Mark Gibbs, president of the German Software giant SAP SE’s Greater China region predicts extensive growth and development opportunities owed to the major e-commerce boom that China is currently experiencing as well as the company’s partnership with the Alibaba Group Holding Ltd. SAP Greater China’s excellent financial turnout in the first quarter of 2016 even in the face of China’s economic slack is what led to this comment made by Gibbs.
As Gibbs explains, this growth is primarily due to the country’s efforts in boosting its traditional industries with the addition of new and innovative technology backed by IT that will make the entire manufacturing process technologically superior.
In an effort to create a digital platform that provides one stop solution, SAP and Alibaba entered into a partnership the previous month and are working on a lighter form of HANA which is known as HANA one and is SAP’s in-memory computing portal. This effort will largely help in accelerating local business and generating revenue.
Gibbs is also hopeful that this association of the two organizations will very soon lead to an unique and innovative cloud computing portal. Gibbs also states that the partnership with Alibab cloud will open newer and better avenues for SAP leading to further growth and expansion opportunities.
In keeping with such predictions, the China branch of SAP has also registered phenomenal growth in its earning from the software and cloud business platforms. Owed to the increase in sales of SAP’s enterprise software which is primarily responsible for managing customer support and relation operations, business operations and services based on cloud-computing portals, this Walldorf, Germany based software giant has also registered a growth of 5 percent from last year ( from 1.104 million euros to $1.23 million).
SAP’s services are being used by China’s SME’s that contribute to about 75% of the country’s enterprise ratio and also finds presence in over 50% of the country’s government run enterprises.
The SOEs of China are equipping themselves with latest technology that is required to manage the vast amounts of data that is generated as result of liaisons formed with companies on the global platform. Gibbs explains that this is exactly where SAP is coming in handy for the Chinese enterprises.
Making SAP more affordable and easy to implement for small and mid-sized businesses is SAP’s latest product SAP Anywhere. The benefits of this product is that it is not only affordable but also quick to implement and can start operating within hours, giving it a competitive edge over similar other products.
Companies like Microsoft Corp, Alibaba and Tencent Holdings Ltd. as well as the local e-commerce businesses are together taking China from being a nascent market for cloud-computing to one of the strong players in the field.
One of the leading analysts at Gartner Inc., Vincent Fu has even suggested that software biggies like Microsoft and SAP are making advances to explore the could-computing arena by concentrating on service oriented products.