SAP plans to streamline its hardware infrastructure while holding research development costs steady, an executive said on Tuesday. Photo: File

INTERNATIONAL - German business software group SAP plans to streamline its hardware infrastructure while holding research development costs steady, an executive said on Tuesday.

The measures, announced at SAP’s capital markets day, are aimed at helping Europe’s most valuable technology firm fulfil its promise of expanding profit margins by 5 percentage points through 2023.

Luka Mucic, finance chief, said SAP will reduce the number of so-called stacks, or infrastructure such as servers and components that SAP has accumulated through multiple acquisitions.

The budget for research and development will remain steady at 14 percent of revenue, he said.

The company will also cut management costs and the number of its suppliers.

The capital markets day was the first major outing for new co-Chief Executives Jennifer Morgan and Christian Klein. The duo have taken over from long-time boss Bill McDermott, who is leaving to head up ServiceNow.

McDermott launched the efficiency drive to expand profit margins. 

SAP Africa appoints new Regional Director for Southern Africa

Earlier this year, SAP Africa has appointed Cameron Beveridge as Regional Director for Southern Africa. 

Beveridge, a seasoned professional with a 25-year pedigree in technology, had until recently led one of SAP Africa’s largest business units, with responsibility for SAP cloud and related solutions.

Cathy Smith, Managing Director at SAP Africa, said that Beveridge had earned a reputation as a leader that can inspire the best in his team. 

“Cameron’s experience, integrity and undeniable passion to harness the incredible talent within the organisation makes for a winning formula for this challenging role. His drive and commitment will be invaluable to our local teams as we support local businesses in their quest to becoming Intelligent Enterprises that can take advantage of the exponential opportunities of this digital age". 

Beveridge is an engineer by training, but quickly found his calling in the technology sector, where he worked in outsourcing, consulting, and sales. He holds an MBA from Bond University in Australia. 

Reuters