SAP Takes on More Cloud Customers as It Seeks Smaller Deals

  • German software maker cites cloud backlog of 5.4 bln euros
  • CEO McDermott says M&A, R&D, buybacks could be on horizon

SAP CEO: We're Clicking on All Cylinders Right Now

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SAP SE raised its targets for 2020 as customers bought its latest suite of applications at a faster pace, and Chief Executive Officer Bill McDermott -- a fan of Donald Trump’s “The Art of the Deal,” -- said he wouldn’t “lay off the accelerator” on acquisitions, engineering investment or a potential share buyback.

The updated outlook, on top of fourth-quarter sales that were in line with estimates, show how SAP, which supplies software for running factories, supply chains and financial accounts, is managing a transition from software installed on customers’ computers to online cloud-computing tools.