SAP users face cost squeeze, pressure to digitalise: survey

By Douglas Busvine

BERLIN (Reuters) – The customers of software group SAP <SAPG.DE> are suffering severe declines in revenue and earnings while at the same time facing intensifying pressure to hike IT spending to go digital, a survey showed on Monday.

The poll of SAP’s German-speaking user community found that nearly three-quarters were experiencing sharp drops in revenue. At the same time, over four-fifths said the coronavirus pandemic made digital transformation a more pressing task.

“At the centre of this crisis is the need for businesses to do more with less,” said Marco Lenck, chairman of the German-speaking DSAG user group that commissioned the survey.

The DSAG, which represents 3,700 businesses, is an influential lobby that has called on SAP to make it easier to upgrade systems traditionally hosted on site to run in remote datacentres.

Such cloud hosting makes it easier for firms to scale up or pare back

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SAP pledges to spend more on social, diverse businesses



FILE PHOTO: SAP logo at SAP headquarters in Walldorf


© Reuters/Ralph Orlowski
FILE PHOTO: SAP logo at SAP headquarters in Walldorf


BERLIN (Reuters) – SAP will try to allocate 5% of its procurement spending to social enterprises and diverse businesses by 2025 to encourage greater social and environmental responsibility.

The German software group, which has 440,000 clients, appealed on Tuesday to other companies to join it in supporting small businesses owned and run by women or minorities.

SAP’s procurement initiative follows its launch in June of a product to help firms track greenhouse gas emissions in supply chains, backing a view that being transparent about their carbon footprint will be good for business.

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The new initiative relates to so-called addressable spend, the share of a company’s procurement budget that can be allocated to social

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