Brazil grew nearly four times more than SAP's global software revenues last year.
BY JOACHIM BAMRUD
Germany-based SAP, the world's largest business software company, nearly doubled its software revenues in Brazil last year - 91 percent, according to Rodolpho Cardenuto, president and CEO of SAP Latin America.
That compares with 48 percent growth in Latin America and 25 percent globally.
The Latin American results mark a new record for the German company. “Quite honestly, we had spectacular growth,” he said during a conference call with journalists from Latin America. “2010 was the best year ever for [SAP] Latin America in software revenues, service revenues, all its revenues, customer satisfaction [and] employee satisfaction.”
SAP does not release financial details for Latin America, but a company spokeswoman said the region accounted for approximately 8 percent of SAP’s total revenues last year, which reached 12.5 billion euros (US$16.7 billion). That translates into approximately $1.3 billion in Latin American revenues, according to a Latin Business Chronicle calculation.
BRAZIL: STRONG ECONOMY
Brazil’s significant growth was due to a combination of factors, including its strong economy and SAP benefiting from having a well-developed subsidiary there, Cardenuto said.
Brazil’s GDP grew by 7.7 percent last year, its best result in 25 years, according to a Latin Business Chronicle analysis of data from the International Monetary Fund and the United Nations. Meanwhile, the country is seeing a particular strong growth in sectors like oil and gas and mining, which are among the key areas where SAP is especially strong in Latin America, Cardenuto pointed out.
While Brazil led the way in growth in Latin America, SP also saw strong increases in all markets.
In Chile, software revenues grew by 54 percent, while small and medium-sized enterprise revenues nearly doubled, growing at 90 percent. Peru also saw strong results, boosting software revenues by 50 percent and SME revenues by 106 percent.
In Colombia, software revenues increased 32 percent, while SME revenues jumped 58 percent. In Argentina, software revenues grew 15 percent, while SME revenues increased 41 percent.
Cardenuto believes 2011 will be another strong year. “We believe we can grow at twice the rate of the company,” he said. SAP’s global guidance is for 10-14 percent growth this year.
“I believe all the countries will grow by double-digits, from Mexico to Argentina,” Cardenuto said.“2010 was a historic year for SAP and 2011 will be even better.”
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