SAP raises yearly outlook on ‘thriving’ cloud business
Berlin — SAP has raised its outlook for the year, citing an accelerating cloud business in the second quarter, as the German software giant benefited from increased spending on its business products. SAP generated sales of €6.01bn, beating the €5.88bn average estimate by analysts in a Bloomberg survey. New cloud bookings, a keenly watched metric because it indicates future sales growth, grew 29% at constant currencies, faster than in the previous three-month period, the Germany-based company said Thursday. SAP is increasingly betting on its cloud subscription business, which it expects to account for about 29% of total revenue by 2020, up from about 16% in 2017. This year, the company made its biggest acquisition in more than three years when it bought Callidus Software for about $2.4bn, gaining access to new sales analytics and customer engagement tools. SAP’s push into customer relationship management may aid the company’s cloud business and pits it against Salesforce.com. SAP’s c...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.