SAP Still Hottest Apps Vendor on 22.8% Cloud-Rev. Growth in Q3

In today's Cloud Wars Minute, I show how SAP’s seamless data
strategy is driving real business value in the age of AI.
 


Highlights


00:14 — SAP reported a very nice third quarter
last week. Some highlights from SAP Q3, and then I'll do the
comparisons with its competitors. So, the cloud revenue overall
is up 22% to $6.14 billion. Ad their current cloud backlog, which
is pretty close to RPO (Remaining Performance Obligation), the
term some companies use, was up 23% to $18.1 billion.


01:24 — SAP is at the top, up 22% to $6.14
billion. Second place, Workday: 14% to $2.17 billion. Then
Oracle, up 11% for its SaaS products to $3.8 billion. And
Salesforce: most recent quarter revenue is up 10% to $10.24
billion. SAP’s growth is more than twice as high than what Oracle
and Salesforce did, and it's about 60% higher than the growth
rate for Workday.


02:10 — There’s a lot to think about here.
What’s making this happen? I think a few things are going on. One
is, certainly there’s a tendency for longtime SAP on-premise
customers to slide along and go with SAP.


03:06 — The other thing I think SAP has done
well is evolving their applications. First, it was the Cloud ERP
Suite, now the Business Suite. It's trying to make things simpler
for its customers with a seamless experience, same interface,
same data model. SAP, along with the others, has been doing a
very good job of infusing agentic AI into their applications.


04:03 — So, very nice quarter here from SAP for
Q3. It continues to dramatically outpace what its competitors are
doing. But there’s a lot of back and forth, a lot of vying to
close that gap on the part of competitors.


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