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Exam Code: C_SRM_72 Practice test 2022 by Killexams.com team
SAP Certified Application Associate - provider Relationship Management 7.2
SAP Relationship action
Killexams : SAP Relationship action - BingNews https://killexams.com/pass4sure/exam-detail/C_SRM_72 Search results Killexams : SAP Relationship action - BingNews https://killexams.com/pass4sure/exam-detail/C_SRM_72 https://killexams.com/exam_list/SAP Killexams : OutSystems joins SAP PartnerEdge program to support SAP S/4HANA migration

COMPANY NEWS: OutSystems, a global leader in high-performance application development, today announced it has become an official member of the SAP PartnerEdge program, with a Build focus, underscoring its commitment to providing high-value low-code to businesses using SAP solutions. While twice as many OutSystems customers connect to SAP technologies as any other system of record, the new relationship will make it even easier for additional businesses within the SAP ecosystem to discover and connect with OutSystems.

Through participation in the SAP PartnerEdge program, OutSystems is able to integrate its offering with SAP solutions. The SAP Integration and Certification Centre (SAP ICC) has certified that the OutSystems Platform (OutSystems 11) integrates with SAP S/4HANA and SAP NetWeaver using standard integration technologies. The relationship makes it easier for businesses to interoperate with SAP S/4HANA by building new customer experiences, critical customisation and application development capabilities, innovative customer and partner portals, and smooth enterprise system migration. Integration with SAP technologies is one of the most common use cases for OutSystems customers as they look for solutions to unlock business innovation, team productivity, and investments in SAP offerings.

“Enterprise teams face significant pressure to deliver sustainable business results, which means more applications, at faster speed, with peak performance, and this is what our integration with SAP solutions is doing for companies today,” said OutSystems founder and CEO Paulo Rosado.

“It’s now easier for enterprises to activate their investments in SAP technologies by building business-critical apps that help Boost operations, customer experiences, processes and migrations to SAP S/4HANA. Our high-performance low-code solution gives customers the power to develop, test, and scale applications with less time and expense, creating opportunities for continuous innovation.”

The OutSystems Platform allows businesses to rebuild custom business logic to keep the core clean as they migrate to SAP S/4HANA. Examples of OutSystems’ implementations that have made fast, effective innovation more accessible to developers include:

  • Multibillion-dollar IT distributor Redington Gulf used OutSystems and robotic process automation (RPA) to modernize their SAP instance and build a rebate management system on top of the SAP application in only three weeks.
  • European Supermarket chain COOP created a new Store Operations Application integrated with Bapi, which saved store employees up to 45 minutes per day on standard procedures like waste registration, ordering, and due date checks.
  • Environmental, waste management and recycling technology company ISB Global created and deployed a mobile app that helps field and remote employees record and monitor customer service requests more effectively.

OutSystems customers can leverage free, pre-built code components and integrations, including ones built specifically for SAP solutions, in the OutSystems Forge – the company’s open source repository of reusable, open code modules, connectors, UI components, and business solutions that help speed app delivery. New Forge offerings include a UI theme pack for SAP Fiori® to help customers integrate visually with other SAP applications.

Developers can try OutSystems with a free trial version and experience these capabilities directly by clicking here.

About OutSystems
OutSystems was founded in 2001 with the mission to supply every organisation the power to innovate through software. The OutSystems high-performance low-code platform gives technology leaders and developers the tools to rapidly build and deploy their own business-critical applications. The company’s network spans more than 600,000 community members, 400+ partners, and active customers in 87 countries across 22 industries. OutSystems is “The #1 Low-Code Platform” and a recognised leader by analysts, IT executives, business leaders, and developers around the world. Some of the most well-known brands use OutSystems to turn their big ideas into software that moves their business, people, and the world forward.

Wed, 27 Jul 2022 14:07:00 -0500 en-gb text/html https://itwire.com/guest-articles/company-news/outsystems-joins-sap-partneredge-program-to-support-sap-s-4hana-migration.html
Killexams : How Loneliness Could Be Costing Your Business Success, And What To Do

If you want to go fast, go alone. If you want to go far, go together. This proverb summarizes the conundrum many entrepreneurs face. But working long hours and doing whatever it takes to make your business successful isn’t always conducive to spending time with other people. Human connection, however, brings tangible benefits and shouldn’t be ignored.

According to Simone Heng, author of Secret Pandemic, connecting with others is a key part of ensuring your business succeeds. Heng is a human connection specialist whose clients include Google, Bytedance, Salesforce, SAP, L’Oréal, TEDx and The United Nations and many more. As a former international broadcaster, Heng appeared on Virgin Radio Dubai, HBO Asia and CNBC, and she and her work have been featured on CNN and in publications such as Vogue, Elle and Harper’s Bazaar.

“If you want to be more resilient, you need to feel healthy, and you need to have human connection in your life,” Heng explained. That’s why it’s so important for entrepreneurs to intentionally and strategically build up their tribe.

The three types of loneliness

Entrepreneurs without team members may find it more challenging to create and foster connections. This is largely due to the fact that workplace interactions have traditionally been primary sources of connection. Without some sort of intentional daily connection, the risk of loneliness increases.

There are three different types of loneliness, according to Bruce A Austin at the Rochester University of Technology. The first one, intimate loneliness, is a yearning for someone you can be truly vulnerable with. Most commonly, this need can be filled with a romantic partner or best friend.

Then there’s relational loneliness. This may arise when people don’t feel like they are part of a social fabric they can call upon if they need help. Traditionally, people have turned to their coworkers to provide this kind of social protection and cohesion.

The final kind of loneliness is collective loneliness. This crops up when people feel like they don’t have people around them who share their vision. “Of the three major types of loneliness, the workplace has offered a reprieve from two of them,” Heng said. “However, unless entrepreneurs intentionally foster human connection, solo entrepreneurs may struggle with collective and relational loneliness and burnout.”

The relationship between connection and energy

The reciprocal relationship between connection and energy is hardwired into humans. “Studies have shown our bodies have more bioenergetic resources when there are people embarking on a mission or journey with us, versus going on the same mission alone,” Heng said.

Entrepreneurs frequently take on many tasks in their journey to build and scale a company. Traditionally, entrepreneurs were able to stay energized about completing those tasks by connecting with people in the office. However, the global increase in the number of people working from home has made that more challenging.

Working from home can heighten productivity, but it may come at a cost. The more that people experience the emotional stress of being lonely, the more depressed and anxious they may get. This, in turn, makes it more likely that they will experience burnout, and the experience of burnout contributes to feelings of loneliness.

The antidote to loneliness is connection

Heng’s research, along with her personal experience, has led her to one inescapable conclusion: the antidote to burnout and loneliness is connection. “Human connection makes us more resilient,” she said. “As an entrepreneur, if you don’t have the workplace team to cushion you, you have to foster connection in a different way.”

For example, you can make it a point to develop an incredible relationship with your partner. By focusing on your significant other, you ensure you are still part of a supportive social fabric.

You can go even further by scheduling at least two catch-ups per week with friends and family. Treat those appointments as though they are unbreakable, the same way you treat work meetings. Consistently making time to connect with other people significantly reduces your chances of burnout.

Talking about work with your social network can also foster incredible innovation. At the same time, discussing work with (relevant) friends is a great way to ensure you don’t feel like you’re climbing the entrepreneurial mountain alone.

Learn from expats

Heng also suggested taking advantage of what’s known as the “village effect,” which is also the title of a book by Susan Pinker, who coined the term. This includes seemingly banal interactions, such as the nod to your barista at Starbucks, the wave you exchange with your neighbor or the high-five you supply to the person who walks your dog.

“These small social cues don’t have to be super deep,” Heng said. “But they make you feel like you are part of that all-important social fabric.” The key is to refrain from staying in your office all day, every day. Instead, go on walks, and make friendly eye contact with the people walking past you.

“Once or twice a week, go to a coffee shop to do your work.” Smile and exchange a friendly greeting with the people at the tables next to you. “When you take actions like this consistently, you will be amazed at how much it mitigates and softens any loneliness and burnout you might otherwise feel.”

This is exactly what people who move to a new country do. Expats are dropped into a new environment where they don’t know anybody. Their minds react by telling them that they aren’t safe because they don’t have enough resources and support. And so, they step outside of their comfort zone so they can meet new people. As an entrepreneur, you can find and foster human connection the same way.

Long live the connected entrepreneur

As important as social connections are to avoiding burnout, their importance goes even further. “Studies show that people with strong social connections outlive people who are isolated and lonely,” Heng said. The acknowledgment that we get from others creates feel-good hormones like oxytocin and dopamine.

Implementing each of these steps will help entrepreneurs foster human connection and thereby avoid loneliness. On top of that, these steps are the key to entrepreneurs bolstering their social fabrics, which will help them and their businesses thrive.

Tue, 02 Aug 2022 19:30:00 -0500 Jodie Cook en text/html https://www.forbes.com/sites/jodiecook/2022/08/03/how-loneliness-could-be-costing-your-business-success-and-what-to-do/
Killexams : SAP SE (SAP) CEO Christian Klein on Q2 2022 Results - Earnings Call Transcript

SAP SE (NYSE:SAP) Q2 2022 Earnings Conference Call July 21, 2022 8:00 AM ET

Company Participants

Anthony Coletta - Chief IR Officer

Christian Klein - CEO

Luka Mucic - CFO

Scott Russell - Customer Success

Conference Call Participants

Frederic Boulan - Bank of America

Amit Harchandani - Citigroup Inc.

Adam Wood - Morgan Stanley

Johannes Schaller - Deutsche Bank

Mohammed Moawalla - Goldman Sachs

Michael Briest - UBS

Mark Moerdler - Sanford C. Bernstein

Operator

Good day, and welcome to the SAP Q2 2022 Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Anthony Coletta, Chief Investor Relations Officer. Please go ahead, sir.

Anthony Coletta

Thank you, and welcome, everyone. Thanks for joining us today on our earnings call to discuss SAP's Q2 and first half 2022 results. On our Investor Relations website, you can find the deck supplementing today's call.

With me today are CEO, Christian Klein; and CFO, Luka Mucic, will make opening remarks. Scott Russell, who leads our Customer Success organization, is also with us for Q&A.

Now let's do the safe harbor. During this call, we'll make forward-looking statements, which are projections or other statements about future events. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ.

Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including, but not limited to, the risk factors section of SAP's annual report on Form 20-F for 2021. Unless otherwise stated, all financial numbers on this call are non-IFRS. Growth rates and percentage point changes are non-IFRS year-over-year at constant currencies. The non-IFRS financial measures we provide should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with IFRS.

And with that, I'd like to turn it over to Christian.

Christian Klein

Yes. Thank you, Anthony, and thanks to all of you for joining today. This has been a good quarter for SAP despite the challenging political and macroeconomic environment. Our cloud and total revenue have exceeded market expectations and are progressing faster than we expected at 34% and 13% nominal, respectively.

Our top line cloud performance is clearly ahead of plan, further accelerated by the current macroeconomic environment and currency tailwinds. Customers are actually turning to us now more than ever to help them address their most pressing concerns, business model transformation and process automation, supply chain resilience and sustainable operations. We see demand for SAP technology continuing to increase with an increased focus on transforming and automating mission-critical business processes and the core functions of an enterprise.

As we have seen in previous economic pullbacks, companies that balance cost efficiency measures with strategic investments in technology are more resilient and better able to offset margin pressure. We are also seeing a powerful snowball effect from our platform and ecosystem businesses as the adoption of SAP solutions accelerates.

