Home » Business » How SAP’s Closure of Cloud Services in Russia Impacts 1.5 Thousand Clients and Major Companies

How SAP’s Closure of Cloud Services in Russia Impacts 1.5 Thousand Clients and Major Companies

The world’s largest supplier of business applications, the German company SAP, will close access to its cloud services to Russian clients from March 20, 2024. Users of SAP solutions in Russia received this notification from the Russian subsidiary of SAP CIS, writes RBC with a link to a copy of the letter.

In it, SAP customers were asked to download data from the cloud before a specified date to avoid information loss. SAP CIS also expressed its readiness to “conduct negotiations without delay on the early termination of the contract for cloud services.”

The German company provided Russian businesses with enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM) systems, and so on. Before the start of the war in Ukraine, SAP solutions in Russia were used by government and financial organizations, companies from the trade, logistics, industry sectors, etc.

In total, SAP in Russia had about 1.5 thousand clients, including such large companies as Russian Railways, Aeroflot, Sberbank, VTB, Alfa Bank, X5 Group, M.Video-Eldorado, almost all oil and gas, chemical and metallurgical companies.

Due to the war in Ukraine, SAP stopped entering into new contracts for the sale of services and products in Russia, and also stopped supporting clients included in the US and EU sanctions lists. Last September, the company warned the remaining Russian customers that it would cut them off from software support by December 31, 2023. Until now, only the use of cloud services remained in force.

“The company first stopped selling software, then announced the closure of the data center, inviting some clients to switch to the European data center in Amsterdam. Then the company turned off support for on-premise products. It has now been announced that they will no longer support clients who have transferred solutions to a European data center,” explained Lab SP CEO Pavel Deverlin, adding that this is the last stage of SAP’s departure from Russia.

According to him, about 30 large companies that did not find a quick replacement for SAP cloud products took advantage of the offer to switch to a data center in Amsterdam. These companies are unlikely to have time to switch from SAP solutions to Russian analogues before March 20, says Dmitry Komissarov, co-founder of New Cloud Technologies (developer of the MyOffice office software).

“The deadlines are very tight. If you start today, it will be almost impossible to make it on time. This had to be done when SAP announced the end of support for its traditional products,” Komissarov concluded.

2024-02-07 08:51:00
#Russian #business #disconnected #German #software #Russian #service #Moscow #Times

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