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SAP AG (SAP) Announces Plans for $2B Investment in China

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November 15, 2011 6:55 AM EST
SAP AG (NYSE: SAP) today announced multi-year spending plans of more than $2 billion through 2015 to grow its business in China.

The company intends to deepen its investment in this key global market in order to further underscore its long-term strategic commitment to the world's second-largest economy.

From the release:

To position its business for continued growth in China, SAP expects its spending and investment to occur in the following key dimensions:
  • Creating Solutions: Innovating for the benefit of customers will further drive alignment between SAP and Sybase in China. SAP Labs in China will be the primary innovation center for the development of new solutions tailored to meet country requirements.

  • Delivering Solutions: Growing the business in China will require a significant increase in market presence. To bring services and support closer to its customers, SAP aims to hire approximately 2,000 people through 2015, open five to six new offices across the country and scale all support functions appropriately.

  • Supporting Solutions: Investing in the services and support functions that deliver value and drive co-innovation are critical to meeting growth objectives. The SAP® Active Global Support (SAP AGS) organization has already taken steps to specifically address the needs of companies operating in the Chinese market. SAP will scale SAP AGS and the SAP Services organization to support growth.

  • Growing the IT Ecosystem: SAP's success stems from the ability to nurture, educate and grow an ecosystem to meet customer needs, particularly in the small and midsize (SME) market. Building mutually beneficial relationships with both traditional and non-traditional partners — from systems integrators to banks and telecommunications companies — will support SAP in exponentially expanding its reach. SAP's experience in China shows that when the company invests, its local and global partners also invest. In this way, SAP's investments create a significant multiplier effect across the entire Chinese IT ecosystem.

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