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23 January 2014

SAP to increase cloud investment in mainland China to target enterprises and small businesses.

Read more: SAP China Telecom cloud computing cloud services

SAP will step up investments in China this year in anticipation of rising software sales, spurred by increased spending of state-owned enterprises (SOEs) and small businesses, reports The South China Morning Post. SAP is to expand its co-operation with China Telecom in cloud services as part of its plan.

SAP saw IT expenditure by SOEs grow in the second half of last year, after a sluggish first six months, which helped the company win cloud business at the Agricultural Bank of China, China Minsheng Banking Corp and China Petroleum and Chemical Corporation, also known as Sinopec.

The vendor is in the middle of a five-year, $2 billion investment programme in China and the company plans to broaden its collaboration with China Telecom later this year to drive new growth opportunities with small- and medium-sized enterprises (SMEs). The company said it is exploring how to bring a full suite of SAP cloud offerings over the public internet into mainland China. Applications would include enterprise resource planning, delivered at a monthly cost online to subscribers.

The existing cloud alliance between SAP and China Telecom has been focused on human capital management (HCM) programmes from SAP unit SuccessFactors. GTB

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