ANZ Businesses Help Drive SAP Cloud Revenue Growth
Major transformational projects by Australian and New Zealand companies have helped drive a sizable bump in SAP’s Q4 cloud revenue across the Asia Pacific and Japan (APJ) region.
In delivering its global Q4 and full-year 2023 results, SAP reported Q4 cloud revenue in APJ rose 28% to €499 million, while full-year cloud revenue was €1.781 billion, up 21% year-on-year.
This was boosted by new adoptions or significant upscaling of cloud-based projects by Australian companies including Coles Group, AusNet and Airservices Australia, plus New Zealand operations such as Foodstuffs North Island and Christchurch City Council.
Australian retailer Coles Group, which owns the national Coles supermarket chain plus a range of retail outlets and liquor stores, purchased RISE with SAP during Q4 to underpin its cloud transformation. In addition, Coles renewed its licenses for SAP SuccessFactors, SAP Fieldglass and SAP Business Technology Platform.
Coles was the first organisation in the Southern Hemisphere to launch all modules of SAP’s SuccessFactors in one go, implementing a deep collaboration with talent experience specialist and SAP partner Phenom to transform recruiting processes that had been stymied by legacy systems. As a result, information and analysis relating to its 120,000-strong workforce is now available in real time across the organisation.
Energy network business AusNet complemented its adoption of RISE with SAP by adding SAP Signavio, SAP Business Technology Platform, and SAP Datasphere. AusNet also implemented SAP SuccessFactors to streamline management of its 1300 employees, a move expected to drive savings of $2.1 million through the operation over the next five years.
Airservices Australia, an organisation responsible for the safety of 11% of the world’s airspace owned by the Australian Federal Government, is in the process of migrating from an on-premise SAP ERP platform to cloud-based SAP S/4 HANA as part of a significant transformation program.
Leading New Zealand grocery retailer Foodstuffs North Island is continuing a major transformation which it says is “aimed at becoming a future-ready enterprise”. Having invested in SAP’s Business Technology Platform for the past six years, it expanded its SAP portfolio in 2023 by implementing SAP Datasphere, increasing its use of SAP Integration Suite, and maximising new Business Technology Platform innovations as part of a clean SAP core.
One of New Zealand’s leading municipal bodies, the Christchurch City Council, purchased RISE with SAP, with S/4 HANA Private Cloud Edition.
Incoming President and Managing Director of SAP Australia and New Zealand, Angela Colantuono, says she is excited to see ANZ customers contributing significantly to APJ Q4 and full-year revenue growth.
“We have seen extraordinary demand as customers continue to drive their cloud transformations with SAP, and our momentum isn’t slowing down,” she says.
“Looking forward to the future, we’re embarking on the next chapter of growth to make SAP No.1 in Business AI. We are laser-focused on bringing our customers new innovations to help them drive efficiencies, and set themselves up for future success.”
SAP APJ President Paul Marriott says the results show that forward-thinking businesses are recognising the need for ongoing strategic transformation, and leaning on SAP to enable their adoption of cloud-based systems.
“Once organisations are able to create a solid foundation in the cloud they can then explore new avenues of growth in areas like artificial intelligence, data analytics, and sustainability,” he says.
“By bringing together our range of cloud solutions, business networks, and new innovations to drive growth, customers across APJ are increasingly becoming intelligent and sustainable businesses.”