SAP PH chief: Cloud computing still cloudy

Although it has embraced cloud computing as a technology model, the new head of software giant SAP Philippines said traditional software isn’t going away soon since not all businesses are suited and ready to jump on the bandwagon.

Darren Rushworth, newly appointed SAP managing director for the Philippines and other emerging markets in Asia (left) and Jenny Ligones, SAP Philippines country manager

This is according to Darren Rushworth, the newly appointed SAP managing director for the Philippines and other emerging markets in Asia, who said that cloud computing still has a “cloudy” future in terms of local adoption.

Rushworth, a former managing director of Oracle Philippines, explained during the press briefing announcing his new position that SAP nonetheless sees cloud computing as a growth driver for the company – but not as big as its staple ERP (enterprise resource planning) products.

“We have been doing things on the cloud through SAP Hosting or through our SAP Hosting partners,” said Rushworth, noting that the company has purchased cloud computing firms SuccessFactors and Syclo to beef up its cloud stack.

Rushworth also pointed to the fact that regulations in the banking industry – a major part of its client base – disallow cloud computing, at least for now, because of security concerns.

The executive said it is also important to emphasize that businesses should have the option to choose between on-premise software and cloud-based software.

Rushworth declared that SAP’s time as a one-product company is over, saying that half of the tech firm’s revenues now comes outside of its ERP products – its main cash cows.

He, however, said the company’s ERP business is still growing, with major contribution from SAP Business One, its slimmed down ERP version for small businesses.

Rushworth, an Australian, also said the company is planning to hike its local employee base by 60 percent this year. The software firm currently employs 40 workers in the country, although the company said it also works extensively through its local partners.