Cloud business could hit SAP targets

SAP's SuccessFactors business has added costs to the vendor's balance sheet and had an impact on profitability

The Q2 numbers might well have talked of significant cloud growth and a business going in the right direction but SAP appears to be preparing the ground for slight disappointment before it has to deliver another set of results.

According to reports in the German press the vendor has indicated internally to staff that its first half operating profit was $2.3bn and if the business kept performing at the current level it would miss its final year target.

The finger of blame for the situation was pointed at SuccessFactors, the cloud business, which has cost in terms of setting it up and getting the technology right as well as the lag it will take for profits to come through from that division.

Although the Q2 numbers showed stellar growth by SuccessFactors the starting base was low and the demand for cloud is still emerging.

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