SAP disappointed investors today after reporting full-year cloud revenue at the bottom end of its guidance range, with execs saying customers in manufacturing and the public sector are taking longer to sign contracts.

The European software giant now expects sales to be near the floor of its €21.6-21.9 billion ($25.2-25.5 billion) forecast. Shares were down 2 percent at the time of writing.

SAP generated €9.1 billion in global revenue for its calendar Q3, up 7 percent year-on-year. Cloud revenue was up 22 percent to €5.29 billion, lower than the €5.33 billion analysts had projected. Operating profit climbed 12 percent to €2.49 billion.

Responding to a question about elongated sales cycles and straitened US public sector spending, CEO Christian Klein told investors he was optimistic deals

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