Revenue growth weak, cloud growth up 17%

by Jeremy

SAP has announced full-year financial results indicating a 1% drop in revenue to €27.338bn, with cloud revenue up 17% to €8.085bn. It did so two days after announcing a new “business transformation” service, Rise with SAP, which bundles managed cloud infrastructure and managed services into one contract and has 130 pilot customers.

Hero Image SAP Headquarters Germany Walldorf

According to the financial results statement, SAP’s flagship ERP system, S/4Hana, now has 16,000 customers.

It said around “900 SAP S/4HANA customers were added in the [fourth] quarter, taking total adoption to approximately 16,000 customers, up 16% year over year, of which more than 8,700 are life”.

“In the fourth quarter, approximately 40% of the additional customers were net new, and organizations such as L’Oréal, Shell, Schwarz IT KG (Lidl), Co-op, Unilever, s. Oliver Group, Gilead Sciences, and Saudi Aramco chose SAP S/4Hana,” it said. “Boehringer Ingelheim went live with SAP S/4Hana in 41 Countries simultaneously.

“BT Group, A. P. Møller-Mærsk, Beijing Energy, the Coca-Cola Bottling Company of Egypt and Bertelsmann also went live. A fast-growing number of companies of all sizes, such as CureVac, Zespri, Oxford University Press, The Not Company, Nippon Cargo Airlines, BMW, Atos, and I-PEX, chose SAP S/4Hana Cloud.” Christian Klein SAP’s

CEO confirmed that part of the purpose of the new Rise package is to speed up S/4Hana adoption but added that it is, in SAP’s view, fast-growing anyway. “With Rising with SAP, we are going to accelerate the adoption of S/4Hana Cloud … But we are seeing that the adoption curve is perfect… much better than previous versions of SAP,” he said.

Luka Mucic, chief financial officer at SAP, added: “S/4Hana cloud is already approaching a run rate of €800m, with 3,300 customers, of which 2,000 are life. The rate of cloud adoption against on-premises S/4Hana was at a different level to previous years, and with Rising with SAP will achieve a much different pace of adoption in a concise time frame.

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