SAP co-CEO Jim Hagemann-Snabe says the company is debating whether to accelerate its move to the cloud, given that some markets (like North America) are themselves moving faster. But this strategic shift would impact revenue.
At this point in time it is only musing on the change but if it acted Hagemann-Snabe believes it “would have impact on the 2015 level. I don’t expect enormous impact but it would have some impact because you are delaying revenues. However in a 17 timeframe you would have more than that back.” Two immediate thoughts occur: that SAP cannot afford not to make the change – suggesting this is an unofficial statement of direction; and (assuming the market buys into SAP cloud solutions) it could be understating the potential financial impact. Two consecutive quarters of lower licence revenue (see here) and questions around Business ByDesign (see here) indicate SAP needs to be proactive.