Cloud Computing Growth Pushes Business Management Software Company SAP AG’s Profits Up 23%
Growth in its cloud computing operations has pushed German business management software company SAP AG’s profits up by 23%. A statement by Werner Brandt, the company’s Chief Financial Officer, suggested the company has had a strong third quarter performance in 2013 despite currency exchange rate shifts that impacted its revenue. The company’s ability to reduce the number of new staff hired during the period also contributed to it growth.
Walldorf, Germany-based SAP saw revenues increase 2% to $US5.53 billion euros and net profits increase to 762 million euros ($1.036 billion). The company saw revenue from cloud computing increase 300% from 63 million euros to 191 million euros and suggested it expects cloud computing to generate revenue of 1 billion euros by the end of the year. It also aims to generate 2 billion euros a year by the end of 2015.
Although SAP's cloud computing activity was not as great as its more traditional revenue source of selling on-site software that helps business manage their business functions, it still represented a significant component of the company’s growth. Jim Hagemann Snabe, the company’s joint CEO suggested growth in cloud computing represented a "fundamental transition" within the computer industry.
Do you know of any other companies that are reporting significant revenues generated in the cloud? Let us know the details. Add your comments below.
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