Enterprise software company SAP plans to exit Russia entirely in the face of Moscow’s invasion of Ukraine, although it said last week that it could be possible for Russian users to run its software for years without support.
SAP has joined a long list of companies, including rival Oracle, in suspending the sale of its services and products in Russia. Since then, companies like telecom equipment maker Nokia and Goldman Sachs have left.
The German maker of business process management software is not providing support or updates to sanctioned customers, SAP Chief Financial Officer Luka Mucic told reporters, adding that the full impact of this could take time.
“There’s no magic red button that SAP can press to make these software licenses disappear from computers,” Mucic said of the products, sold as licensed software or by subscription through the cloud.
As part of its cloud shutdown, SAP has given unsanctioned companies the option to either delete their data or migrate it to a data center outside of Russia.
“Those Russian cloud customers who have chosen the migration path, we will not renew their existing cloud subscriptions,” Mucic said, adding that these contracts last on average a little over three years.
SAP’s business in Russia, where it has been operating for more than 30 years, contributes a small part of its global revenue. Its businesses in the region, including Russia, Belarus and Ukraine, account for about 1.5% of the total.
SAP said it will focus on managing the impact of his departure on more than 1,200 employees in Russia. Mucic said he would finalize the liquidation plan in the coming months.
Source: CNN Brasil
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