SAP users face cost squeeze, pressure to digitalise: survey
BERLIN (Reuters) – The customers of software group SAP <SAPG.DE> are suffering severe declines in revenue and earnings while at the same time facing intensifying pressure to hike IT spending to go digital, a survey showed on Monday.
The poll of SAP’s German-speaking user community found that nearly three-quarters were experiencing sharp drops in revenue. At the same time, over four-fifths said the coronavirus pandemic made digital transformation a more pressing task.
“At the centre of this crisis is the need for businesses to do more with less,” said Marco Lenck, chairman of the German-speaking DSAG user group that commissioned the survey.
The DSAG, which represents 3,700 businesses, is an influential lobby that has called on SAP to make it easier to upgrade systems traditionally hosted on site to run in remote datacentres.
Such cloud hosting makes it easier for firms to scale up or pare back their business process operations in line with need. But the initial cost and difficulty of making that move deters many.
SAP’s new CEO, Christian Klein, welcomed the DSAG survey’s findings, which he said were representative of how the group’s global business was performing.
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