In this Cloud Wars Minute, Bob Evans details SAP’s projections for cloud revenue in calendar year 2025.
Highlights
00:40 — Last week, during its annual Sapphire event, SAP held a financial analyst and investors meeting. At that meeting, SAP CEO Christian Klein raised the guidance for the company for 2025, particularly around cloud revenue, which is projected to be $23.7 billion.
01:15 — In 2022, SAP had total cloud revenue of $12.5 billion, which was 38.5% of the company’s total revenue of $32.5 billion. In just three years, during calendar year 2025, SAP’s projected cloud revenue is $23.7 billion, which is 57.3% of the total projected revenue of $41.25 billion. Bob notes that this is happening even with the sale of its stake in Qualtrics, in which the company is losing almost $2 billion in cloud-related revenue.
02:21 — During the presentation, Bob said that Christian Klein made the point that SAP is in “phase two of its transformation.” He also shared that SAP is “more relevant than ever because our technology is focused on our customer’s biggest opportunities.”
03:07 — A huge voice in this has been Scott Russell, SAP’s Global Head of Customer Success, explains Bob. “Russell just oozes talk about customers, the confidence in customers, and what’s happening there.”
03:46 — At a time when other cloud vendors are pulling in their expectations about growth, it’s quite impressive to see SAP continuing to be very bullish on growth rates, adds Bob.
