SAP Expands India Presence with Local Cloud Data Center

SAP has revealed plans to make several of its cloud solutions accessible through a local cloud data center in India starting mid-2024. This move signifies a significant development for Indian businesses, ensuring faster and more reliable access to SAP's cloud services. By hosting these solutions within the country, SAP aims to enhance user experience, improve data security, and bolster overall efficiency for enterprises operating in the Indian market. This strategic decision aligns with SAP's commitment to providing seamless, localized services to its clients, fostering a stronger digital ecosystem in India.

Due to regulatory demands impacting various SAP customer sectors, Indian businesses are turning to SAP's India-based data center to establish trust, resilience, and risk mitigation for their essential business applications. This move aims to create a secure and dependable environment in adherence to data processing and storage regulations.

Broadening the array of cloud solutions accessible in India, such as SAP S/4HANA Cloud, SAP Business Technology Platform, SAP SuccessFactors, and SAP Ariba, these offerings will now be hosted and provided to customers within India's national borders.

“Led by Hon’ble Prime Minister’s vision of Digital India, India has evolved into a vibrant digital economy. I am happy to learn that SAP is further expanding its current portfolio of software solutions to be hosted on India-based data centers,” said Mr. Ashwini Vaishnaw, Hon’ble Minister for Railways, Communication, Electronics & Information Technology.

“India is set to become the third largest economy in the world and plays a critical role in supporting SAP’s cloud strategy and momentum. SAP already touches 60 percent of India’s GDP and, by hosting our cloud solutions on an India-based data center, we will be even more uniquely positioned to help organizations across the country to transform their operations, and continue to innovate and grow in the cloud,” said Thomas Saueressig, Member of the Executive Board of SAP SE for SAP Product Engineering.

For its local India-based data center, SAP will partner and collaborate with cloud service providers impaneled by the Ministry of Electronics and Information Technology, Government of India to ensure in-country residency of business-critical and personal data.

India is already one of the fastest growing cloud markets for SAP, as well as being home to SAP’s largest R&D base outside Germany, with 15,000 employees.

“SAP has been working with customers, partners, and the Indian government for years to support the vision of a self-reliant, Digital India,” said Kulmeet Bawa, President, and managing Director, of SAP Indian Subcontinent. “India is a strategic market for SAP, and as Indian organizations continue their Cloud transformation journeys, this development will provide a vital infrastructure foundation for businesses of all sizes enabling them to develop new customer experiences, utilize more cutting-edge technologies, and scale innovation using a wide range of SAP’s cloud offerings.”

“This is a historic moment for us at SAP in India. The India-based data center is a testament to SAP’s commitment to empowering businesses with cutting-edge technology. We believe that data is the bedrock of the digital age, and this center will not only power the future but also serve as the foundation for innovation, fostering growth and transformation in the digital landscape for our customers. It will strengthen our valued partnerships, catalyzing progress across industries through a wide range of SAP’s cloud offerings. Together, we embark on endless possibilities, shaping the digital future for India’s burgeoning business landscape,” said Sindhu Gangadharan, SVP & MD, SAP Labs India and Head, of SAP User Enablement.

The news underscores SAP's global cloud success, as it became the company's leading revenue source in 2022. SAP's focus on cloud and its comprehensive business solutions empower customers to tackle critical issues, including cloud innovation, supply chain resilience, workforce readiness, and integrating sustainability into their core operations.