SAP announced a deal to buy CallidusCloud for $2.4 billion, but investors are expecting more from the SAP CEO.
While talking with CNBC , Bill McDermott, CEO of SAP stated that investors should not expect big deals in the near future. At the world Government Summit in Dubai, he said that their growth is primarily organic. They hadn’t done an acquisition of size and scale in more than three years. This particular acquisition (CallidusCloud) he considers as a tuck-in based on its size. Further stated that he will do acquisitions but in small nature.
Their main target is to open small market in various network for the cloud data .
“You should really expect the margins to bend now, the revenue to continue to grow strong in the cloud, and our core business is the only one in our industry that continues to grow while others are declining and that’s because our software is the best,” McDermott shared.
The CEO also says that heavy data center investments are “largely behind us” and watchers should “expect margins to bend now, the revenue to continue to grow strong in the cloud.”
“The show on the road” the new customers of SAP are Ford, Coca Cola, and Vodafone.”
Success is still counting with small M&A.