SAP Q3 2021: Cloud year-on-year revenue up one-fifth, S/4 Hana adoption regular

SAP’s third quarter 2021 confirmed 20% year-on-year boost in cloud revenue and regular, incremental boost in S/4 Hana adoption

Brian McKenna

Brian McKenna,
Commercial Applications Editor

Printed: 21 Oct 2021 14: 49

SAP has reported third-quarter 2021 revenue of €6.845bn, up 5% on the equivalent quarter closing year. Its cloud revenue for the quarter increased by one-fifth to €2.386bn, representing 35% of the overall, up 1% as a half, on the previous quarter.

The provider talked about it detected persisted stable request and adoption of its “Rise with SAP” kit, a subscription provider that applications managed cloud infrastructure and managed companies and products in one contract. It’s a approach of bundling the overall ingredients that design up what SAP has been calling “incandescent enterprise” for the previous few years and making them on hand as a provider.

SAP talked about that as “more prospects adopt this holistic subscription offering, tool licences revenue lowered as anticipated”.

Christian Klein, chief govt officer at SAP, talked about: “Our approach is clearly working. Possibilities are selecting SAP for his or her enterprise transformation in the cloud. We seek for file adoption of our applications and our platform. This has resulted in stable acceleration of our cloud boost.”

CFO Luka Mucic added: “This has been an beautiful quarter all over all key monetary metrics. We’re seeing sustained, stable development in SAP’s transformation. Our cloud enterprise is rising at an accelerating trip and has ended in our improved fleshy-year outlook.”

The firm highlighted the Rise with SAP provider in its statement. “This persisted to mark traction after a a success delivery in January,” it talked about. “SAP noticed stable request from companies of all sizes and closed gives with more than 300 prospects in the third quarter. Sizable prospects honest like Asda Stores and EG Workforce chosen ‘Rise with SAP’. Additional wins included Cirque du Soleil, Philips Domestic Appliances Netherlands, HCL, Röhm, Etihad Water and Electrical energy, Tate & Lyle Americas, KTM Fahrrad, Ingram Micro and Sky Italia.”

The firm reported that 500 more prospects had signed up to its flagship ERP arrangement S/4 Hana, taking the overall to 17,500 prospects, 11,400 of whom are live. In the previous quarter, it added 600 contemporary prospects for S/4. Development in Q3 modified into eminent to be 16% year on year, which is in preserving with closing quarter’s boost.

The SAP Commercial Technology Platform (SAP BTP) modified into furthermore highlighted in the statement. The platform groups SAP products into one basis for developers, and modified into publicised at the provider’s customer conference, Sapphire, in 2020. The Q3 statement talked about its provision of a single platform for integration and extensibility all around the SAP portfolio and non-SAP solutions.

The provider referred to customer wins that it considers “key”. These included Continental, Adidas, Bayer, Robert Bosch, the US Department of Defense, Siemens Vitality, the College of Florida, VMware, the Soccer Association, FAW-Volkswagen Automotive and the Of us’s Insurance protection Company of China (PICC).

It furthermore highlighted a closer relationship with Google Cloud. Google has been positioning itself over the previous year or two because the public cloud provider of selection for SAP prospects, edging out Microsoft Azure.

This monetary year, the provider has opted to fabricate traders with what it calls more “transparency on the transition of its core ERP enterprise to the cloud”. In the statement, it talked about that in Q3, the S/4 Hana recent cloud backlog modified into up 60% to €1.28bn year on year, and that cloud revenue boost for the ERP arrangement in preserving with SAP’s in-reminiscence database Hana modified into up 46% to €276m.