SAP Revenue Growth Continues to Accelerate in Asia Pacific Japan

  • Software and software-related service revenue growth accelerates sequentially over Q3
  • Outstanding growth for cloud, SAP HANA and partner revenue
  • Growth in China, Korea, South-East Asia and ANZ accelerates

SAP AG (NYSE: SAP) marked another positive quarter in Asia Pacific Japan (APJ). The company saw double-digit growth in software and software-related service revenue in Q4. This was the result of accelerated double-digit growth in software and cloud subscription revenue and a strong performance in China.

SAP achieved triple-digit revenue increases in cloud for the third quarter in APJ. The company’s fast-growing cloud business demonstrates SAP's leadership in the cloud and reflects the company’s successful transition to cloud while managing the growth of its core business. SAP has the largest subscriber base with more than 35 million cloud users worldwide and more than 1 million in APJ.

“Companies will increasingly look to invest in the cloud. Cloud as an innovation platform will extend customers’ existing infrastructure, enable new processes and achieve new insights that empower them to run business in an entirely new way,” said Adaire Fox-Martin, Chief Operating Officer of SAP APJ.

SAP saw accelerated growth sequentially over Q3 in major markets including China, Korea, South-East Asia, and Australia and New Zealand (ANZ) demonstrating good momentum as the company enters 2014. Software and software-related service revenue grew double digits in FY13.

“We keep seeing enterprises in the region choose SAP over the competition. China, Korea and South-East Asia performed particularly well in FY13, recording outstanding double-digit growth. India has experienced strong triple-digit growth in mobile and cloud for the year,” said Fox-Martin.

SAP HANA grew triple digits in 2H FY13 and high double digits for the full year. “SAP HANA is the new standard IT platform for businesses in Asia. We are squarely focused on delivering value with a customer mindset, building innovation on the SAP HANA in-memory platform, and accelerating new business models with mobile and the cloud,” said Fox-Martin.

In addition, financial services industries and the partner ecosystem continue to be major growth engines for the region. Insurance and banking industries registered a strong performance as Asian financial institutions have realized the need for customer centricity and operational efficiency. The company’s expanding partner ecosystem and solid OEM business made SAP APJ the region that generates the highest percentage of sales through partners.

Key customer wins in Q4 FY13:

  • NEC, a Japanese multinational provider of IT services and products, selected SAP Business ByDesign with its global cloud-based enterprise resource planning services. Through this OEM agreement, NEC plans to invest in the development of localization tools for SAP Business ByDesign, with an initial focus on addressing country-specific requirements pertinent to local tax law, regulatory compliance and business practices in the six countries in South-East Asia.
  • Sumitomo Heavy Industries, Ltd. (SHI), one of the biggest heavy industry companies under the Japan-based Sumitomo group, selected SAP Business Suite powered by SAP HANA and SAP HANA Enterprise Cloud to support big transformation as well as quick and safe project start-up. With SAP, SHI expects double the innovation with half the resources.
  • Agricultural Bank of China (ABC), one of the four Tier 1 banks in China, selected SAP Sybase ASE and IQ over Oracle to support the real economy and synergistic development in country and urban areas. With SAP, ABC expects to support its business strategy built upon capitalizing on the comprehensive business portfolio and extensive distribution network based on the advanced IT platform.
  • China Petrochemical Corporation (Sinopec Group), a large petroleum and petrochemical enterprise group, selected SAP NetWeaver BW powered by SAP HANA over Oracle to get full visibility on operational and financial data and execute rapid decisions. With SAP, Sinopec expects 10x faster data loading, near-real time reporting capability with 100x faster reporting, 5x data compression savings and reduced SAP BW support costs with simplified BW design and modeling.

In 2014, SAP will celebrate its 25th year of operations in Asia Pacific Japan. The company will continue to simplify for customers and help Asia run better.

About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 253,500 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

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