SAP’s Cloud Business Taking off in MENA

300 Per Cent Increase in Cloud Deals from 2012-2013;

SAP Fastest Growing Company Globally at Scale in Cloud

SAP today underlined its increasingly robust cloud credentials, highlighting a 300 per cent increase in MENA cloud deals from 2012 to 2013.

The announcement was made at the SAP Forum and SUGMENA Conference in Dubai, and follows on from a strong first quarter for the company’s global cloud business.Non-IFRS Cloud Subscriptions and Support Revenue were recently reported to have increased 38% at Constant Currencies (32% at Actual Currencies).

On a global scale, SAP is the fastest growing company at scale in the cloud, gaining market share and growing six times faster than its largest competitor. The company’s annual cloud run rateis now approaching €1.1 billion.

SAP’s cloud applications total subscribers now exceed 36 million, which is the most of any vendor in the industry today.This encompasses the leading social business platform with over 12 million users, the world’s largest business network with more than 1.4 million connected companies transacting over $500 billion in commerce on an annual basis, and the largest business cloud implementations in the world, with more than 2 million users.

“Cloud computing is here to stay, and it is having a huge impact on the way businesses in the UAE and beyond run and plan for the future,” said Sam Alkharrat, Managing Director, SAP MENA.

“Businesses in the region are turning to us for cloud solutions more than ever before, and the reason is simple. The cloud is not just about Total Cost of Ownership (TCO) anymore. And it’s not just about IT. We’ve now entered an era where major technology decisions are made outside of the IT department and the office of the CIO. Today’s cloud is about driving business innovation and agility, enabling new processes and insights that were previously impossible.”

Alkharrat’s comments come hot on the heels of IT research and advisory firm Gartner’s prediction that the Middle East and North Africa (MENA) region’s public cloud services market is on track to grow 21.3 per cent in 2014 to total $620 million. By 2017, it will hit $1.1 billion. Gartner estimates that from 2013 to the end of 2017, $3.8bn will have been spent on cloud services in MENA region. Meanwhile, according to the Cisco Global Cloud Index, the Middle East and Africa region is set to post the world’s-strongest cloud traffic growth rate from 17 exabytes in 2012 to 157 exabytes in 2017.

"Organizations in the region now more than ever understand how cloud can be better leveraged for cost savings while gaining benefits around flexibility, scalability and, most importantly, faster deployment of solutions or IT resources. As vendors and the channel launch more cloud services, while addressing customer concerns around security and service quality, the confidence in the adoption of cloud is only expected to rise further. Large organizations and SMBs can now move certain functionalities into the cloud while retaining more critical applications and systems onsite, enabling them to achieve both cost and management benefits,” said Megha Kumar, Research Manager, Software, IDC Middle East, Turkey & Africa.

SAP’s cloud heft has been evolving rapidly in recent years with the acquisition of SuccessFactors, the market-leading provider of cloud-based human capital management (HCM) solutions in 2011, and Ariba, the number one cloud-based network for business-to-business commerce and collaboration, in 2012.

SAP’s cloud portfolio encompasses the market’s leading public cloud application portfolio (number one in Human Capital Management, procurement, business networks, and social business collaboration), as well as the most-trusted private cloud environment. SAP alsostands out for the most complete cloud-based Customer Relationship Management (CRM) solution. SAP Cloud for Customer incorporates all key CRM pillars and gains additional power from tapping into social media analytics and customer intelligence.

In addition, the SAP Business Suite powered bySAP HANA (BSoH), a disruptive technology world first that combines transactional applications with analytics in-memory, is available via the SAP HANA Enterprise Cloud service, providing organisations with a new deployment option to gain immediate value from the technology. SAP runs an ecosystem strategy with its managed service providers to offer the capabilities of SAP HANA Enterprise Cloud from their data centers, as well as from multiple SAP data centers worldwide.

Earlier this month, SAP further bolstered its cloud reach by announcing that a number of its core business applications will soon be certified on Microsoft Azure (core SAP business applications have been certified on Amazon's cloud since 2011).

By the end of June, Microsoft and SAP will support SAP Business Suite software, SAP Business All-in-One solutions, SAP Mobile Platform, SAP Adaptive Server Enterprise (SAP ASE) and the developer edition of the SAP HANA platform on Azure.

“The SAP Cloud portfolio provides the innovation and agility businesses need to rapidly adapt their processes to capitalize on ever-changing market dynamics,” added Alkharrat.

“When taken together with the connectivity and insight of SAP’s social and business networks, the power and speed of SAP’s HANA in-memory database and analytics, and the accessibility of SAP mobile, SAP Cloud empowers a new level of business performance.

Photo Caption:Sam Alkharrat, Managing Director, SAP MENA, underlinesthe company’s robust cloud credentials at the SAP Forum and SUGMENA Conference in Dubai.

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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Media contacts
Husain Al Tamimi, SAP +971 56 6811641, husain.tamimi@sap.com
Claire McPeak, SAP, +971 4 330 1777, c.mcpeak@sap.com
Neil Jaques, Wallis Marketing Consultants, +971 4390 1950, sap@wallis-mc.com

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