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SAP Q2 Results Show Increased Cloud Revenue in APJ

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The German enterprise software giant that provides solutions to help organizations efficiently manage their operations has recently released the SAP Q2 2022 results, showing an increase in cloud revenue, particularly in the Asia-Pacific and Japan (APJ) region.

SAP has been executing on its strategy of embracing the cloud, and this has led to a massive increase in demand for their cloud infrastructure solutions. This is fueled by both new business and the adoption of their solutions by existing customers who are looking to lower costs, reduce complexity, and speed up time-to-market.

In APJ, the company had a very successful quarter with their cloud revenue growth of 31% over the same quarter in 2021. This is primarily due to strong results seen in the Japanese and Indian markets. SAP’s total revenue grew by 8% over the same period in 2021, moving up to 1.112 billion Euros, demonstrating success on a global scale.

Christian Klein, CEO and Executive Board Member at SAP SE, said that the results of SAP for the second quarter show that the company’s product portfolio is more significant than it has ever been. He added that the move to the cloud that SAP is in the process of making is ahead of schedule and has surpassed topline projections. Klein also noted that cloud sales has become the tech giant’s biggest source of revenue.

“Our pipeline is strong, and we are winning market share underpinned by the very strong 100% growth of S/4HANA current cloud backlog,” the SAP CEO emphasized.

Over the course of the second quarter, leading Asian organizations have been adopting SAP cloud technologies at a faster pace across all industries, with continued demand for the company’s Business Transformation as a Service (BTaaS) offering RISE with SAP among various customers. The RISE with SAP program offers an integrated suite of products and services that are designed to help customers benefit from the flexibility of cloud computing, by combining a set of SAP cloud products and services.

The core component of the signature cloud offering is SAP S/4HANA Cloud Edition, which enables clients’ cloud environments to operate in either an SAP data center, or with any traditional hyperscale provider that they prefer. This offers customers the flexibility they need to make a business decision on the next best move for their company’s transformation and its future growth.

New APJ Customers Revealed in SAP Q2 Results Announcement

Paul Marriott, the President of SAP APJ, stated that the company is experiencing a growing demand for the RISE with SAP service from a diverse range of industries. He added that there was a noticeable trend this quarter among travel and manufacturing businesses that are trying to future-proof their operations and achieve business value through real-time data and operational efficiencies. 

According to Marriott, there are no indications that the momentum will change in the near future. He pointed out the fact that SAP is witnessing both new and existing clients innovating, expanding, and positioning themselves for future success.

ST Logistics Pte Ltd., Mapletree Investments Pte Ltd., Sumitomo Rubber Industries Ltd., Bridgestone Australia, Mitsubishi Materials Corporation, and Malaysia Airlines are some of the new clients in APJ that have signed up for the BTaaS offering during the second quarter of 2022. In addition, HCL Technologies, a renowned global tech provider as well as an SAP Global Strategic Service Partner, also went live with RISE with SAP during Q2.

Moreover, it can be noted that HCL Technologies initially announced its support for RISE with SAP last year. In addition to the innovative integration and data architecture services it already provides, the company wants to improve the overall customer experience by providing transformation and consulting services for SAP Factory+ capabilities that make it easier to migrate to SAP S/4HANA.

“In an uncertain world, one thing we can be sure of is that being future-ready means putting technology at the heart of your business and focusing on digital transformation; bringing transparency across the supply chain; strengthening business networks; and incorporating sustainability throughout your operation, because there is either sustainable business – or there is no business,” Marriott further shared in the press release.

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