SAP AG plans to show this week it has learnt from a flawed venture into Internet-based software five years ago with its new strategy for cloud computing, months after the $3.4 billion purchase of SuccessFactors Inc.
Investors’ attention at SAP’s Sapphire conference in Orlando, Florida, will be on Lars Dalgaard, the SuccessFactors founder who joined SAP’s global management board last month. Dalgaard plans to explain how SAP can generate 2 billion euros ($2.6 billion) in sales from software delivered over the Web by 2015 to help the Walldorf, Germany-based company reach its 20 billion-euro revenue target by then.
Companies are turning to cloud computing as a secure way to outsource data centers and reduce the need for pricey servers and other hardware. Forrester Research Inc. last year estimated that the software-as-a-service market will grow to $133 billion by 2020 from $21 billion last year.
The Germany company wants to displace some of the Oracle database that’s sold alongside its applications and replace that with Hana installations. Hana software will more than double sales this year from 160 million euros, SAP said.