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SAP AG (SAP - Analyst Report) and China Telecom Corp. Ltd. (CHA - Snapshot Report) recently entered into a strategic partnership to expand cloud based offerings in the Chinese enterprise cloud market. As per the partnership, SAP will be providing its cloud portfolio services to small and large organizations in China by China Datacom Corporation Limited (CDC), a joint venture between SAP and China Communication Services (CCS), which is a subsidiary of China Telecom Group.    

SAP’s SuccessFactors will offer the comprehensive, state-of-the-art suite of human capital management (HCM) solutions through the China Telecom Internet Data Center (IDC). With this, SAP will be the first international software vendor to deliver an integrated cloud HCM offering in China. SuccessFactors basically offers integrated, collaborative HCM suites in the cloud, helping companies manage the entire life cycle of the employee from their recruitment to retirement. China Communication Services will be among the first companies to subscribe to the SuccessFactors solution and it expects to have 12,000 users.

Cloud technology is being increasingly adopted across businesses in order to innovate and drive growth. China being one of the fastest growing emerging markets is continuously deploying strong infrastructure to increase the adoption of cloud based services. The cloud-based applications market in China is expected to grow at 34.6% and exceed CNY80 billion by the end of 2013.

This strategic partnership is a perfect combination of two giants SAP and China Telecom; thus helping both to leverage each others resources to generate an innovative business model and technology application. This apart, through this partnership SAP has secured a strong place in the Chinese market for cloud based applications.      

SAP AG is a market leader in enterprise application software. Its leading ERP software helps businesses by integrating their back office to boardroom, warehouse to storefront, desktop to mobile devices.

SAP currently has a Zacks Rank #3 (Hold). Other companies in the industry worth considering at the moment include Interactive Intelligence Group Inc. (ININ - Snapshot Report) and Manhattan Associates Inc. (MANH - Snapshot Report). Both carry a Zacks Rank #1 (Strong Buy).

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