SAP (SAP) Company Report

SAP views AI as its future business, deeply embedding it into business processes and leveraging its Business Technology Platform (BTP) and Business Data Cloud (BDC) to combine applications, data, and AI for customer value.
The company utilizes a hybrid monetization strategy for AI, blending a consumption-based "AI unit concept" with per-user metering for specific agentic tools to offer both flexibility and predictability to customers.
Over 50% of SAP customers are incorporating AI into their transactions, with significant return on investment (ROI) noted in areas such as supply chain optimization.
SAP is targeting the mid-market for substantial growth, as this segment represents 60% of its total addressable market (TAM) but currently contributes only 30% of its top line.

2 days ago

Transcript

SAP Discusses Cloud Transition, AI Strategy, and Monetization

SAP

New Projects/Investments

Product Launch

SAP's core strategy revolves around integrating applications, data, and AI to create value for customers, with AI serving as a fantastic accelerant for the cloud transition.
The company still has EUR 11 billion in maintenance to convert as part of its ongoing cloud transition journey.
SAP views AI as its future business, deeply embedding it into business processes, and emphasizes that cloud adoption is necessary for customers to leverage its AI capabilities.
The monetization strategy for AI is a hybrid model, combining a consumptive AI unit concept with per-user assignments to offer both flexibility and predictability to customers.
The Business Technology Platform (BTP) and Business Data Cloud (BDC) are foundational to SAP's AI strategy, providing the platform for AI capabilities and enabling the integration of both SAP and non-SAP data.

2 days ago

Transcript

SAP Discusses Cloud Transition, AI Strategy, and Monetization at Bernstein Conference

SAP

New Projects/Investments

Revenue Acceleration/Inflection

Product Launch

SAP's Chief Operating Officer, Sebastian Steinhauser, outlined the company's strategy to integrate applications, data, and AI, with AI serving as a significant accelerant for cloud adoption.
SAP still has EUR 11 billion in maintenance revenue remaining to convert to its cloud offerings.
The company employs a hybrid monetization model for AI, combining consumption-based "AI units" with per-user metering to offer both flexibility and predictability to customers.
Business Technology Platform (BTP) and Business Data Cloud (BDC) are critical enablers for SAP's AI strategy, providing the foundational platform and facilitating the integration of business data, including non-SAP sources.
SAP views AI as its future business, focusing on deeply embedding AI into core business processes to deliver value, rather than treating it as a mere cloud adoption incentive or immediate revenue stream.

2 days ago

Transcript

SAP Discusses AI Strategy, Cloud Migration, and Business Data Cloud Momentum

SAP

Product Launch

New Projects/Investments

Revenue Acceleration/Inflection

SAP is focused on an "application data and AI flywheel" vision, with over 34,000 cloud customers utilizing SAP Business AI, and has delivered 40 Joule agents and 2,100 Joule skills. The company is also shifting its business model towards outcome-based licensing for AI, moving away from traditional user-based models.
The company has a significant runway for ERP cloud conversion, with over $10 billion - $11 billion in support revenue projected for 2025. Approximately one-third of SAP's ERP customers have initiated their cloud journey, which creates substantial upsell opportunities in areas like Business Technology Platform (BTP), Business Data Cloud, and AI.
SAP's Business Data Cloud is experiencing significant uptake and is one of its fastest-growing products, bolstered by strategic partnerships with Databricks, Google BigQuery, Microsoft Fabric, and Snowflake. This offering aims to reduce Total Cost of Ownership (TCO) by transforming data harmonization and governance into a SaaS model.

2 days ago

Transcript

SAP Details AI Strategy, Cloud Migration Progress, and Business Model Evolution

SAP

New Projects/Investments

Revenue Acceleration/Inflection

Product Launch

SAP's product strategy is focused on an application data and AI flywheel to create customer value, aiming to reimagine business applications through patterns such as app-less and no-apps experiences.
The company is transitioning its business model from user-based to outcome-based licensing, with less than half of its cloud revenue currently being user-based.
SAP has seen significant AI adoption, with over 34,000 cloud customers utilizing SAP Business AI, and has shipped 400+ premium/embedded AI use cases and 40 Joule agents.
For cloud migration, SAP expects EUR 10-11 billion in peak support revenue to remain for ERP cloud conversion by 2025, and approximately one-third of its ERP customers have initiated their cloud journey.
Business Data Cloud is identified as one of SAP's fastest-growing products, demonstrating significant uptake and driving upsells, supported by partnerships with Databricks, Google BigQuery, Microsoft Fabric, and Snowflake.

