Victor Chi
Updated on: October 11, 2024 5:19 pm GMT
SAP SE recently made headlines for its proactive approach to cybersecurity while simultaneously expanding its business portfolio through a significant acquisition. In September 2024, the tech giant unveiled a series of security updates targeting vulnerabilities within its systems, demonstrating its commitment to safeguarding customer data. Concurrently, SAP announced its acquisition of the digital adoption platform WalkMe Ltd. for approximately $1.5 billion, further enhancing its offerings in digital transformation solutions.
SAP’s September Patch Day: Enhancing Cybersecurity
In an era where cyber threats are an ever-present concern, SAP’s September Patch Day targeted critical security vulnerabilities across various applications. The company released a total of nineteen new and updated security notes aimed at bolstering protection for its systems. Among these updates, one HotNews note and one High Priority note were highlighted as particularly crucial.
Critical Vulnerabilities Addressed
The HotNews Note #3479478, rated with a CVSS score of 9.8, aimed at rectifying a missing authentication check vulnerability within the SAP BusinessObjects Business Intelligence Platform. This vulnerability posed a significant risk of unauthorized access to sensitive data. Although released in August, the latest update broadened its application to Enterprise software release 420 and offered workaround solutions for users unable to implement the patch immediately.
Another notable update, the High Priority Note #3459935, addressed an information disclosure vulnerability previously identified in SAP Commerce Cloud. The patch revised its recommended fix from Release 2211.27 to Release 2211.28, ensuring that sensitive information remains protected.
Collaboration with Onapsis Research Labs
SAP’s efforts to secure its systems were bolstered by collaboration with Onapsis Research Labs, which played a key role in the identification and resolution of vulnerabilities during this patch cycle. Thomas Fritsch, the Manager of Content and Technical Research at Onapsis, highlighted the importance of these collaborations, which led to the identification of twelve issues across seven security notes.
One critical area addressed was Cross-Site Scripting vulnerabilities present in multiple applications, including eProcurement on SAP S/4HANA. These vulnerabilities, documented in SAP Security Notes #3497347 and #3501359, could have allowed cyber attackers to inject malicious scripts. By timely addressing these vulnerabilities, SAP has significantly mitigated potential security risks.
Additional Vulnerabilities and Protective Measures
Further addressing security concerns, SAP patched vulnerabilities linked to unauthorized access in its various systems. For instance, the patch for SAP Production and Revenue Accounting mitigated the risk of unauthorized users accessing sensitive information via a remote-enabled function module. Additionally, SAP Security Note #3488039 corrected six vulnerabilities in RFC-enabled function modules, preventing unauthorized user access to SAP GUI.
SAP also focused on reinforcing authorization checks in specialized systems, such as SAP for Oil & Gas. By ensuring only authorized users can modify data, SAP has enhanced the integrity of its platforms and mitigated the risk of disruption to business operations.
SAP Acquires WalkMe: Expanding Digital Transformation Solutions
Following the advancements in cybersecurity, SAP completed the acquisition of WalkMe, a digital adoption platform, for approximately $1.5 billion. This strategic move is expected to enhance SAP’s portfolio, especially in aiding clients’ digital transformation efforts.
Details of the Acquisition
The acquisition reflects a significant premium of approximately 45% over WalkMe’s closing share price as of June 4, 2024. Each outstanding share of WalkMe has converted to a right for shareholders to receive $14.00 per share in cash, subject to adjustments. Following the execution of the acquisition, WalkMe’s ordinary shares are expected to be suspended from trading as to anticipate delisting from the Nasdaq stock market.
Headquartered in Tel Aviv, Israel, WalkMe specializes in user adoption and enhancing digital transformation strategies. Its innovative Digital Adoption Platform empowers users by identifying and addressing gaps in technology adoption without necessitating code changes or modifications to existing systems.
Enhancements to SAP’s Offerings
By integrating WalkMe’s capabilities with its existing platforms, SAP aims to strengthen user support through artificial intelligence and enhance productivity for its customers. The combination of WalkMe’s e-learning features with SAP Enable Now is anticipated to serve as a foundational aspect of SAP’s people-centric transformation strategy, promoting an efficient and engaging user experience.
Additionally, this acquisition aligns with SAP’s growth strategy, particularly within its Business Transformation Management portfolio, which includes solutions like SAP LeanIX and SAP Signavio. By augmenting these offerings, SAP seeks to empower organizations to accelerate their digital transformation journeys.
SAP’s Market Performance and Future Outlook
SAP’s recent performance reflects its robust business strategies, particularly in the cloud sector. The company reported cloud revenues of €4.15 billion for the second quarter of 2024, representing a 25% increase year over year. This growth is significantly attributed to a 33% surge in Cloud ERP Suite revenues, underpinning the effectiveness of its Software-as-a-Service and Platform-as-a-Service solutions.
Looking ahead, SAP remains optimistic about the potential of artificial intelligence to further its growth. The company has made strides in generative AI for supply chain solutions and is collaborating with IBM and Amazon Web Services to unlock new opportunities across various industries. Additionally, SAP is undertaking a restructuring program that aims to align its workforce with future business needs, although it anticipates eliminating approximately 8,000 positions.
Amidst these developments, SAP’s stock performance has been promising, with shares increasing by 62.5% over the past year, significantly outpacing the growth of its sub-industry.
SAP is making security really important by updating its software and buying new companies. This helps them stay on top in the software world. They want to meet their customers’ changing needs and keep their data safe.
