By integrating artificial intelligence (AI) into its products, SAP wants to accelerate profit growth. Customers are willing to pay an additional fee of up to 30 percent, said Christian Klein, president of the Walldorf Group. “Customers see tremendous value. This will lead to an increase in bookings and revenue.” Announce the introduction of more AI positions for various fall program offerings.
However, SAP has been somewhat more cautious about cloud sales this year. Klein had previously identified AI technology as a growth engine. So, the company recently invested for an undisclosed amount in startups Alpha, Queer, and Anthropic, which are developing so-called generative artificial intelligence in the ChatGPT style.
However, the numbers for the past quarter paint a mixed picture. Group sales and Cloud revenue fell short of expectations at around €7.6 billion and €3.3 billion, respectively. Klein said this was due to delays in some deals. On the other hand, adjusted operating profit exceeded the forecast of Visible Alpha analysts published by the company at around €2.1 billion.
On this basis, Europe’s largest software company slightly increased its full-year target for operating results to €8.65 to €8.95 billion. However, for cloud sales, it lowered the upper limit of the target range to €14.2 billion from €14.4 billion. SAP shares fell 2.7 percent in late trading in Frankfurt.
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