2 days ago

Transcript

SAP Outlines AI Strategy, Cloud Migration Progress, and Product Growth

SAP

Product Launch

New Projects/Investments

M&A

SAP's product strategy is centered on an application data and AI flywheel, with over 34,000 cloud customers currently utilizing SAP Business AI, incorporating over 400 embedded AI use cases and 40 Joule agents.
The company employs a multi-pronged AI monetization strategy, including integrating AI into core applications, offering per-user per-month packages for specific workloads, and using AI units for consumptive scenarios.
SAP has a substantial ERP cloud conversion runway, with EUR 10 billion to EUR 11 billion in revenue expected in 2025 from this segment, and approximately one-third of its ERP customers have initiated their cloud migration.
Business Data Cloud is identified as one of SAP's fastest-growing products, showing significant uptake and expanding through partnerships with major data platform providers like Databricks, Google BigQuery, Microsoft Fabric, and Snowflake.
Strategic M&A and partnerships are key, exemplified by the recent acquisition of SmartRecruiters for HCM and collaborations like the Solex solution with Icertis for contract management.

2 days ago

Transcript

SAP CEO Provides Strategic Update and Q4 2025 Outlook

SAP

Revenue Acceleration/Inflection

New Projects/Investments

M&A

SAP's CEO, Christian Klein, highlighted the cultural change and successful cloud adoption as the biggest achievement of the "Rise with SAP" initiative over the past five years, noting the company is ahead of its cloud financial targets (excluding Qualtrics) and has higher maintenance revenue than initially projected.
For Q4 2025, the CEO expressed confidence in exceeding 25% Current Cloud Backlog (CCB) growth, driven by a strong pipeline that includes new mid-market customers and AI-driven mega transactions.
AI is a central driver for SAP's future growth, with the company already achieving a triple-digit million amount of internal efficiencies through AI. SAP's M&A strategy will focus on data and AI to accelerate its agentic AI roadmap and data platform.
The Business Technology Platform (BTP) is a native part of SAP's stack, underlying replatformed products and its AI foundation, and is expected to see accelerated growth in the coming years.

3 days ago

Transcript

SAP CEO Discusses Rise Success, AI Strategy, and Future Growth Outlook

SAP

Revenue Acceleration/Inflection

New Projects/Investments

M&A

SAP's CEO, Christian Klein, expressed confidence in Q4 performance, stating that 25% Current Cloud Backlog (CCB) growth would be a disappointment and that total revenue is expected to accelerate through 2027 and beyond.
The company's AI strategy is centered on integrating "Business AI" into its software to drive customer adoption, cross-sell, and upsell, with an ambition to achieve $1 billion in AI-related revenue within three to four years, while also focusing on winning market share in applications.
AI has already contributed a "triple-digit million amount of efficiencies" to SAP's margin improvement, with further acceleration anticipated through internal AI use cases and continued operational discipline.
The Rise with SAP initiative has been very successful, driving cultural change and increased customer adoption, and SAP is now investing heavily in AI tooling to accelerate customer migrations to the cloud, with future M&A also focused on data and AI capabilities.

3 days ago

Transcript

SAP CEO Discusses Rise Initiative Success, Q4 Outlook, and AI Strategy

SAP

Revenue Acceleration/Inflection

Guidance Update

New Projects/Investments

SAP's CEO Christian Klein reflected on the successful "Rise" initiative, citing cultural change as the biggest achievement and noting that financial cloud targets were largely met or exceeded.
Klein expressed confidence in SAP's Q4 performance, expecting to exceed 25% CCB (Current Cloud Backlog) growth due to a strong pipeline driven by AI and data strategy.
The company's AI and data strategy is central to future growth, with AI use cases driving demand, internal efficiencies, and contributing to margin improvement.
SAP's Business Data Cloud (BDC) is critical for AI use cases, harmonizing data semantics, and the Business Technology Platform (BTP) is seeing accelerated growth as the foundation for AI agents and applications.
SAP is investing in AI tooling for IT migration from legacy ERP to cloud and its M&A strategy is focused on data and AI to accelerate its agentic AI roadmap.

3 days ago

Transcript

SAP Unveils EU AI Cloud for European Digital Sovereignty

SAP

Product Launch

New Projects/Investments

SAP launched EU AI Cloud on November 27, 2025, a sovereign AI and cloud offering designed for Europe to ensure EU data residency and full sovereignty.
This initiative aims to unite existing milestones under a single strategic framework for European digital sovereignty.
SAP is partnering with Cohere to integrate frontier agentic AI capabilities (Cohere North) into SAP Business Technology Platform (SAP BTP).
EU AI Cloud offers flexible deployment options, including SAP Sovereign Cloud on SAP Cloud Infrastructure (EU) and SAP Sovereign Cloud On-Site, with AI models running in European data centers.

Nov 27, 2025, 8:30 AM

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