WALLDORF, Germany Jan 21 (Reuters) - SAP expects that by 2017 about 65 percent of its business will be highly predictable as the software company will make a push for cloud and subscription based services, the company's co-Chief Executive Bill McDermott told Reuters in an interview.
"Today 50 percent of our revenues is recurrent. By 2017 we aim at having 65 percent of recurring revenue. That means 65 percent of revenue will be highly predictable and have high margins," he told Reuters on Tuesday.
He added that demand Europe was recovering, especially Southern Europe. "We had an amazing fourth quarter in southern Europe, especially in Italy. We see southern Europe coming back with the rest of Europe showing a steady development." (Reporting by Harro ten Wolde and Ilona Wissenbach; Editing by Ludwig Burger)