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SAP Portunties Are Huge

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 Sujith Vasudevan, Managing Editor

While the digital transformation trend continues to flare in magnitude, the Russia-Ukraine conflict has tampered with the growth of the SAP ecosystem. A few months ago, SAP announced its €7.077 billion first-quarter revenue, up 11 percent in 2021. However, despite the hit from the conflict, which is expected to amount to €300m for the year, Cloud

revenue is €2.820 billion, up 31 percent and nearly 40 percent of the supplier’s overall sales.

According to SAP’s quarterly report, more than 500 customers chose SAP S/4HANA in the quarter, taking total adoption to more than 19,300 customers. It implies a year-over-year increase of 18 percent. More than 60 percent of the additional SAP S/4HANA customers were net new. With an ever-growing ERP market, which is expected to reach $202.28 billion in 2025, and the global cloud applications market expected to reach $168.6 billion by 2025, already 77 percent of the world’s transaction revenue touching an SAP system, the 20,000+ companies strong SAP partner ecosystem is affirmatively foreseeing field-days ahead.

There is no shortcut to tapping into these opportunities. The SAP partners will have to do it the old fashion way. They need to delve deeper into the SAP products as well as the nuances of the history, business, and requirements of local customers. The SAP partners will have to flex their innovative muscles and build additional capabilities & functional modules on top of SAP platforms, in addition to integrating with third-party legacy IT systems in order to penetrate the local market everything at an affordable price structure, of course. It’s really a mixed bag.

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