SAP Asia Pacific Japan Reports Double-Digit Q1 2007 Growth

April 30, 2007 by SAP News 0

SAP Customer and Partner Ecosystems Continue to Grow in Asia Pacific and Japan

New Zealand

SAP Asia Pacific Japan today announced it once again achieved double-digit year-on-year quarterly growth with Asia Pacific Japan first quarter 2007 software revenue growing 16 percent in constant currency to €77 million (USD$105 million). Asia Pacific Japan Q1 2007 software and software related service revenues grew 10 percent on a constant currency basis to €197 million (USD$269 million). Total revenues in Asia Pacific grew 11 percent year-on-year in constant currency to €267 million (USD$364 million).

“SAP New Zealand has once again beaten the market with double-digit software licence growth,” said Ian Black, managing director, SAP New Zealand. “Our organic growth strategy has been proven as the best and most customer-centric way to rapidly accelerate and transform our business. And the New Zealand business is one of the growth leaders in the region.”

SAP’s Global Core Enterprise Application Software market share† increased 2.4 percentage points during Q1 2007 as customers repeatedly chose SAP over competitor offerings. In Asia Pacific, leading analyst firms have also confirmed SAP’s market share leadership. More than 350 new customers selected SAP solutions in Asia Pacific and Japan in Q1 2007 — equivalent to nearly five new customers every working day.

Enterprise SOA in APJ Today

More than 1,000 customers have gone live on SAP™ ERP 2005 since its launch – the fastest adoption rate of an ERP release in the Company’s history – as their stepping stone to enterprise service-oriented architecture (SOA). In Q1 2007, SAP Asia Pacific Japan helped to fuel that growth with more than 80 customers upgrading to the latest release of SAP’s enterprise resource planning (ERP) application. There are now more than 8,500 customers on SAP ERP, more than 1,000 of which are in Asia Pacific and Japan.

“We are right on schedule with our roadmap to deliver the entire SAP Business Suite on the Business Process Platform (BPP) by the end of this year and we expect to continue to bring additional enterprise services to market throughout the year on top of the 1,000 already delivered,” said Mr Black. “We are the only business application software company offering a fully integrated enterprise solution suite on top of a Java-based, open platform today. Customers looking for enterprise SOA today come to SAP, which is why we saw more than 100 percent growth in SAP NetWeaver® sales in the region in Q1 2007 including signing the first NetWeaver Master Data Management customer in New Zealand.”

Power of the Portfolio

The first quarter of 2007 further accelerated SAP Asia Pacific Japan’s success serving small and midsize enterprises (SME) in the region, with revenues growing 2.5 times the overall SME software market. The SME business unit of SAP Asia Pacific Japan contributed nearly 50 percent of SAP’s revenue in the region. There are now more than 5,300 SAP SME customers in Asia Pacific and Japan, with more than 10 SME deals per working day added in the first quarter of 2007 alone. This is only expected to increase as customers continue to take advantage of the next version of SAP® All-in-One solutions as part of the Company’s expanding portfolio of SAP and SAP-certified partner solutions.

Safe Passage

A growing list of companies in Asia Pacific are making use of the SAP Safe Passage program to migrate away from the uncertainties arising out of Oracle’s acquisition of PeopleSoft, JD Edwards, Siebel and Retek. Globally, nearly 550 customers have taken advantage of the program, with more than 30 customers in Asia Pacific, of which six were in the first quarter of 2007 alone.

A forward-thinking Safe Passage customer making the decision to migrate from Oracle to SAP solutions in Q1 was Philippines-headquartered leading milk producer, Alaska Milk Corporation. “In order to further expand our leadership in the milk industry, we needed a solution that was built on a proven open and flexible platform. We also wanted to provide our distributors with solutions that would meet their needs, while still seamlessly interfacing with our enterprise systems. SAP ERP on SAP NetWeaver and SAP® Business One meet these criteria. After an extensive evaluation, we felt it was the right decision to move from our legacy client server-based Oracle technology to service-enabled SAP solutions,” said Wilfred Steven Uytengsu, President and Chief Operating Officer of Alaska Milk Corporation.

About Safe Passage

Safe Passage programs from SAP are comprehensive offerings from SAP addressing the concerns of Oracle customers of all sizes facing the uncertainties of the end of life of Oracle, PeopleSoft, JD Edwards, Siebel and Retek solutions. The elements of Safe Passage programs include: access to SAP’s best-in-class enterprise resource planning (ERP) and other market-leading solutions; financial protection for a customer’s existing investment in Oracle EBS, PeopleSoft, JD Edwards, Siebel Systems and Retek; SAP Financing options; immediate integration benefits through the SAP NetWeaver® platform; and migration support services. In addition, third-party maintenance for certain PeopleSoft and JD Edwards solutions is available through SAP subsidiary TomorrowNow and SAP’s network of channel partners focused on small and midsize enterprises. For more information, please visit www.sap.com/safepassage.

† Based on software and software related service revenues on a rolling four quarter basis, SAP’s worldwide share of Core Enterprise Applications vendors, which account for approximately $34.8 billion in software and software related service revenues as defined by the Company based on industry analyst research, increased to 25.1 percent for the four quarter period ended March 31, 2007 compared to 24.5 percent for the four quarter period ended December 31, 2006. Compared to the four quarter period ended March 31, 2006, the year-over-year share gain was 2.4 percentage points.

In the first quarter of 2007, the Company began using software and software related service revenues for defining Core Enterprise Application Vendor Share because the Company believes that this is the most important indicator for vendor share oriented analysis with the realignment of its income statement structure. Prior to the first quarter of 2007, the Company had been using software revenues for defining Core Enterprise Application Vendor Share.

The Company provides share data based on the vendors of Core Enterprise Applications solutions, which account for approximately $34.8 billion in software and software related service revenues as defined by the Company based on industry analyst research. For 2007, industry analysts project approximately 7 percent year-on-year growth for core Enterprise Applications vendors. For its quarterly share calculation, SAP assumes that this approximate 7 percent growth will not be linear throughout the year. Instead, quarterly adjustments are made based on the financial performance of a subset (approximately 25) of Core Enterprise Application vendors.