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.

The market for on-demand software will grow five times faster than the traditional on-premise programs that are dominated by SAP, according to researcher IDC. With the cloud computing market already crowded with providers such as Inc. and Inc., SAP will need to show how it can apply SuccessFactors's strength in delivering cloud applications to its core money makers, programs that run routine functions like financial accounting and inventory management.

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