SAP Targets Cloud for Growth

ERP maker has 5,000 salespeople pitching cloud technology.

SAP AG co-Chief Executive Officer Bill McDermott, targeting the growing online software market, said he plans to tap a greater portion of customers’ spending.

“We’ll lead with the cloud,” McDermott told investors in New York yesterday. Today’s clients spend about 5 percent of their technology budgets with SAP, he said. “Why not 20?”

Late Arrival

“The company has challenges as it is late to the cloud,” Daniel Ives, an analyst at FBR Capital Markets, said in a Jan. 21 note to clients. He has a “market perform” rating on SAP.

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