SAP defers profit goal to build cloud business
Grazed from WHTC. Author: Harro Ten Wolde.
German business software maker SAP pushed back its profit target as it waits for subscription revenue from cloud-computing to gather pace and invests more in the business to keep up with a fast-growing market. SAP said on Tuesday it now aimed to hit its operating margin goal of 35 percent in 2017 instead of 2015. The margin was 32.6 percent last year.
The Walldorf, southern-Germany based company and global rivals such as IBM and Oracle are racing to meet surging demand for web-based software products. Known as cloud computing, this allows businesses to reduce their costs by ditching bulky servers for network-based software in their own offices and using remote data centres run by technology companies instead…


Dell and Red Hat will jointly engineer enterprise-grade, private cloud services based on OpenStack to help customers move to and deploy cloud computing models. As part of the expanded relationship, Dell becomes the first company to OEM Red Hat Enterprise Linux OpenStack Platform. The co-engineered service will be built on Dell infrastructure and Red Hat Enterprise Linux OpenStack Platform. The service will be delivered by a Red Hat Enterprise Linux OpenStack Platform practice within Dell Cloud Services.