SAP’s cloudy future prompts a dip in profit forecast German software giant SAP has cut its profit margin forecast for 2017, as its cloud offering is set to take off and dent the company's (still-bulging) pockets. According to its results today, Tuesday, by 2017 operating profit will be around €6.3bn-€7bn (£4.8bn-£5.3bn) on revenue of €21bn-€22bn (£16bn-£17bn). This is down from …
“We expect cloud subscriptions to exceed software license revenue in 2018"
After 5 years, SAP's Cloud makes up 6% of its total revenue but expects us to believe that in the next 3 years, that percentage will exceed 50%. Come on. Why do all vendors continue to exaggerate their Cloud forecasts?
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