SAP's software and services sales surge

Beverley Head
Monday, 07 February 2011 20:10

IT Industry - Listed Tech

German software giant SAP has announced record results for its Australia and New Zealand operations for the year ended 31 December 2010, with local growth significantly outstripping that achieved by the parent organisation.

Buoyed by sales to local enterprises such as BlueScope Steel, Fairfax Media and CGU Insurance, SAS ANZ's total revenues grew 26 per cent during the year. The company also continues to reap the benefit of the Commonwealth Bank's $730 million core systems revamp which is based on an SAP platform.

The company would have kicked off 2010 hoping for an even more stellar year - but it was pipped at the post by arch rival Oracle which won a multi-million dollar contract to supply software for NBN Co in early 2010.

While the SAP ANZ operation has not disclosed a revenue figure, it claimed that between 2007 and 2010 it has doubled the size of the business.

SAP's results point to a strong recovery in post GFC spending by Australian enterprises, and the outlook for 2011 has been described as 'exciting.'

The German parent last month reported a full year growth of a considerably more modest 11 per cent, possibly reflecting a slower post GFC recovery in many of its key European markets. Nevertheless for the full year the company reported Euro12.46 billion revenues (almost $17 billion).

SAP also completed its $US5.8 billion takeover of Sybase during 2010 which would have delivered a significant revenue boost.