SAP praises ‘stellar cloud bookings’, reiterates 2020 vision and acquires Callidus Software

SAP has praised ‘stellar cloud bookings’ in its Q417 financial results, with total revenue across all segments at €6.805 billion (£6bn) and cloud and software revenues comprising 85% of that figure.

New cloud bookings were at €591 million for the quarter ended December 31 2017, up 22% from the previous year. The figures show a steady continuation of a long-term trend. Cloud subscriptions and support went up 21% to €997m year over year, while the more traditional software licenses and support bucket went down 2% to €4.81bn.

The company expects full year non-IFRS cloud subscriptions and support revenue to be between €4.8bn and €5bn, thanks to ‘continued strong momentum’ in its cloud business, while full year cloud and software revenue will be between €20.7bn and €21.1bn.

SAP also reiterated its 2020 ambition for cloud and total revenue. By 2020, the German software giant is expecting non-IFRS cloud subscriptions and support full year revenue at a top point of €8.5bn, and ‘more predictable revenue’ – in other words, cloud support and software support revenue – to be between 70% and 75%.

The company also announced acquisition news; that of Callidus Software, a provider of ‘quote to cash’ cloud software, for $2.4 billion. The company said the acquisition will give it ‘immediate leadership’ in the lead-to-money software space and that the combination of SAP and CallidusCloud will ‘deliver the most complete, end-to-end, fully cloud-based lead-to-cash offering.’

Bill McDermott, CEO of SAP, said the company was ‘connecting the back office to the front office in this consumer-driven growth revolution.’ “The addition of CallidusCloud aligns perfectly to SAP’s innovation strategy to transform that front office,” added McDermott. “SAP gives CallidusCloud the global scale to accelerate its already impressive growth.

“These two strong companies will be better together, help the world run better and improve people’s lives.”

You can read the full financial report here.

This story is being updated with more information as soon as CloudTech gets it.

Picture credit: SAP