Can SAP’s new boss reset its business model?

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To regain investors' confidence, Christian Klein must improve SAP's offering in the cloud, and persuade more of its clients to move there

more than other tech firms: many of its biggest clients, such as carmakers and energy companies, were temporarily hit by the pandemic. And it struck as more rivals were vying for swathes of the business-software market that the German giant used to rule.’s business model that would depress margins in the short run and delay earlier revenue and profit targets by two years.

Even so, says Mr Klein, “covid was clearly an inflection point.” Bosses of big firms who may have waited another five years before switching to the cloud now want to speed up. They are also demanding a closer integration ofaffiliates acquired by Mr Klein’s predecessor, Bill McDermott. These include Concur, a travel-expenses firm; Ariba, a procurement platform; and SuccessFactors, which makesSo will Mr Klein’s plan to increase spending on research and development.

 

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