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SAP CHANNEL REVS UP 60 PERCENT

William McDermott, SAPSAP reported this week that its channel sales for the second quarter ended June 30 were up 60 percent over the prior year. The company did not reveal channel sales numbers during an earnings webcast. But it did claim growth across all products and geographies as software license revenue rose by 26 percent (IFRS) and 35 percent (non-IFRS). Co-CEO William McDermott described the results as part of a fundamental change in technology purchasing in which buyers are turning an increasing amount of their budgets toward software.

"There is a move away from hardware refreshes and technology stacks and toward innovation," he said, calling software the "brains" of the innovation. SAP reported 18-percent IFRS software and related revenue growth in the Americas, and 10 percent growth for this country. Co-CEO Jim Hagemann-Snabe reported the company has 550 customers of its Business ByDesign application more than halfway through its 2012 goal of 1,000 customers. He also said that there are more than 180 resellers of ByD. "Increasingly we are selling larger customers with more than 100 users for By Design," Hagemann-Snabe said. Overall, SAP is predicting the largest software year in its history. Hagemann-Snabe said although many companies are going into ByD with a startup package of 25 to 50 users, "It is going a little bit up market because it is able to run complex businesses.
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