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SUPPORT REVS SPUR SAP YEAR Featured

Bill McDermott, SAPYes, cloud revenue grew by double digits for SAP's year ended December 31. But old-fashioned support revenue was up by 7 percent leading to a 4 percent overall rise over 2013 results, the company said as it reported preliminary results. Revenue for 2014 was about $6.29 billion. In prepared remarks, CEO Bill McDermott touted the success of the company's Hana in-memory database platform.

However, gains elsewhere were held by down a 2-percent drop in software revenue. Cloud subscription and support revenue was up by 72 percent, but that was on a base of about $403 million while software revenue fell to roughly $2.15 billion. SAP, however, says the cloud run rate is about $2 billion. Support revenue reached about $2.9 billion. The software decline was worse in constant currencies, off 5 percent, while the cloud revenue rose by 59 percent under the same metric. Operating profit rose by 1 percent but was down 2 percent in constant currencies. SAP does not provide detailed comment about results when issuing preliminary numbers. Final results will be released on January 20 and accompanied by an earnings webcast.

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