FIGURES CONFIRM SHIFT AWAY FROM UPFRONT LICENCE REVENUE
SAP’s full year 2014 results confirms a decrease in upfront license revenue (down by 3%) but support and maintenance up by 7%. Cloud revenue jumped 56% to US$1.087bn representing 6% of total revenues.
Luka Mucic, CFO of SAP said: “We expect cloud subscriptions to exceed software license revenue in 2018. At that time SAP expects to reach a scale in its cloud business that will clear the way for accelerated operating profit expansion.”