SAP struggles to exit Russia after sale of support unit stalled
(2022/10/25)
- Reference: 1666715409
- News link: https://www.theregister.co.uk/2022/10/25/sap_struggles_to_exit_russia/
- Source link:
SAP has delayed its withdrawal from Russia after struggling to find a buyer for its operations in the region.
After Russia invaded Ukraine in February 2022, many tech multinationals sought to withdraw from the country. SAP’s approach was met with a volley of criticism for still supporting its products in Russia, even after ending new sales. Ukrainian president [1]Volodymyr Zelenskyy called SAP out in a tweet , alongside Microsoft and Oracle, for servicing technology in Russia.
In April, [2]the company agreed to end all operations in the country , giving cloud subscribers the option of having their data deleted, returned, or migrated to a datacenter outside of Russia. For on-premises products, SAP said it was evaluating ways to exit support and maintenance while honoring obligations to non-sanctioned customers.
[3]
According to a [4]report from Reuters , SAP is set to miss the deadline to exit Russia before the end of the year as it has still not found a buyer for the unit.
[5]SAP to take €130m hit on withdrawing tech support from Russia
[6]MongoDB to terminate Russian SaaS accounts
[7]Vodafone to move SAP S/4HANA ERP system to Google Cloud
[8]Oracle's Larry Ellison shares fears of bankrupting Western civilization with healthcare
SAP has shut its datacenters and cloud business Russia, but has been honoring annual contracts for its maintenance business.
"SAP is fully committed to winding down our business in Russia as quickly as possible. Recent legal developments in Russia have, however, limited our options with regard to the final steps of our exit," an SAP spokesperson told The Register .
[9]
The news came as the German software giant posted [10]mixed Q3 results . Total revenue hit €7.84 billion ($7.81 billion), up 15 percent on a year earlier. Cloud revenue sped ahead, climbing 38 percent to reach €3.29 billion ($3.28 billion).
However, adjusted operating profit flatlined and revenue from software licenses fell.
[11]
TechMarketView analyst Angela Eager said SAP was on track to meet its mid-term ambition of double digit operating profit in 2023. She said the company is set to raise it ambition in upcoming quarters in the light of cloud revenue growth expectations to reach 23-26 percent. The company also benefited from favorable currency exchange rate developments, given SAP reports in Euros, which have fallen against the dollar.
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[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://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y1hceMVKi42JjabR8I1rvAAAAJE&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.reuters.com/technology/exclusive-sap-delays-russia-exit-deal-talks-fail-workers-risk-2022-10-24/
[5] https://www.theregister.com/2022/04/22/sap_130m_russia/
[6] https://www.theregister.com/2022/03/15/mongodb_terminates_russian_saas/
[7] https://www.theregister.com/2022/10/17/vodafone_opts_to_move_sap/
[8] https://www.theregister.com/2022/10/21/ellison_oracle_healthcare/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y1hceMVKi42JjabR8I1rvAAAAJE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.sap.com/investors/en/why-invest/recent-results.html
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y1hceMVKi42JjabR8I1rvAAAAJE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://whitepapers.theregister.com/
After Russia invaded Ukraine in February 2022, many tech multinationals sought to withdraw from the country. SAP’s approach was met with a volley of criticism for still supporting its products in Russia, even after ending new sales. Ukrainian president [1]Volodymyr Zelenskyy called SAP out in a tweet , alongside Microsoft and Oracle, for servicing technology in Russia.
In April, [2]the company agreed to end all operations in the country , giving cloud subscribers the option of having their data deleted, returned, or migrated to a datacenter outside of Russia. For on-premises products, SAP said it was evaluating ways to exit support and maintenance while honoring obligations to non-sanctioned customers.
[3]
According to a [4]report from Reuters , SAP is set to miss the deadline to exit Russia before the end of the year as it has still not found a buyer for the unit.
[5]SAP to take €130m hit on withdrawing tech support from Russia
[6]MongoDB to terminate Russian SaaS accounts
[7]Vodafone to move SAP S/4HANA ERP system to Google Cloud
[8]Oracle's Larry Ellison shares fears of bankrupting Western civilization with healthcare
SAP has shut its datacenters and cloud business Russia, but has been honoring annual contracts for its maintenance business.
"SAP is fully committed to winding down our business in Russia as quickly as possible. Recent legal developments in Russia have, however, limited our options with regard to the final steps of our exit," an SAP spokesperson told The Register .
[9]
The news came as the German software giant posted [10]mixed Q3 results . Total revenue hit €7.84 billion ($7.81 billion), up 15 percent on a year earlier. Cloud revenue sped ahead, climbing 38 percent to reach €3.29 billion ($3.28 billion).
However, adjusted operating profit flatlined and revenue from software licenses fell.
[11]
TechMarketView analyst Angela Eager said SAP was on track to meet its mid-term ambition of double digit operating profit in 2023. She said the company is set to raise it ambition in upcoming quarters in the light of cloud revenue growth expectations to reach 23-26 percent. The company also benefited from favorable currency exchange rate developments, given SAP reports in Euros, which have fallen against the dollar.
Get our [12]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://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y1hceMVKi42JjabR8I1rvAAAAJE&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.reuters.com/technology/exclusive-sap-delays-russia-exit-deal-talks-fail-workers-risk-2022-10-24/
[5] https://www.theregister.com/2022/04/22/sap_130m_russia/
[6] https://www.theregister.com/2022/03/15/mongodb_terminates_russian_saas/
[7] https://www.theregister.com/2022/10/17/vodafone_opts_to_move_sap/
[8] https://www.theregister.com/2022/10/21/ellison_oracle_healthcare/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y1hceMVKi42JjabR8I1rvAAAAJE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.sap.com/investors/en/why-invest/recent-results.html
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y1hceMVKi42JjabR8I1rvAAAAJE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://whitepapers.theregister.com/
Anonymous Coward
"TechMarketView analyst Angela Eager said SAP was on track to meet its mid-term ambition of double digit operating profit in 2023."
That's all that matters, innit? The rest is just smoke and mirrors, and dead people don't spend any money, so no need to worry about them.
All datacenters should have an EPO. Hit it and leave the building. It's not that hard.
Profits from war just too tempting
Anonymous Coward
Another reason to ditch the collaborators.
They would be better off migrating the data outside the USSR on the cloud then pull all the hardware out, with option to either ship the lot out overland or take it all round to the nearest scrap metal yard and crush/shred the lot. Then once all the foreign staff are out, pull the plug on the orcs cloud data feed with the message services will resume once russia has left all Ukraine 1991 borders, cya .