In combination with solid core performance, SAP’s fast-growing cloud business in 2013 played a key role in the company racking up its fourth consecutive year of double-digit growth.
In 2013, SAP’s cloud subscription and support backlog increased 50% to approximately $1.6 billion, and deferred cloud subscription and support revenue increased 25% to approximately $600 million.
SAP booked over $1 billion in sales from cloud subscriptions and support in 2013, exceeding its full-year guidance and more than doubling total cloud revenue from 2012.
Based on the fourth-quarter total, SAP said the 12-month run rate for its cloud business now stands at $1.4 billion.
During SAP’s recent earnings call, Co-CEOs Bill McDermott and Jim Hagemann Snabe underscored why SAP’s cloud growth is a crowning achievement: “We are one of the few global tech companies that has successfully managed the transition to the cloud while growing our core business and improving our profitability at the same time.”
SAP future cloud goals are both clear and aggressive. For 2014, SAP targets $1.2 – $1.35 billion in cloud revenue. By 2017, SAP expects to earn $4.7 billion from the cloud.
Gartner forecasts the worldwide cloud market to grow 18.5 percent this year to $131 billion, and SAP is determined to capture a sizable share.
To help SAP consultants and customers get a handle on SAP’s cloud aspirations, we’ve pulled together a roundup of articles containing some interesting cloud quotes from SAP execs.