SAP CEO: Software Industry Being Split in Two
German business software maker SAP issued guidance for 2013 operating profit that beat market expectations, and the company's co-Chief Executive Jim Hagemann Snabe told CNBC the software industry is being split into two.
"In many ways, what we have been seeing is actually a transition in the IT spend in general. What you are seeing is that a few companies growing rapidly like SAP, and most companies having no growth," he said.
"It's not necessarily an increase in IT spend but it's a shift into innovative software solutions that help companies manage in these uncertain times."
SAP said Wednesday that operating profits for the current year would reach between 5.85 and 5.95 billion euros ($7.77-$7.91 billion) at constant currencies.
Analysts had expected SAP's 2013 operating profit to be around 5.57 billion euros, according to Reuters data.
Last week, SAP pre-announced worse-than-expected quarterly revenue and operating profit.