Let's take a look now at some of our top line numbers for Q2. In Q2, we hit the major milestone of cloud revenue becoming our largest revenue stream for the first time. Cloud revenue was up 24% at constant currency and up 34% at nominal levels. Current backlog growth accelerated at 25% and now exceeds €10 billion, another first.

Current cloud backlog for SAP S/4HANA hit a record 87% growth and stands at €2.3 billion, driven by continued strong adoption of RISE with SAP. In addition, S/4HANA cloud revenue growth continued to accelerate at 72%. Customers are choosing us for the power of our integrated portfolio. First, core ERP; second, the SAP business technology platform; and third, our best-in-class solutions. Our strategy is focused on investing in and capitalizing on the integration of these assets. This provides unmatched superior solutions for our customers and extensive cross-sell opportunities for SAP.

I'd like to now provide an update on our strategy execution. Since we initiated our transformation almost 2 years ago, our performance is well ahead of plan. SAP has always been acknowledged as the category leader for ERP. Now just as SAP invented ERP decades ago, we are leading the ERP transition to the cloud. This has led to over €2.2 billion of current cloud backlog for SAP S/4HANA, as I mentioned earlier. The momentum we are seeing today increasingly comes from the power of being a platform company. Our business technology platform now has a run rate exceeding €1.4 billion, and there are more than 14,000 customers using the platform.

Turning to our core line of business solutions. They are all growing by double digits in both cloud revenue and current cloud backlog. We see customers increasingly choosing to adopt the full portfolio from SAP given the enhanced value from our integrated solutions. For example, many of our customers opt for our Intelligent Spend solutions to achieve cost savings across their entire direct and indirect spend as well as travel and expense and third-party workforce.

The potential for cross-selling is tremendous. In Q2, we saw was with SAP being a cross and up-sell catalysts with more than 85% of RISE deals, including additional cloud solutions and 77% of RISE customers adopting the SAP business technology platform.

We have also entered key new growth markets, recognizing that no business can succeed in isolation, we pioneered a new approach in building the SAP Business Network. The SAP Business Network allows customers to connect realtime across their suppliers in industry-specific networks. This boosts transparency and provides the resilience so desperately needed in today's environment.

Our new sustainability portfolio complements the SAP Business Network, enabling transparency across value chains, helping our customers to meet regulatory requirements and contribute to a sustainable future. Underpinning this leadership position is our business transformation as a service offering, RISE with SAP. Since RISE with SAP was launched at the beginning of last year, we have seen the offering going from gaining traction, to gaining momentum, to becoming the preferred choice for our customers as they move to the cloud. RISE with SAP helps customers with the hardest part of that transition, redesigning how the companies want. We offer customers so much more than a technology transition. RISE with SAP helps them: first, to redesign their end-to-end business processes; second, transition to a new agile ERP in the cloud; and third, innovate on the platform to design their own custom solutions.

In Q2, RISE customers included Moderna, ABB Information Systems, RWE, HeidelbergCement and Bridgestone. Moderna's pioneering vaccine is helping the world overcome the COVID-19 pandemic. They selected RISE with SAP to support the ambitious growth targets to scalable, automated end-to-end processes across research and development sourcing and distribution and support functions. RWE, the leading German utility company, is adopting wise with SAP to support its international expansion and its sustainability initiatives as part of its growing green strategy.

The success of RISE with SAP in turn for strong performance across our line of business applications, including S/4HANA. We see continued cross- and up-sell momentum, which means we continue to create about 2.5x the value from a customer after they have adopted RISE with SAP. We now have around 20,000 S/4HANA customers, up 15% year-over-year with more than 60% of our customers being net new.

We are also seeing strong momentum for S/4HANA in the cloud, with approximately 6,000 customers and over 600 wins in Q2. We are seeing increasing traction in the mid-market and in the start-up community. For example, the French unicorn, Doctolib is an online and mobile booking platform that helps users find doctors and make appointments. They selected S/4HANA cloud as an easy to implement robust scalable solution providing fast time to value.

Now our order entry growth for S/4HANA cloud and on-premise clearly exceeded 30% demonstrating significant gains in market share. SAP's business technology platform enables customer innovation and infrastructure integration. This quarter, the global leader HeidelbergCement decided to move from their on-premise ERP on Oracle to S/4HANA cloud on Azure. They will be using SAP's business technology platform as an integration and development platform to provide access to SAP services.

Our sustainability solutions have taken on an even more important role given the energy crisis. ERGO Group, one of the largest insurance groups in Europe, has chosen SAP to help them navigate a highly regulated sustainability expectations of the financial services industry, of course, in Germany. ERGO aims to open new sustainable business practices, create climate-neutral business operations and create transparencies throughout its business by reporting in accordance with the international guidelines set out by the GIA.

Our Intelligent Spend and Business Network division has taken on new meaning as companies plan for continued inflationary pressures and a need to diligently manage costs. Wins this quarter include BeiGene, the leading biotech company specializing in anti-cancer drugs. They chose SAP Ariba to quickly build a cloud-based procurement management platform to support different languages and regulations around the world in addition to improving efficiency.

Turning to our customer engagement portfolio. Positivo Tecnologia, a Brazilian technology company, is using SAP CX solutions to automate their marketing campaigns based on customer behavior analysis. This will enable them to personalize their customer engagements and create more opportunities for customer cross-sell, upsell, conversion and retention.

In Q2, ASUS, the global leader in personal computer, monitors, graphics cards and routers chose SAP SuccessFactors to bring its vision for employees to life. The solution will provide a one-stop service supported by data analysis and insights.

SAP Signavio, part of our business process intelligence portfolio, is going from strength to strength. Corning, which is one of the world's leading innovators in material science, selected the full SAP Signavio suite to drive governance and collaborative process management excellence as they transform their ERP systems.

Customers this quarter also include Moët Hennessy and ALTANA, the German chemicals company.

I'd like to spend a little time talking about our outlook. We are entering the second half of the year with a very strong cloud pipeline. Given our strategy maps directly on to our customers' most pressing challenges, we see the shift from CapEx to OpEx spend combined with currency tailwinds completely offsetting the top line impact of our Russia exit.

On the bottom line, we are adjusting our guidance based on 2 onetime impacts: first, our intended full withdrawal from Russia; second, in the current macro environment, our customers are shifting to the cloud faster than expected as they continue to move from upfront capital expansion to recurring operational expenditure. This leads to an additional transactional impact on our short-term profitability with clear midterm upside as our cloud strategy continues to pay off.

We are managing a significant portion of these onetime impacts with additional measures around discretionary spend.

Looking beyond 2022, we are clearly ahead of plan to deliver upon the promise we made in October 2020 when we announced our new strategy. We are confident we will achieve double-digit operating profit growth in 2023 by keeping the promise of flat to slightly declining operating profit through 2021 and 2022 versus 2020. And we are well on track to achieving all the performance goals for our 2025 midterm ambitions.

On the bottom line, the investments we made over the last 2 years put us in a good position to deliver double-digit profit growth starting next year. Very importantly, we also have a strategic initiative in place to consolidate and simplify our portfolio. This will result in increased focus on our core high-growth solutions providing even stronger synergies across our suite of solutions, complemented by potential acquisitions in our core.

We will provide an update on our 2025 ambition in the next quarters once we have more clarity on the macroeconomic situation.

In summary, this has been a good quarter. We made significant investments during 2021 and the first half of 2022, which now enables us to further scale our execution. Our strategy is perfectly aligned to the challenges our customers are facing. And we look forward to helping them come out of the current environment stronger and more resilient.

Thank you again for joining us today. And I will now hand over to Luka to talk through our results in more detail. Luka?

Luka Mucic

Thank you, Christian. Yes, there are definitely many subjects affecting businesses worldwide today and creating a challenging environment. We, nonetheless, as Christian said, delivered a good quarter, proving that our strategy is working and our solution portfolio is meeting customer demand. Our portfolio is more relevant than ever for our customers and the transformation to the cloud continues to deliver them even more exciting opportunities. We're helping them transform their businesses, create more resilient supply chains and accelerate their sustainability efforts.

In the second quarter, we saw robust double-digit cloud order entry growth with a particularly strong momentum in North America and Latin America. The trend towards larger cloud transactions also accelerated, and deals with a volume greater than €5 million contributed 48% to our cloud order entry in the quarter. This was again driven by our RISE with SAP offering.

Christian already talked about our ongoing cloud momentum and the fast accelerating growth from S/4HANA and our business technology platform. To reiterate, we continue driving strong top line growth and cloud revenue became the largest revenue backlog exceeded €10 billion for the first time and was up 25%, accelerating from the 23% growth that we saw in the first quarter. Again, the war in Ukraine had a dampening impact of 1 percentage point on that growth rate.

S/4HANA current cloud backlog was up a record 87% and contributed more than €2.2 billion to the overall current cloud backlog, becoming the biggest contributor. At our financial analyst conference, we introduced a new disclosure to reflect the evolution of our strategy. Our SaaS and PaaS portfolio combined grew an impressive 26%. And breaking it down, SaaS cloud revenue was up 24% and PaaS cloud revenue was up 40%. Strong cloud growth was primarily driven by an outstanding contribution of S/4HANA cloud; Qualtrics, the business technology platform; and SAP Signavio. In addition, we also saw strong double-digit contributions from our other SaaS offerings, including Concur, which continued its path of recovery and grew by 20%.

Fueled by this cloud revenue momentum as well as the strong growth in services revenue, our total revenue was up 5% in the quarter. Our cloud revenue performance was strong across all regions in the second quarter. EMEA increased by 27%, Americas by 22% and APJ by 26%. Germany had an outstanding cloud revenue performance, while the U.S., Brazil, Japan, India and Switzerland were particularly strong.

Let's now take a look at the bottom line, starting with gross margins. Due to revenue mix effects, our total gross margin decreased by 30 basis points to 73%. Very importantly, our cloud gross profit growth of 28% was supported by a continued upward trend of our cloud gross margin. Year-over-year, it expanded by more than 2 percentage points and reached 72%, and that is despite increased investments into our next-generation cloud delivery program. Our non-IFRS operating profit was down by 16% to €1.680 billion, mainly driven by a reduced contribution from software licenses revenue as well as significant bad debt expenses related to the war in Ukraine.

In addition, we incurred restructuring expenses of €130 million mainly due to the exit from Russia, impacting IFRS operating profit, which was down 32% to €673 million. Excluding the direct impact of the war in Ukraine, IFRS operating profit would have been down 3% and non-IFRS operating profit down 10%.

Let me now turn to EPS and cash flow. The decline of earnings per share that you saw in the quarter reflects the contribution to financial income by Sapphire Ventures, which was €1 billion lower than over the same period last year. Our IFRS effective tax rate was up 42.5 percentage points to 62.2%. This was mainly due to the reduction in tax-exempt income contributed by Sapphire Ventures and an additional increase of non-deductible expenses in the context of share-based compensation and restructuring expenses related to the war in Ukraine.

As compared to that, our non-IFRS effective tax rate was only up 10 percentage points to 29.3% as it was unaffected by the increase in non-deductible expenses. Our free cash flow for the first 6 months came in at approximately [€2.81 billion]. The year-over-year decline is mainly due to the reduced profitability in the quarter and impacts from working capital caused by our continuous move to the cloud.

In the second half, however, we expect a more favorable cash flow due to lower cash taxes and increased profitability. We are, therefore, reiterating our free cash flow outlook of above €4.5 billion for the year.

On the tax line, we are updating our full year 2022 IFRS effective tax rate guidance to 34% to 38%. This adjustment mainly results from an updated projection of non-deductible expenses and the lower expected 2022 financial income contribution of Sapphire Ventures, given current market conditions. As the updated non-deductible expenses are not included in non-IFRS, we continue to anticipate a full year non-IFRS effective tax rate of 23% to 27%, but now expect to be at the upper end of this range.

