Cloud adoption drives Q4 revenue growth for SAP in APAC

Strong demand for the SAP cloud portfolio and the broad adoption of the SAP Hana platform in the Asia-Pacific Japan region has helped SAP achieve double-digit growth for the 2014 financial year.

SAP has announced that full-year earnings for the 2014 financial year posted a 59 percent growth year over year in non-International Financial Reporting Standards (IFRS) cloud subscriptions and support revenue in the Asia-Pacific Japan (APJ) region.

The company also reported that non-IFRS cloud subscriptions and support revenue grew 98 percent year over year in the fourth quarter across APJ. At the same time, non-IFRS software and software-related services revenue grew 6 percent during the same period, where India delivered strong double-digit software revenue growth.

SAP attributed the growth in the region to a strong demand for its SAP cloud portfolio and the broad adoption of the SAP Hana platform across industries and use cases in APJ.

Additionally, the company said the rise of e-commerce in the region boosted demand for omni-channel commerce solutions from Hybris and cloud-based procurement and trading network from Ariba. Both Hybris and Ariba are SAP companies.

SAP APJ president Adaire Fox-Martin said the long-term strategy is to have new and existing customers operating on the SAP Hana platform.

"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," she said.

The company highlighted that during the fourth quarter, it worked with customers such as freight mover Toll Group to help replace the company's existing legacy systems, and Wipro to improve its business models and add real-time insights for decision making.

On global terms, the German company experienced similar results in the Americas and in the Europe, Middle East, and Africa (EMEA) region during the fourth quarter.

Despite macroeconomic conditions weighing on the business in Russia and Ukraine, SAP said non-IFRS software and software-related service revenue increased 5 percent, with a strong software revenue performance in the UK. Non-IFRS cloud subscriptions and support revenue in EMEA grew 85 percent.

In the Americas, non-IFRS software and software-related service revenue increased 14 percent, driven by strong growth in the United States, the company said. It added that non-IFRS cloud subscriptions and support revenue in the Americas increased 63 percent.

Looking forward, SAP said that in 2015, it will continue to build the company's cloud business.

"SAP will continue to catalyse a transformation that will lead to a hyper-connected 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," Fox-Martin said.

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