SAP has reported 2nd-quarter 2021 revenue of €6.669m, down 1% on the same year-ago quarter. Cloud revenue has increased by 11% to €2.276bn, supreme over one-third of the entire, and 250 customers claimed for fresh Rise with SAP package in the quarter
Change Functions Editor
Printed: 21 Jul 2021 13: 00
SAP has reported 2nd-quarter 2021 revenue of €6.669m, down 1% on the same year-ago quarter. Its cloud revenue for the quarter has increased by 11% to €2.276bn, representing 34% of the entire.
Its flagship endeavor resource planning (ERP) product S/4 Hana attracted 600 new customers, bringing complete adoption to 17,000 customers, of which 10,100 are are residing, in step with the seller’s earnings assertion. In quarter one, it added 400 new customers, and development in quarter two is cited as 16% year over year (YoY).
SAP flagged Nationwide Building Society and Wales & West Utilities as buyer wins in the quarter.
Christian Klein, CEO of SAP, said: “We’re seeing sturdy adoption of our cloud portfolio as customers dangle SAP for their industrial transformation. Our strategy is working. Here’s the third straight quarter of sturdy execution, and we continue to elevate unparalleled buyer cost by the strength of our platform and applications.”
CFO Luka Mucic added: “This has been one other sturdy quarter with accelerating development for SAP’s cloud portfolio. We saw wonderful buyer momentum and adoption and are elevating our outlook for revenue and revenue”.
The prior quarter saw the originate of the Rise with SAP package, which is a subscription provider that packages managed cloud infrastructure and managed companies in one contract. It is a long way a formulation of bundling the entire ingredients that plot up what SAP has been calling “wise endeavor” for the past few years and making them on hand as a provider.
In the 2nd-quarter results assertion, the seller acknowledged it “closed deals with bigger than 250 customers … Natty customers comparable to AMD, Coop Switzerland, Etihad Airways, and Siemens Energy selected Rise with SAP”. Dixons Carphone modified into amongst the new Rise customers.
The SAP Change Skills Platform (SAP BTP) is also highlighted in the assertion, and described as “the muse of the Colorful Project, offering a single platform for integration and extensibility in the end of the SAP portfolio and non-SAP alternate choices, as successfully as deriving insights from records”. The platform teams SAP merchandise into one foundation for builders, and modified into publicised on the seller’s 2020 buyer convention Sapphire in 2020.
The seller said it has over 8,000 BTP customers and bigger than 4,000 partners. It reported that Hilti, Lenovo, NEC, and Renault chose SAP BTP offerings in the 2nd quarter.
SAP’s first-quarter acquisition Signavio is also highlighted in the assertion. A process mining gadget seller whose acquisition modified into bracketed with the originate of Rise with SAP in January 2021, Signavio modified into said to indulge in had “a great first fat quarter as segment of SAP’s Change Direction of Intelligence (BPI) section”.
SAP is elevating its fat-year 2021 outlook and it expects gadget licenses revenue decline for the fat year as more customers turn to the Rise with SAP subscription offering. The outlook assumes the Covid-19 crisis will originate to recede as vaccine applications roll out globally, main to extra enhancements in world inquire of in the 2nd half of 2021.
It acknowledged that it expects to receive €9.3bn to 9.5bn in cloud revenue, up 15% to 18%. The old vary modified into €9.2bn to 9.5bn.
It also drew attention to momentum in what it describes as “backlog development” for S/4 Hana delivered over the cloud. “In declare in the US, SAP expects S/4Hana cloud revenue development to vastly recede up in the 2nd half of 2021,” it said.
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