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SAP thinks it can make cash in China

by on07 January 2013

Impenetrable meets inscrutable

The German business software outfit which makes stuff which no one can explain what it does, is hoping to peddle its wares behind the bamboo curtain.

There is a certain amount of logic to this. SAP’s press releases are often written in a business language which is so obtuse they might as well have been written in Chinese.  However the outfit will have to overcome the problem that industry in the country does not like to buy expensive software which might be important, but then again equally might not.

German weekly paper Frankfurter Allgemeine Sonntagszeitung which we thought was a hotdog with onions and with pickled cabbage, SAP sees potential for one million new customers in China, five times the number it currently has world-wide. SAP's co-Chief Executive Jim Hagemann Snabe said that China will be as important to SAP as the United States. Its first idea is to flog the Chinese a cloud computing service.  The Chinese are not really up for this because they are worried that they can’t control it.

Snabe said that he wanted to find a solution with Chinese authorities this year. As part of SAP's growth strategy, it plans to invest around $2 billion in China by 2015.

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