Forget the rosy projections; Wall Street wants profits
SAP apparently thought it would dazzle with this 7X cloud growth forecast by 2020 -- and leaked word of a new 'S4 Hana' ERP suite. But Wall Street and financial headlines are not taking SAP's abandoned margin forecasts -- replaced with operating income projections -- all that well. Company execs said profitability will improve by 2018, when cloud infrastructure investments will have been made and recurring revenue will prevail. SAP expects to hit the tipping point of cloud revenue surpassing conventional software license revenue by that year.