German software giant, SAP, has reported strong second quarter financial results after sales topped €1.06 billion. This figure is massively up by 26% on the same period last year.
Revenue for the company was up to €3.92 billion for the three months ending June 30th. This represents an 18% increase on last year. In the meantime, operating profit increased by 15% to €1.17 billion.
It has also been revealed that SAP’s cloud services ballooned over the past 12 months as revenue increased for cloud subscriptions and support from €4 billion to €69 billion. This represents an enormous increase, however, it is not surprising given that SAP has been driving forward its cloud strategy recently with the €3.4 billion purchase of SuccessFactors, a dedicated cloud firm, and the launch of new cloud business apps.
The SAP chief financial officer, Werner Brandt, has been quoted saying: “With this momentum in the first half of 2012 and our focused commitment to operational excellence we are on track to deliver on our targets for the full year 2012 – in line with our 2015 goals.”
In addition, SAP has recorded double digit growth in software and service revenue for the last 10 quarters. SAP seems to have benefited by latching on to the three most popular IT trends that are currently catching on across the world within corporations: cloud, mobile and big data.
SAP co-chief executive, Bill McDermott, has further explained: “We have seen growth in mobile, HANA and cloud, as well as our core business. We have also invested significantly in future growth by adding 5,200 employees…We are growing 20% faster than our nearest competitor.”
It seems that business at SAP is currently booming. They have seen the advantages the cloud can bring to corporations around the globe, hence why they have decided to develop their services.
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