Home Industry Listed Tech SAP's software and services sales surge

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.

After tax profits for the international operations leapt 35 per cent to Euro1.8 billion. SAP ANZ has not disclosed details of local profitability.

In a statement Tim Ebbeck, president and managing director, who has led the ANZ operations since 2008 said that since 2001 the company had enjoyed consistently strong growth. He said it had doubled in size in the years between 2003 and 2006, and doubled again in the last three years.

'The growth is due to a number of factors but essentially we are a fundamentally different business now ten years on,' said Mr Ebbeck. He added that the company had moved on from its R2 and R3 ERP heritage to now offer vertical solutions in 24 industries, business analytics and SME solutions - a company recasting which was sustaining the strong growth trajectory.

Over the ten years 2001-2010 total ANZ revenue has more than quadrupled, while software and software related services grew fivefold according to the company.  Mr Ebbeck pointed to a number of innovations expected in 2011 including in-memory computing, mobile solutions and cloud offerings which would deliver what he predicted would be 'an exciting year'.


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Beverley Head

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Beverley Head is a Sydney-based freelance writer who specialises in exploring how and why technology changes everything - society, business, government, education, health. Beverley started writing about the business of technology in London in 1983 before moving to Australia in 1986. She was the technology editor of the Financial Review for almost a decade, and then became the newspaper's features editor before embarking on a freelance career, during which time she has written on a broad array of technology related topics for the Sydney Morning Herald, Age, Boss, BRW, Banking Day, Campus Review, Education Review, Insite and Government Technology Review. Beverley holds a degree in Metallurgy and the Science of Materials from Oxford University and a deep affection for things which are shaken not stirred.






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