Let's now turn to the outlook. As you've seen in today's release, we are reaffirming our revenue outlook for the full year. We are updating our expected operating profit impact of approximately €350 million from the war in Ukraine and a potential continued market decline of software licenses revenue due to the current macro environment.

Finally, a few words on sustainability and some strategic initiatives. We continue to make progress on the sustainability front as both an enabler and an exemplar. We have the biggest positive impact through our solutions, and we have announced new innovations in the SAP Cloud for sustainable enterprise solution. For example, the enhanced SAP Product Footprint Management solution helps customers reduce product carbon footprints at scale. Further, Taulia announced a partnership with EcoVadis. We will provide ESG ratings for Taulia's sustainable provider finance solution.

We have also achieved positive milestones around diversity. For example, women in management have increased further to 28.8%. Demonstrating further positive impact, our SAP.iO Foundries has achieved its goal of supporting 200 companies in its portfolio that are managed or founded by underrepresented individuals earlier than expected. So in conclusion, the results of this quarter once again proved that our strategy is resonating, confirmed by our current cloud backlog performance. In our discussion with customers, we are clearly seeing that they look to strategic investments in technology to help them solve their most pressing business imperatives. We are now ready to capitalize on our substantial growth investments over the last 18 months by delivering sustained growth and profitability expansion. This makes us confident that we're making strong progress towards our midterm ambition. And based on our strong cloud momentum and favorable currency development, we expect to provide an update to our ambition in the upcoming quarters.

Thank you, and we will now be happy to take your questions.

Anthony Coletta

Operator, please open the line.

Question-and-Answer Session

Operator

[Operator Instructions] We will now take our first question from Fredric Boulan from Bank of America.

Frederic Boulan

Fred from Bank of America. Two questions, please. One is around what's driving the change around license deceleration. Any specific end markets, size of clients that you can point to? And what has changed versus Q1 when you gave that unchanged guidance considering we already had a fair amount of concern on end markets.

And secondly, if you can touch around pricing. We have a high inflationary environment across your geography. Can you share with us the actions you're taking to pass that on to a degree and if you can split that between cloud maintenance and license?

Christian Klein

Yes. So let me first take the question right away on pricing. And indeed, I mean, what we are seeing is also across the world high inflation and, of course, increasing costs. But at the same time, what we're also having a very sticky cloud business. And with that, actually, of course, we will -- we are planning to offset some of these cost increases. We will see with additional price increases. And we are just in the planning for that, and we will release our new price schedule then in the upcoming weeks and months. But definitely, of course, we will and have to react to this inflationary pressure. And maybe, Luka, you can comment on the profit outlook, yes?

Luka Mucic

Yes, absolutely. So first of all, in terms of the momentum that we are seeing on the software license side, and I will invite Scott also to make some comments around that, I mean, we were always in our planning for the full year. Even under normal conditions, we were assuming a negative software license performance in Q1 given that the prior year Q1 was very strong with double-digit growth. And so that was for us back then not a strong signal of something deteriorating fundamentally. What we see now in Q2 is actually on the one hand a strong acceleration of the transition to the cloud that you see also in the very strong S/4HANA results that Christian has talked about. And that is not to the detriment of the total order entry for S/4HANA as Christian has also said, with clearly more than 30% growth combined across cloud and on-premise, we're clearly gaining market share here. But the shift has become really more pronounced, and that's why we had the decline of 38%.

And it's a combination, I would say, of this accelerating shift because in the current environment, the customer preferences for OpEx versus CapEx investments is clearly further increasing and certainly, in some markets, also macro concerns. Broadly speaking, I would say, and Scott, perhaps you can add some flavor on it. We see a very constructive demand environment in Americas and in Asia. And in Europe, it's a little bit a tale of two cities. The closer you get to Russia and Ukraine or in our Middle and Eastern Europe region there, we clearly see a lower kind of conversion of pipeline to actual closings. In the rest of Europe, was actually a very solid quarter as well, in particular, on the cloud side of the house. So when you take all of this together, indeed, after Q1, we left our guidance unchanged because we were focused on our ability to absorb the impact from the Russia exit as a direct impact.

And when you take a look at that, we have now reduced our guidance for operating profit at the midpoint by €250 million. The impact from Russia is actually €350 million alone. And so we are actually absorbing a good part of that. But you see now the indirect impact of the stronger shift from on-prem to cloud that comes along with it outside of Russia, and that is something that we have now come better to appreciate, and therefore, it made sense for us to derisk the outlook for 2022. But we now feel very confident that this outlook is safe and supports the continuation of the shift that we have seen in the first half to also extend into the second half. Perhaps, Scott, any color commentary around the momentum and also the shift that you're seeing in the market?

Scott Russell

Yes, sure, Luka. In addition to what you described around this year from the CapEx to the OpEx and the market conditions, what we've seen in the market since the launch of RISE is the willingness of companies to move their mission-critical workloads to the cloud run by SAP. You now take the current environment, the need of a safe, secure, reliable, scalable platform that allows them to accelerate and grow is more relevant than ever, which means the demand continues to increase for RISE with SAP and S/4 in the cloud. But that correspondingly means the demand, combined with the other factors that Luka described, is reduced. And we can see that as a validation of the strategy and acceleration of the strategy. So whether you're Baker Hughes oilfield or ABB Information Systems or the Defense Logistics Agency or many others, these big organizations, let alone the 60% net new customers, their acceleration to move to a platform that they're looking at not for 1 year, 2 year, 3 years, they're looking 5, 10 years out in their decisions that they're making here and they're looking for that scalable cloud platform, so I see it as a positive, but it is certainly an accelerated shift.

Anthony Coletta

Thank you and we will take the next question please.

Operator

Next question from Amit Harchandani from Citigroup.

Amit Harchandani

Amit Harchandani from Citi. Two questions, if I may. My first question is with regards to the cloud momentum in the context of macro. Now you've talked about obviously strong secular drivers underpinning your portfolio. But if there was to be a stronger recession going into 2023, do you have any views on how do you think your cloud growth is likely to trend? What is the sort of discussions you're having with customers? Yes, they see a need for it today, but do you see that changing going forward? And the reason I ask this is because typically in the past recessions that we have had, cloud was a small part, so would be eager to know your thoughts on the same.

And the second question I have is with regards to your operating margin performance. We have seen 2 quarters in a row where the strength in the cloud seems to have been offset by weaker-than-expected operating margin outcome. Can you talk about what drove it on the OpEx side, particularly the sales and marketing expenses? And if you see merit in potentially giving better maybe quarterly guidance on operating margins as we go forward to reduce this lack of understanding.

Christian Klein

Yes. So let me take the first question on the outlook for cloud for the second half, but also for 2023. And of course, when you have conversation these days with our customers, I mean, first, what we clearly can confirm is that our cloud pipeline compared to 3 months ago actually increased. So we see stronger demand. And why is that? It's not necessarily only the move to the cloud. When you talk about SAP and when you talk about RISE with SAP, it's about is the CEO willing now to stop the business transformation of a car manufacturer or a retailer of utilities. The answer is clearly no. They want to continue full speed to build more resilient digital business models when it comes to new license model, when it comes to more intelligent pricing, quoting, when it comes to reskilling the workforce, this is all SAP. This is all RISE with SAP and there's no slowdown.

The second one, of course, when you look into our portfolio and into the pipeline, oftentimes these days, companies see less of a demand challenge but a huge supply chain challenge. So also there, it comes to a resilient supply chain. So SAP Business Network, what can we do with IBP with our leading supply chain solutions to make these supply chains more resilient. So also there, the pipeline is up.

And then when you -- utilities, oil and gas and others, of course, everyone wants to also transform into a more sustainable enterprise. And there, we have new technology. We're offering a green letter and also that is of high demand. So when you would ask me today, we see a very robust pipeline. I see also no signs of a slowdown in the cloud with regard to our SaaS portfolio, with regard to our PaaS portfolio. So on that side, we are very confident.

Luka Mucic

And perhaps just to complement this with 2 factors, let's not forget that many of SAP's stronghold industries, I think, will not so much be subject to recessionary risk. I mean we have the E&G industries, obviously, as a stronghold. We have pharma as a stronghold with Moderna, what we have seen now we have all of the others essentially as well. We have retailers a stronghold. So I think that gives us also good support in addition to the strength of the portfolio. And the other point is the backlog as well. I've talked about, I think, now for a number of quarters, not only do we see a significant sure in our current cloud backlog and the continued strength there. We actually had significantly higher growth rates in terms of cloud TCV and then the annualized contract values for a long time now since the advent of RISE with SAP. And so this gives us already a very strong coverage through what we have contracted and what will come in guaranteed into the current cloud backlog of future quarters and, of course, also into the revenue line. And that's an additional safety net that you don't necessarily already see in the current cloud backlog.

Now quickly on your operating margin topic, I think that's a valid point. But we have started actually since the beginning of the year, I've already given some commentary around seasonality, including actually also the impact that we have to expect for from Russia in Q2. And I'm happy to expand on this. First of all, in the quarter, in the first half year, you're absolutely right, the sales and marketing ratio has been significantly up. Why? Because we have front-loaded investments, and we were always clear about that. I said that on the Q4 call that we have to expect negative profitability in the first half and then improvements in the second half year. You want to actually have your territories covered so that you can drive for the strong growth that we have expected, and that's exactly what has happened. So we added almost 3,800 hats on the go-to-market front year-over-year in the first half year. And obviously, that comes with incremental expenses, but that was planned and that will actually moderate in the second half year. And certainly for 2023, we expect a further reduction in the sales and marketing ratio.

Let's also not forget that COVID is pretty much behind us when it comes to customer engagement. So on the marketing side of the house, we have returned to physical events. With Sapphire coming back, yes, it costs a bit more than a purely virtual event, but I can ensure you that it also drives significantly more pipeline. And so from that perspective, that's a worthwhile investment that we see -- we will see the payoff on with the continued momentum on the revenue front.

So I think it's important that I use this opportunity to supply you then also some more color commentary around how you should think about the second half year. I mean on the CCB and on the cloud revenue side, it's essentially pretty much what I shared also as expectations in our Q1 call and after Q4. So we continue to believe that we will exit the year with a CCB growth rate that is similar to the one that we saw in Q4 2021. I'm also reasonably confident that we'll be able to absorb the impact of Russia as a part of that. And it should be a pretty steady road from here on that we see in the second half year.

On the cloud revenue front, it's quite similar. So you should expect a quite stable growth from what we have seen in Q2 as well, and there is a difference on the operating profit line. So in Q3, we're still expecting negative operating profit and then a return to positive operating profit in Q4, making them the room for the return to double-digit growth in 2023.

Why is that so? Well, first of all, because as we said, the front-loaded investments that we made means that we will start to scale profits, in particular, towards the end of the year. We will have really digested the impact of the war in Ukraine in Q4. In particular, we will have released most of the employees that we still retain in Russia by then. And that will, of course, be released on the operating profit line as well. The comparables on the expense side will become a lot easier because last year, Q4, we had already very significant hiring and significant investments in pipeline generation and so on as well as we anticipate a close of our pending divestiture in Q4. And that will, of course, provide help. Please remember last year, we had the Fioneer joint venture set up in Q3. And of course, we don't have a comparable event in Q3 of this year. Hopefully, that helps to understand the dynamic a bit better.

Anthony Coletta

Thank you. Next question please.

Operator

Next question from Adam Wood from Morgan Stanley.

