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November 21, 2013

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Nothing cloudy over SAP’s China goal

SAP AG launched public cloud computing services in China through partner China Telecom yesterday, as Europe’s biggest software vendor aims to make China its top regional market by revenue by 2020.

The German business software company expects China to contribute to its revenue growth as the country is going through an economic transformation and netizens are becoming increasingly familiar with online social tools and e-commerce with the popularity of mobile devices, said Bill McDermott, SAP’s co-chief executive.

“China is the second home of SAP. We expect China to become SAP’s top regional market in 2020 but I am not surprised if it turns out earlier,” McDermott said during the SAP China Sapphire event in Beijing.

SAP, China Telecom and China Comservice, a subsidiary of the telco, will jointly offer enterprise users cloud-based services such as ERP (enterprise resource planning) and CRM (customer relationship management) services. China Telecom will provide data storage or cloud servers in several data centers nationwide including in Shanghai.

SAP and China Telecom said they have more than 10,000 enterprise clients for the new cloud services.

Cloud computing, which allow users to save, edit, share and process data and files through various devices, including laptops, computers and mobile phones, based on the online “cloud” platform, will create 4 million new jobs for China by 2015, according to research firm International Data Corp.

SAP joins Microsoft Corp and IBM as the latest foreign information technology giant to offer public cloud computing services in China.

 




 

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