SAP Sees Strong Revenue Growth From APJ Cloud Adoption

by CXOtoday News Desk    Jan 27, 2016


SAP said its robust growth in Asia Pacific Japan (APJ) region for the fourth quarter and the 2015 has been driven by strong growth in cloud and software revenue. In the fourth quarter in APJ, non-IFRS cloud and software growth was 18%. Non-IFRS cloud subscriptions and support revenue in APJ grew 55%. The region saw exceptional momentum in new cloud bookings and grew in triple-digits, said the company, adding that in 2015, non-IFRS cloud and software revenue in APJ grew by 20%. Cloud subscriptions grew by 99%, it said. 

SAP highlighted that its flagship product, S/4HANA, continued to accelerate strongly, with more than 2,700 customers adopting the product by the end of 2015  more than double quarter over quarter. In the APJ region, more and more customers including Woodside Energy Limited, Hero MotoCorp, CapitaLand, Interflour Group and MEMEBOX Inc. have selected SAP S/4HANA as their digital core to drive digital transformation across the entire enterprise. 

“In Asia Pacific Japan, our cloud revenues have been growing at an increasing rate. SAP HANA, the key enabler of our portfolio, saw double-digit growth and has become the real-time data platform of choice. The combination of a fast-growing cloud business and a growing core puts us in a unique position to support customers in their journey to run simple, go digital and compete in the digital economy,” said Adaire Fox-Martin, President, SAP Asia Pacific Japan. 

SAP has also inked a deal with Lenovo that will see the two tech firms team up to develop enterprise cloud offerings in China. According to a recent TOI article, SAP is still growing faster than competitors Oracle and IBM, all of which must boost Internet-based sales to head off cloud-based rivals, Workday and’s Web services unit.

SAP showed progress in remaking itself as a supplier of cloud computing software as more customers adopted a revamped version of its main product, prompting it to boost sales and profit forecasts for next year. According to a Bloomberg report last week, the company raised the top end of its forecast for 2017 sales by 7 percent to as much as $25.5 billion, crediting increasing adoption of Internet-based software that generates more predictable revenue than software licenses.