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

Oct 21, 2013 by David Mchugh

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's revenue from cloud computing—where companies use software based at servers instead of at their own offices—more than tripled in the third quarter, to 191 million euros ($261 million) from 63 million euros a year earlier. The business is smaller than SAP's older business installing and servicing software at companies. But the cloud part of the business is showing much faster growth.

"We said we'd be the cloud company," Bill McDermott told the Associated Press on Monday, emphasizing the word "the." ''We are the fastest growing cloud story in the enterprise software world."

SAP AG, headquartered in Walldorf, Germany, said net profit rose 23 percent to 762 million euros as revenue rose 2 percent to 4.045 billion euros. Net profit grew faster than top-line revenues in part because the company held down costs by restraining new hires. It had 66,061 fulltime workers at the end of the quarter, up only 380 from a year ago once businesses the company has acquired were discounted.

The company's shares rose 5.3 percent to 56.32 euros in late afternoon trading in Europe.

Revenue from the company's older, on-site software business slipped 5 percent to 975 million euros—but grew 2 percent when excluding the impact of exchange rate shifts. The company stayed with its forecast for sales and profit for the full year.

"The euro is unbelievably strong and there's nothing operationally that we could do about that," McDermott said.

Explore further: SAP profits up 23 percent as cloud computing grows

not rated yet
add to favorites email to friend print save as pdf

Related Stories

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 profit up 10 percent in second quarter

Jul 18, 2013

(AP)—Business software maker SAP AG said net profit grew 10 percent in the second quarter to 724 million euros ($948 million) despite the economic slowdown in Asia.

SAP sales rise, company boosts outlook

Oct 24, 2012

(AP)—Business software maker SAP AG saw its third quarter profit fall from a year ago because of a large one-time gain booked then, but the company raised its sales outlook for the year and said its business in cloud computing ...

Recommended for you

Amazon, Simon & Schuster sign book retail deal

5 hours ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

Facebook sues law firms, claims fraud

16 hours ago

Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

IBM 3Q disappoints as it sheds 'empty calories'

16 hours ago

IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile ...

User comments : 0