SAP upbeat on local cloud-based spending

SAP upbeat on local cloud-based spending

Firm aims for €8-8.5bn revenue by 2020

Urbizu: Technology drives growth
Urbizu: Technology drives growth

SAP Indochina, the regional arm of a Germany-based enterprise software firm, has urged local enterprises to undergo a digital transformation through cloud computing, data analytics and the Internet of Things (IoT).

The company expects to increase its cloud revenue to €8-8.5 billion (311.95 billion baht) out of predicted total revenues of €28-29 billion by 2020, up from €3 billion on total revenues of €22.1 billion in 2016.

Global IT research firm Gartner Inc estimated that information technology spending by enterprises in Thailand is expected to reach US$16.5 billion in 2017, rising 3.2% to $17 billion in 2018.

"Thailand is a massive growth market for cloud-based services in Southeast Asia for SAP," said Liher Urbizu, managing director of SAP Indochina, which is based in Bangkok.

SAP doubled its local workforce in Thailand the past three years, mainly in sales and consulting service fields as the company tried to capitalise on the growth opportunity, he said.

Mr Urbizu said SAP is on the verge of transforming from an enterprise resource planning software maker to a cloud, IoT and machine learning firm.

SAP introduced private cloud service in Thailand last year, with data servers hosted in the country to serve businesses that need to store their data here.

The company provides cloud services using various deployment models, such as private and public cloud, and traditional on-premises licences.

He said SAP expects the digital transformation and the government's Thailand 4.0 scheme to continue driving IT spending for enterprises this year, mainly in cloud-based and real-time analytic platforms.

"Technology continues to remain the key enabler to drive growth, promote innovation, enable transformation and level the playing field for companies of all sizes," said Mr Urbizu.

To ensure business success in the digital era, he said companies need to transform themselves into digital enterprises and create a data-driven business to take advantage of this trend.

SAP introduced its latest cloud service for the analytics platform, called Digital Boardroom, that integrates multiple sources from internal and external organisations as well as social media into one source to serve multiple users.

Mr Urbizu said SAP still sees strong demand for IT spending for digital transformation in the financial, telecom, logistics, manufacturing, utilities and family-owned business sectors, especially those that would like to expand their business overseas.

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