SAP’s cloud subscriptions and support revenue rose from $7.7 billion in 2019 to $10.6 billion in 2021. Trefis expects the metric to grow to about $14 billion by 2023.
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We expect growth to be driven by an increasing pivot of SAP customers to its cloud offering. Moreover, the cloud-based model essentially bundles software with the back-end IT infrastructure and this could also help SAP capture more value.
We value SAP at $147 per share, about 60% ahead of the current market price.
|S&P 500 Return||1%||-20%||71%|
|Trefis Multi-Strategy Portfolio||3%||-25%||200%|
 Month-to-date and year-to-date as of 7/5/2022
 Cumulative total returns since the end of 2016