SAP co-CEO: Cloud computing growing strongly

FRANKFURT, Germany (AP) - Business software maker SAP's strong growth in cloud computing remains on track despite headwinds from a stronger euro, the co-CEO said Monday.

SAP's revenue from cloud computing _ where companies use software based at servers instead of at their own offices _ more than tripled in the third quarter, to 191 million euros ($261 million) from 63 million euros a year earlier. The business is smaller than SAP's older business installing and servicing software at companies. But the cloud part of the business is showing much faster growth.

"We said we'd be the cloud company," Bill McDermott told the Associated Press on Monday, emphasizing the word "the." "We are the fastest growing cloud story in the enterprise software world."

SAP AG, headquartered in Walldorf, Germany, said net profit rose 23 percent to 762 million euros as revenue rose 2 percent to 4.045 billion euros. Net profit grew faster than top-line revenues in part because the company held down costs by restraining new hires. It had 66,061 fulltime workers at the end of the quarter, up only 380 from a year ago once businesses the company has acquired were discounted.

The company's shares rose 5.3 percent to 56.32 euros in late afternoon trading in Europe.

Revenue from the company's older, on-site software business slipped 5 percent to 975 million euros _ but grew 2 percent when excluding the impact of exchange rate shifts. The company stayed with its forecast for sales and profit for the full year.

"The euro is unbelievably strong and there's nothing operationally that we could do about that," McDermott said.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Placing Blame
    Jason Rantz says it's the Seattle DOT that's to blame for our awful commutes

  • Spider Season
    Just in time for Halloween, western Washington spider season in full effect

  • Seattle Drivers
    10 reasons we know you're a Seattle driver
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Listen to the show
Hear GeekWire on KIRO Radio
Join Todd Bishop and John Cook weekends on KIRO Radio to talk Seattle technology.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.