SAP reports in-memory Hana boost in Q3 2013 results

SAP has posted double-digit growth for Q3 2013, partly due to a boost in Hana sales

SAP has posted double-digit growth in its third quarter 2013 results, thanks in part to a boost in Hana sales.

Hana is SAP's in-memory database appliance, designed to improve the performance of analytics applications.

SAP said more than 450 customers are now running SAP Business Suite powered by Hana.

“SAP is clearly leading the transition to cloud and in-memory. SAP Hana is the market’s most advanced in-memory database and we are well on our way to reaching €1bn in Hana software revenue since market launch," said SAP's co-CEOs, Bill McDermott and Jim Hagemann Snabe (both pictured).

"The strong customer adoption of SAP Business Suite on Hana demonstrates our leadership in innovating the future platform for business," the CEOs said.

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The company reported a 6% increase in cloud subscriptions to €1.17bn. "We now are the second largest enterprise cloud company, with an annual cloud revenue run rate exceeding €1bn," said McDermott and Hagemann Snabe. "We continue to gain market share and grow significantly faster than our primary competitor in all regions.”

However, SAP's software revenue declined 5% to €975m.

Overall, the company reported third quarter revenues of €4bn, a 2% increase over the same period last year.

SAP is building out its Hana platform, as rival Oracle enters the in-memory market. At OpenWorld last month, Oracle unveiled its M6-32 Big Memory Machine.

Oracle followed this announcement by launching a server to complement the debut of its in-memory database and an in-memory option for the 12C database, which is a rival to Hana. 

SAP Hana is the market’s most advanced in-memory database and we are well on our way to reaching €1bn in Hana software revenue

Bill McDernott & Jim Hagemann Snabe, SAP

Given that the Oracle database powers many SAP systems, SAP is keen to switch its customers to Hana. Its SAP Business Suite powered by SAP Hana product is a version of the company’s core ERP suite designed to run on Hana.

In a post on the Seeking Alpha financial website, Sramana Mitra, who runs the virtual incubator One Million by One Million, noted that the agreements with Intel and Hortonworks to resell and support the Intel Distribution for Apache Hadoop and the Hortonworks Data Platform with SAP Hana would help to extend Hana’s reach. 

“By integrating with Apache Hadoop, SAP plans to be able to provide insights across all kinds of data – stored cold data, petabyte-level warm data and even real-time and streaming data,” wrote Mitra.

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