SAP's Successful Run In Cloud Continued In Q3, Future Growth Rests On Broader Product Portfolio

The company continued its triple-digit cloud revenue growth rate in the third quarter, albeit the pace slowed slightly compared to the first half of the year. Perhaps more importantly, SAP appears to have achieved the critical mass required to derive economies of scale in its cloud business. Its Cloud non-GAAP gross margin improved by an impressive 9 percentage points year on year. Combined Cloud and Software (including on-premise) non-GAAP gross margin expanded by 80 basis points, which suggest...