This content is only available within our institutional offering.
22 Feb 2021
SAP Bull / Bear survey results and User Group charts
Sign in
This content is only available to commercial clients. Sign in if you have access or contact support@research-tree.com to set up a commercial account
This content is only available to commercial clients. Sign in if you have access or contact support@research-tree.com to set up a commercial account
SAP Bull / Bear survey results and User Group charts
SAP SE (SAP:ETR) | 0 0 0.0%
- Published:
22 Feb 2021 -
Author:
Slowinski Stefan SS | Castillo-Bernaus Ben BC -
Pages:
25
Last week''s SAP Bull v Bear debate survey highlights deeply bearish sentiment
While ''only'' 60% of respondents to our SAP survey identified themselves as Bears, it was hard to find a single Bull during the four Bull v Bear debates we held last week with ~25 investors. Many investors thought a) RISE was not compelling enough to push customers to upgrade, b) it was overly optimistic to expect a conversion ratio of 2 subscription dollars from 1 maintenance dollar, and c) the margin outlook for a largely private cloud offering was overly optimistic. In our survey, only 7% of investors said SAP would beat its 2025 cloud revenue targets, while nearly 50% thought the 2025 margin targets were unachievable. 87% saw cloud revenue growth re-acceleration as a key catalyst, while 0% thought license beats mattered. And 87% saw mis-execution as the biggest risk to SAP, rather than any individual competitor. Full survey results inside.
Data from SAP Users group points to continued S4 Hana acceleration (but still on premise)
While investors seem to believe that RISE is a panic signal, data from SAP''s German speaking users group suggest the S4 Hana product cycle is progressing. 43% of respondents see their SAP spend increasing in 2021 with a further 35% seeing their budget flat. 56% see S4 Hana representing medium or large investments; however, 44 pct pts of those see their investments on premise whereas only 12 pct pts see those investments in the cloud. This highlights the challenge SAP has in convincing customers to switch business models and deployment approach, especially in Europe. That said, while 24% are already live with S4, or expect to be this year, a further 39% expect to migrate over the next three years, with ''only'' 18% yet to decide to migrate. As for the cross selling opportunity, 15% expect to make medium or large investments in SuccessFactors with 14% for SAP Cloud Analytics. Microsoft Azure remains the preferred PAAS platform (27%) vs the...