SAP's Software-To-Cloud Growing Pains Reflect Industry Shift - InformationWeek

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4/12/2016
12:05 PM
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SAP's Software-To-Cloud Growing Pains Reflect Industry Shift

SAP warned that its software license sales declined in the first quarter of 2016 and that business in the Americas was weaker than expected. Industry analysts said that SAP and other traditional software vendors will likely experience some tough quarters as they transition to offering cloud services.

(Image: gong hangxu/iStockphoto)

(Image: gong hangxu/iStockphoto)

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Charlie Babcock
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Charlie Babcock,
User Rank: Author
4/12/2016 | 2:49:41 PM
Red Hat did it, mainstream license companies to follow
Red Hat was the first major software company to move away from license sales to subscriptions and went through a lengthy transition that eventually made both its current and pending results look good, thanks to the predictability of three-year subscriptions. But it was used to open source company margins. SAP and Oracle are going to find this a hard transition to make.
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