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SAP says cloud computing to continue to boost sales - Phys.Org

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49 minutes ago


The logo of German software giant SAP is seen in front of the company's headquarters in Walldorf, southern Germany, on October 22, 2013


German software giant SAP said on Tuesday it expects its cloud computing business to continue to boost sales in the coming years, but profit growth will slow this year.


SAP said in a statement that group sales, which totalled 16.9 billion euros ($22.9 billion) last year, would rise to "at least 20 billion euros" in 2015 and subsequently to "at least 22 billion euros" in 2017.


"We expect the combination of a stable, highly-profitable core and fast-growing cloud to deliver continued growth and margin expansion," it said.


Last year, cloud revenues beat expectations by rising to 787 million euros and were projected to rise to 0.95-1.0 billion euros this year, "around 2.0 billion euros" in 2015 and then to 3.0-3.5 billion euros in 2017.


"Based on our strong global momentum from 2013 we will accelerate the transition to the cloud," said joint chief executives Jim Hagemann and Bill McDermott.


However, the investment would put the brakes on growth in operating profit, which was projected to rise by 6.0-9.0 percent to 5.8-6.0 billion euros in 2014.


And that meant that SAP would defer its longer-term targets for .


"We are sticking to our operating margin goal of 35 percent," it said.


But "in order to capture the growth opportunities in the cloud, SAP now expects this target to be reached by 2017 rather than in 2015 as previously stated," SAP said.


"We anticipate the fast-growing cloud business along with growth in support revenue will drive a higher proportion of more predictable, recurring revenue in the future," SAP said.


Explore further: Cloud-computing boosts German software giant SAP


© 2014 AFP



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49 minutes ago


The logo of German software giant SAP is seen in front of the company's headquarters in Walldorf, southern Germany, on October 22, 2013


German software giant SAP said on Tuesday it expects its cloud computing business to continue to boost sales in the coming years, but profit growth will slow this year.


SAP said in a statement that group sales, which totalled 16.9 billion euros ($22.9 billion) last year, would rise to "at least 20 billion euros" in 2015 and subsequently to "at least 22 billion euros" in 2017.


"We expect the combination of a stable, highly-profitable core and fast-growing cloud to deliver continued growth and margin expansion," it said.


Last year, cloud revenues beat expectations by rising to 787 million euros and were projected to rise to 0.95-1.0 billion euros this year, "around 2.0 billion euros" in 2015 and then to 3.0-3.5 billion euros in 2017.


"Based on our strong global momentum from 2013 we will accelerate the transition to the cloud," said joint chief executives Jim Hagemann and Bill McDermott.


However, the investment would put the brakes on growth in operating profit, which was projected to rise by 6.0-9.0 percent to 5.8-6.0 billion euros in 2014.


And that meant that SAP would defer its longer-term targets for .


"We are sticking to our operating margin goal of 35 percent," it said.


But "in order to capture the growth opportunities in the cloud, SAP now expects this target to be reached by 2017 rather than in 2015 as previously stated," SAP said.


"We anticipate the fast-growing cloud business along with growth in support revenue will drive a higher proportion of more predictable, recurring revenue in the future," SAP said.


Explore further: Cloud-computing boosts German software giant SAP


© 2014 AFP



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Cloud-computing boosts German software giant SAP


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German software giant SAP said on Friday that cloud-computing boosted sales and earnings in the fourth quarter of 2013 and the year as a whole.



SAP confirms forecasts after 'solid' first quarter


Apr 19, 2013



German software giant SAP said Friday it is standing by its forecast fpr double-digit increases in both sales and profits this year after a "solid" first quarter.



SAP reports sales records in 2012


Jan 15, 2013



German software giant SAP said on Tuesday it achieved record sales last year, beating its full-year forecasts, even though acquisition costs hit earnings.



SAP co-CEO: Cloud computing growing strongly (Update)


Oct 21, 2013



Business software maker SAP's strong growth in cloud computing remains on track despite headwinds from a stronger euro, the co-CEO said Monday.



SAP profits up 23 percent as cloud computing grows


Oct 21, 2013



Business management software company SAP AG says net profit rose 23 percent in the third quarter as its cloud computing business grew rapidly and the company kept down costs by holding down hiring of new employees.





SAP sees 'double-digit' growth in 2013 after record 2012 (Update)


Jan 23, 2013



German software giant SAP said on Wednesday it was projecting rising sales and earnings this year thanks to new business areas such as cloud computing.



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Jan 20, 2014



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Jan 18, 2014



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