SAP to See Significant Revenue Growth in Cloud Division

German software company SAP SE (NYSE: SAP) is anticipated to experience continued growth in its cloud division, driven by the integration of artificial intelligence (AI). The company’s current cloud backlog, which indicates revenue expected to be generated within the next 12 months, is forecasted to increase by 20% year over year in 2024, reaching €16.4 billion. According to Visible Alpha consensus, SAP’s Non-GAAP cloud revenue is expected to rise by 25% year over year in 2024, driven by 18% growth in Software as a Service (SaaS) and Platform as a Service (PaaS) cloud revenue. SAP unveiled a restructuring initiative in January, signaling a heightened focus on growth areas such as cloud technology and AI.

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