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SAP reports enterprise cloud revenues up 41%

SAP saw its enterprise cloud revenues jump 41% year-over-year, and CEO Bill McDermott told investors that the company is “accelerating our shift to the cloud.”

SAP reported that it now has more than 1.6 million companies using its systems for almost $600 billion in commerce, translating to more than 44 million cloud users; as well as more than 4,100 customers for its HANA solution.

Software and service revenue related to software grew 7%. CFO Luka Mucic said that SAP’s orders for new business in the cloud was more than one-third of the software license revenue for the third quarter and that SAP again is raising its cloud outlook.

SAP now has an annual cloud revenue rate of $1.7 billion. The company said that on a non-International Financial Reporting Standards basis, its cloud billings were up 51%, although currency rates were highly influential – the rate of growth was 27% if currencies were held constant.

In specific areas of its business SAP said that its omni-channel e-commerce platform along with its Cloud for Sales offering had another quarter of triple-digit growth. Its HANA in-memory data platform for real-time analytics and app development “saw continued broad adoption,” according to a company statement. SAP noted that more than 1,600 start-up companies are building applications on HANA.

In regional terms, SAP said that it saw non-IFRS cloud support and subscriptions grow 59% in Europe, the Middle East and Africa, while software and software-related service revenue up 8% in EMEA. Performance in Latin America was mixed, the company said, due to execution issues as well as “a more difficult macro and political environment,” particularly in Brazil and Argentina. Non-IFRS cloud growth there was 34%, while the software side was up 5%.

SAP noted that it saw a turnaround in its Japanese business, with 10% software growth and cloud revenues up 56% at constant currencies.

 

ABOUT AUTHOR

Kelly Hill
Kelly Hill
Kelly reports on network test and measurement, as well as the use of big data and analytics. She first covered the wireless industry for RCR Wireless News in 2005, focusing on carriers and mobile virtual network operators, then took a few years’ hiatus and returned to RCR Wireless News to write about heterogeneous networks and network infrastructure. Kelly is an Ohio native with a masters degree in journalism from the University of California, Berkeley, where she focused on science writing and multimedia. She has written for the San Francisco Chronicle, The Oregonian and The Canton Repository. Follow her on Twitter: @khillrcr