Strong Growth in Cloud and SAP HANA
SINGAPORE — SAP SE (NYSE: SAP) full-year earnings posted strong 59% growth year-over-year in non-IFRS cloud subscriptions and support revenue (60% at constant currencies) in Asia Pacific Japan (APJ) in 2014, driven by a strong demand for the SAP Cloud portfolio and the SAP HANA platform. Non-IFRS cloud subscriptions and support revenue also grew 98% year-over-year (87% at constant currencies) in Q4 across APJ.
SAP’s solid performance for the year in APJ reflected robust migration of existing and new customers to SAP Cloud and strength in its core SAP HANA and Analytics businesses. India delivered strong double-digit software revenue growth in Q4. The company also continued to see broad adoption of SAP HANA across industries and use cases in APJ. Non-IFRS software and software-related service revenue grew 6% (2% at constant currencies) in Q4.
“Our strategy over the longer term is to have new and existing customers operating on the SAP HANA platform,” said Adaire Fox-Martin, President of SAP APJ. “We’ll continue to focus on our customer in everything that we do, and we have a duty to help them run better, run simple in the SAP Cloud powered by SAP HANA.”
The rise of e-commerce in the region is also boosting demand for omni-channel commerce solutions from hybris and cloud-based procurement and trading network from Ariba. Both hybris and Ariba are SAP companies. Increased demand for the SAP HANA platform was reflected in accelerated growth for SAP Business Suite powered by SAP HANA.
SAP acquired hybris in 2013 and the company officially became part of SAP from January 1, 2015. hybris was named as a Leader in Gartner’s latest ‘Magic Quadrant for Digital Commerce’ in late September, reflecting the strengthening of its position in the e-commerce market through 2014.
“What we’re seeing here is continued growth in customer interest and take-up in SAP Cloud and SAP HANA, which will bode well for 2015,” said Fox-Martin. “SAP will continue to catalyze a transformation that will lead to a Hyperconnected Asia. It is a fusion of the Internet of Things in various industries. Businesses will tap new customers and be more connected to communities through new networks.”
SAP customer highlights in the fourth quarter across APJ:
- Toll Group, Australia’s leading mover of freight, has licensed SAP Simple Finance, the Ariba Network and contingent-labour management solution SAP Fieldglass. “This is a key development for Toll in establishing itself as a flexible, customer focused organization,” said Toll Group Chief Financial Officer Grant Devonport. “This system is a key to improving efficiencies and reducing IT complexity as we replace multiple existing legacy systems with an up-to-date and best in class solution.”
- SMRT is Singapore’s first and leading multi-modal transport service provider that has been running the SAP ERP software since 2000 and is upgrading to the SAP Business Suite on HANA platform. With Suite on HANA, SMRT is able to build capabilities for predictive maintenance and operational excellence that will assist the company to prioritize safety, service reliability and customer satisfaction.
- Philippine Geothermal Production Company, which operates steam fields that produce geothermal energy, selected Ariba Procure-to-Pay and Contract Management solutions in their transition to a joint venture between All-First Equity Holdings, Inc. and Chevron. Ariba Network and Procurement solutions will assist them to consistently drive compliance, maintain and enhance contract visibility and buying in the organization.
- Meghna Group of Industries (MGI) in Bangladesh operates in 30 different industries and has more than 15,000 employees, 3,000 distributors and 1,000 suppliers under its umbrella. By implementing SAP Business Suite powered by SAP HANA, they will be able to leverage data and insights to assist them in making real-time business decisions. HANA provides a seamless development environment that minimizes infrastructure, and provides opportunity to scale up. With HANA Enterprise Cloud, MGI is able to deploy approximately 66% faster than any conventional model.
- Viacom 18 Media Pvt. Ltd. In India, a 50/50 joint venture operation between Viacom, Inc. and Network18 Group, operates six general entertainment channels, a film business and a consumer products division. Viacom 18 chose SAP SuccessFactors over Oracle to provide a robust HCM solution. With reliable and easy to use reporting and analytics and with its intuitive interface and robust functionality, SuccessFactors HCM solution will help Viacom instil a performance-based work culture.
- As Wipro continues on its own digital journey, SAP serves as a strategic platform of choice at Wipro. Like most of its innovative customers, Wipro simplifies, optimizes and digitizes its global business practices, increase productivity for providing superior customer experience. SAP Business Suite on HANA and full suite of SAP BI will assist in providing a strong platform for Wipro to rapidly prototype new innovative business models and add real-time insights for decision making.
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