SAP Analyst Base Camp Singapore 2011: Assessing the Opportunity for HANA, Mobility, and Cloud in Asia/Pacific

This IDC Insight provides IDC's assessment of SAP's strategy for the region based on the information presented at the Analyst Base Camp in Singapore, as well as ongoing discussions with SAP's clients and partners. It will specifically focus on the opportunity for its growth plays in the form of HANA, mobility, cloud, and partner ecosystem strategies in the context of the Asia/Pacific region.

Asia/Pacific is currently contributing 14% of the global revenue and, in context of these goals, it is driving a significant portion of the growth (42% in constant currencies in 3Q11), opportunities for higher margins, and perhaps most importantly, huge potential in terms of expanding its customer user base. Colin Sampson, senior VP and CFO of APJ, kicked off the event by sharing past and current financial performance with the audience. In 3Q specifically, strong double digit was achieved in all six core industries for SAP — public sector, finance, services, consumer, discrete, and process manufacturing. Revenue from the small and medium-sized enterprise (SME) sector also grew double digit to represent around 30% of SAP's total software revenue. Colin was quick to stress that the outlook for FY12 remains unchanged with a projected revenue growth of 14% in total software and software-related services globally (SAP does not provide future revenue growth and profitability guidance at a regional level, but the prospects for APJ look similarly promising based on the existing IDC knowledge of the regional business).

The strategic nature of the region was also highlighted in November 2011, with the announcement of a US$2 billion investment in China through to 2015 at its SAPPHIRE NOW & TechEd Beijing event (for more details see SAPPHIRE NOW Beijing 2011: Enabling Technology and Business "Co-Innovation" in China [January 2012]).