By Archibald Preuschat
German software giant SAP AG (SAP) is planning to offer cloud
software services via its joint venture with China Telecom Corp.
Ltd. (CHA) in an effort to tap a large potential market, said Alex
Atzberger, SAP's Head of Fast Growth Markets and China Growth
Plan.
The market for virtual data centers is still relatively small in
the country, but "it's important to be the first" as the market
takes off, said Mr. Atzberger, at SAP's business technology trade
fair in China.
Mr. Atzberger sees rapid growth for cloud services in China,
amid rising demand in industrialized countries. He declined to
comment on the contribution China makes to SAP's total revenue, but
company revenue in the country jumped 17% during the last
quarter.
SAP holds a substantial share but not a majority stake in the
joint venture with China Telecom, which was founded about two years
ago. SAP is considering a secondary market listing in China, but
hasn't released details.
At the industry event, SAP also plans to announce the
certification of a server intended for SAP's real-time database and
e-commerce software from China's hardware manufacturer Huawei
Technologies Co.
Write to Archibald Preuschat at
archibald.preuschat@dowjones.com
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