Tag: Cost

12
Oct
2020
Posted in technology

SAP users face cost squeeze, pressure to digitalise: survey

By Douglas Busvine

BERLIN (Reuters) – The customers of software group SAP <SAPG.DE> are suffering severe declines in revenue and earnings while at the same time facing intensifying pressure to hike IT spending to go digital, a survey showed on Monday.

The poll of SAP’s German-speaking user community found that nearly three-quarters were experiencing sharp drops in revenue. At the same time, over four-fifths said the coronavirus pandemic made digital transformation a more pressing task.

“At the centre of this crisis is the need for businesses to do more with less,” said Marco Lenck, chairman of the German-speaking DSAG user group that commissioned the survey.

The DSAG, which represents 3,700 businesses, is an influential lobby that has called on SAP to make it easier to upgrade systems traditionally hosted on site to run in remote datacentres.

Such cloud hosting makes it easier for firms to scale up or pare back their business process operations in line with need. But the initial cost and difficulty of making that move deters many.

SAP’s new CEO, Christian Klein, welcomed the DSAG survey’s findings, which he said were representative of how the group’s global business was performing.

Klein told a joint briefing with the DSAG that SAP had taken on board calls to improve integration between its four main processes: sales, procurement, human resources and supply chain management.

Work on creating a common data model, user interface and consistent security and identity management in these four areas was now 57% complete, he said. By the end of the year, 90% of the job will be done.

Klein also said that, given the cost pressures that some clients were facing, for example in the airlines sector, SAP was offering flexible payment terms to help ride out the economic slump.

“We expect the transformation in the

06
Oct
2020
Posted in technology

Tencent Stock Options Cost a Fortune and Traders Love Them

(Bloomberg) — Caught off guard by Tencent Holdings Ltd.’s record-breaking rally earlier this year, Hong Kong’s stock investors are getting well prepared for the next one.

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For about two months, options traders have consistently shelled out more for bullish three-month contracts on the stock than they’re willing to pay for those protecting against losses, according to data compiled by Bloomberg. That’s kept Tencent’s so-called volatility skew below zero, an unusual quirk for a market that typically sees traders pay more for downside protection than upside speculation.

There are now almost 1.1 million outstanding options on Tencent, outnumbering those on the Hang Seng Index by more than 4-to-1. The demand for the derivatives mirrors a trend in the U.S., where volume in single-stock options exploded this year and helped underpin the rally in technology shares.

How Tech Options Juiced the U.S. Stock Market: QuickTake

The world’s eighth most valuable stock is growing revenue at its fastest pace in years, lifted by an explosion in internet activity — and mobile gaming in particular — amid China’s world-leading recovery from Covid-19. The 33% stock surge in the first half of this year plateaued after U.S. President Donald Trump signed an executive order banning U.S. entities from dealing with Tencent’s signature app WeChat.



chart: Tencent's call options are pricier than puts


© Bloomberg
Tencent’s call options are pricier than puts

Tencent has long been a market favorite because of its dominant position in China’s gaming sphere and the ubiquity of WeChat, which has become the go-to app for communications, social media and entertainment. While Alibaba Group Holding Ltd. and upstarts like ByteDance Ltd. are challenging its position, Tencent continues to serve the country’s largest user base and dominate in gaming, the most profitable class of smartphone app.

The company is set to report third quarter results on Nov. 12. Its