Cloud revenue amounted to €4.99 billion in the last quarter, an increase of 27 percent compared to the same three months a year earlier.
Cloud ERP Suite revenue performed strongly, growing 34 percent to €4.25 billion. This suite now accounts for the largest share of cloud revenue. While the cloud business continues to grow, software license sales are declining. These fell 10 percent to €0.18 billion. This trend has been visible at SAP for some time and aligns with the company’s direction.
” With a share of more predictable revenue of 86%, SAP’s business model remains resilient in uncertain times,” said CEO Christian Klein, looking ahead. “Our AI-powered portfolio enables companies to navigate supply chain disruptions in over 130 countries and to unlock efficiencies with agility and speed.”
Tip: SAP is looking for an AI gem in every corner of S/4HANA
Key customers
In the first quarter, SAP signed several large companies to its RISE with SAP program to support their end-to-end business transformations. These include well-known names such as HUGO BOSS, Hyundai Motor Company, Molson Coors Beverage Company, and Tyson Foods.
In addition, companies such as Climeworks, HMM, LG Energy Solution, and Lion went live on SAP S/4HANA Cloud. Gymshark and VFS Global, among others, chose the GROW with SAP offering, which helps customers quickly implement cloud ERP.
An important moment in the first quarter was the announcement of SAP Business Data Cloud on February 13. This solution unifies SAP and external data within an organization. The goal is to create a reliable data foundation that enables organizations to make better decisions and deploy reliable AI.
Tip: SAP brings all data together in one place with Business Data Cloud