News break: SAP sets €29 billion revenue target for 2020

SAP sales Q4 2017Business software giant SAP has revealed that it’s targeting to achieve €28 billion — €29 billion revenue in 2020 against €23.461 billion in 2017.

SAP rival Salesforce is targeting to achieve $10 billion plus revenue by the end of 2017 from $8.39 billion in 2016.

SAP aims to achieve €8 billion — €8.5 billion revenue from cloud subscriptions and support business in 2020 as compared with cloud subscriptions and support revenue of €3.77 billion in 2017.

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The technology company has shared its revenue target for 2010 despite facing currency issues in the North America region. SAP’s Q4 revenue from Cloud and software fell 3 percent in the Americas. Cloud subscriptions and support revenue rose 7 percent.

“Only SAP continues this growth trifecta at scale with cloud, software and operating income. The record setting adoption of S/4HANA has ignited the entire SAP cloud. Customers are inventing industry next practices for the intelligent enterprise with SAP Leonardo,” said Bill McDermott, CEO of SAP SE.

SAP financials in 2017

SAP’s cloud and software revenue grew 6 percent to €3.83 billion, while software revenue rose 2 percent to €4.87 billion. Cloud subscriptions and support backlog increased 38 percent, reaching €7.5 billion at year-end.

The cloud subscriptions & support revenue and software support revenue was 63 percent of total revenue for the full year 2017, up 1 percentage points.

SAP financials in Q4 2017

SAP said its new cloud bookings grew 22 percent to €591 million. Cloud subscriptions and support revenue grew 20 percent to €995 million. Software revenue fell 5 percent to €2.06 billion. Cloud and software revenue increased 1 percent to €5.81 billion. Total revenue rose 1 percent to €6.81 billion.

SAP S/4HANA

S/4HANA adoption grew to more than 7,900 customers, up around 46 percent year over year. In the fourth quarter, approximately 1,000 additional customers signed up of which more than 40 percent were net new. Standard Chartered, Puma, Emirates Group, Unilever and Philips are the new client additions for S/4HANA in the quarter.

SAP Leonardo

The company did not reveal the customer base for SAP Leonardo, the IA solution from the software company.

Human Capital Management

SuccessFactors Employee Central, the core of SAP’s HCM offering, has more than 2,300 customers and added competitive wins in the fourth quarter including Foxconn, Akzo Nobel and Beiersdorf.

Customer Engagement and Commerce

SAP’s CEC solutions achieved strong double-digit growth in new cloud bookings. Robert Bosch and Deutsche Telekom chose Hybris this quarter.