Adam Wood

Just first of all, maybe on the assumptions for the second half on the profitability side. I mean you've alluded to the shift to cloud and macro having an impact. Are you basically assuming a continuation of the situation in the second quarter, i.e., a little bit of weakness in parts of Europe, hitting the licenses and that continued cloud strength also impacting licenses for the second half? Or have you also made the assumption that is more macro cycles go, that weakness could spread to other parts of Europe and maybe to other parts of the world on licenses and so there's a little bit of incremental caution? So just in terms of what you're assuming, particularly on the macro side for the second half of this year.

And then maybe secondly, as we look forward into next year, again, I think most investors I speak to are expecting a recession or certainly a slowdown. Could you maybe just talk a little bit about how you would manage the cost through that, maintaining investments versus, as you say, already starting to focus on discretionary spend? And is there a level of growth where it would be impossible for you to grow EBIT double digit next year as the current guidance suggests?

Luka Mucic

Yes. Let me take this. So first of all, on the second half guide, yes, so we -- actually, we don't see the software license to cloud transformation only happening in parts of Europe. This is actually something which is already happening at a global level. And we expect in our guidance that it will continue to happen at the same pace as what we have seen in Q2. And obviously, against this, we're running already with our Cost Flex program and productivity program that you have alluded to. And that, of course, means that we are taking out expenses in discretionary areas. We have already slowed down hiring in Q2. As you have seen with only 600 additions, we will further slow this down. And because we have actually already made significant moves with close to 5,500 additional employees in the last 3 quarters, so we are well set up to continue to capitalize on the growth opportunities without kind of adding on the investment front to the same extent. The only exception here would be the continuation of our cloud delivery harmonization program, which is well underway now. We have a very clear line of sight now that we'll complete in the first half, and then we'll make room to yet another significant step-up in cloud profitability. So from that perspective, we feel that we're appropriately covered, that the guidance is safe now because what we saw in Q2 on the license side was not confined to only parts of Europe, but was actually a broad-based trend that we saw.

And in 2023, look, I mean, we have said that we are committed to a double-digit growth over the 2022 numbers. Because that question might be asked, let me answer it proactively right away. Yes, and that would also include the divestiture. So whatever onetime gain we drive from that in 2022, we would build off the double-digit growth for 2023 on that basis. Frankly, we see ourselves set up very well with the investments that we have made now. We certainly don't see the need for additional investments in 2023 at the same levels of headcount increases as we saw in the last 2 years to drive for those numbers. And there will be a very significant natural benefit from the ending of the cloud delivery harmonization program. Just to supply you a view here, in Q2, we had more than €100 million in investments tied up in the cloud delivery harmonization program. We expect similar amounts in the second half year once this has tapered off, of course, that is already a very big help. So I would say if we continue to assume a difficult but not a doomsday macro environment for 2023, we're extremely confident that we will drive for the double-digit growth.

Christian Klein

And Adam, maybe also just let me summarize it from a strategy perspective. When we look back, I mean, we started this transformation 2.5 years ago. And Scott, I guess it's fair to say that last year, it took a bit of time until really RISE took off. And we had good software quarters, a bit better than expected. Now this year also because of the macroeconomics, we're actually a bit below plan. But what we see is now on the cloud, we have a super resilient business. I mean once you're going into this project and you're moving the ERP to the cloud, you are transforming, you are not going away. The new way is a super high and also the backlog now we build up with the platform, Nestlé just celebrated a big go live. Now we are co-innovating on the platform, building new apps, surrounding the core. So we see new businesses also for the customers we already closed.

If you would have asked me 2 years ago, will all line of businesses grow double digit? Not all were in the shape and form of today. Also that one, super resilient now good growth, gaining market share back in procurement, SuccessFactor, the core is developing really well. And now with the a little bit weaker software license business, I mean, for 2023, that gives us a higher recurring revenue share. That gives us even more confidence that we're going to make the double-digit operating profit growth because we actually clearly on plan. If you take out Russia on the profit side, we have a more resilient, more recurring revenue base and the cloud actually performs well ahead of plan, I would say.

Luka Mucic

And perhaps just a last comment. You see that resilience also in our support revenues, which are essentially flat now for a long period of time despite the pronounced software license declines. So also there, the stickiness is extremely high. And we have actually, again, had very, very nice multipliers in terms of support to cloud conversions, actually this quarter around the 3x mark, which is quite remarkable. And I don't see this going away or changing any time in the foreseeable future either.

Anthony Coletta

Thank you. We will take the next question please.

Operator

Next question from Johannes Schaller from Deutsche Bank.

Johannes Schaller

Thanks for taking my questions. And Christian, we're very clear on the strong pipeline on the cloud side. But then if we look at Qualtrics and also some other software peers, a bit of commentary that deal cycles are maybe lengthening and things tougher to get decisions done really. So I just wanted to check with you, I mean, is Qualtrics really the exception here in your portfolio? And are you pretty confident that your cycles are not lengthening in the rest of the cloud portfolio from what you see right now?

And then second question just for Luka. Given the cloud investments are not really going to expand further into the second half, how should we think about the cloud gross margin trajectory? I mean can we stay around that 72% level into the second half? Or how should we think about that?

Christian Klein

Yes. Let me start with the Qualtrics question and the overall sentiment. I mean with Qualtrics, the last 2 years, we built more and more integrated X+O packages, how we call it, where we can embed Qualtrics in the business processes of our core applications. And you have seen how they have accelerated their growth. They are still on a high growth. And in the second half of the year, further packages will come, the integration on the product side. We will launch a few more scenarios around RISE for the IT, where you can track and trace how is the sentiment with regard to the transformation. We're going to build in Qualtrics into our procurement portfolio, so high-growth areas where we see a lot of opportunities to attach Qualtrics. So actually, I'm very confident.

The deal cycles, when I look at RISE and S/4HANA, and let's start with the flagship product. The conversations are now going more around, “I have certain parts of my businesses where I see huge optimization potential. Yes. So can we go on procurement faster? What can we do on billing automation? I want to launch new OpEx-related license models. Christian, can we move into that angle?” Okay, fair. We are very flexible commercial RISE and wise, let's go into these areas first. A delay, maybe a shift of priorities, yes, but not a delay. And again, it's very important we are not only doing here a shift to the cloud. We're only with a shift to the cloud, I would say maybe the business case would not look as strong in such a macroeconomic time. But with everything around with the resilience, which comes with our products, this is not a discussion yet to stop any kind of deal cycles or actually delaying projects. And so this is where I'm also gaining a lot of confidence just to talking to my peers. Scott?

Scott Russell

Yes. Look, just to supply it a bit more color to what you described, Christian. The first is, we are not just moving workloads. We're enhancing capabilities. And when they choose SAP, they're choosing an enhanced capability. They need a business that can manage inventory levels at different than what they did before. They go from just in time to just in case. They're moving the ability to be able to manage multiple suppliers in real time because of disruptions to their supply chain. That's an enhanced capability. So what we are seeing in the deal cycles at volume is a sharper prioritization about the transformation plan, which is exceptionally good because it means we're very clear what outcomes need to be delivered in the cloud by when. But it is not about a delay of deal cycles, it's more about sharper transformation plans, which, of course, RISE with SAP brings as a part of the service. So that would be an overall statement.

And then obviously, then, between all of the different categories, which are all growing at that double-digit growth, each of them will have a sharper business priority because businesses need to be clear about the outcomes that they're getting. That gives us confidence because even in good times, SAP is strong, but in difficult times, we're even stronger.

Luka Mucic

Yes. And just to add on that and to answer the question on the cloud margin. So first of all, I'm very pleased with the progress that we have made in 2022 despite the headwinds from the increasing investments in the cloud delivery harmonization program. The 2.3% cloud margin increase was actually a bit more than I would have expected. So we are now ahead of plan. And when I take a look at the second half year, the investments will further slightly increase in the second half year. But on the same side, I mean, the cloud revenue growth is also very strong. So while I have at the beginning of the year said that we will look at a flattish cloud margin development for 2022, I think it's now likely that we will end up with a slight increase in the cloud margin already in 2022. And then obviously, with the investments tapering off in the first half year, actually, our cloud exit margin end of 2023 should be significantly higher than the 72% that you are highlighting or that you have been asking about.

The more important syllabu is that our absolute cloud profit is actually getting more and more ahead of our original planning because of the success in our cloud momentum and the great success of S/4HANA in particular, and I think that's the bigger story to watch out for and one that we are certainly ahead in terms of where we thought we would be from a midterm ambition perspective as well.

Anthony Coletta

Thank you. Next question please.

Operator

Our next question from Mohammed Moawalla from Goldman Sachs.

Mohammed Moawalla

Great. Thank you very much. I have 2 questions, please. The first one, maybe for both Christian and Scott. As we look at SAP's sort of cloud portfolio, it's pretty broad and I would be curious to understand the more kind of defensive lower ASP aspect of the mix of the portfolio versus perhaps more discretionary aspect. I know S/4HANA momentum is pretty strong right now. But if we were to move to a more cautious or even more severe macroeconomic scenario next year, how do you sort of assess the risks of the different sort of pieces of the discretionary versus the more defensive aspects of the portfolio going forward and impacting kind of backlog growth and revenue growth in the cloud?

And then the second one was for Luka. You talked about kind of the heavy investment this year. But as we think about Cost Flex, in the past, SAP has shown the significant ability to reflect cost to protect margin. So in the context of your sort of expected double-digit EBIT growth next year, how do you sort of see the scope to kind of flex the cost base to kind of hit that target even in the absence of, say, with growth slowing?

Scott Russell

So maybe I'll start, Christian, and then you add comments. So on the first question around the portfolio and what's discretionary, it's interesting businesses. Have different views about what's discretionary and what's not, but I'll try to supply it at a macro level. First of all, this is one of the advantages of SAP and our breadth of our portfolio. We're one of the only organizations, I would argue, the only company that is able to provide solutions that are able to enhance the customers, whether it's solving employee challenges and retention of their workforce, whether it be solving their supply chain disruptions, whether it be about managing their green line, sustainability, managing their contingent labor. So our breadth really helps us because each business will be faced with specific challenges, but through the relationship they can expand.

Having said that, what we are seeing is the macroeconomic situation. Christian speaks a lot about the ability to be able to manage your supply chain disruptions, your ability to be able to source and manage our provider base in a very diverse and realtime environment. They are consistent and strong. And so the core part of the portfolio, we see really strong demand and pipeline going forward, And I don't expect that to change because even in a difficult environment, those needs become more apparent than ever.

But then within the other parts of the portfolio, for example, some businesses are much more focused on the core HR operations, which SuccessFactors provides. But they might not look at discrete solutions that they would consider to be discretionary. So they focus a lot more on the core capabilities there if they've got decisions to be made about finite operational OpEx spend.

What I would say is clear. In past macroeconomic, difficult environments or uncertainty, there was always pressure on IT spend. I do not expect that to be the same as in go forward. Technology spend continues to be a priority for companies as they need to be able to resist and manage the disruption and take advantage of opportunity. And that's why our pipeline continues to look strong across the portfolio and gives us confidence in the outlook. Christian?

Christian Klein

And I mean when you look into a business case justifying to do RISE with SAP, obviously, there's always a point on how can we outsource certain parts of IT? How can we outsource the one side of the house? Cybersecurity is a big topic. Let's not forget that, they're increasing concerns, which also makes the move to the cloud more needed.

But then second, as Scott just said, I mean, I supply you a realtime example. Yesterday, with Samsung and other players in the semiconductor industry, we are now moving them with RISE with SAP, not only to the cloud, but we're actually building a very resilient supply chain. We are moving them to the network where they find millions of suppliers and buyers also for their industry and then we are building a resilient supply chain. And these are the scenarios which especially in these times are so crucial. So it's about the move to the cloud, but even more automation to offset some of the margin pressure and supply chain challenges our customers are facing.

