India's share of SAP cloud revenues in APAC doubles over the course of two years By CIOTechOutlook Team

India's share of SAP cloud revenues in APAC doubles over the course of two years

CIOTechOutlook Team | Monday, 09 January 2023, 03:47 IST

According to reports, India's share of SAP's cloud revenues in the Asia Pacific Japan region has doubled over the last two years as the nation continues to be the region's leading market.

According to Kulmeet Bawa, managing director and president of SAP's India subcontinent, the number of cloud clients in India has doubled over the past two years as the company has experienced rapid development in the mid-market and enterprise segments.

“There’s the incumbency piece where existing customers are moving their digital core and ERP systems to the cloud, and as we do that, they are also adding on new solutions as they move,” Bawa said. “In addition to that, India is one of the leading markets in the world, if not number one in terms of adding new customers.”

Globally, 2022 marked a turning point for SAP as it transformed into a cloud corporation when cloud revenues became the main source of income.

According to Bawa, for seven consecutive quarters, the APJ region's fastest-growing market for SAP has been India.

“We are seeing accelerated growth across segments, and it's a very well-balanced growth between mid-market and enterprise customers,” he said. The company is starting to add more customers in tier II and III towns as well as digital-first companies who were not traditional SAP customers.

In contrast to North America and Europe, where there are worries about the macroeconomic situation, India is in a slightly different frame of mind. Customers are wary of the state of the world economy, but they do not perceive a slowdown in demand in India, he continued.

Similar to what other business IT companies have stated, India experienced constant demand and growth even as other global markets began to slow down.

Driving the adoption of digital and cloud technologies, innovation, and a focus on the mid-market, according to Bawa, will be the main pillars on which he expects the company to grow in 2023.

“We have had massive Cloud adoption in the mid-market, and they are adopting more of our solutions,” he said.

In 2023, he anticipates this market to grow, and it will become a crucial support for the German company moving ahead.

Nearly 15,000 SAP employees reside in India, which is the company's second-largest hub. As a result, a significant amount of technology and intellectual property development takes place in India.

The business just unveiled its low-code, no-code product and anticipates more demand for it in 2019.

According to Bawa, SAP has established a goal of having net zero emissions by 2023 and has committed to assisting clients in putting sustainability policies into effect.

“We had earlier set a target of 2025 but some of the learnings over the pandemic have helped us bring this down and we hope to meet the target next year,” he said.