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SAP: WE ARE THE CLOUD CHAMP Featured

 Bill McDermott, SAPSAP hasn't been modest in its earnings calls in the last couple of years and generally, it's got the numbers to back that up. The company said its cloud run-rate is about $1.5 billion. So this week's first quarter webcast had executives touting SAP as the top cloud company. "We are not only growing cloud faster than our nearest competitor," said co-CEO Bill McDermott, "We help [customers] run their entire businesses in the cloud which our competitors just don't do."

After-tax profit was up by 3 percent on an IFRS basis, but down 3 percent on a non-IFRS basis. The company said there currency had a negative impact of 5 percentage points on software and software-related service revenue and on operating profits. And while software revenue was off 5 percent both in IFRS and non-IFRs measurements, the shift to the cloud produced a 60-percent rise in cloud subscription and support revenue (IFRS), 33 percent (non-IFRS), and 38 percent (constant currency). Pick a basis, any basis. Maybe what was more instructive was which competitors were mentioned. As usual, there was gloating at Oracle's expense, but for the first time, McDermott took whacks at Workday, twice, which suggests Workday is having an impact. And you can throw in an indirect slap at Salesforce.com. " CRM is no longer just about salesforce automation," McDermott said. "That's a commodity." After tax profit was about $737.6 million with total revenue about $5.1 billion. Perhaps as important as the financial results is the growth in the workforce. There were 66,750 employees at the end of the quarter, up 3 percent from 64,698 a year earlier.

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