Luka Mucic

Just finally on the Cost Flex scope that you have discussed. I mean as we have proven on past occasions that you rightfully point out, if we really had a severe downturn situation to manage, we have certainly scope for easily finding a mid- to high triple-digit million euro in savings across different expense line items in terms of reduced headcount growth and third-party expenses and other discretionary expense items on top of what we anyway will see with the dissolution of the cloud delivery harmonization program. So we have, of course, significant scope to manage the bottom line in line with our commitment.

Anthony Coletta

Thank you. Next question please.

Operator

The next question from Michael Briest from UBS.

Michael Briest

Yes. Christian, could you just say what you're waiting to see in the marketplace or your own sort of trends in order to revisit the midterm guidance? And then obviously, you're suggesting the cloud transition faster. So you're substituting the 87% gross margin on-premise business with probably sort of [72%] cloud business. I know Luka, at Sapphire, you were adamant that the €11.5 billion EBIT in 2025 was well underpinned even if the mix changed. I am wondering if you're happy to reendorse that today?

Christian Klein

Yes. So Michael, what do we actually need to uplift our guidance? First of all, I would value if you guys could value again, a bit more the growth in the cloud. And I mean when I compare this to a year ago, it was all about the growth. Of course, we realize the market sentiment has shifted. And look, we always said it's a 3-year transformation. And mathematically, it was always the case that the first 2 years, a bit more difficult on the operating profit side. But just yesterday, I did the math. If you now take out Russia for a second, we're even ahead of plan on operating profit. So we are well on plan on hitting our midterm ambitions.

Now what do we need to have in order to supply a new guidance? I would say, look, let us deliver a great half year 2. Let us show that the cloud is very resilient. And if the macroeconomic environment stays like it is, let's assume that, then you're going to see us beginning of next year updating the guidance, and I want to emphasize that. You will not only see an update in the guidance on the top line. There is, of course, also then an update to be expecting on the bottom line.

Luka Mucic

Yes. And this will be a positive update all along because as I said it’s not only the growth on the cloud side, that is great from momentum perspective. Of course, it’s also going to -- at the current FX levels materially supported by the currency. But this drives also much higher absolute cloud profit and at the higher growth rates in the cloud, actually that can overcompensate the margin differential in terms of what it contributes from an absolute profit perspective. And therefore, we expect our momentum to also flow through to the bottom line. As we said, let’s watch how the performance goes, what the macro does if it stays at the same level. And also of course continue to prove out performance from a backlog perspective. But then we have all ingredients in place for an update that will please investors of all tastes I would say.

Michael Briest

And can I just ask, previously you had a 2023 target and that was replaced in 2020 with a '25 ambition. We're now in -- going to be in '23 in six months' time, would you update '25 or would you introduce a new midterm target beyond that?

Luka Mucic

No, we would look at updating 2025. And of course, we will supply a guidance for 2023 that you can then compare to the -- to the old 2023 guidance. I would say that probably on the cloud side will look quite pleasant.

Anthony Coletta

Thank you. And now we will take one final question please. Thank you

Operator

Our final question comes from Mark Moerdler from Bernstein Research.

Mark Moerdler

Thank you very much for taking my question, squeezing it in, and I appreciate the additional detail you've given on the call so far. I have 2 not too complex questions. The first is you've said that roughly 50% of S/4HANA SaaS was new customers and you're winning in smaller customers. Can you supply us any color on what percentage of the S/4HANA cloud revenues from new customers versus how much of the customer base is? And the second question is on return of cash, you've added €500 million to available to buy back stocks. How should we think about the share count going forward, especially with the valuation of the stock being down where it is?

Christian Klein

I can start on the net new, and then Scott, you can build on that. So first our net new customer share for S/4HANA cloud is 60%, so 6-0. And what kind of customers are those? Oftentimes, I mentioned it in my comments at the beginning, Doctolib the unicorn in France, very successful, high growth, need scalability, also wants to go expand the business now into other segments. This is where we are winning net new. We're also winning net new in larger customers but of course, much less as ERPs very sticky than, of course, in the midsize or in the unicorn community. But again, you see it from the share of net new customers, I guess that also shows you what kind of value the product has to offer if you have such a high share of net new customers.

Scott Russell

Yes. Maybe I'll add 2 comments, Christian, if I can. The first, when we launched RISE, we obviously had a high proportion of net new builds at midsized customers when we first launched as we scaled out the service. What we've seen increasingly is not only have we improved or increased the total customers moving to RISE, over 2,000 customers now moving to RISE, 400 in Q2, but also the proportion of larger customers which are in that mix of the revenue of the order entries that you will see on larger customers continues to lift. That gives us, obviously, optimism in terms of our outlook, but also the revenue mix has an increasing proportion of large customers. That's not at the expense of the midsize. The midsized customers continue to expand. Our net new customers tend to be midsize or the unicorns that Christian mentions, but the big companies are now moving at scale to move across as well, which means the revenue mix of large companies is higher.

Luka Mucic

Yes. And just to come back on the share buyback and the share count question. I think it's important to understand we are buying back the shares just as we did for the first share buyback that we did in the first half year, primarily in order to satisfy the equity-based compensation plans of our employees and counter any dilution for our shareholders. So essentially, we are not canceling those shares. And therefore, the -- you can expect that the aggregate share count will remain unaffected, but we make sure that we don't create additional dilution.

Why have we decided to buy back an additional €500 million in shares? Very evidently, we are committed to continuously refilling our equity pool for the share-based compensation plans. And it is It makes sense to do a bit more on that in 2022, strongly believe that it does not underpin the true value of the company and its strategy. So that's why we decided to accelerate the volumes for 2022.

Outside of that, our capital allocation priorities remain unchanged. We, of course, will continue to invest as is reasonable and necessary in our organic business. So we will continue to deleverage where it makes sense. And obviously, in the current interest rate environment, we will continue to be committed to that. Then we will pay an attractive dividend also in the future. If we have M&A opportunities, then we can pursue them when there are tuck-ins also out of the existing cash flow. And on top of everything else, if we then have no other uses, of course, we might continue to accelerate some share buybacks to fuel the treasury stock for our equity programs for employees at attractive prices. This is not something I would rule out. But again, it will not result in a long-term reduction of our share count as it's really meant to offset dilution.

Anthony Coletta

Thank you. And this concludes our call for today. Thank you.

Luka Mucic

Thank you, everyone, for joining.

Christian Klein

Thank you.

Operator

Thank you. That concludes today's conference.

Thu, 21 Jul 2022 03:48:00 -0500 en text/html https://seekingalpha.com/article/4524757-sap-se-sap-ceo-christian-klein-on-q2-2022-results-earnings-call-transcript
Killexams : An untimely death and a worsening trend propel me off the motorcycle for good

My girlfriend and I are coming up on the sombre one-year anniversary of the loss of our home builder/contractor to a motorcycle accident. I’ve had a love/hate relationship with motorcycles my whole life. However, his passing has likely forced the motorcycle rider in me to ride off into the sunset permanently. His untimely death hit us both hard and has left us in a financial crisis as he passed away while rebuilding our home and without a will nor any kind of succession plan for his business. This lack of estate planning has left a young family in hardship as well as several clients like us picking up the pieces, unable to retrieve our funds without costly legal action. More on this in the future, but back to motorcycles for now.

If this event wasn’t enough to demoralize any possible enjoyment derived from being on a motorcycle, being associated with the current crop of aggressive riders would. The constant wheelies, disruptive lane splitting and passing on shoulders negatively affects the way most motorists regard everyone on two wheels. Lane splitting is the act of passing traffic by driving between vehicles on the white lines and I blame the accurate trend as the turning point when things took a detour for the worse.

While it is widely regarded as being illegal, the laws in most of the country aren’t clear, which appears to many riders to be a permission slip.

Lane splitting advocates site multiple benefits to support this habit, such as that they are less likely to be rear ended and that it reduces traffic congestion. But all I see is a driving style that encourages aggressive weaving in and out of traffic. Lane splitting has changed over the last several years from an innocent enough 5-10-kilometre-per-hour squeeze-by at a set of downtown traffic lights, to 140-kilometer-per-hour rockets coming out of nowhere, startling motorists as they narrowly pass in between vehicles on major highways.

Add to this an increase in illegal off-road motorcycles and all-terrain vehicles as sometimes seen in large groups on our roads, and we have a significant problem developing. In New York last month, authorities crushed almost 100 illegal dirt bikes, ATVs and motorcycles seized from city streets. The mayor oversaw the event amid a crackdown on those types of vehicles for their drivers revving engines, speeding, riding on sidewalks and performing wheelies.

Provinces and territories need clear-cut laws before authorities resort to crushing motorcycles. I know the majority of riders are courteous and law abiding, but it seems a few bad apples are growing into a bushel.


Your automotive questions answered

Is there a special oil to spray under a car to help rusting? – Shirley H.

Rust proofing and undercoating perform the same job of protecting against corrosion but in slightly different ways. Rust proofing spray is generally a wax/oil mix that gets into the hard-to-reach places like the insides of doors, fenders and tailgates. While you can spray the underside of your vehicle with it, it will be washed away because of its thinner, non-hardening nature. Undercoating is typically a wax or rubber-based composite that is applied underneath the car only. While it doesn’t completely harden, it does provide a more durable layer that sticks to the bottom of your vehicle.

Both can be applied any time of year, but fall is usually when drivers start thinking about rust prevention. Both rust proofing and undercoating will have to be touched up from time to time depending on the products used.


Can you recommend the best way to remove pine sap from the car surface? I have tried a bug and tar foam from Canadian Tire without success. Thanks – Dan

I have had success with simple white vinegar in a spray bottle. I have also been told that the time tested WD-40 can also be used with reasonable success. Apply either directly to the dried sap and let stand for five minutes. Then use a cloth soaked in hot water to further soften the sap.

Trying to get the sap off all in a single short period never works. The key to removing the really hardened sap is to keep repeating the process, slowly making headway in small increments.

Lou Trottier is owner-operator of All About Imports in Mississauga. Have a question about maintenance and repair? E-mail globedrive@globeandmail.com, placing “Lou’s Garage” in the subject line.

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Killexams : The state of SAP S/4HANA Cloud - an opinionated review of SAP's public cloud ERP solution

Readers - I let you down. I went to SAP Sapphire pushing for answers. I got plenty - enough to post an opinionated roundup, and tack on a SAP Sapphire review podcast with Josh Greenbaum.

But the burning questions exceeded my ability to answer them. Then summer got hot (add COVID to my list of summer adventures).

I owed the SAP CX team a full review - that's on the record. Now it's (finally) time for the S/4HANA Cloud. And there are questions-a-plenty:

  • How serious is SAP about multi-tenant ERP in the large enterprise?
  • Can SAP stand up a viable alternative to competitors in large enterprise cloud ERP - or even edge them out, via extensibility?
  • With so much focus on S/4HANA adoption, RISE and hyperscaler management, can SAP establish momentum in "public cloud ERP"?
  • What are the S/4HANA Cloud adoption obstacles? Is it the need for deeper industry functionality, or are customers wary of leaving customized systems?
  • And what the heck do we call this product? What is SAP calling it now?

Let's do this, eh?

The future of large enterprise ERP - pure cloud, private, or both?

