Gross profit at the group level increased by 17.6% YoY ccy to CHF855.1 million in 2021, compared to CHF729.6 million in 2020. Excluding the InterGrupo acquisition, gross profit growth corresponded to 14.3% YoY ccy during the year.
Software & Cloud
Gross profit from Software & Cloud grew 3.0% YoY ccy to CHF533.6 million in 2021, compared to CHF519.5 million during the prior year period. This was driven by a recovery across the key hyperscalers (Microsoft, AWS, Google) and ISVs during the year, as shown by the acceleration of gross profit to 8.8% YoY ccy in H2 2021.
In terms of Microsoft gross billings, which amounted to USD14.7 billion in 2021, SoftwareONE’s business developed in line with the overall Microsoft market, with positive momentum across all customer segments. Microsoft Cloud billings demonstrated double-digit growth, comprising 73% of total Microsoft volume in 2021, compared to 67% in 2020. SoftwareONE continues to transition customers from commitment buying to pay-as-you-go. This involves a lower upfront payment, which temporarily impacts Software & Cloud revenue growth, but significantly increases the life-time customer gross profit through a combination of increased recurring revenue and incremental services, primarily recognized in Solutions & Services.
Solutions & Services
Solutions & Services achieved strong gross profit growth of 53.5% YoY ccy to CHF321.4 million in 2021, up from CHF210.1 million during the prior year period. Excluding InterGrupo, gross profit growth in Solutions & Services was 42.4% YoY ccy in 2021. Solutions & Services represented 38% of group gross profit in 2021, up from 29% in 2020, reflecting the company’s strategic focus on cross and up-selling services and portfolio expansion to serve customer journeys end-to-end.
The strong performance in Solutions & Services was broad-based across SoftwareONE’s service lines1, customers and geographies.
In Cloud Services, XSimple bundles (e.g. 365Simple, AzureSimple and Simple for AWS), which are highly standardized managed solutions for SMEs, demonstrated excellent growth with gross profit up >80% YoY in 2021. By 31 December 2021, SoftwareONE supported 6.9 million users 24/7 in 13 languages in the cloud, up from 5.4 million as at 30 June 2021. With acquisitions such as Predica, HeleCloud and Intelligence Partner, SoftwareONE continues to expand its offering across Azure, AWS and GCP to support customers in their public cloud journeys.