SAP Quarterly Cloud Software Sales Top Estimates
January 12, 2015
Grazed from BusinessWeek. Author: Aaron Ricadela.
SAP SE reported fourth-quarter cloud-computing sales that beat analysts’ estimates as more users of traditional business software bought programs delivered through the Internet. The shares rose the most in more than a year. Revenue from cloud subscriptions and support rose 72 percent to 360 million euros ($426 million), the world’s largest maker of business-management software said today, citing preliminary figures.
That exceeded the 319.6 million-euro average estimate compiled by Bloomberg. Software and related services revenue, which captures newer cloud products, traditional on-premise software as well support sales, rose 8 percent to 4.73 billion euros, also topping estimates. The numbers show that Chief Executive Officer Bill McDermott is convincing clients to add cloud products to the SAP software they already run in their data centers…
Along with competitors including International Business Machines Corp. and Oracle Corp., SAP has found growth harder to come by as customers move from traditional software contracts to cloud-computing programs delivered from remote data centers. SAP’s stock is down 6.4 percent this year through Jan. 9…
Read more from the source @ http://www.businessweek.com/news/2015-01-12/sap-quarterly-cloud-software-sales-top-estimates-shares-jump