RISE with SAP — the German enterprise software giant’s Business Transformation as a Service (BTaaS) signature cloud offering — provides packages consisting of SAP’s cloud services and products that are tailored for human experience management (HXM), modular cloud enterprise resource planning (ERP), retail, utilities, and consumer products, to name a few.
Since its introduction in January last year, SAP’s subscription service to the Intelligent Enterprise RISE with SAP has been gaining global traction. Former SAP Asia Pacific Japan (APJ) President Scott Russell, who is now a Member of the Executive Board and Head of Customer Success at SAP, previously stated that “Asia is going to lead the way” with the BTaaS service. He noted that approximately 80{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of SAP clients on the program are small and medium-sized enterprises (SMEs).
Following SAP’s recently released financial results for the first quarter ended March 31, 2022, its cloud revenue growth continued to increase for the fourth consecutive quarter, rising by 31{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} to €2.82 billion, or 25{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} at constant currency rates, thanks to double-digit growth across the company’s solution portfolio. Furthermore, the tech giant described its cloud sales performance for the quarter as “excellent” across all geographies and regions. The cloud revenue growth of the United States and Germany was remarkable while China, Japan, the UK, Canada, Switzerland, and France were particularly good performers as well.
Commenting on the Q1 2022 results, Luka Mucic, Chief Financial Officer and Member of the Executive Board at SAP, remarked:
“We are off to a solid start to the year and our outlook remains strong. Despite the current macroeconomic environment, cloud revenue growth accelerated further, fueling total revenue growth. Current cloud backlog grew at a healthy rate and continues to support our confidence in our long-term plans and outlook for the year.”
More Chinese Customers Sign Up for SAP’s Cloud Services
In China, a number of new customers signed up for SAP’s cloud services this quarter. RISE with SAP was particularly popular in Q1 2022 along with other solutions such as SAP S/4HANA, SAP Business Technology Platform (SAP BTP), SAP Intelligent Robotic Process Automation (SAP iRPA), SAP Ariba, SAP Commerce Cloud, and SAP Sales Cloud. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.)
Christian Klein, Chief Executive Officer and Member of the Executive Board at SAP, shared in a press release:
“We have achieved another quarter of rapid cloud growth due to strong customer demand. Customers need solutions from SAP to help them achieve business sustainability, build more resilient supply chains, and better future-proof their enterprises. Our flagship ERP product, SAP S/4HANA, achieved record business growth, demonstrating the high trust customers have in SAP as they transform their businesses.”
This quarter, the following are some of the major Chinese enterprises that tapped SAP to improve their mission-critical business processes:
- Shanxi Zhendong Pharmaceutical, a developer, producer, and seller of traditional Chinese medicine preparations and drug agents, selected SAP S/4HANA and SAP iRPA to support its digital core transformation, realize achieve automated management, enhance the efficiency of its internal collaboration, and provide more digital capabilities needed for its diversified businesses.
- High-end liquor brand Shui Jing Fang, known as “the first liquor shop in China” chose SAP Ariba cloud solutions to enhance end-to-end procurement management, manage procurement costs and risks, increase supply chain efficiency, and consolidate business competitiveness. Its transformation project is primarily aimed at supporting the strategic needs of the enterprise to deepen its domestic market penetration.
- Snack food manufacturer Qinqin Foodstuffs Group, which has eight production facilities across the country and exports to foreign markets, renewed the RISE with SAP offering to maintain the stability and flexibility of its digital core, promote internal collaboration, and enable seamless integration with SAP BTP and SAP iRPA.
- Hengan Group, a prominent domestic home products company that owns well-known labels such as Anerle, Space 7, and Xinxiangyin, decided to upgrade its SAP ERP Central Component (SAP ECC) system to RISE with SAP in order to improve corporate competitiveness and contribute to sustainable development. The company will use the cloud as its digital core to transform business processes, increase operational efficiency, boost industrial chain collaborative efforts, and attain omnichannel marketing.
According to SAP, it is putting its cloud-first strategy into action, which is fueling fast cloud expansion through new business and cloud adoption by existing clients. Due to the speed and scale of SAP’s cloud traction, the company said that it is well on its way toward realising its mid-term objectives.
