SAPs software licensing took Q1 hit due to COVID-19 pandemic

▤ Summary

The enterprise software giant, which reports its full earnings April 21, said that its cloud revenue for the quarter will be up 29% and total sales up 7%. As the impact of the COVID-19 crisis rapidly intensified towards the end of the quarter, a significant amount of new business was postponed. SAP has quickly responded to the new environment by adopting a virtual sales and remote implementation strategy. To protect profitability SAP is slowing hiring and reducing discretionary spend in addition to natural savings e.g. from lower travel and virtualized events. With enterprises going remote and shutting down businesses, there arent enough employees to close deals and then implement the software.

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