Cloud ERP Soars 101%, Cloud to 40% of Total Revenue

Christian Klein’s remarkable transformation of venerable SAP takes another big step forward in 2022. Cloud revenue for the full year increased by 33% to his $13.69 billion and now accounts for his 40% of the company’s total revenue.

At the forefront of SAP’s cloud surge is the S/4HANA Cloud ERP modular suite, whose revenue surged 101% to $720 million in the fourth quarter. S/4HANA Cloud is the foundation for the future of SAP for several key reasons.

• The company uses S/4HANA Cloud final destination For approximately 25,000 on-premises ERP customers of SAP
• In another category, S/4HANA Cloud also: Small and medium-sized enterprisesthese customers account for a large portion of S/4HANA Cloud revenue
• of Modular architecture In addition to the S/4HANA Cloud integration, the refactoring of all of SAP’s apps into its business technology platform makes it much easier for customers to deploy HCM and CX apps in conjunction with their cloud ERP suite. becomes more profitable.
• The company’s novel RISE Customer Engagement Program It has proven to be highly successful in simplifying the entire ERP deployment process and giving customers access to powerful insights on how to optimize their overall deployment.

Other notable numbers from the fourth quarter and full year:

• “Cloud Current Backlog” was $13.11 billion, up 27%.
• “Total cloud backlog” was $37.28 billion, up 35%.
• for S/4HANA Cloud, “The Current Backlog of the Cloud” $3.47 billion, up 86%
• PaaS RevenueBusiness Technology Platforms, a key component, increased 53% to $1.73 billion.

Next week, we’ll get more insight into SAP’s fourth quarter and full year results, along with Klein’s comments.

final thoughts

Klein is entering his third year as a single CEO, but given these strong fourth-quarter and full-year results, it’s not surprising how far the company has come since overseeing its first earnings call in April 2020. It’s hard to imagine how far we’ve come. , with the global impact of the pandemic hitting home, SAP’s business was in such a shambles that it was unable to offer any guidance on the future of the business.

As mentioned earlier, some Pinheads took the opportunity to call out Klein’s scalp, and the term “dinosaur” was frequently thrown around.

But Klein didn’t blink or waver in his determination to aggressively lead SAP into a cloud-first future. Since then, SAP’s performance has improved steadily quarter after quarter, and now it’s one of the world’s fastest growing he two or he three major cloud he providers . Farewell to Google Cloud.

SAP’s transformation under Klein’s bold leadership is an exciting time not just for business schools, but for CEOs in any industry who need to transform their companies in the face of massive disruption, vicious competition, and relentless technological change. We believe it will be a strong case study.

Well done, SAP!

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