Europe’s software powerhouse SAP SE stares down an AI threat as its blockbuster cloud migration boom nears its end. CEO Christian Klein, who jogged the company back to glory six years ago, now scrambles for a fresh act. Once lagging in the cloud race, SAP forced clients to upgrade or face cutoff, tripling cloud sales to €22 billion ($26 billion) this year. But with support for old systems phasing out by 2027, growth stalls. Analysts warn rivals like Microsoft and Salesforce eye SAP’s turf, especially in AI, where adoption lags and customers baulk at costs. As Europe’s most valuable tech firm—topping €200 billion in market cap—SAP’s pivot could ripple across the continent’s innovation scene.
Bloomberg’s deep dive, published September 24, 2025, uncovers internal jitters and client frustrations at SAP’s Orlando Sapphire event. Klein pitches AI-infused suites with smart assistants and automation agents to ease uncertainty. Yet, many attendees gripe about the grueling, million-dollar cloud shifts—60% haven’t even started. Giants like Mercedes-Benz juggle 1,200 SAP apps, prioritizing essentials amid the chaos.
SAP’s AI Threat: Hurdles and Horizons
SAP bets big on AI to sustain 15% cloud growth through 2027, then 10% beyond. But the AI threat intensifies: Gartner flags market share losses in CRM (6.8% growth vs. 12% average) and analytics (12% vs. 18% for Microsoft). CIOs ditch “SAP-first” for “SAP-last” strategies, fed up with pushy tactics. Only 34,000 of 400,000 customers use AI tools, hampered by complex licensing and fuzzy benefits.
More News To Read: DMIEXPO: Digital & Affiliate Marketing International Expo
Key challenges of AI Threat and plans include:
- Client Resistance: Exhaustion from custom setups; firms like NBCUniversal and Aldo seek simpler navigation and proactive help.
- Competition Bite: “Best of Breed is Dead,” SAP declares, but users mix vendors like Salesforce for CRM and Workday for HR to avoid lock-in.
- Internal Fixes: New sales training, bonus tweaks, and customer care chief Thomas Saueressig drive adoption; 240 generative AI use cases live, 400 more by year-end.
- AI Reality Check: UBS notes agents aren’t “prime time”—70% accurate at best, delaying ROI; clients favor platforms like Azure AI over full suites.
Klein, mentored by founder Hasso Plattner, vows better communication and demos. As AI threat evolves, SAP must woo skeptics or risk Europe’s tech pride. Investors dumped shares recently on disruption fears—will Klein’s vision deliver?
More News To Read: SAP and OpenAI Partner for Secure OpenAI For Germany