Germany's SAP joins western corporate exodus from Russia


FILE PHOTO: A man walks past a SAP logo during the company's annual general meeting in Mannheim, Germany, May 15, 2019. REUTERS/Ralph Orlowski/File Photo

STOCKHOLM (Reuters) - Business software group SAP plans to exit Russia completely in response to Moscow's invasion of Ukraine, although it said on Tuesday it might be possible for Russian users to run its software for years without support.

SAP joined a long list of companies, including rival Oracle last month in halting the sale of its services and products in Russia. Firms from telecom gear maker Nokia to Goldman Sachs have since left completely.

The German maker of software for the management of business processes is not providing any support or updates to sanctioned customers, SAP Chief Financial Officer Luka Mucic told reporters on a call, adding that the full impact of this may take time.

"There is no magical red button that SAP could push to make these software licenses disappear from the computers," Mucic said of SAP's software, which is sold either as a licensed software or on a subscription basis through the cloud.

Western countries have responded to Russian invasion of Ukraine on Feb. 24 by placing sanctions on scores of companies and individuals linked to the Kremlin, which describes its actions as a "special military operation".

As part of its cloud shutdown, SAP has given non-sanctioned companies the choice to have their data deleted, sent to them, or migrated to a data centre outside Russia.

"Those Russian cloud customers who have chosen the migration path, we will not renew their existing cloud subscriptions when they come up for renewal," Mucic said, adding these contracts run for an average of slightly more than three years.

SAP's business in Russia, where it has been operating for more than 30 years, contributes only a small part of its global revenue. Its business in the region, including Russia, Belarus and Ukraine, makes up about 1.5% in total.

SAP said it will focus on managing the impact of its exit on more 1,200 employees in Russia. Mucic said it would finalise the wind down plan over the coming months.

(Reporting by Supantha Mukherjee, European Technology & Telecoms Correspondent, based in Stockholm; Editing by Alexander Smith)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Tech News

Sony accelerates PC gaming push with Inzone gear
These gadgets could make or break your next road trip
Uber, Lyft drivers switch to Teslas as high gas prices squeeze profit
Kyle Rittenhouse keeping himself in the public eye, launching anti-'Fake News' game
'You can always come up with new ways to scare people': The 'visceral' horror of 'Callisto Protocol'
Uber ex-security chief accused of hacking coverup must face fraud charges, judge rules
Pinterest CEO steps down, Google executive to take over in e-commerce push
Amazon places purchase limit on emergency contraceptive pills
Russian parliament approves tax break for issuers of digital assets
G7 to tackle cyber threats and disinformation from Russia: communique

Others Also Read