the implementation of cloud and on-premise software, premium support, messaging as well as payment services.
One does also expect that the cloud margins will continue to decline in the near future, as the company does face rather tough competition from software behemoths like Microsoft, Oracle, and Salesforce. However, it is expected that the growth in software and services margin will indeed offset the decline from the respective cloud. Whatever said and done SAP has a bright future ahead and will definitely make the mark in the market.
SAP has developed and this indicative by the growth of the revenue it has generated over a period of time. SAP has had many competitors and will continue to do so but on the whole, it will definitely retain its position in the market. Its products and services have been well received by customers and are well rated for their professionalism and timely service as well as quality products.
SAP has achieved a lot in terms of growth and development and future also holds good for it in these terms. It has retained its high-quality level in producing products and providing required services in the business scenario.
Software giants vie with each other to capture the market and make use of sophisticated technological applications. SAP applications have been very useful in augmenting business profits and revenue. Several companies are recruiting SAP professionals to improve their business performance levels. They have gained much by doing so.
