Key customer wins across SAP’s solutions portfolio have driven the German enterprise software giant’s momentum in the second quarter.
In a statement, SAP CEO Christian Klein emphasised that the company is seeing strong adoption of its cloud portfolio as customers continue to choose SAP for their business transformation. The Q2 financial results statement recently released by SAP stated that cloud and software revenue climbed 2{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} and 6{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} in the Asia-Pacific Japan (APJ) region, respectively. Additionally, cloud revenue rose to 18{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} and 23{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} (at constant currencies) with Japan, Australia, and South Korea leading the way.
SAP’s cloud migration will accelerate and gradually transform the company’s reputation in the software industry, according to Bank of America (BofA) Global Research Analyst Frederic Boulan. He added that SAP’s revenue and pretax profits will increase by double digits, “supporting multiple expansion from sector lows” by 2023.
It can be noted that the RISE with SAP cloud transformation program gained even more momentum after a successful debut in the first quarter. SAP witnessed strong demand from businesses of all sizes in Q2, closing deals with more than 250 customers. This backs up the earlier claims of Scott Russell, Head of Customer Success at SAP, that the solution is gaining traction in the Asia-Pacific region.
“We are bullish and we have received great feedback so far in the market, and we expect to continue that as we have got a modular breadth of capability,” Russell previously said in a statement.
Moreover, SAP’s earnings statement disclosed that its flagship enterprise resource planning (ERP) product SAP S/4HANA welcomed 600 new customers, increasing the total number of adoptions to 17,000 customers — of which 10,100 are live. In addition, more than half of the additional SAP S/4HANA customers in Q2 were net new.
Key Customer Wins Across SAP’s Solutions Portfolio
Just last week, METAWATER, a Japan-based company primarily engaged in the design and construction of equipment for water treatment plants, started implementing SAP S/4HANA as part of its digital transformation.
After conducting an analysis of the current situation and planning of new operations and systems, it was established that the standard functions of SAP S/4HANA can be applied in METAWATER’s main business areas. NTT DATA GSL, which has extensive business expertise in the engineering and construction sectors, will support the implementation project.
Furthermore, SAP has scored more than 8,000 SAP Business Technology Platform (SAP BTP) customers to date and over 4,000 partners within its ecosystem are actively engaged. As the foundation for the intelligent enterprise, SAP BTP provides a unified platform that allows for integration and extensibility across SAP’s portfolio and non-SAP solutions, as well as data analytics.
Key SAP BTP customer wins this quarter include Lenovo Group Limited, a Chinese multinational technology company. To facilitate the smooth migration of the company’s digital core to SAP S/4HANA, Lenovo Group implemented SAP BTP. As a long-term strategic customer and a global technology partner of SAP, it has also chosen BRIM and EMS solutions to support its new “As a Service” transformation strategy.
Additionally, Lenovo Group collaborated with SAP to provide SAP S/4HANA Cloud, private edition, based on Lenovo TruScale IaaS, that can be deployed in customer data centers in China to help customers accelerate their migration to the cloud. The announcement was made at the China Summit last month.
Meanwhile, Paul Marriott, President at SAP APJ, said that he looks forward to working alongside the teams and leaders of the organisations that selected SAP for their business transformation.
“We are excited to walk alongside them in transforming their organisations and positioning themselves for future success. With RISE with SAP, our Business Transformation as a Service offering, we are propelling customers’ businesses into intelligent enterprises,” he concluded.
