SAP continues impressive revenue streak in APJ

By Eleanor Reader

SAP continues to go from strength to strength in Asia Pacific Japan (APJ), announcing record fourth quarter and full year revenues in the region in 2012.

This is the twelfth consecutive quarter SAP has recorded double-digit growth in APJ.

“We had the best year in SAP APJ history and an amazing growth performance in 2012 with 22 per cent software and cloud subscription growth. Japan did very well and China delivered a solid double-digit revenue growth performance. India also performed well with notable momentum in the SME space,” said Steve Watts, president, SAP Asia Pacific Japan.

Revenues from mobile continue to dominate, with triple-digit growth reported in 2012.

Applications, analytics and the database and technology businesses reported double-digit growth, while HANA achieved 50 per cent growth year-on-year.

Revenues were boosted by large customers such as Century Ginwa Department Store, China Huadian Corporation and Origin Energy Ltd investing in SAP software.

According to Watts, SAP’s strategy of driving growth through collaboration and co-innovation with its partner ecosystem has contributed indirect sales to the company’s revenue streams for the year.

“Our customers have heterogeneous IT landscapes and want to work with an ‘ecosystem of the best’. With more than 1100 partners in APJ, we provide local support for SAP markets and solutions to help fuel innovation and provide choice for customers of all sizes. By 2015, we expect at least 40 per cent of SAP’s software revenue will come from partners in APJ,” he said.

For the quarter, International Financial Reporting Standards (IFRS) software revenue for the APJ region was over A$450 million. IFRS and non-IFRS software and software-related service revenue for the APJ region was over A$900 million.

For the full year, IFRS software revenue for the APJ region was over A$1 billion. IFRS and non-IFRS software and software-related service revenue for the APJ region was just under A$2.9 billion.

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