As stated in the press release on January 22, 2016, SAP has raised its 2017 ambition to reflect both the current exchange rate environment and excellent business momentum as follows:
Assuming a stable exchange rate environment going forward SAP expects non-IFRS cloud subscriptions and support revenue in a range of €3.8 - €4.0 billion in 2017. The upper end of this range represents a 2015 to 2017 CAGR of 32%. Non-IFRS total revenue is expected to be in a range of €23.0 - €23.5 billion in 2017. The Company expects its 2017 non-IFRS operating profit to be in a range of €6.7 - €7.0 billion.
SAP continues to anticipate that the fast-growing cloud business along with growth in support revenue will drive a higher share of more predictable revenue. Given the current software license revenue momentum the Company expects the total of cloud subscriptions & support revenue and software support revenue to be in a range of 63% - 65% of total revenue in 2017.
By 2017 SAP continues to expect its rapidly growing cloud subscriptions and support revenue to be close to software license revenue and is expected to exceed software license revenue in 2018. At that time, SAP expects to reach a scale in its cloud business that will clear the way for accelerated operating profit expansion.
The Company is not adjusting its long term, high level 2020 ambition at this time. The Company's 2020 ambition communicated in 2015 was:
€7.5 - €8.0 billion non-IFRS cloud subscriptions and support revenue
€26 - €28 billion non-IFRS total revenue
€8.0 - €9.0 billion non-IFRS operating profit
70% - 75% share of more predictable revenue (defined as the total of cloud subscriptions & support revenue and software support revenue).