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SAP's revenue from cloud subscriptions and support grew so quickly in 2016 that the company has raised its forecasts for 2017 and 2020.
Full-year cloud revenue grew 31 percent compared to a year earlier, accounting for over half of the company's revenue growth. Total revenue reached €22.1 billion ($23.8 billion), up €1.3 billion on 2015, while revenue from cloud subscriptions and support grew €707 million to €3 billion, the company reported Tuesday.
Profit after tax rose to €3.6 billion from €3.1 billion in 2015.
SAP is keen to see more of its software business move to the cloud because, unlike traditional software licenses that bring a bump in revenue at the moment a deal is signed, it represents a predictable source of revenue. Together with software support, the company says that the growth in cloud services means 61 percent of its revenue now comes from more predictable sources.
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