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SAP continues cloud push with Business Suite subscription model

Major turning point for enterprise applications giat

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SAP has announced plans to make its Business Suite software available through a cloud subscription model.

The German software giant is currently attempting to transition its customers from on-premise versions of its products, partly in response to competition by 'pure-play' software as a service (Saas) providers such as NetSuite, Workday and others.

The firm has already introduced a number of cloud services, including offering a subscription model for its HANA platform, as well as Saas versions of its Business One ERP and Business Warehouse tools.

A full version of the Business Suite software will now run on the SAP HANA Enterprise Cloud, though pricing and availability details are not currently available.

SAP claims that the availability of Business Suite as a cloud service will provide its customers with improved "flexibility, user experience and rapid pace of innovation".

"Today is a significant step forward for SAP's transformation, as we are not only emphasising our commitment to the cloud with new subscription offerings for SAP HANA, we are also increasing the choice and simplicity to deploy SAP HANA," said Dr. Vishal Sikka, member of the Executive Board of SAP AG, covering products and innovation.

The software provider also highlighted the recent expansion of its global data centre footprint to support its cloud ambitions. It now runs 16 "in-memory centric" data centres worldwide, with two new facilities in the Asia Pacific region in Tokyo and Osaka unveiled this month.

Earlier this year, SAP announced plans to increase its total revenue to at least 22 billion (£18.1 billion), with revenue from its cloud business expected to grow up to 3.5 billion by 2017. The SAP board also said it was prepared to accept lower margins as it transitioned customers from on premise software to hosted and cloud applications.



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