SAP has reported preliminary third-quarter revenues of €4.9bn and an operating profit of €1.62bn driven by a healthy dose of subscriptions for its cloud services.
The 17 percent rise in revenue and 19 percent rise in operating profit for the third quarter of SAP's 2015 fiscal year were driven by a 102 percent hike in the number of new cloud service subscriptions compared with the same quarter in 2014.
The company's cloud business on the whole grew by 116 percent over the same quarter 12 months earlier, indicating that SAP is making headway in the cloud services market.
SAP's cloud subscriptions and support division contributed €600m to the quarterly revenue pot.
Chief executive Bill McDermott claimed that the company is well positioned to help its customers become digital businesses through the use of cloud products, which now include a wider range of offerings.
"Our flagship S/4HANA is rapidly gaining market share. HANA is redefining the database industry as the standard real-time platform," he said. "Our HANA Cloud Platform for the Internet of Things and Business Networks for inter-enterprise collaboration are redefining the business software industry."
However, as expected the company's more mature software and support offerings contributed most to SAP's coffers, generating €3.5bn in the quarter.
As such, SAP still has some way to go before its core software business becomes cloud-led by offering platform and software-as-a-service products.
SAP's cloud and software division generated a combined €4.12bn and, according to Reuters, the profit of €1.62bn soundly beat analysts' expectations of €1.45bn to €1.59bn.
For some time SAP has been building out more ‘cloud-first' services and software, and making use of the HANA Cloud Platform to act as the cloud foundation to many of its newer services.
This can be seen with the introduction of SAP's Hybris toolset designed to break down silos in customer relationship management data, which can be delivered as-a-service, and the introduction of S/4HANA Cloud Edition to help businesses move to the cloud.
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