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SAP 2Q: REVS UP 10 PERCENT Featured

Bill McDermott, SAPNever missing a chance for broad statements, SAP CEO Bill McDermott described his company this way during the recent second quarter earnings web cast: "SAP is a growth company for the ages," he said. That was on the revenue side. Net after tax profit of about $782 million for the most recently ended quarter was down 18 percent in IFRS terms.

But since it was up 14 percent on a non-IFRS basis, I am assuming some equity comp for execs? Pushed by the cloud, revenue settled in at approximately $6.8 billion, an increase of 10 percent from last year's corresponding quarter on an IFRS basis. Cloud revenue of roughly $1.1 billion was 29 percent higher than a year earlier. Significantly, in the cloud era software license and support continued to grow, hitting about $4.6 billion, up 5 percent. The United States seems to have been a disappointment. The quarterly report mentioned Canada, Mexico and Chile, while the USA performance did not make it to print. One measure of success is not financial, but time to get up and running. On-premise SAP implementations are legendarily long and expensive. A few years ago, my wife was on the core team for an SAP project at a major complement. The core team had 650 employees. McDermott noted that "Customers are going live with S4 cloud in as little as six weeks."

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