Cost of Revenue Trends: SAP SE vs Telefonaktiebolaget LM Ericsson (publ)

Cost of Revenue: A Tale of Two Giants

In the ever-evolving landscape of global telecommunications and enterprise software, SAP SE and Telefonaktiebolaget LM Ericsson (publ) stand as titans. From 2014 to 2023, these industry leaders have showcased distinct cost of revenue trends. SAP SE, a powerhouse in enterprise software, saw its cost of revenue grow by approximately 63%, peaking in 2022. Meanwhile, Ericsson, a stalwart in telecommunications, experienced a more modest 11% increase over the same period, with a notable dip in 2021. This divergence highlights the contrasting business models and market dynamics each company faces. SAP's steady climb reflects its expanding software solutions, while Ericsson's fluctuations underscore the challenges in telecom infrastructure. As we look to the future, these trends offer a window into the strategic priorities and market pressures shaping these global giants.