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SAP Rolls Out New Cloud-Based Services on SAP Cloud Platform

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SAP SE (SAP - Free Report) recently announced that it is developing new solutions on SAP Cloud Platform to handle business processes along with offering cloud-computing, machine-learning and data-analysis services.

This announcement was made at the SAP TechEd conference, being held between Oct 2 and Oct 5, in Las Vegas. The new offerings will help in creating best-in-class systems, scalable digital platforms and productivity systems.

The deployment of SAPCloud Platform SDK for Apple (AAPL - Free Report) iOSwill aid enterprises in improving user experience by developing powerful apps that can cater to end-user demands.

This latest offering from SAP is anticipated to take digital transformation in the IT industry to the next level, by removing paperwork and other manual processes. This in turn will help employees in recording data on the spot and aid them in reacting instantly to changes.

SAP Cloud Platform is now offering three integrated services based on comprehensive Kubernetes, Knative and Kubelessplatform designed for multi-cloud deployments. These services enable customers to deploy and administer applications and clusters across the cloud platforms in real time.

SAP’s new class of solutions that power the next generation of business applications – SAP HANA (High-Performance Analytic Appliance) – has been driving growth since its inception.

Moreover, the company’s latest offering from the SAP Cloud Platform, has established itself as a “mission critical control center” for businesses pursuing digital transformation. IDC estimates that 40% of technology spending will be allotted to digital transformations, with enterprises spending more than $2 trillion by 2019.

We therefore believe that the company’s initiatives in this regard will prove to be extremely beneficial to its top-line growth going forward.

SAP SE Price

 

Bottom Line

SAP HANA Cloud Platform and its partners have been gaining rapid popularity, assisting clients extend their functionalities, building new applications, and integrating across cloud and on-premise platforms, in turn fueling growth. It has been acting as a catalyst since its introduction. The company constantly upgrades its existing products and launches fresh ones to gain customers.

Cloud still remains an expanding market with high growth prospects. In a recent report, Gartner projected the public cloud market to reach $411.4 billion by 2020. According to International Trade Administration, the Chinese cloud market is likely to touch $20 billion mark by 2020, witnessing a CAGR of 40%.

We believe that SAP, with its ongoing initiatives, is well poised to capitalize on the opportunity. In fact, the cloud computing is likely to be one of its major growth drivers in the long run.

Zacks Rank & Keys Picks

Currently, SAP carries a Zacks Rank #3 (Hold).

Few better-ranked stocks in the broader technology sector are Salesforce.com Inc (CRM - Free Report) and Aspen Technology, Inc. (AZPN - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The projected earnings growth rate (3-5 years) for Salesforce and Aspen are 25% and 16.5%, respectively.

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