SAP Asia Pacific Japan Remains Major Growth Engine for SAP Worldwide

October 19, 2007 by SAP News 0

More than 8 New Customers each Working Day, with Strong Adoption of SAP by Region’s SMEs

SingaporeSAP Asia Pacific Japan1 continued its strong forward momentum in the third quarter of 2007, announcing yet another quarter of double-digit growth across the region.

Year-to-date, Asia Pacific Japan has been SAP’s fastest growing region, with 26 percent software revenue growth (in constant currency2) compared with the previous comparable period.

Total revenues for the third quarter in Asia Pacific grew 20 percent year-on-year (in constant currency2) to €318 million.

“SAP Asia Pacific Japan has had a tremendous year so far, with particularly dynamic growth in India, Korea and Greater China, as well as continued double digit growth in Australia and Japan,” said Geraldine McBride, President and CEO, SAP Asia Pacific Japan. “The signing of 539 new customers – more than 8 per working day, is testament to the strength of our offerings and the quality of our people in the region.

“Our customers are strongly motivated to grow their business and want to derive real value from the systems they implement – SAP directly addresses those needs by offering the best value products, developed and implemented by a very talented global team,” said McBride.

Compared with the previous comparable period, FY2007 Q3 growth in SAP Asia Pacific Japan’s software revenue grew 28 percent (in constant currency2) to €119 million. SAP’s Q3 software and software related service3 revenues grew 24 percent (in constant currency2) to €237 million. Excluding Japan, those revenues were up an impressive 30 percent.

SAP continued to gain share in the third quarter of 2007, marking the seventh consecutive quarter of market share gains. Based on software and software related service revenues on a rolling four quarter basis, SAP’s worldwide share of Core Enterprise Applications vendors4, which account for approximately $35.9 billion in software and software related service revenues as defined by the Company based on industry analyst research, increased to 27.0 percent for the four quarter period ended September 30, 2007 compared to 26.0 percent for the four quarter period ended June 30, 2007, and 23.5 percent for the four quarter period ended September 30, 2006, representing a year-over-year share gain of 3.5 percentage points.

SAP Invests in Asia Pacific Japan Customer Growth

SAP continues to invest in maintaining its leadership position in the fast growing Asia Pacific Japan region, adding 1227 full time employees in the first nine months of 2007, bringing the regional total to nearly 9000 full-time equivalent employees. Consistent with SAP’s sustained investment commitment to innovation-fueled growth, many of those new employees are working at SAP’s development labs in the region.

SAP’s sustained level of growth across the region has also fueled expansion of its award-winning Shared Services Centre in Singapore, which is now housed in larger premises, seamlessly delivering best-of-breed services to SAP employees across the entire region.

In Q3, SAP also opened it first offices in Vietnam with a presence in both Hanoi and Ho Chi Minh.

Strong Growth in SAP SME Customer Base

“With Asia Pacific’s inherent economic growth potential, SAP’s offerings continue to appeal to customers of all sizes wanting to partner with a trusted industry-leader who can help them take full advantage of opportunities in the region and beyond” continued McBride.

“Key to our success has been the continued embrace of SAP by fast-growing small and midsize enterprise organizations, all keen to compete globally.”

More than half of all new signings in the region are SME customers.”

SAP’s global SME business contributes 31 percent of SAP’s worldwide total order entry on a rolling four quarter basis. SAP’s global goal of 100,000 customers by 2010 will be underpinned by the SAP Asia Pacific Japan commitment to triple its small and midsize enterprise (SME) customer base.

SAP’s Partners Key to Asia Pacific Success

SAP’s indirect channel partners also continued to play a major part in the region’s success this quarter. Building on its commitment to empower small and midsize customers with new ways to leverage software for profitable business growth, SAP worked with its partners to roll out 16 new additions to the portfolio of qualified SAP® Business All-in-One solutions in Q3. SAP’s Powered by NetWeaver ISV partner ecosystem has continued to grow to more than 150 members. Working with SAP, they have already delivered close to 180 certified applications available for sale worldwide.





Selection of Key Customer Wins for SAP Asia Pacific in Q3 2007:

Australia

Myer Pty. Ltd. (Retail)

Australian Health & Nutrition (Consumer Products)



China

Tang Shan Iron and steel Co., Ltd. (Metal)

Shanghai Lotus Supermarket (Retail)



Hong Kong

Jing Mei Management Ltd. (Consumer Products)

Shinwa International Holdings Ltd. (High Tech & Electronics)

India

Voltas Limited (Consumer Products)

Infosys Technologies Limited (Professional Service)

Indonesia

PT Supra Boga Lestari (Ranch Market) (Retail)

PT Coca Cola Distribution Indonesia (Consumer Products)

Japan

Kao Corporation (Consumer Products)

Seirei Social Welfare Community (Healthcare)



Korea

Samsung Securities Company (Banking)

LIG Insurance (Insurance)

New Zealand

EziBuy (NZ) Ltd (Retail)

Christchurch City Council (Public Sector)



Philippines

Honda Cars Makati, Inc. (Automotive)



Singapore

Changi International Airport Services (Passenger & Cargo Services)

Tuas Power (Utilities)

Taiwan

Johnson Health Tech. Co., Ltd. (Industrial Machinery)

Gloria Solar Co., Ltd. (High Tech & Electronics)




Thailand

SCG Distribution Co. Ltd. (Wholesale)

Millennium Steel Public Company Limited (Primary Metal & Minerals)