The rate of cloud adoption, which underpins the majority of recent technology advancements, is outpacing market forecasts. Platform as a Service (PaaS), which aids SAP customers in changing business models, enhancing supply chain resilience, modernising workplaces, and addressing other pressing realities, is one factor in this expansion.
SAP announced the significant achievement of cloud revenue becoming its largest revenue source in the first half of this year. At constant exchange rates, cloud revenue increased by 25%, and by 33% at nominal values. More noteworthy, though, is the 25% faster recent growth in the existing backlog, which has surpassed €10 billion.
The top-line cloud performance is undoubtedly better than expected, and for good cause. In order to deal with the current macroeconomic situation and currency tailwinds, businesses are looking for trustworthy solutions. Organizations are being forced to move up the timelines for digital business initiatives like modernising work environments, enhancing system reliability, and supporting hybrid work models by escalating geopolitical conflicts, fragmented regulations, sustainability awareness, and inflationary challenges.
As already established, SAP’s PaaS technology, SAP Business Technology Platform, plays a significant role in the company’s cloud momentum story (SAP BTP). At constant currency rates, platform revenue rose an amazing 43%; at nominal levels, it rose 50%.
Why More People Are Using PaaS
The rising interest in SAP BTP is a reflection of the “unlearning” that businesses undergo when moving to the cloud. The cloud forces individuals to “examine and unlearn [on-premise practises] and start from a new viewpoint understanding what they now have and the tools available [to them],” according to SAP Chief Marketing and Solutions Officer Julia White.
The SAP BTP solution is business-aware, apps-aware, and process-aware, in contrast to existing PaaS and hyperscaler solutions. As a result, our customers can get the necessary business context, which is challenging to do so in any other method.
SAP BTP offers a variety of application development, automation, and integration services in addition to data, analytics, and artificial intelligence — all in a unified, on-demand environment. The platform also offers a foundation of easy-to-integrate solutions, services, tools, content, and templates that may be modified to meet particular business needs.
This coherent structure can help many SAP customers and partners better utilise native SAP connections and services, expedite time to value, and maximise cloud benefits. They are able to make the fundamental adjustments necessary for their long-term digital transformation path, like overcoming the data silo’s impasse and democratising development, integration, automation, and advanced analytics capabilities. More significantly, new technologies can push the limits of current ones.
On a Course of Change and Development
According to SAP’s first-half findings, PaaS, and more specifically SAP BTP, is popular with businesses as they contend with and compete in an increasingly difficult external environment.
Customers of SAP are utilising the platform to help them significantly increase the value of their digital investments. A platform-centric future will come to life as SAP BTP continues to develop with new capabilities, technologies, services, and best practises, supporting continuous growth and profitability.