Posted on 10-Feb-2011 08:30
Filed under: News
SAP Australia New Zealand (ANZ) has recorded its best ever year for the financial year ending 31 December 2010. The 2010 result means SAP in ANZ doubled in size between 2007-2010, which follows a doubling of the size of the business between 2003 and 2006 in total revenue and software & software related services (SSRS) revenue.
In addition, over the ten year period 2001-2010, SAP total revenue more than quadrupled and SSRS revenue grew five-fold. The other two leading business indicators, software licence revenue (a component of SSRS) and SAP field services & support revenue, showed similar levels of growth, respectively five-fold growth and close to four times growth over ten year period.
The performance of the business in 2010 followed consecutive best ever performances in 2008 and 2009. Total revenue in 2010 grew 26 percent year on year (3 percent in constant currency) and SSRS grew 32 percent year on year (8 percent in constant currency).
“The ANZ business in 2010 performed exceptionally well, especially on the back of very strong performances in the prior years,” said Tim Ebbeck, President and Managing Director, SAP ANZ, who has led the local business since 2008. “Growing beyond the level attained in 2009 was an aspirational goal for the team, but great teams achieve great things. We achieved another record year in 2010.”
Key to the strong result was the continuing success of SAP in delivering deep industry expertise in financial services, mining & resources, retail, utilities and public sector. This was coupled with the continued strength in the performance of the small to mid-size (SME) segment, with SAP’s indirect business growing 80 percent year on year. The SAP BusinessObjects and platform solutions grew 25 percent year on year.
“Our strategy in ANZ has been to focus our business in key industries, market segments and solutions,” added Mr Ebbeck. “In our key vertical markets we’ve delivered quantifiable value for customers over a number of years. A focus on partners has seen our indirect business grow strongly while our SAP BusinessObjects solutions continue to be the market leader.
“We’ve grown as a company and we’ve grown our people. We’ve helped transform the businesses of a number of the best known and most successful organisations in Australia and New Zealand, something we take pride in. Our emphasis on attracting and retaining the best and brightest from all industries, along with our focus on driving real business for our customers have been the cornerstones of our success in ANZ.”
Commenting on SAP’s performance over the past ten years, Mr Ebbeck said, “The first decade of the 21st Century have been good for SAP. The year 2001, two years before I joined SAP as CFO, was tough, after Y2K, the dot com bust and the 9-11 terrorist attacks.
“From that point, the company has shown consistently strong growth. Between 2003 and 2006, the size of SAP’s business doubled. And it has now doubled again between 2007 and 2010.
“This growth is due to a number of factors but essentially we are a fundamentally different business now ten years on. Back then, we made the ERP category. It was the heyday of the R/2 and R/3 products.
“Now, we also offer deep vertical solutions in 24 industries, business analytics, solutions for small to mid-size companies. We lead the market on premise, we are attacking on-demand, we lead in mobility, we lead in analytics and SME, and we have the only real data orchestration strategy. And we will continue to innovate and move into new markets.
“This year we are seeing major innovations coming to market with in-memory computing, mobile solutions and cloud offerings. 2011 will be an exciting year for SAP.”
Key customer wins included Australand, Fairfax Media, CGU Insurance, Murray Goulburn Co-operative, Workcover WA, McGrath Foundation as well as Auckland Council and Jucy Rentals in New Zealand plus a number of key customer successes in the mining & resources industry, public sector and utilities industries.