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

Ticketfly buying WillCall for on-premise data

23 hours ago

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

Aug 20, 2014

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0