Business software powerhouse SAP said its revenue rose 8 percent to €5,375 million fuelled by 8 percent growth in Cloud and software revenue in Q3 2016.
Cloud subscriptions and support revenue of SAP grew 28 percent to €769 million.
SAP said its S/4HANA has more than 4,100 customers for their digital transformation programs.
“Strong customer adoption of the SAP portfolio is driving results beyond expectations. S/4HANA innovation cycle is the fastest in our history and is catalyzing the performance of all SAP cloud solutions,” said Bill McDermott, CEO of SAP.
SAP said its cloud business together with solid growth in support revenue continued to drive the share of more predictable revenue. The total of cloud subscriptions & support revenue and software support revenue reached 64 percent of total revenue in the third quarter 2016.
SAP is outpacing its main competitor in cloud and software revenue growth. Cloud and software revenue was €4.45 billion, an increase of 8 percent.
SAP S/4HANA and SAP HANA Cloud Platform
SAP added more than 400 SAP S/4HANA customers in the quarter, of which approximately 40 percent are net new SAP customers. HANA Cloud Platform is instrumental in the Internet of Things (IoT) revolution by providing connectivity to a large variety of devices and machines.
The customer count for SAP SuccessFactors Employee Central, which is the core of Human Capital Management offerings, exceeded 1,350 at the end of the third quarter.
SAP said its customer engagement and commerce (CEC) solution saw high double-digit year-over-year customer growth in the third quarter.
Cloud subscriptions and support revenue in the SAP Business Network segment was up 17 percent in the third quarter.
Approximately 2.4 million connected companies trade over $840 billion of commerce on the Ariba network, more than 44 million end users process travel and expenses effortlessly with Concur and customers managed over 2.8 million flexible workers in approximately 130 countries with the Fieldglass platform over the past 12 months.
SAP had a strong performance in the EMEA region, with 6 percent increase in cloud and software revenue. Cloud subscriptions and support revenue grew 34 percent. In EMEA, SAP had double-digit software licenses revenue growth in Germany, France, UK and South Africa.
In the Americas region, SAP’s cloud and software revenue rose by 9 percent and cloud subscriptions and support revenue by 24 percent. In Latin America, SAP had solid double-digit growth in software licenses revenue in Brazil and Mexico.
In the APJ region cloud and software revenue rose 13 percent, with cloud subscriptions and support revenue growing by 50 percent. In APJ, SAP had double-digit software licenses revenue growth in Japan, Malaysia and Singapore and solid software licenses revenue growth in SAP’s Greater China region.
Baburajan K
editor@infotechlead.com
