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SAP scores 35 percent growth across AP

Veronica C. Silva | Aug. 23, 2011
Economic giants Japan, China, India lead growth in second quarter.

The regional operations of software giant SAP recorded 35 percent growth in revenues in the second quarter of 2011, owing to the market success of some of its key products, such as the HANA solution.

Steve Watts, president, SAP Asia Pacific Japan (APJ), said the second quarter was a record performance for the company, with software revenues reaching €171 million (US$245.7 million). Combined with software services, revenues reached €439 million (US$631.2 million), while total revenue grew 20 percent to €513 million (US$737.6 million).

SAP credits the growth mainly to early adopters who chose SAP's HANA in-memory solution, and mobility and on-demand solutions. Watts added that its mobility and in-memory solutions are contributing to top line revenue growth. Country-wise, Japan, China and India were the strong growth markets.

"SAP APJ customers are implementing increasingly innovative software solutions, resulting in rapidly growing pipelines for SAP's newer innovations," said Watts. "While our in-memory offering became generally available less than a month ago, the global pipeline already exceeds €400 million (US$575 million)," said Watts.

For the first half of the year, SAP APJ grew its software revenue by 33 percent; software and software-related services revenue by 21 percent; and total revenue by 19 percent.

Global performance

SAP said its regional growth was consistent with the global company's growth. Globally, the second quarter was SAP's sixth consecutive quarter of double-digit growth. Software revenues grew 35 percent to €860 million (US$1.2 billion) while software and software-related services revenue grew 20 percent at constant currencies to €2.71 billion (US$3.9 billion). 

Watts outlined other successes the company has achieved:

- SAP APJ won all head-to-head competitive large deals of €2 million (US$2.8 milllion) and above;

- its business intelligence market is 1.5 times larger than its next competitor;

- its Business Suite is the most advanced in the enterprise software industry with more than 25 industry-specific solutions;

- 22 percent market share in analytics; and

- indirect business is seeing ''high'' double-digit growth, with business partners increasing over 60 percent year-on-year.

Moving forward

For the rest of the year, Watts expressed optimism that growth will continue as the company continues to invest in its regional operations, including hiring top talents.

Watts added: ''Our innovation strategy is clearly winning - we are driving fundamental change in the IT industry. As traditional hardware moves into the cloud and in-memory based servers redefine high-speed computing, we are seeing a corresponding shift in investment by our customers to innovative software solutions. SAP is driving this change. As a result, we saw our best ever second quarter, with rapidly growing pipelines for the rest of the year."


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