SAP says new cloud package a hit, confirms outlook

Berlin: German software group SAP AG said on Thursday its new all-in cloud package was proving to be a hit with its customers, as it confirmed its first-quarter results and recently raised guidance.

“We are seeing very strong order entry growth across our applications portfolio,” said CEO Christian Klein. SAP’s new business transformation product, Rise with SAP, was “rapidly becoming a massive accelerator”.

SAP confirmed its guidance after earlier this month, nudging up expectations for cloud and software revenue to €23.4-23.8 billion ($28.15-$28.64 billion) this year, representing a rise of 1%-2% year-on-year.

Klein said SAP had “an absolute blowout in the cloud” in the first quarter, with the Rise initiative driving a 19% increase in its current cloud backlog—a management measure of incoming business—at constant currencies.