Business software group SAP plans to streamline its hardware infrastructure while holding research development costs steady.
The measures, announced at SAP’s capital markets day, are aimed at helping the Germany-based technology firm fulfil its promise of expanding profit margins by 5 percentage points through 2023.
Luka Mucic, finance chief, said SAP will reduce the number of stacks, or infrastructure such as servers and components that SAP has accumulated through multiple acquisitions.
SAP said the budget for research and development will remain steady at 14 percent of revenue.
The company will cut management costs and the number of its suppliers.
SAP’s new co-CEOs Jennifer Morgan and Christian Klein have attended the capital markets day. Jennifer Morgan and Christian Klein have taken over from Bill McDermott, who is leaving to head ServiceNow. Bill McDermott launched the efficiency drive to expand profit margins.