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SAP attracts further criticism for Russia presence, despite promise to leave

(2022/05/24)


A Ukrainian minister has accused software giant SAP of continuing to operate in Russia despite the German vendor previously vowing to withdraw from the aggressor nation.

In the months following Russia's invasion of Ukraine, SAP attracted criticism as it continued to support installations of its software in Russia and cloud services used by Russian businesses, including state-owned bank Sberbank.

Pressure from [1]Ukrainian president Volodymyr Zelenskyy contributed to the enterprise application provider promising, in late April, to conduct an [2]"orderly exit from… operations in Russia" following a 30-year presence there.

Cloudflare, Akamai: Why we're not pulling out of Russia [3]READ MORE

However, news outlet [4]Politico has reported that Ukraine's minister of digital transformation Mykhailo Fedorov's slammed SAP for what he claimed was its continued presence in Russia.

"SAP are ... still continuing to work in Russia and to pay taxes to help finance the Russian army," he told the news magazine at the World Economic Forum in Davos, Switzerland. "A lot of banks and banking activities are based on SAP."

[5]

In April, SAP announced plans to end software support and cloud services in Russia. “Our hearts and hopes are with the people of Ukraine. More than anything, we want this war to end,” it said in a statement.

[6]

[7]

Having already halted new software sales in early March – and reporting it will take a €130 million ($141 million) hit resulting from [8]its decision – SAP gave non-sanctioned companies in Russia the choice to "have their data deleted, sent to them, or migrated to a datacenter outside of Russia."

"For those Russian companies who choose the migration path, we will not renew their contract upon expiration of the current subscription term," [9]it said in a statement in April .

[10]

Meanwhile, on the subject of on-premises support, SAP said it intended to exit the support and maintenance agreements in Russia. "We are evaluating multiple options to execute this decision, each of which will ensure we continue to honor our obligations to non-sanctioned customers. It is also important to note that regardless of any SAP decision, existing customers in Russia using on-premise software will still be able to use their products," it said.

We asked SAP to respond to the latest comments from Fedorov and how long its transition out of Russia might take.

[11]What 'share of wallet' means and why it matters to SAP

[12]ServiceNow shrugs off Ukraine fears with upbeat financials

[13]You can keep your old ERP system, but you'll still need ServiceNow, CEO tells The Reg

[14]SAP to divest CRM education software in bid to streamline

The Ukraine minister also criticised global network and website security company Cloudflare, arguing that it continued to protect Russian websites.

"I don't know who they are defending them from," he added.

Earlier, in [15]March , Cloudflare CEO Matthew Prince defended his company's decision to operate in Russia, arguing that any withdrawal could have unintended consequences in "advancing and entrenching the interests of the Russian government to control the internet in Russia."

[16]

Meanwhile, Russia's Ministry of Foreign Affairs has [17]released a list (warning: .ru government link) of US citizens currently under personal sanctions, including a ban on entry to the nation. It includes Salesforce CEO Marc Benioff, and Mark Zuckerberg, CEO of Facebook owner Meta. Rocket and electric car enthusiast Elon Musk and software impresario Larry Ellison appear to have escaped censure. ®

Get our [18]Tech Resources



[1] https://www.theregister.com/2022/03/14/ukraine_president_top_software_end_russia_support/

[2] https://www.theregister.com/2022/04/20/sap_closes_russia/

[3] https://www.theregister.com/2022/03/08/aws_cloudflare_russia/

[4] https://www.politico.eu/article/sap-cloudflare-enable-russia-war-effort-ukraine-digital-minister-fedorov/

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Yo0BI1bXSJ7hBF2-Nxio2wAAAI4&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Yo0BI1bXSJ7hBF2-Nxio2wAAAI4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Yo0BI1bXSJ7hBF2-Nxio2wAAAI4&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[8] https://www.theregister.com/2022/04/22/sap_130m_russia/

[9] https://news.sap.com/2022/04/sap-plans-russia-exit/

[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Yo0BI1bXSJ7hBF2-Nxio2wAAAI4&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[11] https://www.theregister.com/2022/05/12/sap_sapphire/

[12] https://www.theregister.com/2022/04/28/servicenow_shrugs_off_ukraine_fears/

[13] https://www.theregister.com/2022/05/16/bill_mcdermott_interview/

[14] https://www.theregister.com/2022/05/04/sap_to_divest_litmos/

[15] https://www.theregister.com/2022/03/08/aws_cloudflare_russia/

[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Yo0BI1bXSJ7hBF2-Nxio2wAAAI4&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[17] https://www.mid.ru/ru/maps/us/1814243/

[18] https://whitepapers.theregister.com/



NoneSuch

It isn't hard to tick off the Russians.

Elon and Larry need to try a little bit harder.

nematoad

"I don't know who they are defending them from," he added

Russia's best mate, China?

Just a thought

Yet Another Anonymous coward

Are the Russian army's operations being run on SAP by any chance ?

It would explain a few things

Unix is a lot more complicated (than CP/M) of course -- the typical Unix
hacker can never remember what the PRINT command is called this week --
but when it gets right down to it, Unix is a glorified video game.
People don't do serious work on Unix systems; they send jokes around the
world on USENET or write adventure games and research papers.
-- E. Post
"Real Programmers Don't Use Pascal", Datamation, 7/83