SAP sees high cloud profit potential in long term

Europe's biggest software group SAP could eventually see its software delivered via the cloud deliver higher profit margins than its traditional packaged software, its finance chief told a newspaper. In the long term, they can definitely become more profitable than our classic licence sales," Luka Mucic told the Euro am Sonntag business weekly in an interview published on Saturday. Unlike the packaged software SAP has been selling for decades, for which clients pay a immediate licence fee, cloud-based software is generally paid for by subscription over time, but most of the costs for the software provider are upfront.



via Tech News Headlines - Yahoo News http://ift.tt/1xOzWX3