SUSE Linux Enterprise Server for SAP Applications, a bundle of software and services that addresses the specific needs of SAP users, has been one of the major contributors in SUSE’s commendable quarter 3 results.
In a recent IDC white paper about digital transformation for SAP environments commissioned by the independent open source provider SUSE, IDC predicted that at least 55{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of organisations will be leveraging technology to transform markets, develop new business models, products, and services this 2020 with organisations investing on technologies that help businesses “to achieve speed, scale, and agility.” As the year nears to a close, SUSE’s third-quarter financial results of its fiscal year 2020 that ended July 31 somehow reflected IDC’s prediction.
Despite COVID-19 disrupting the global economy, SUSE achieved a 14{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} increase year over year for its Q3 revenue, including a stellar growth in ACV bookings for SUSE Linux Enterprise Server for SAP Applications, a 35{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} increase in high-value customer deals, and strong growth in North America and the Asia Pacific and Japan.
Closing a Strong Quarter
SUSE APJ President Phillip Miltiades shared with Inside SAP his insights on the company’s Q3 performance and its commitment to customers leveraging SAP business applications. He said:
“ In Q3, many of our net new customers chose SUSE for powering and transforming their SAP solutions across several industry verticals such as manufacturing, pharmaceutical, IT, and transportation. This affirms SUSE market position as the leading and trusted open source platform for SAP business applications.
Furthermore, we are pleased to be the open source vendor of choice, supporting our partner ecosystem and their solutions to enable high double-digit year on year growth. Our evolution and focus on being the easiest and most trusted open source provider is translating to increased subscription revenues. We will remain steadfast and committed to providing the most innovative and adaptable open source solutions to support our customers’ desired business outcomes. ”
Melissa Di Donato, CEO of SUSE, shared how the company was able to perform even in the times of pandemic. She said:
“As the world works through the challenges of the current pandemic, SUSE continues to deliver value as a partner, community member, and provider of transformational technology solutions.
Our ongoing growth reflects our dedication to customer satisfaction as well as SUSE’s strong business model and resilience as a company. And we aren’t stopping here as we plan to further accelerate our growth trajectory with the announcement of a definitive agreement to acquire Rancher Labs, which will significantly expand our portfolio and share in the Kubernetes market.”
In July, SUSE has entered into a definitive agreement to acquire California-based Rancher Labs, a privately held open source company that provides a market-leading Kubernetes Management platform. This has contributed to the organic growth of the company in Q3.
Q3 Highlights
Below are SUSE’s third quarter performance highlights:
- 81{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} growth in Cloud ACV (Annual Contract Value) bookings, marking 14 consecutive quarters of year over year cloud ACV increase.
- 35{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} increase year to date in customer deals, which are larger in sizes, worth more than $1 million
- 50{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} increase in ACV bookings year over year for SUSE Linux Enterprise Server for SAP Applications
- 25{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} and 21{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} increases in North America and the Asia Pacific and Japan, respectively, in ACV bookings year over year.
The third quarter’s outstanding financial results are complemented with SUSE strengthening its executive team to support the company’s key growth objectives. Aside from the appointment of regional sales leads Phillip Miltiades as President of APJ and Jeff Lattomus as President of North America, Andy Myers and Michael A. Riley were also appointed Chief Financial Officer and Chief Growth Officer, respectively.
SUSE also opened a new engineering and innovation center in Sofia, Bulgaria, joining major SUSE development sites in Germany, Czechia, India, and the United States, to bolster its power to innovate.