I've been a rock in SAP's shoe on the future of cloud ERP for a long time now. I believe that the future of large enterprise ERP is cloud. And I don't mean private cloud - I mean public cloud, of the multi-tenant variety (when I use the "multi-tenant" word, I don't necessarily mean the architecture, but the "true cloud" characteristics - and economies of scale - we associate with that type of software).

This has led me to a clash in perspectives with SAP. Back in 2016, I wrote:

Even if most SAP customers that move to S/4HANA might be content with the on-premises or private cloud options - at least for now - the cloud FI/HR competition keeps the flame hot underneath SAP's S/4HANA public cloud ambitions. Granted, S/4HANA is broader in scope than HR and finance, but the imperative is clear.

I stand by that - nah, I'll double down. Doubling down is certainly what SAP's most obvious large enterprise cloud ERP competitors have all done - Workday, Oracle, and Infor, to name the obvious.

Does SAP agree with me? I know this: being the leader of SAP's cloud ERP efforts has been one heck of a hot potato. For years, it was a revolving door, then it was folded into other things. But at SAP Sapphire, I had the chance to meet the new cloud ERP owners (more on that in a bit).

One thing that's always bothered me: "vendors can only have one true priority." I'm in the walk-and-chew-gum camp. I believe SAP can push ahead with "public cloud ERP" while also pushing RISE with SAP - a program which SAP sees as a necessary response (and alternative) to what the hyperscalers are pursuing directly with SAP customers.

But hold up: I've already messed up with SAP Chief Marketing and Solutions Officer and Executive Board Member Julia White - due to my use of "public cloud ERP."  SAP product naming is an area White told me she wants to simplify - while avoiding the dizzying pace of renaming that SAP has fallen into before her tenure.

Comparing S/4HANA's "private" and "public" cloud offerings

This pre-SAP Sapphire blog post on SAP.com distinguishes between the "S/4HANA private cloud edition" and "S/4HANA public cloud." That distinction makes sense to me, but I understand White's concerns here. SAP customers have several options to host S/4HANA private clouds on public cloud providers, aka "the hyperscalers," including through RISE with SAP. "Public cloud" is confusing in this context. It's a cloud ERP naming dilemma hardly unique to SAP.

SAP is (understandably) focused on helping customers move to S/4HANA. If that means the customer wants to be in the private cloud, and keep their customizations intact, SAP is adamant about providing that choice. Note the juxtapositions from this post: industry and customization. In the product grid for S/4HAHA private cloud edition, we see:

Customers has the ability to customize (including structural changes) and also modify the SAP source code.

Whereas for the public cloud:

Can not modify SAP source code.

It's wrong, however, to characterize this type of "SaaS ERP" as vanilla. S/HANA Cloud's customization alternative is extending via the Business Technology Platform (BTP), and, by extension, the SAP Store. This approach has given SAP SuccessFactors' cloud HCM an edge - no reason it can't do the same for S/4HANA (SAP Sapphire 2022 - How Bristol Myers Squibb uses SAP BTP to evolve their S/4HANA landscape - and their business).

The industry part is harder to nail down. But for the S/4HANA private cloud edition, we see:

This covers all 25 industries like SAP S/4HANA on-premise.

For the public cloud edition:

Highly standardized business processes covering selected LoB and industry scenarios,
and a comprehensive ERP scope. In-depth coverage for professional services and component manufacturing; more industries on road map.

Do we have a chicken-and-egg problem here? Is the slower adoption of SAP public cloud ERP due to the limited industry breadth? It's a question that leads to wonky/fierce barstool debates amidst the industry analyst contingent. One thing we do know: SAP's S/4HANA public cloud originates in the professional services industry. Many of the early partners also implemented it internally. Case in point: Gartner just annointed S/4HANA Cloud as a "leader" in its service-centric cloud ERP category.

SAP S/4HANA Cloud - industry strengths and... scale?

When I spoke with Julia White at SAP Sapphire Orlando, she was finalizing how the naming between these products will work. When you visit S/4HANA Cloud an SAP.com, the "S/4HANA Cloud" featured is what I tend to call the public cloud edition. For the rest of this post, my use of S/4HANA Cloud applies to the public cloud version - and perhaps I have achieved product name compliance.

The other question for the large enterprise is: performance-at-scale. Early S/4HANA Cloud customers weren't exactly huge SIs. But with PwC now a live S/4HANA customer globally, we know there are large service industry customers running on S/4HANA Cloud. I hope to talk with PwC about this at some point, but it seems we can check that particular box.

I also see S/4HANA Cloud as a viable option for SAP customers looking to roll out new divisions or regions quickly. It's also a "net-new" option for fast-growing companies not yet running ERP - likely a big reason for its prominence on the SAP.com web site.

Customer views on S/4HANA Cloud - ASUG weighs in

Without revealing my current views to ASUG CEO Geoff Scott, I asked him what he's hearing from ASUG members:

I think that there's a difference between what's available today, and hopefully, what's available in the future. What I'm hearing from most customers is the idea of a fully-functional SaaS, public cloud solution from SAP would be very much welcomed.

Scott likes the "SaaS" moniker for this:

When you say, "public cloud," I hear "SaaS." I don't think we're there yet. There's enough industry variance flying around that it's going to be highly difficult for customers to accept that.

But Scott doesn't think this is just about industry functionality. There is a customer mindset shift needed  - and a big change in partner business models.

I think a couple of things have to happen. One, most organizations have to be willing to live with some better degree of standard, and not customization. Number two, the partner ecosystem has to be willing to supply up the age-old model: big fat consulting contracts that required lots of people and hours and rates to accomplish things. 

Scott says SAP sales teams must see the compensation "reward" in SaaS-style revenue deals. One end result, as I see it: an SI/partner community that is much more aligned with the project costs (and approach) today's enterprise customers expect. Scott added:

I believe that end state is a worthy end state; we would have a much better ecosystem.

But in the meantime, Scott does see S/4HANA Cloud use cases:

The ability to launch divisions on SAP that you would never be able to launch before is a very viable market. We've got a couple of board members who are doing just that with public cloud. They are using it in their emerging markets; they are using them in geos where the cost of deploying SAP is not going to be portable or economical for them.

Last spring, I made my case for the future of large enterprise ERP with Brian Duffy, President, Cloud - SAP. I told him I didn't view the private cloud as the end point. Duffy responded:

I'm not sure if you've met with him before, but Subhomoy Sengupta, who had run our mid-market business, is now running our public cloud business moving forward. Given his mid-market background, there's a lot of synergy between mid-market and the cloud.

SAP Sapphire Orlando - highlights from the cloud ERP team

So, at SAP Sapphire Orlando, I met up with Sengupta, SVP & Global Head of SAP Cloud ERP Sales, and his colleague, Si-Mohamed Said, SAP Global Vice President, ERP product marketing. After I unfurled another one of my "future of ERP" stump speeches, Sengupta responded:

I'm very happy to hear that you feel public cloud is the future. That's exactly the thinking that we have at SAP as well.

As for my statement that I don't hear much about "true cloud ERP" from SAP, Sengupta says: 

I think you will see a change coming up. That is the first demonstration of SAP's focus on public cloud - in this iteration, if I may call it.

Sengupta pointed out that large customers don't have to take the full cloud ERP plunge:

The journey to the full public cloud could be different for different kinds of customers. Not everyone can make that transition overnight, depending on where they are, but that's the end goal.

I'm seeing that more and more, even in larger customers, when they are moving to the cloud, they are keeping an option to move either parts of their business right now, or design it in such a way that this journey can happen, as a planned execution over a period of time.

Sengupta also stressed the demand from high-growth companies - companies that don't want to outgrow their ERP systems in future years. The S/4HANA Cloud team also sees action via the classic "two tier" cloud ERP use case, with divisions running S/4HANA Cloud, feeding into the larger "parent" SAP ERP system. I asked Sengupta that chicken-and-egg industry functionality question. He responded:

When I look at the customers that we have, we definitely have more professional services, or I would actually say,  service-oriented industries., That could mean engineering and construction companies as a good potential customer. A distribution company could also be a good customer. At the same time, we also have customers running public cloud for product-centric businesses as well. So, there is a good mix of customers across the board,

"Simple manufacturing" is another emerging S/4HANA Cloud use case:

If you look at some of our customers, who are what I would call "the new world companies," the digital native organizations, say the gigafactories making batteries for electric vehicles - we do simple manufacturing for them very easily.

Si-Mohamed Said cited a customer example outside of the services industry:

BrightDrop is an example of a business venture of General Motors. They see a massive opportunity in goods delivery... They have built this venture to build electric vehicle trucks.

GM is a big SAP customer. They decided to start with a fresh clean core for the public cloud solution, so they can extend,

My take - four factors impact S/4HANA Cloud adoption

With S/4HANA Cloud, I've seen too many leadership changes not to become skeptical. I was truly baffled during the period where SAP didn't have a go-to person dedicated to this; I will definitely pay closer heed now. Sengupta said: "I think you will see a change coming up." I haven't seen that change yet, so I need a benchmark. Where do you want to be in a year's time? Sengupta responded:

From what we are seeing in the market, if we can capture that, this business would possibly be a multiplier rather than a percentage growth. This is potentially an exponential growth market for us, from where we are beginning.

The specifics of S/4HANA "public cloud" numbers aren't shared at this time:

Unfortunately, we don't split out the numbers as much as I would love to. I can't share them with you specifically.

So, in the most accurate SAP earnings report, the "S/4HANA cloud" numbers are assumed to be all the S/4HANA cloud numbers, not just public cloud. Welcome back, product naming fun. Sengupta did characterize last year as "very, very strong growth" for S/4HANA public cloud. He added:

When you saw what Christian mentioned yesterday [in his SAP Sapphire keynote], we're talking about 2,000+ RISE with SAP customers, and 60% of those are net-new.

So how many of those net-new are S/4HANA Cloud? Sorry, Sengupta isn't biting - but I had to ask. However, we can surmise that a good chunk of the net-new are either S/4HANA Cloud, mid-market, or both.

[S/4HANA Cloud] is definitely the direction we're going to push, very hard, for all net-new.

S/4HANA Cloud has clearly expanded beyond the realm of their early service industry customers - both in scope and industry type. This strikes me as a product that rounds out SAP's cloud ERP offerings - but doesn't necessarily challenge a large SAP customer to consider the public cloud ERP move yet. For those customers, I still see the common private cloud transition, now featuring a RISE with SAP emphasis. I would have liked to hear about companies (that aren't SAP's own SIs) deciding on a large-scale S/4HANA Cloud migration move, over the private cloud option.

I asked many of the same questions in 2016. To me, that spells a missed opportunity for SAP. But, we should put my own SaaS idealism/advocacy into context:

1. Unlike consumer tech, enterprise software is a very forgiving market. In the enterprise, you don't become Blockbuster or MySpace or Friendster overnight (perhaps soon I'll be replacing Blockbuster with Netflix on that list). Your software can run for decades (50 years in SAP's case). It's about the relevance of your future offerings, not your immediate demise. But if SAP wants a notable seat at its customers' transformation table in the years to come, it needs to get this one right.

2. Despite the competitive chest thumping you sometimes hear on earning calls, I don't believe there's much of an appetite for large-scale ERP rip-and-replace right now. Larger companies want projects closer to the edges, with shorter-term wins. Therefore, moving to your current vendor's multi-tenant ERP is probably in the slow lane, unless there is a major reason for it, e.g. M/A activity, huge technical debt, etc.

3. ASUG's Geoff Scott is right: this isn't just about industry functionality. A shift to the public cloud means a change in SI business models - and customer attitudes about ERP. Sengupta believes his team's timing is right. If so, that means all these factors must now change also.

