SAP sees "unlimited" potential for growth in Brazil, according to the firm's managing director of SAP Southern Latin America, Diego Dzodan.
Speaking at SAP's Innovation Tour, Dzodan said that the company has had a presence in Brazil for 18 years but it is only in recent years that demand for SAP's software in the country has surged.
"There has been exceptional momentum, an outstanding growth in the recent past with software revenues more than doubling [a 107 per cent increase] from the second quarter of 2012 to second quarter of 2013," he said.
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Overall, SAP software licensing sales make up 46 per cent of total revenue in Brazil, with consulting, maintenance and support making up the balance. Dzodan said that this was significant.
"We normally look at software and how we're developing in the market; if we get more revenue from software it means we've got more business, so it's the most important indicator," he said.
SAP has offices in five Brazilian cities including Sao Paulo and Rio, and Dzodan explained that the company had to change its strategy of looking at Brazil as one region.
"We realised that there were so many peculiarities in those regions, it made sense to look at them as independent countries and get regional teams to focus on those," he stated.
In the south-east, which encompasses Sao Paulo and Rio, SAP saw Q2 revenues increase by 50 per cent year on year, but in the north-east region they rose by 175 per cent, aided by a deal with steel manufacturer Aço Cearense.
In the south, SAP saw a year-on-year rise of 277 per cent, while in the mid-west region of Brazil revenues soared by 1,243 per cent.
"We did have a few big projects with some customers in the mid-west, but even if you take those out the growth is still above 500 per cent," Dzodan said.
