SAP claims its cloud is on target

SAP logoThe mysterious German software company which makes expensive business software is doing better than expected.

SAP has been putting a ton of money investing in the cloud and it said that its strong third quarter results were the result.

In a statement, SAP reported a 19 percent rise in third-quarter operating profit to $1.54 billion, confirming results it pre-announced last week.

Chief Executive Bill McDermott claimed that the reason why SAP didn’t raise the guidance is because it is an annual guidance and the biggest part of the annual operating plan is still to be determined based on SAP’s fourth-quarter.

SAP has a target to increase cloud and software revenue by eight to 10 percent in constant currencies during 2015. McDermott thinks he is on track to do that.

The company is doing a lot better than IBM in getting its cloud act together, but is still not as big a market player as Salesforce or Amazon,