Conference Idea Stream: SAP says procurement services key to cloud data

    By: Mr. Adrian Bridgwater on Mar 19, 2015

    The ISUG-TECH Conference is just around the corner... so it's more important than ever to get a general flavor of what SAP is talking about out of its corporate news portal just now.

    News hitting this week includes:

    (Reuters) - The Reuters newswire service reports that SAP is betting its future development on its "online corporate purchasing services for multinational customers" to boost revenue and profits....

    ... especially so, as SAP now shifts its core business onto the cloud.

    Steve Singh, head of SAP's recently created Business Network division for cloud-based corporate procurement services, says that by making a dent in the several trillions of dollars in total which big companies spend each year on purchasing goods and services, his company stands to take in billions of fees.

    "There is a $75 billion opportunity," Singh says of the overall market that SAP is targeting.

    Analysts also say subscription fees for providing such procurement and vendor management services could give SAP the buffer on margins it needs as it shifts to deliver more of its software from the cloud, a move that brings higher upfront costs on each sale than older localized software installations.

    By creating a network of preferred business-to-business suppliers for big-ticket material purchases, temporary staffing, hotels and travel, SAP says it can help its multinational customers rein in on huge amounts of spending.

    You can read the complete piece here.

    Released: March 19, 2015, 9:02 am | Updated: March 19, 2015, 9:11 am
    Keywords: General | SAP




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