FRANKFURT (Reuters) - Europe’s biggest software company SAP does not need to invest heavily in its cloud infrastructure to keep up with the growth of the business, it chief executive said on Friday.
Analysts had suggested SAP may need additional investments as it rapidly grows its cloud business.
“We already invested very heavily into our infrastructure. We are not behind on that. We’ve been doing it all along. We don’t need to do anything unusual,” Chief Executive Bill McDermott told Reuters in an interview.
“Everything we have to do has been factored into our 2016 annual and our 2017 mid-term guidance we put out today. So SAP is on track.”
SAP earlier on Friday raised its 2017 outlook for revenue and profit to the upper end of expectations, highlighting its progress in turning itself into an Internet-based, cloud supplier from a packaged software firm.
Reporting by Harro ten Wolde; Editing by Maria Sheahan