SAP’s Rise With SAP Solution Implemented by Deutsche Telekom

April 7, 2024

43 3 minutes read

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SAP SE SAP recently announced its association with Deutsche Telekom DTEGY to bring digital transformation to the latter’s cloud infrastructure. DTEGY is deploying SAP’s RISE with SAP solution to upgrade a significant portion of its Enterprise Resource Planning (ERP) landscape to SAP S/4HANA Cloud.

Deutsche Telekom is one of the leading telecommunication service providers in Europe. The telecom giant boasts 252 million mobile customers, 25 million fixed-network lines and 22 million broadband lines spread across more than 50 countries.

Earlier, SAP broadened its collaboration with DTEGY’s subsidiary, T-System, wherein T-System is positioned as the premium supplier of RISE with SAP in Germany. Per the deal, T-System will seamlessly migrate more than 300 systems into the public and private cloud using its Future Cloud Infrastructure and select hyperscalers.

The initiative is likely to address all German and European data protection requirements of its core customers and simultaneously reap the benefits of “tailored migration and orchestration of complex landscapes,” highlighted SAP.

DTEGY will be able to accelerate its business transformation by deploying Rise with SAP solution. SAP S/4HANA Cloud platform will aid the telecommunications company to achieve efficiency across various business operations ranging from logistics to finance and procurement.

Headquartered in Walldorf, Germany, SAP is one of the largest independent software vendors in the world and the leading provider of ERP software.

Growing trends in its cloud business, especially the Rise with SAP and Grow with SAP solutions, are boosting its performance. Momentum in SAP’s business technology platform, particularly the S/4HANA solution, along with the proliferation of generative artificial intelligence (AI) bodes well.

However, continued softness in the Software license and support business segment coupled with global macroeconomic weakness are concerning.

Stiff competition (in the cloud and ERP space) from the likes of Microsoft MSFT, Amazon’s Amazon Web Services, International Business Machines Corporation, Oracle Corporation ORCL and Salesforce remains a headwind.

A Look at the Performance of Peers

Microsoft is one of the largest broad-based technology providers in the world. The company is riding on strong growth in Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenues are driven by growth in Azure and other cloud services. Productivity and Business Processes revenues continue to increase due to the strong adoption of Office 365 Commercial solutions.

Continued momentum in the small and medium businesses and frontline worker offerings, as well as a rise in revenue per user, drove top-line growth. Microsoft got off to an early lead in the generative AI race thanks to its work with OpenAI. The general availability of Copilot for Security holds promise.

However, More Personal Computing revenues are suffering from continued weakness in Windows and Devices businesses. Declining gaming revenues have been a headwind.

Oracle is one of the largest enterprise-grade database, middleware and application software providers.

Oracle has expanded its cloud computing operations over the last couple of years. The company offers cloud solutions and services that can be used to build and manage various cloud deployment models.

Oracle is gaining from the steady adoption of strategic cloud applications, autonomous database and OCI, as well as a recovery in cloud revenue growth. Its Gen 2 Cloud is driving AI clientele because of better performance at a lower cost due to high bandwidth and low-latency RDMA networks.

ORCL’s continued investment in cloud infrastructure positions it well for sustained growth in the dynamic software industry. Its share buybacks and dividend policy are noteworthy. However, the uncertain economy and competition in the cloud computing market weighed on demand for its cloud offerings.

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