The amount that customers will spend on software and related services will drop this year according to SAP which has revealed the projected decline in its full-year numbers.
The German software specialist still expects double-digit growth but around the 11-13% mark rather than the 17% it has enjoyed last year.
There were some positives with double-digit growth forecast on the cloud front with full-year software and cloud subscriptions increasing by 21% to €5bn and its software revenues were buoyed by its big data tool Hana and its mobile offerings.
The annual cloud revenue run rate is approaching €850m and the vendor expects its software subscription demand to hold up into fiscal 2013.
“We achieved €5 billion in full year non-IFRS software and cloud subscription revenue, an increase of 21%. We saw very strong revenue contribution from our key innovations SAP HANA and Cloud. We are confident we will continue our double-digit growth momentum in 2013 and further improve our profitability,” said SAP CFO Werner Brandt.
Operating profits fell by 17% to €4.06bn, which the vendor put down to the innovations it is making in its products as well as expanding its go-to-market activities.