Things are looking good at the German business software group SAP as more companies swith their IT operations to the cloud,  w rites Supantha Mukherjee for Reuters.

SAP, with its American headquarters in Newtown Square, raised its full-year outlook for a third time based on a strong showing in the third quarter.

“We see record adoption of our applications and our platform,” Chief Executive Officer Christian Klein said in a statement. “This has resulted in strong acceleration of our cloud growth.”

SAP expects cloud revenue to grow by 16 to 19 percent in the year. That means estimated gains of 2 to 4 percent in tis overall cloud and software revenue.

The software company is moving to subscription-based cloud services, away from software licenses with upfront fees.

It launched Rise with SAP, an all-in-one digital transformation package, in January.

Operating profit is expected to stay the same or drop 2 percent for the year. That’s actually an improvement from a previous forecast that showed it staying the same to dropping 4 percent.

Adjusted revenue rose 5 percent to 6.68 billion euros ($7.70 billion) for the third quarter ended Sept. 30. 

Adjusted earnings per share rose 2 percent to 1.74 euros.

Read more at Reuters about SAP’s boost from increased cloud shift.

SAP explains its concept of “Rise With SAP”.