“Analysts are worried that the lucrative cloud segment for big tech companies could be hit hard as customers look to cut spending.”
Is SAP really that much at risk? New business, ok. But their software is usually deeply embedded into core business processes, it’s tough to cut back on SAP once you bought into it.
It’s opportunistic I think. Rev is up and as you say SAP is like tar to get out of.
IMO There’s a market expectation that “big tech must make cuts” and therefore they either feel their share price would be under pressure if they don’t show something, or more cynically they see an opportunity to trim a little that would look a lot less worse than if they did it another time.
I think your comments nails it. Both the reason you give play a role. I am very interested in the earnings reported today and the salary round this year also announced today.
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[ 3.6 ms ] story [ 24.8 ms ] threadIs SAP really that much at risk? New business, ok. But their software is usually deeply embedded into core business processes, it’s tough to cut back on SAP once you bought into it.
IMO There’s a market expectation that “big tech must make cuts” and therefore they either feel their share price would be under pressure if they don’t show something, or more cynically they see an opportunity to trim a little that would look a lot less worse than if they did it another time.
Disclaimer: I work for SAP