4. It might seem like I'm negative on SAP's private cloud S/4HANA emphasis to date. That's not necessarily/completely true. I supply SAP leadership credit for pounding away at the goal of the "clean core," rather than settling for a lift-and-shift move, with all customizations in place. SAP also emphasizes the extensibility of ERP (via BTP, rather than code customization) as much as any vendor. Whether the SIs are truly on board is the looming question.

I didn't hear anything from the S/4HANA Cloud team about partners building micro-verticals on BTP. To me, that's the real potential of the S/4HANA Cloud future. Not vanilla SaaS ERP,  but industry-driven ERP.

With SAP turning in decent earnings reports in a very tough environment, I'd look like a head-in-clouds fool saying their private cloud/customer choice mantra isn't working for them right now (remember that SaaS ERP vendors generally don't supply their customers much choice on hosting, code customizations, or absorbing new releases). My contention, however, is that a heavily-customized S/4HANA customer, whether they are running on hyperscalers or not, is not a customer SAP can count on years from now.

There are just too many limitations to that environment, whether you want to talk about AI/machine learning, or interoperability with other cloud solutions and platforms (a big deal in the large enterprise). SAP better make that "clean core evolution" happen for customers - private clouds can become legacy environments pretty fast. Let's see what this new team can do.

End note: updated, 9:30 am US PT, July 26, with a few tweaks for studying clarity - including an additional sentence on the transformation stakes added later July 26.

Tue, 26 Jul 2022 10:31:00 -0500 BRAINSUM en text/html https://diginomica.com/state-sap-s4hana-cloud-opinionated-review-saps-public-cloud-erp-solution
Killexams : LeanIX Survey Reveals Only 12% of SAP Users Have Finished the SAP S/4HANA Transformation

Press release content from PR Newswire. The AP news staff was not involved in its creation.

66% of SAP users say the biggest hurdle is aligning business, project, and IT teams

BONN, Germany and BOSTON, July 28, 2022 /PRNewswire/ -- LeanIX, a leading platform enabling continuous transformation of corporate and product IT, today announced the findings of its SAP S/4HANA 2022 Survey. The report reveals that organizations need to view the SAP S/4HANA transformation as more than a technical upgrade — it is a business imperative. The report also found that the inherent complexity of the ERP landscape and its connection to the broader IT landscape complicates and slows down the transformation process. As a result, many organizations have barely started the transformation — and time is running out.

The survey looked at the challenges companies face in the transformation process, the primary drivers of SAP S/4HANA transformation, the phases and timing of SAP S/4HANA transformation, the levels of customization in existing ERP systems, the state of collaboration between SAP & EA teams, and the appropriate involvement of EAs in the transformation process.

Key findings from the report include:

  • Over half the respondents (54%) see the move to S/4HANA as a business transformation, not a technical upgrade. Respondents also identified enterprise architect management and business process modeling as the disciplines most critical to the process.
  • When it comes to ERP, companies face a lot of complexity. Over 70% of companies run more than one ERP system and more than half of the companies surveyed use ERP systems from more than one vendor.
  • About half of the respondents said both identifying interdependencies between ERP and non-ERP landscapes and defining the target architecture as the top challenges faced in in their SAP S/4HANA transformation. These challenges arise in part from the fact that fewer than 20% of respondents can establish an overview of their entire software landscape in under a month.
  • To complete a successful transformation, collaboration is essential. The biggest obstacle to transformation? Aligning business, project, and IT teams, say two-thirds of those surveyed. Less than half (38%) of EAs describe their involvement in the SAP S/4HANA transformation as sufficient, which represents a drop from the level of involvement reported in last year’s LeanIX SAP S/4HANA survey (47%).

“Time is running out for organizations that plan on moving to SAP S/4HANA,” said André Christ, CEO and Co-Founder of LeanIX. “With only a third of those surveyed saying they will complete their transformation within the planned timeframe, organizations need to focus on actions that will accelerate the process. Enabling effective collaboration between business, project, and IT teams is the critical step they need to take. This will not only speed things up, but will also ensure that the transformation delivers lasting business value.”

For more information about LeanIX, visit www.leanix.net

Survey Methodology
In April and May 2022, 100 IT experts from international enterprises participated in an online survey conducted by LeanIX and focused on the transformation process, ERP systems, the importance of collaboration and the challenges faced. For readability, the results in this report are presented as rounded percentages.

About LeanIX
LeanIX’s Continuous Transformation Platform® is trusted by Corporate IT and Product IT to achieve comprehensive visibility and superior governance. Global customers organize, plan and manage IT landscapes with LeanIX’s automated and data-driven approach. Offering Enterprise Architecture, SaaS Management, and Value Stream Management, LeanIX helps organizations make sound decisions and accelerate transformation journeys. LeanIX has hundreds of customers globally, including Adidas, Atlassian, Bosch, Dropbox, Santander and Workday. The company is headquartered in Bonn, Germany, with offices in Boston and around the world.

View original content: https://www.prnewswire.com/news-releases/leanix-survey-reveals-only-12-of-sap-users-have-finished-the-sap-s4hana-transformation-301595057.html

SOURCE LeanIX

Thu, 28 Jul 2022 00:10:00 -0500 en text/html https://apnews.com/press-release/pr-newswire/germany-bonn-df1316f38585ad7ca137940a9e023fd2
Killexams : Rimini Street Launches Rimini Protect™ Security Suite to Better Protect Organizations From Continuously Evolving Cybersecurity Threats

Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products, and a Salesforce partner, has launched Rimini Protect™, a new suite of security solutions that is always on 24x7x365 and provides a more comprehensive layer of security that surrounds and protects enterprise IT infrastructure and applications. For years, Rimini Street has provided proven and proactive advanced "zero-day" security solutions for our clients' enterprise software applications, middleware, and databases, and these solutions are now available with additional new offerings in the new Rimini Protect suite.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220727006028/en/

Rimini Street Launches Rimini Protect™ Security Suite to Better Protect Organizations From Continuously Evolving Cybersecurity Threats (Graphic: Business Wire)

Rimini Street Launches Rimini Protect™ Security Suite to Better Protect Organizations From Continuously Evolving Cybersecurity Threats (Graphic: Business Wire)

Security Protection is a Top Priority

A data breach can harm organizations and their customers or constituents, in 2021 alone, there were 623 million ransomware attacks. The average cost of a data breach is $4.2 million and 25% of all data breaches are motivated by espionage or stealing commercial information. The downtime and remediation of a security breach may be monetarily costly, but often the reputational damage does more harm to an organization.

The bad actors who want to steal data and disrupt operations can attack from a myriad of vectors that target multiple system layers and components. In a world of continuously evolving cybersecurity threats, new vulnerabilities are identified regularly - and there are always the risks of unidentified vulnerabilities as well. Organizations must invest in security solutions that both prevent breaches and also provide "zero-day" protection against vulnerabilities before they can be exploited. The first time a vulnerability is exploited it is called a "zero-day" attack.

Some organizations still primarily rely on reports and patches from their software vendor for protection against attacks, but this strategy may have several shortcomings:

  • Dangerous limitations - do not address custom code, unsupported releases, or unknown vulnerabilities
  • Not timely - can take weeks, months, or even years to be delivered by a software vendor - and sometimes no patch is provided at all
  • Labor-intensive - may require a product or technology upgrade and might need to be regression tested before rolling into production
  • Ongoing risk - may not be adequate to sufficiently protect against an identified vulnerability

Rimini Street is Already a Trusted Partner for Security

Thousands of organizations trust Rimini Street with supporting their mission-critical applications and data, and many of those clients have already expanded their Rimini Street relationship to include our global, innovative security solutions. The Rimini Street security portfolio, available to clients for years, includes solutions for proactively protecting our clients' Oracle and SAP applications, middleware, and databases.

Defense in Depth Protections Are Essential

In today's digital-first economy, organizations should build and maintain multiple layers of security - including protecting the database layer where critical data is stored - as a part of a "Defense in Depth" cybersecurity strategy.

Now Rimini Protect enhances a "Defense in Depth" strategy with full-stack solutions to achieve zero-day security protection against the threat of known and unknown, unreported vulnerabilities. Rimini Protect holistically includes layered application and database security software and service solutions:

Rimini Street Advanced Application and Middleware Security, which protects against both known and unknown vulnerabilities using Java Runtime detection and remediation before attacks reach their intended target, including releases that are no longer fully supported by the vendor.

Rimini Street Advanced Database Security, a next-generation database security solution, helps protect databases from known and unknown vulnerabilities by continuously monitoring and analyzing shared memory.

Rimini Protect™ for SAP Applications is a fully managed service providing shields that remediate applications' vulnerabilities at speed and scale without touching a line of code, protecting from even sophisticated attacks.

Global Security Services are delivered by Rimini Street expert security engineers who help organizations maintain the most complete and hardened cybersecurity posture possible in consideration of their particular circumstances. These services include security assessments, hardening and configuration guides, security roadmaps and security vulnerability analysis reports (SVARs).

Software Vendor Patching is Dated and Insufficient Protection

According to an Aberdeen Group market research report, "traditional patching is a process that never ends" because technology stacks continue to become more complex and the volume and frequency of vendor-supplied software patches are too overwhelming for IT staff to manage. In contrast, virtual patching "refers to establishing a policy enforcement point that is external to the resource being protected and designed to identify, intercept, and remediate exploits of vulnerabilities before they reach their target."

"Enterprises that rely on dated software vendor patching models still find themselves vulnerable to attacks because patches address only known vulnerabilities. They do not protect against unknown vulnerabilities. Rimini Protect is one of the many innovative solutions from Rimini Street that help our clients take a smart path with their technology portfolio," said Gabe Dimeglio, vice president and executive advisor, security at Rimini Street. "Rimini Protect goes well beyond typical software vendor patching to protect the entire environment of applications, middleware and databases using active security controls that monitor activities in real time to identify malicious actions and proactively block processes that attempt to exploit known and new zero-day vulnerabilities."

Join Rimini Street CEO Seth Ravin and IT security experts on July 28, 2022, as they discuss the evolving and escalating cybersecurity threat environment and how each organization can take control of its own cybersecurity defense with Rimini Protect security solutions.

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI) is a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner. The Company offers premium, ultra-responsive and integrated application management and support services that enable enterprise software licensees to save significant costs, free up resources for innovation and achieve better business outcomes. To date, nearly 4,700 Fortune 500, Fortune Global 100, midmarket, public sector and other organizations from a broad range of industries have relied on Rimini Street as their trusted application enterprise software products and services provider. To learn more, please visit http://www.riministreet.com, follow @riministreet on Twitter and find Rimini Street on Facebook and LinkedIn. (IR-RMNI)

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Certain statements included in this communication are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "may," "should," "would," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "seem," "seek," "continue," "future," "will," "expect," "outlook" or other similar words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding our expectations of future events, future opportunities, global expansion and other growth initiatives and our investments in such initiatives. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties regarding Rimini Street's business, and actual results may differ materially. These risks and uncertainties include, but are not limited to, the amount and timing of repurchases, if any, under our stock repurchase program and our ability to enhance stockholder value through such program; the impact of our credit facility's ongoing debt service obligations and financial and operational covenants on our business and related interest rate risk, including uncertainty from the discontinuance of LIBOR and transition to any other interest rate benchmarks; the duration of and operational and financial impacts on our business of the COVID-19 pandemic and related economic impact, as well as the actions taken by governmental authorities, clients or others in response to the continuance of the pandemic; catastrophic events that disrupt our business or that of our current and prospective clients, including terrorism and geopolitical actions specific to an international region; changes in the business environment in which Rimini Street operates, including inflation and interest rates, and general financial, economic, regulatory and political conditions affecting the industry in which Rimini Street operates; adverse developments in pending litigation or any new litigation; our need and ability to raise additional equity or debt financing on favorable terms and our ability to generate cash flows from operations to help fund increased investment in our growth initiatives; the sufficiency of our cash and cash equivalents to meet our liquidity requirements, including under our credit facility; our ability to maintain an effective system of internal control over financial reporting and our ability to remediate any identified material weaknesses in our internal controls; changes in laws and regulations, including changes in tax laws or unfavorable outcomes of tax positions we take, or a failure by us to establish adequate reserves for tax events; competitive product and pricing activity; challenges of managing growth profitably; the customer adoption of our recently introduced products and services, including our Application Management Services (AMS) offerings, in addition to other products and services we expect to introduce in the future; the loss of one or more members of Rimini Street's management team; our ability to attract and retain qualified personnel; uncertainty as to the long-term value of Rimini Street's equity securities; the effects of seasonal trends on our results of operations, including the contract renewal cycles for vendor supplied software support and managed services; our ability to prevent unauthorized access to our information technology systems and other cybersecurity threats, protect the confidential information of our employees and clients and comply with privacy and data protection regulations; and those discussed under the headings "Risk Factors" and "Cautionary Note About Forward-Looking Statements" in Rimini Street's Quarterly Report on Form 10-Q filed on May 4, 2022, and as updated from time to time by Rimini Street's future Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street's expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street's assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street's assessments as of any date subsequent to the date of this communication.

