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SAP plans to invest €20m in two new Russian cloud datacentres

SAP plans to invest €20m in two new Russian cloud datacentres

German software giant SAP announced this week that it plans to invest €20m in two Russian datacentres. The company said the investment will help to quadruple its cloud revenues over this year.

The move, first reported by local Russian newspaper Vedomosti, will see SAP invest €20m in building two new datacentres to host the company’s growing cloud services portfolio: one in Moscow, and one just outside the city.

The Russian datacentres will host the SAP cloud portfolio from public to managed cloud, as well as hybrid options.

“Russian customers can enjoy a safe transition to the cloud at their desired speed, allowing them to focus on operational excellence and benefit from the real-time capabilities of our in-memory platform, SAP HANA,” said global chief information officer and executive vice president of SAP cloud and infrastructure delivery Bjoern Goerke.

“SAP intends to attract Russian customers to its range of cloud solutions, thus giving the Russian cloud market new impetus for further dynamic growth,” he added.

The company also said it is investing in local datacentres in a bid to comply with Russian data protection requirements and attract more local companies to its platform.

Russia’s cloud services market is expected to grow over $400m this year to reach $2.6bn according to J’son & Partners Consulting, and SAP is eager to grow its cloud services as appetite among local enterprises grows.

Michael Kleinemeier, president, middle & east and Europe at SAP AG said that the company targeted Russia because it sees an increased demand for modern high-tech solutions from local companies.

“Furthermore the surroundings are great: a developed telecommunication infrastructure, and the availability of highly qualified specialists. With that I am confident that we will continue the successful development of SAP business in Russia and CIS region as well in the cloud business” Kleinemeier added.

Among emerging markets and its neighbours Russia has the highest growth rate of datacentre construction projects according to datacentre consultancy Telecoms Pricing, and much of that growth is being driven by telecom providers expanding into cloud and hosting services.