SAP CEO Sees Cloud Opportunity as Earnings Miss

The world's third-largest software maker SAP reported worse-than-expected first-quarter earnings on Friday as co-CEO Jim Hagemann Snabe told CNBC that cloud computing and its new analytic software will drive the company forward.

Revenues were also weaker-than-expected with a decline in Asia and Hagemann Snabe cited leadership but said the company's outlook in Asia looked "very strong."

"Overall, if you look at the quarter we are very pleased," Hagemann Snabe told CNBC Friday, adding that SAP is taking "massive market share" in key areas from rivals, including Oracle.

"As you have seen, the tech industry is going through a very interesting transition right now," he said.

(Read More: Software Giant SAP Getting Giant Boost in NFL)

"Europe remains a challenging market in general we've been navigating this uncertainty for two years or so."

Hagemann Snabe also highlighted cloud computing and its HANA database as key drivers for the software firm.

"We had 80 percent growth in cloud, these are the new areas," he said, adding that SAP believes there is an opportunity to further simplify the computing infrastructure for companies.

(Read More: Oracle Blames New Sales People for Missing Targets)

"We are becoming the preferred choice for cloud, that wasn't the case a year ago," he said.

Revenue rose 8 percent at 3.64 billion euros, but missed the lowest estimates in a Reuters poll. First-quarter operating profit (excluding special items) also climbed 8 percent, missing average Reuters' analyst expectations.