Cloud Business Is Not Slowing Down, Says SAP CFO

The transcript discusses SAP's cloud growth, addressing concerns about a perceived slowdown. It highlights a 40% increase in cloud revenues and a 43% growth in the first half of the year. The weakening correlation between cloud bookings and revenue is explained, emphasizing a shift to a pay-as-you-go model. The transcript also addresses analyst concerns about cloud metrics and profitability, noting a 32% growth in cloud backlog. Investor relations, particularly with Elliott Management, are discussed, focusing on growth and efficiency. Global cloud opportunities, including collaborations with US authorities and German cloud initiatives, are also explored.

What is the main reason for the perceived slowdown in cloud bookings?

• Technical issues with cloud infrastructure

• Increased competition from other cloud providers

• A strategic shift to high-margin opportunities

• A decrease in customer demand

How does the company explain the weakening correlation between cloud bookings and revenue?

• Due to a decline in customer satisfaction

• As a result of increased competition

• Because of a pay-as-you-go business model

• Due to a change in accounting practices

What was the impact of the Qualtrics acquisition on the company's margins?

• It created a headwind to margins

• It doubled the company's operating margin

• It improved margins by 40 basis points

• It had no impact on margins

What is the company's response to concerns about cloud metrics being 'light'?

• They agree with the concerns

• They plan to exit the cloud business

• They highlight the growth in cloud backlog

• They plan to reduce cloud investments

How does the company view its relationship with activist investors like Elliott Management?

• As a minor inconvenience

• As a reason to change leadership

• As a constructive dialogue

• As a hostile takeover attempt

What is the company's strategy for improving operational efficiency?

• Reducing workforce

• Increasing marketing spend

• Launching an operational excellence program

• Outsourcing all operations

What is the company's stance on participating in government cloud contracts?

• They focus on providing value through applications

• They plan to compete directly with Amazon and Microsoft

• They only work with European governments

• They are not interested in government contracts