SAP in the second quarter said its cloud revenue was up 25% and CEO Christian Klein said its Business AI efforts are "enabling many deals." The company reiterated its outlook for 2024 and raised its 2025 operating profit guidance due to efficiency efforts.
SAP said it will acquire WalkMe in a deal valued at $1.5 billion in a move that could make implementations easier and complement its process and workflow automation efforts.
SAP said it is infusing its Joule generative AI assistant throughout its platform and applications as it made the case that the company is using AI to drive business value.
Amazon Bedrock from AWS will be embedded into SAP's generative AI hub as the two companies expanded a long-running partnership. SAP will also use AWS Graviton3, Trainium and Inferentia chips for SAP HANA Cloud and SAP Business AI workloads.
The "Value Generation" partnership will focus on generative AI and industry cloud applications. SAP is trying to migrate its customer base to the cloud and S4/HANA via its RISE with SAP program.
SAP reported a first quarter loss due to a restructuring charge but said its cloud revenue was up 24% with cloud ERP revenue growth of 32%. SAP said its cloud backlog was €14.2 billion, up 27% from a year ago.
Constellation Research held its February call with Business Transformation 150 and SAP's RISE program, process automation and AI were top-of-mind topics.
SAP shook up its Supervisory Board. SAP's Supervisory Board nominated Pekka Ala-Pietilä to the board as the successor to Chairman Prof. Dr. Hasso Plattner.SAP and Dr. h.c. Punit Renjen said they have "mutually agreed to part ways because of a difference in perspective on the role of SAP Supervisory Board."
At its Technology Days 2024, DSAG elaborated on customer concerns, which often revolve around SAP Business Technology Platform (BTP).
SAP plans to restructure and cut 8,000 positions as it focuses on artificial intelligence and uses the technology to become more efficient. SAP said it expects to add back new roles and exit 2024 with headcount at similar levels.
SAP said Muhammad Alam will join the company's Executive Board and succeed Thomas Saueressig for the company's product engineering. Saueressig will focus on accelerating SAP customers adoption of the cloud.
At SAP's TechEd 2023 conference, SAP outlined a series of tools that aim to enable developers to build applications and connect them to the SAP Business Technology Platform.
