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Updated: Cloud builds for SAP NZ as traditional licensing declines

Updated: Cloud builds for SAP NZ as traditional licensing declines

SAP is growing in New Zealand as customers shift to the cloud

SAP is growing as Kiwi customers shift to the cloud.

SAP is growing as Kiwi customers shift to the cloud.

The shift to the cloud is evident in SAP New Zealand's annual accounts as cloud sales more than compensate for falling software licence revenue.

Cloud subscriptions and support revenue for the year ended 31 December 2018 grew from $11.8 million to $20.2 million, the accounts filed overnight show.

Offsetting that growth to a lesser degree was declining traditional revenues in software licensing and support, which fell from $73.3 million to $68.2 million.

The accounts break the results down further, showing software licensing declined from $15.9 million to $12.5 million while software support fell from $57.3 million to $55.7 million.

"We have put a strong focus on being a cloud company and these results demonstrate that our cloud strategy is working,” said Phil Cameron, managing director of SAP New Zealand. 

“We are seeing extraordinary innovation in New Zealand and we continue to focus on being bold and helping our customers deliver exceptional experiences for their people and customers through the cloud.”

Reseller News has reported wins and losses for the company in New Zealand over the past year.

A significant win was at Christchurch City Council which decided to move its business processes to the cloud last November.

The Council is replacing 11 different legacy environments to deploy SAP HANA Enterprise Cloud (HEC) and the SAP Customer Experience Citizen Engagement Accelerator to provide tailored digital and citizen-centric services and interactions.

In April, however, Unison Networks opted to roll out OneEnergy software from Technology One to replace SAP.

Unison will replace its current solutions, including SAP, in favour of TechnologyOne’s fully integrated OneEnergy – which is currently used by other local energy networks including MainPower, Alpine Energy and Network Waitaki.

While both Microsoft NZ and Oracle NZ have revealed in their accounts that they are subject to tax inspections, SAP did not report on any "contingent liabilities", where such a risk would normally be noted.

In answer to our queries, the company told Reseller News it was subject to tax inspections but it was early in the process and there was no further information to report.



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