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SAP - Positive Sales Balance

SAP is doing well - due to the sustainable work of the past 40 years, the on-premise license revenue can be increased strongly again and again in the growing existing customer base.
E-3 Magazine
November 1, 2016
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This text has been automatically translated from German to English.

At first glance, the current figures of the SAP for the third quarter again showed a very positive trend - obviously making SAP everything right at the moment.

"The SAP portfolio is very well received by customers. Our results are therefore above expectations. The innovation cycle associated with SAP S/4 Hana is the fastest in our company's history and is a key contributor to the good results of all SAP cloud solutions. We are a growth company and confidently raise the outlook for the full year"

SAP was able to acquire over 400 S/4 customers in the third quarter, of which around 40 percent are new customers, which is a success for the Distributionbut is a defeat for communication. A Analysis The balance sheet figures suggest that existing customers will continue to use traditional on-premise solutions to a large extent.Licenses buy. There seems to be little interest in cloud services of any kind (HEC and HCP). With Hana Cloud Platform (HCP), customers can extend existing functionality, develop applications for rapidly changing business processes using rapid development tools, and integrate them with other applications and deployment models.

The HCP plays a major role in the IoT revolution (Internet of things), as it enables connection to a wide range of devices and machines. With SAP-IoT technology, customers like Italy's largest rail group Trenitalia connect transport vehicles and equipment. They receive real-time information via sensors, enabling them to redesign their asset and maintenance management from the ground up.

"With billions of connected devices, we have the opportunity to drive social, economic and environmental change"

"We are delighted to be able to support Trenitalia in its digital transformation and in optimizing its business processes. Trenitalia is using forward-looking technologies to gain cutting-edge insights into the company's operations. This is an impressive example of the benefits that the Internet of things brings to the company and the millions of passengers who use Trenitalia every year."

The day before the joint event with Trenitalia in Rome at the end of September, had SAP announced that the software group would invest two billion euros in the expansion of its IoT portfolio by 2020.

Chart for economy

Approximately 2.4 million companies processed more than $840 billion in commerce revenue through the Ariba platform in the past 12 months. More than 44 million end users process their travel bookings and expense reports with Concur each year, and SAP-In the past twelve months, Fieldglass customers managed more than 2.8 million external employees in around 130 countries using the Fieldglass platform. In the third quarter, cloud subscription and support revenue (IFRS) increased 28 percent year-over-year to €769 million.

Total cloud subscriptions and support and software support revenue increased by one percentage point in the third quarter of 2016 and accounted for 64 percent of total revenue.

But operating profit (IFRS) fell by nine percent to 1.10 billion euros. Allegedly due to higher expenses for share-based payment programs following the sharp rise in the SAP-share price in the third quarter. There was already a similar, obviously unforeseeable event in the first quarter: due to higher expenses for external services, the operating result was not in line with the plan.

"In the third quarter, we were able to report continued high growth momentum and very good results. All key figures on the business outlook are trending towards the upper end of the respective range from the beginning of the year. This good development and a well-filled order pipeline confirm our belief that we will close the year with another strong fourth quarter."

What in this case the SAPpartner, many man-hours are spent on support and development of the SAP from their partners, helping them to generate a solid core business. However, operating profit (non-IFRS) still increased by one percent to EUR 1.64 billion using the self-defined parameters. Earnings per share (IFRS) thus decreased by 19 percent to 0.61 euros. This decline was attributable to lower other income and a lower financial result.

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Information and educational outreach by and for the SAP community.


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Working on the SAP basis is crucial for successful S/4 conversion. 

This gives the Competence Center strategic importance for existing SAP customers. Regardless of the S/4 Hana operating model, topics such as Automation, Monitoring, Security, Application Lifecycle Management and Data Management the basis for S/4 operations.

For the second time, E3 magazine is organizing a summit for the SAP community in Salzburg to provide comprehensive information on all aspects of S/4 Hana groundwork.

Venue

More information will follow shortly.

Event date

Wednesday, May 21, and
Thursday, May 22, 2025

Early Bird Ticket

Available until Friday, January 24, 2025
EUR 390 excl. VAT

Regular ticket

EUR 590 excl. VAT

Venue

Hotel Hilton Heidelberg
Kurfürstenanlage 1
D-69115 Heidelberg

Event date

Wednesday, March 5, and
Thursday, March 6, 2025

Tickets

Regular ticket
EUR 590 excl. VAT
Early Bird Ticket

Available until December 20, 2024

EUR 390 excl. VAT
The event is organized by the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes attendance at all presentations of the Steampunk and BTP Summit 2025, a visit to the exhibition area, participation in the evening event and catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due course.