© 2022 Rimini Street, Inc. All rights reserved. "Rimini Street" is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein.

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Killexams : Graph Database Market Trends, Size, Share, Growth, Industry Analysis, Advance Technology and Forecast 2026

"Oracle Corporation (US), IBM Corporation (US), Amazon Web Services, Inc. (US), DataStax (US), Ontotext (Bulgaria), Stardog Union (US), Hewlett Packard Enterprise (US), ArangoDB (US), Blazegraph (US), Microsoft Corporation (US), SAP SE (Germany), Teradata Corporation (US), Openlink Software (US), MarkLogic Corporation (US), TIBCO Software, Inc. (US)."

Graph Database Market by Type (RDF and LPG), Application (Fraud Detection and Prevention, and Recommendation Engine), Component (Software and Services), Deployment Mode, Vertical, and Region - Global Forecast to 2026

The global Graph Database Market size to grow from USD 1.9 billion in 2021 to USD 5.1 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 22.5% during the forecast period. Various factors such as need to incorporate real-time big data mining with visualization of results, increasing adoption for AI-based graph database tools and services to drive market, and growing demand for solutions that can process low-latency queries are expected to drive the adoption of graph database solutions and services.

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COVID-19’s global impact has shown that interconnectedness plays an important role in international cooperation. As a result, several governments started rushing toward identifying, evaluating, and procuring reliable solutions powered by AI. Graph databases and AI are invaluable to organizations managing uncertainty in real-time, but most predictive models rely on historical patterns. The use of graph database and AI has accelerated in the COVID-19 pandemic period. This has helped organizations engage customers through digital channels, manage fragile and complex supply chains, and support workers through disruption to their work and lives. New practices, such as work from home and social distancing, have led to the requirement of graph database solutions and services and the development of digital infrastructures for large-scale technology deployments. The COVID-19 pandemic in 2020 brought accelerating changes in consumer preferences and behaviors and putting pressure on brands to keep pace and provide a personalized customer experience. Enterprises have witnessed a reduction in their operational spending and are now focusing more on business continuity and sustainability.

Technology and service providers have been facing significant disruption to their businesses from COVID-19. Hence, the COVID-19 pandemic has disrupted the global financial markets and has created panic, uncertainty, and distraction in the operations of global corporations.

Scope of the Report

Report Metric

Details

Market size available for years

2015–2026

Base year considered

2020

Forecast period

2022–2026

Forecast units

 USD Million

Segments covered

Component, Deployment Mode, Organization Size, Type, Application, Vertical, and Region

Geographies covered

North America, Europe, APAC, MEA, and Latin America

Companies covered

Oracle Corporation (US), IBM Corporation (US), Amazon Web Services, Inc. (US), DataStax (US), Ontotext (Bulgaria), Stardog Union (US), Hewlett Packard Enterprise (US), ArangoDB (US), Blazegraph (US), Microsoft Corporation (US), SAP SE (Germany), Teradata Corporation (US), Openlink Software (US), MarkLogic Corporation (US), TIBCO Software, Inc. (US), Neo4j, Inc. (US), GraphBase (Australia), Cambridge Semantics (US), TigerGraph, Inc. (US), Objectivity Inc. (US), Bitnine Co, Ltd. (US), Franz Inc. (US), Redis Labs (US), Graph Story (US), Dgraph Labs (US), Eccenca (Germany), and Fluree (US).

The services segment to hold higher CAGR during the forecast period

Based on components, the graph database market is segmented into solutions and services. The services segment has been further divided into professional and managed services. These services play a vital role in the functioning of graph database solutions, as well as ensure faster and smoother implementation that maximizes the value of the enterprise investments. The growing adoption of graph database solutions is expected to boost the adoption of professional and managed services. Professional service providers have deep knowledge related to the products and enable customers to focus on the core business, while MSPs help customers Boost business operations and cut expenses.

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As per AWS, graph databases are purpose-built to store and navigate relationships. Relationships are first-class citizens in graph databases, and most of the value of graph databases is derived from these relationships. Graph databases use nodes to store data entities and edges to store relationships between entities. An edge always has a start node, end node, type, and direction, and an edge can describe parent-child relationships, actions, ownership, and the like. There is no limit to the number and kind of relationships a node can have.

Some of the key players operating in the graph database market includegh Oracle Corporation (US), IBM Corporation (US), Amazon Web Services, Inc. (US), DataStax (US), Ontotext (Bulgaria), Stardog Union (US), Hewlett Packard Enterprise (US), ArangoDB (US), Blazegraph (US), Microsoft Corporation (US), SAP SE (Germany), Teradata Corporation (US), Openlink Software (US), MarkLogic Corporation (US), TIBCO Software, Inc. (US), Neo4j, Inc. (US), GraphBase (Australia), Cambridge Semantics (US), TigerGraph, Inc. (US), Objectivity Inc. (US), Bitnine Co, Ltd. (US), Franz Inc. (US), Redis Labs (US), Graph Story (US), Dgraph Labs (US), Eccenca (Germany), and Fluree (US). These graph database vendors have adopted various organic and inorganic strategies to sustain their positions and increase their market shares in the global graph database market.

Oracle was incorporated in 1977 and is headquartered in California, US. The company is a global leader in delivering a broad spectrum of products, solutions, and services designed to meet the requirements of corporate IT environments, such as platforms, applications, and infrastructure. Oracle’s customers include businesses of various sizes, government agencies, educational institutions, and resellers. The company, directly and indirectly, sells its products and services through a worldwide sales force and Oracle Partner Network, respectively. It specializes in developing, manufacturing, and marketing hardware systems, databases, middleware software, and application software. It provides SaaS offerings that are designed to incorporate emerging technologies, such as IoT, AI, ML, and blockchain. It operates through three business segments: cloud and license, hardware, and services, in more than 175 countries and caters to 4,30,000 customers across banking, telecommunications, engineering and construction, financial services, healthcare, insurance, public sector, retail, and utilities verticals. Graph databases that are part of Oracles convergent database offering eliminate the requirement to set up and move data to a separate database. Analysts and developers can detect fraud in banking, discover relationships and links to data, and increase traceability in smart manufacturing, all while benefiting from enterprise-grade security, ease of data intake, and robust support for data workloads. Oracle offers Oracle Spatial and Graph in the graph database market.

IBM is a multinational technology and consulting corporation founded in the year 1911 and is headquartered in New York, US. It offers infrastructure, hosting, and consulting services and operates through five major business segments: cloud and cognitive software, global business services, global technology services, systems, and global financing. IBM’s product portfolio comprises various segments, such as IoT, analytics, security, mobile, social, and Watson. It caters to various industry verticals that include aerospace and defense, education, healthcare, oil and gas, automotive, electronics, insurance, retail and consumer products, banking and finance, energy and utilities, life sciences, telecommunications, media and entertainment, chemicals, government, manufacturing, travel and transportation, construction, and metals and mining. The company has a robust presence in the Americas, Europe, the MEA, and Asia Pacific and clients in more than 175 countries. IBM is one of the top vendors in the graph database market, owing to the strong portfolio of solutions and services that the company offers in the market. On November 27, 2017, the company announced the retirement of the IBM Graph service. This service was being replaced by Compose for JanusGraph. The graph database technology at the core of IBM Graph, Titan, evolved to JanusGraph, governed by the Linux Foundation.

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Killexams : OutSystems joins SAP PartnerEdge program to support SAP S/4HANA migration

DUBAI, UAE: OutSystems,  a global leader in high-performance application development, today announced it has become an official member of the SAP® PartnerEdge® program, with a Build focus, underscoring its commitment to providing high-value low-code to businesses using SAP® solutions. While twice as many OutSystems customers connect to SAP technologies as any other system of record, the new relationship will make it even easier for additional businesses within the SAP ecosystem to discover and connect with OutSystems.

Through participation in the SAP PartnerEdge program, OutSystems is able to integrate its offering with SAP solutions. The SAP Integration and Certification Center (SAP ICC) has certified that the OutSystems Platform (OutSystems 11) integrates with SAP S/4HANA® and SAP NetWeaver® using standard integration technologies. The relationship makes it easier for businesses to interoperate with SAP S/4HANA by building new customer experiences, critical customization and application development capabilities, innovative customer and partner portals, and smooth enterprise system migration. Integration with SAP technologies is one of the most common use cases for OutSystems customers as they look for solutions to unlock business innovation, team productivity, and investments in SAP offerings. 

“Enterprise teams face significant pressure to deliver sustainable business results, which means more applications, at faster speed, with peak performance, and this is what our integration with SAP solutions is doing for companies today,” said Paulo Rosado, founder and CEO of OutSystems. “It’s now easier for enterprises to activate their investments in SAP technologies by building business-critical apps that help Boost operations, customer experiences, processes and migrations to SAP S/4HANA. Our high-performance low-code solution gives customers the power to develop, test, and scale applications with less time and expense, creating opportunities for continuous innovation.” 

The OutSystems Platform allows businesses to rebuild custom business logic to keep the core clean as they migrate to SAP S/4HANA. Examples of OutSystems’ implementations that have made fast, effective innovation more accessible to developers include:

●    Multibillion-dollar IT distributor Redington Gulf used OutSystems and robotic process automation (RPA) to modernize their SAP instance and build a rebate management system on top of the SAP application in only three weeks.
●    European Supermarket chain COOP created a new Store Operations Application integrated with BAPI®, which saved store employees up to 45 minutes per day on standard procedures like waste registration, ordering, and due date checks.
●    Environmental, waste management and recycling technology company ISB Global created and deployed a mobile app that helps field and remote employees record and monitor customer service requests more effectively. 

OutSystems customers can leverage free, pre-built code components and integrations, including ones built specifically for SAP solutions, in the OutSystems Forge – the company’s open source repository of reusable, open code modules, connectors, UI components, and business solutions that help speed app delivery. New Forge offerings include a UI theme pack for SAP Fiori® to help customers integrate visually with other SAP applications. 

Sun, 24 Jul 2022 19:23:00 -0500 en text/html https://www.zawya.com/en/press-release/companies-news/outsystems-joins-sap-partneredge-program-to-support-sap-s-4hana-migration-p8wnrn2d
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