Cloud delivers threefold revenue growth at SAP Brazil

The subsidiary boasts increased sales of its off-premise offerings to large clients and makes progress in the small and medium enterprise segment
Written by Angelica Mari, Contributing Writer on

The Brazilian subsidiary of software giant SAP has reported a threefold increase in its second quarter results, mostly driven by sales of cloud-based products.

Cloud procurement platform Ariba was the best seller during the period, alongside private cloud hosting service HANA Enterprise Cloud and platform-as-a-service offering SAP Cloud Platform, according to the company, who unusually has disclosed names of some large clients that have signed up in Q2.

O Boticário, a Brazilian cosmetics retailer with more than four thousand shops nationwide, has moved key processes to the cloud, to SAP products including Ariba and supply chain planning tool SAP IBP.

Aircraft manufacturer Embraer also expanded its relationship with SAP and acquired the firm's cloud-based travel and expenses management platform Concur.

In addition, automotive battery supplier Moura will be rolling out a series of SAP products including S/4 HANA, SuccessFactors and Fieldglass as part of a digital transformation process.

SAP is also focusing on boosting sales in the small and medium enterprise segment, where it also achieved three-digit growth in the second quarter.

Consumer products, engineering and construction as well as banking continue to be SAP's most relevant sectors in terms of sales for the Brazilian subsidiary.

However, the company's Brazil president Cristina Palmaka told ZDNet earlier this year that SAP's bullish performance in the country is supported by the volume of the current project portfolio rather than a strong performance in specific sectors.

"The way we achieve good results has changed. We used to have very large, long-term projects that used to be the anchor of the business. Now, it's all about smaller solutions, cloud projects, growth in the small and medium enterprise segment," she said.

As well as Brazil, SAP Mexico also achieved three-fold growth in cloud subscriptions in the second quarter. According to the firm, sales in Latin America as a whole continue to do well when it comes to cloud, with double-digit growth seen in Q2 in comparison to the same period last year.

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