SAP Asia Pacific Reports Double-Digit Q3 Growth

Enterprises Continue to Choose Asia Pacific’s First Services Enabled Applications Suite

SingaporeSAP Asia Pacific today announced it achieved strong growth in Q3 with Asia Pacific Q306 software revenue, including Japan, growing 28 percent year-on-year on a constant currency basis to €98 million. Asia Pacific Q306 total revenue, including Japan, grew 19 percent in constant currency to €274 million. Software revenues in Japan increased 65 percent on a constant currency basis to €39 million.

The signing of more than 450 customers, more than seven new customers per working day, was complemented by increased customer satisfaction, customer retention, competitor replacements, and competitive wins from customers of all sizes, across all key industry sectors.

“SAP Asia Pacific has had a great year so far with double-digit growth, nearly 1250 new customers and continued expanded market share leadership,” said Hans-Peter Klaey, President and CEO, SAP Asia Pacific. “In Q3, our win rate against our competitors increased further as customers increasingly realized the benefits of our continuous software innovation. More than twenty customers have also already taken advantage of our Safe Passage program in the region, including Fields Corporation in Q3.”

Vendor of Choice in Asia Pacific

The world’s leading high technology industry analyst firms recently validated SAP’s leadership in all key enterprise application categories in APA (see Gartner and IDC releases) as well as in the majority of industry verticals. This market share leadership is expected to continue growing as customers are set to receive a continuous stream of innovation through SAP enhancement packages with mySAP™ ERP 2005 the “go-to” release until 2010. Customers in the region now have more innovative solutions to leverage for their business as well with the launch of the SAP® Solutions for Governance, Risk and Compliance (GRC) solution, SAP® CRM on demand and Duet™, our joint offering with Microsoft. SAP is already seeing significant interest for all three from enterprises throughout Asia Pacific.

Investing for Future Business Success in Asia Pacific

SAP Asia Pacific continues to invest in organic growth and added nearly 1,300 full time equivalent people in the region so far in 2006, a 25 percent growth in headcount. With SAP’s sustained commitment to innovation-fueled growth, spending 13 percent of its global revenue on R&D, many of those employees were added at SAP Labs in the region. Wholly-owned subsidiary TomorrowNow expanded its Asia Pacific presence, as well, by adding an office in Sydney.

Advancing Towards 100,000 Customers By 2010

As part of SAP’s goal to reach 100,000 customers by 2010, SAP Asia Pacific has strengthened its offering and reach into the small and midsize enterprise (SME) customer market. The SME market already contributes more than 50 percent of SAP’s total software revenue in Asia Pacific. In the small and midsize enterprise segment served by SAP’s channel partners, APA saw more than a 30 percent increase in software revenue year-on-year in Q3 due, in part, to an approximately 25 percent growth in channel capacity.

Building upon a growing portfolio of industry-specific small and midsize enterprise (SME) solutions, the SAP Asia Pacific SME Solution Center, powered by SAP Best Practices continues to deliver enhanced solutions in the region. Since its launch at the beginning of the year, 600 mySAP™ All-in-One ERP/Industry Packages have been delivered in 9 countries.

In Q3, SAP Asia Pacific also announced new enhancements to SAP PartnerEdge™, its innovative channel partner program, at a three-city signing ceremony with channel partners throughout the Asia Pacific region. The enhanced SAP PartnerEdge program makes it easier and more enticing for partners to do business with SAP and further aligns SAP and its partners towards the long-term satisfaction of SME customers.

SAP NetWeaver: Enterprise SOA Today
Globally, by the end of the year, SAP expects SAP NetWeaver™ sales to have increased by 50 percent over 2005 driven in large part by the development of new solutions on the platform, such as those funded by SAP’s newly announced $125 million global SAP NetWeaver Fund. In Asia Pacific, Q3 saw sustained adoption of SAP NetWeaver, with 40 new deals across
the region. The SAP business intelligence (BI) accelerator and SAP® Discovery System software for enterprise service-oriented architecture have already seen rising customer adoption in the few short months since their availability in Asia Pacific. The high interest in SAP NetWeaver increased further with the more than 4,000 attendees at 16 Technology Tour events around the region and TechEd in Japan. The events also helped SAP Asia Pacific’s swell its SDN membership to over 120,000 in Asia Pacific, and add 16,000 members to the newly formed Business Process Expert community (www.bpx.sap.com).

Selection of Key Customer Wins for SAP Asia Pacific in Q3 2006:


AGL Corporate Services Pty Ltd (Utilities)

Cambridge Technologies (High Technology)


Wumart Group (Retail) (see separate release)

Yadong Investment Holding Co., LTD (Building Materials)

Hong Kong

Ching Fung Apparel Accessories (Retail)

Gordon C & Co (Consumer Products)


IndiaBulls Financial Services Ltd (Financial Services)

Edwards Lifesciences (India) Pvt. Ltd. (Lifesciences)


Nippon Indosari Corporation (Consumer Products)
Supra Primatama Nusantara


Fields Corporation (Retail)

NGK Spark Plug Co., Ltd. (Automotive)


Korea Exchange (Financial Services)

LG Mgmt. Dev. Institute (Higher Education)


Multimedia Development Corp (Public Sector)

Fuji Electric (Malaysia) Sdn Bhd (High Tech)

New Zealand

Postie Plus Limited (Retail)

Telco Asset Management Ltd (Service Provider)


PNOC – Exploration Corporation (Oil & Gas)

NGL Pacific Ltd. (Service Provider)


Omni Industries Holdings Pte Ltd (Chemicals)

Republic Polytechnic (Higher Education)


LITE-ON Technology Corp. (High Technology)

J.C.Grand Corporation (Consumer Products)


Iwk Packaging Machinery Limited (Retail)