Keywords: SAP, salesforce, ERP, Ariba, Oracle, cloud software, shared services

2015 Cloud Target in sight for SAP without further M&As

Susie West | News | 4 October 2012

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Enterprise-management software provider, SAP, will reach its 2015 sales target for web-based software after taking over Ariba, its co-chief executive officer, Bill McDermott has reported.

“We have all the assets we need to blow through 2 billion euros ($2.6 billion) by 2015,” McDermott said in a phone interview today. “The way we’re growing in the cloud, hopefully we can even get it done sooner.”

Now SAP has completed its $4.3 billion purchase of Ariba, this will provide a platform for companies to trade products online via the so-called cloud. With the closing of the deal, SAP will be able to add Ariba’s sales of more than $500 million to their overall profit, a growth of 50% a year.

SAP, which is scheduled to report third-quarter earnings on October 24, had 104 million euros in cloud revenue in the six months ending June 30, 13 times the year-earlier figure.

The German company has said it plans to exceed 20 billion euros of overall revenue, up from 14.2 billion euros last year, even before the Ariba deal was announced in May.

Like rivals Oracle and Salesforce.com, SAP is pushing web-based software to lower entrance barriers for clients and reduce the computing capacities companies need to maintain on their own premises.