Services demand benefits SAP

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Services demand benefits SAP

Simon Quicke

The subscription revenues might have remained flat but strong demand for services are feeding through to SAP and its channel partners.

The software player revealed that the highlights of its first quarter results, for the three months ended 31 March, showed a pick-up in the call for consulting and professional services.

Software services revenue grew 20% year-on-year to €2.3bn and professional services increased by 24% to €697m but subscription revenue stayed flat at €89m.

Pre-tax profits grew by 12% to €583m and total revenue increased by 21% to €3bn the vendor also ploughed more money into research and development and sales and marketing over the first three months of the year.

Bill McDermott, Co-CEO of SAP, said that there was double-digit growth across all regions and highlighted the role resellers were playing in its strategy.

"We delivered double-digit revenue growth in all regions, benefitting from an increasing contribution to software revenue from our partner and channel business," he said.

The other co-CEO Jim Hagemann Snabe said that by encouraging customers to embrace the latest technology it was able to move into new markets and get ahead of the competition.

In a recent FT interview the joint CEOs of SAP talked up the importance of remaining independent and ruled out any potential sale leaning on the financial performance of the company as one reason it could continue to go it alone.


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