SAP’s Snabe Sees a Third of 2015 Sales From Subscriptions
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SAP AG co-Chief Executive Officer Jim Hagemann Snabe predicts subscription-based services, fueled by mobile and cloud-computing products, will account for a third of the business-software maker’s revenue in 2015.
SAP is augmenting its traditional software license-revenue model with offers in which companies lease applications for shorter time periods. The company has acquired mobile-solutions provider Sybase Inc. and cloud computing-focused SuccessFactors Inc., and rolled out on-demand enterprise software as it seeks to boost 2015 revenue to more than 20 billion euros ($27 billion) from 14.2 billion euros last year.