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SAP expects revenue of $30 billion by 2017, driven by cloud |
January 21, 2014
SAP plans to increase its total revenue to at least €22 billion (US$30 billion), with revenue from its cloud business expected to grow up to €3.5 billion by 2017.The business software maker reported Tuesday that total revenue for 2013 was €16.8 billion, up 4 percent from the previous year, with revenue from its HANA in-memory database up 69 percent at constant currencies to €664 million, from its 3,000 HANA customers.The company said the fast growing cloud business and anticipated growth in support revenue will deliver more predictable, recurring revenue as it moves towards 2017. SAP, however, expects its goal for 2015 of non-IFRS (International Financial Reporting Standards) operating margin of 35 percent to be now delayed to 2017 as it spends on taking advantage of growth opportunities in the cloud market.For the fourth quarter, SAP’s revenue was €5.1 billion, up 2 percent from the same quarter last year, while net profit grew 20 percent to €1.3 billion under IFRS. The company saw a 2 percent drop in software revenue to about €1.9 billion, but cloud subscriptions and support revenue grew at a scorching 66 percent to €209 million, indicating a gradual shift in the company’s revenue mix.To read this article in full or to leave a comment, please click here
Link: http://www.pcworld.com/article/2089700/sap-expects-revenue-of-30-billion-by-2017-driven-by-cloud.html#tk.rss_all
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