Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

SAP's revenue mix is slowly shifting to cloud, preliminary figures show

SAP expects to report a 2 percent rise in Q4 revenue, with the propoertion from cloud subscriptions and support up 66 percent

Article comments

SAP's business is gradually shifting to the SaaS (software as a service) model while sales of its Hana in-memory database platform continue to grow quickly, according to preliminary fourth-quarter and year-end results the company released Friday.

Software revenue for the quarter ended Dec. 31 fell 2 percent on an IFRS (international financial reporting standards) basis to €1.9 billion (US$2.58 billion), while cloud subscriptions and support jumped 66 percent to €209 million ($284 million), SAP said.

Software and related services revenue, which includes the lucrative annual maintenance payments on-premises software customers make to SAP, rose 3 percent to €4.37 billion ($5.94 billion).

Total revenue for the quarter was up 2 percent to €5.1 billion ($6.9 billion), while operating profit grew 13 percent to €1.8 billion ($2.4 billion).

For the full year, revenue grew 4 percent to €16.81 billion ($22.86 billion), while operating profit rose 10 percent to €4.47 billion ($6.07 billion), SAP said.

SAP's co-CEOs hailed the results in a prepared statement.

"We are one of the few global tech companies that has successfully managed the transition to the cloud while growing our core business and improving our profitability at the same time," said Bill McDermott and Jim Hagemann Snabe . The latter will be stepping down this year.

Hana revenues served as "a major growth engine" in SAP's fiscal 2013, rising 69 percent to €664 million ($903 million), the company said. Customers are "showing strong interest" in running their SAP Business Suite implementations on Hana, as well as on SAP's Hana-powered hosting service, according to the company.

SAP is hoping to convince customers that have long used Oracle's database underneath Business Suite to switch over to Hana, but must contend with a looming Oracle database upgrade cycle as well as an upcoming in-memory option for the rival product.

Databases serve as an anchor for applications vendors, given they can not only support the company's packaged products but also bespoke applications customers might build to fit a specialized business need, making the task of shifting to an alternative that much more difficult.

Friday's preliminary earnings announcement didn't mention any notable wins for Hana over Oracle's database, but more details could come with the finalized fourth-quarter and year-end results on Jan. 21.



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *