SAP Forecasts $7 Billion Revenue From New Businesses by 2015

SAP AG, the largest maker of businessmanagement software, predicts mobile products, services andreal-time analytics research will generate about a quarter ofits projected 20 billion-euro in sales by 2015.

"We think mobility and in-memory research will be the twomain drivers of growth for SAP," John Chen, chief executiveofficer of Sybase, which SAP bought last year for $5.8 billion,said in an interview in Orlando, Florida. "If you look at thewhole 20 billion euros, I think the last 5 billion euros isgoing to rely on these two functions."

While archrival Oracle Corp. has spent more than $42billion on takeovers since the beginning of 2005, SAP will meetthe revenue target even without acquisitions as it pitchesmobile solutions and the Hana real-time analytics product tocurrent clients, co-CEO Jim Hagemann Snabe said in aninterview at the annual Sapphire conference.

Earlier this month, SAP's head of global solutions, Sanjay Poonen, said a recent outage on Amazon's cloud-computingservices, and a controversy around Google Inc.'s delays inproviding e-mail services to 30,000 city employees in LosAngeles could make it harder for the software industry toconvince customers that cloud computing is secure.

In 2010, SAP reported total revenue of 12.5 billion euros.Sybase made about "half a billion dollars" on the mobilesolutions, according to Chen.

SAP has made only two large acquisitions in its 39-yearhistory: Sybase, and business-intelligence company BusinessObjects for 4.8 billion euros in 2007.

The sale of its on-demand solution BusinessByDesign

SAP delayed the sale of its on-demand solution BusinessByDesign by two years and has so far won 500 clients.According to Snabe, so long as the average number of users percompany is between 80 and 100, Business ByDesign will be "asprofitable" as the rest of the business. SAP targets a 35percent profit margin by 2015. In 2010 it was 32 percent. Theaverage number of users among the 500 ByDesign clients is 25,and would be less profitable and weigh on the group margin,Snabe said.