(For other news from the Reuters Global Technology Summit,
* Sees strong demand for mobility, in-memory technology
* Business Bydesign currently not profitable
* Will look at FY forecast after Q2
(Adds CEO comment, detail)
By Nicola Leske and Georgina Prodhan
PARIS/MUNICH, May 19 SAP (SAPG.DE) expects to
achieve significant sales in its new mobile and high-performance
analytics software products this year, co-Chief Executive Jim
Hagemann Snabe said on Thursday.
"Already this year, the first year, in both those two
categories, we will be able to do more than 100 million euros
($143 million) in revenue," he told the Reuters Global
Technology Summit on Thursday.
SAP has high hopes for its mobile and so-called in-memory
data bank technology, which is designed to make analytical
software more powerful by accessing data stored locally on a
chip instead of on a server.
It plans to fold this into its core software products over
time, helping it to reach revenue of 20 billion euros by 2015,
up from 12.5 billion last year.
The German company, based in Walldorf near Heidelberg, has
built its business on large, integrated software systems it has
sold to many of the world's biggest companies, such as Apple
(AAPL.O), GE (GE.N), McDonald's (MCD.N) and Pepsi (PEP.N).
But it has been slow to adjust to new trends such as mobile
working and on-demand services in which businesses outsource
computing to companies with big server farms.
However, the company has begun to gain traction with its SAP
Business ByDesign on-demand business management software
product, which targets mid-sized companies.
Snabe told the summit that at the rate Business ByDesign was
acquiring customers, SAP would likely hit its target of around
1,000 before the end of the year.
Business ByDesign was not yet profitable, however, Snabe
said, due to ramp-up and marketing costs.
SAP currently has some 170,000 customers and bills itself as
the world's leading provider of software for managing supply
chains and customer relations.
Asked if SAP was looking to grow through acquisitions, Snabe
said: "Our focus is on innovation.. there is no need for
The company expects its key non-IFRS software and
software-related service (SSRS) revenue, which includes revenue
from licence sales and maintenance services, to rise by 10-14
percent this year at constant exchange rates.
It said recently it expected the results to come in nearer
the top of the range.
"We increased the range to indicate there is an upside
opportunity here we want to go after," Snabe said. "But we're
still early in the year, we haven't closed Q2 yet... let's see
how Q2 goes and probably then we can have a talk about the
outlook for the year."
Full-year operating profit is expected to be in a range of
4.45-4.65 billion euros and the operating margin is expected to
rise by 0.5-1.0 percentage points.
For more on the Reuters Global Technology Summit, see
(Editing by James Regan)
((firstname.lastname@example.org; +49 69 7565 1214; Reuters
Keywords: TECH SUMMIT/SAP
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