Why SAP focused on cloud partnerships in 2Q14

Market Realist

Overview: What to expect from this week's tech sector earnings (Part 6 of 8)

(Continued from Part 5)

SAP successfully leveraging the fast growth potential of the cloud services market

SAP (SAP) is expected to announce its 2Q14 earnings on July 17. During the last few quarters, SAP has become one of the most successful enterprise cloud companies. In 1Q14, SAP’s annual cloud revenue run rate approached $1.5 billion. It had a growth rate of 38% over the same quarter last year. According to a report from International Data Corporation (or IDC), the cloud services market is poised to grow from $47.4 billion in 2013 to $107.2 billion in 2017, at a compounded annual growth rate of 23.5%.

SAP focused on cloud partnerships in the second quarter

SAP forged a number of partnerships with other cloud players to boost its own presence. During the second quarter, Microsoft (MSFT) partnered with SAP and Salesforce.com (CRM). Microsoft integrated their software applications on its own cloud platform, Azure, and its mobile platform, Windows Phone. Azure is Microsoft’s cloud computing platform and infrastructure to manage applications through its own data centers.

A few months ago, SAP and Adobe (ADBE) agreed to partner. SAP will resell Adobe’s Marketing Solution with its HANA platform and the hybris e-commerce suite. It will help enterprise customers better analyze huge amounts of data across various marketing channels. HANA is an in-memory database and application platform from SAP. Hybris is software that helps businesses sell more products and services.

SAP also expanded its portfolio of customer relationship management products to more industries

In the second quarter, SAP announced that it’s expanding its  portfolio of customer relationship management (or CRM) software products. SAP is specifically targeting the insurance, utilities, and retail industries. These offerings will leverage the SAP HANA Cloud Platform to give these industries predictive analytics capability. According to a report from Gartner, SAP is the second largest player in the global CRM software market behind Salesforce.com. Oracle (ORCL), Microsoft, and IBM (or IBM) are the some of the other smaller players in this market.

Continue to Part 7

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