Thursday, March 20, 2008

SAP reports solid growth in 2007 revenue in Russia and CIS

Following the 2007 results SAP reports its total worldwide revenue in 2007 reached 10,25 billion euros, which is a 9% increase as compared to last year (corresponding increase in US dollars is about 20%). The revenue from software and corresponding services sales grew by 13% (or by 24% in US dollars), while the level of the net operating margin made the 26-27% planned. SAP’s share in the world market of applied software and corresponding services amounted to 28.4% (a 4% growth) in 2007. Its immediate rivals Oracle and Microsoft closed the year with 16.5% and 3.3%, respectively.

In terms of the Russian and CIS markets SAP experienced even more dramatic results: SAP CIS' total annual revenue made 47,2%, while the maintenance services sales increased by 59,3%. This makes SAP CIS the 4th most effectively operated business unit of the German giant following the SAP headquarters in USA, Germany, and UK.

Out of 398 contracts in 2007 closed in Russia and CIS (which is a 48% increase as compared to previous year's 126 contracts), more than half (261) were concluded with small and medium-sized businesses outside of the oil, metallurgy or public sector. Having realized that need of the SMEs in prepackaged solutions, in 2007 SAP CIS expanded its presence in the given segment by 30% and plans to expand by 40% in 2008. With the wholesale (Megapolis) and retail (X5 Retail Group) companies being among SAP’s software largest customers, the company considers last year to be a real breakthrough into the retail trade and basic goods segments. Business process automation in the Russian and CIS building industry has seen rapid development lately as well, according to the company.

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