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SAP SE S (AP) boosted its full-year and near-term cloud computing sales forecasts as Europe's biggest tech company looks to ride a solid second quarter into a full-blown drive deeper into a $15 billion market dominated by Amazon Inc. (AMZN) and Microsoft (MSFT) .
SAP said its second quarter cloud-related sales rose to just over €1.22 billion ($1.42 billion) in the three months ending in June, a 40% increase from the same period last year that topped analysts' forecasts. Although software licensing and support revenue is still the largest portion of SAP's sales, at €3.73 billion, that portion of the business only grew 3% from last year, SAP said.
Still, the solid cloud sales momentum allowed the Waldorf, Germany based group to lift its segment sales growth forecast for the full year to a range of 34% to 38%, ultimately leading to cloud subscription and services revenue of between €8.2 billion and €8.7 billion by 2020.
Microsoft shares traded 0.07% lower in pre-market dealing Thursday, indicating an opening bell price of $105.05, a move that would still leave the stock with a year-to-date advance of more than 22.8%.