SAP Boosts Cloud Revenue by 27% – Analysts See Transformation Success

SAP recorded cloud revenue growth of 27 percent, according to an analysis by SeekingAlpha from July 9, 2026. The transformation of the Walldorf software company to a cloud provider is accelerating, and the order backlog for cloud services continues to grow.

The shift from traditional software licenses to cloud business – where customers access software as a service over the internet and pay recurring fees – is one of SAP's central strategic priorities. The 27 percent growth in the cloud sector significantly exceeds overall market growth and shows, according to the SeekingAlpha analysis, that the transformation is taking effect.

Analysts See Restructuring Strategy on Track

Analysts rated SAP in the July 9, 2026 study with "Strong Buy". The assessment is based on cloud growth dynamics and rising order backlog, which signals revenue potential for upcoming quarters. The cloud business generates recurring revenue and is considered more profitable than the traditional licensing model once the transition phase is complete.

SAP competes in the cloud sector with providers such as Oracle, Salesforce, and Microsoft. The company focuses primarily on its ERP software (Enterprise Resource Planning) – systems for managing business processes such as accounting, procurement, and inventory management – which is increasingly being marketed as a cloud version.

Strategic Partnership with Nokia and Microsoft

On June 30, 2026, Nokia, SAP, and Microsoft announced a multi-year strategic agreement. The cooperation aims at developing cloud- and AI-driven business solutions. The companies did not provide details on the specific design and financial volume of the agreement in their announcement.

The partnership fits into SAP's strategy to more strongly integrate AI capabilities into its own applications. Companies increasingly use artificial intelligence to automate business processes, analyze data, and support decision-making. SAP positions itself with such partnerships as a provider of integrated cloud and AI platforms for enterprise customers.

Further Contract Underscores Market Position

On June 25, 2026, The Magnum Ice Cream Company announced that it had selected six technology partners to build an independent IT infrastructure. Accenture takes on the implementation of enterprise applications, including solutions from SAP. The contract is part of the planned elimination of Transitional Service Agreements (TSA) with Unilever by the end of 2027.

Such major projects show that SAP remains established in the market for mission-critical software despite increasing cloud competition. The integration of cloud services, AI capabilities, and traditional ERP systems will likely be crucial in the future to retain existing customers and win new ones.