SAP (NYSE:SAP) 2025 Conference December 03, 2025 09:00 AM ET Company ParticipantsFred Boulan - Head of European Software, Payments, and IT Services ResearchMuhammad Alam - Executive Board Member for Product and EngineeringFred BoulanOkay, good afternoon and good morning, Fred Boulan from Bank of America's software team. We are delighted to be hosting Muhammad Alam, Head of Product Engineering and Member of the Executive Board at SAP. From a format perspective, we'll go through some, some questions together, ...

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Summary of SAP 2025 Conference Call Company Overview - **Company**: SAP (NYSE: SAP) - **Event**: 2025 Conference Call - **Date**: December 02, 2025 Key Points Industry and Company Context - SAP has successfully transitioned towards a cloud-centric model over the past five years, particularly through its "Rise" initiative, which has been well-received despite initial skepticism from analysts and investors [2][3][4] - The company emphasizes the importance of integrating AI into its offerings to enhance business processes and customer experiences [18][21] Financial Performance and Targets - SAP's cloud revenue target was initially set at $22 billion, including Qualtrics; excluding Qualtrics, the company is performing slightly ahead of this target [5] - Maintenance and support revenue has exceeded initial expectations, now estimated to be 20%-30% above the previous target of $9 billion [5] - The company has experienced the lowest churn rates ever, indicating strong customer retention and satisfaction [6][7] Strategic Initiatives - The cultural shift within SAP has been identified as a significant achievement, fostering a more agile and innovative environment [3][4] - SAP is focusing on expanding its footprint within existing customer accounts, particularly in finance, HR, and supply chain modules [9][10] - The introduction of AI agents is seen as a key driver for enhancing customer engagement and operational efficiency [10][16] Market Outlook and Growth Projections - SAP anticipates continued growth in its cloud business, with a strong pipeline for Q4 and beyond, driven by large transactions and AI integration [11][12][14] - The company is confident in its ability to maintain a robust pipeline for the upcoming year, supported by a solid installed base and new customer acquisitions [13][14] - SAP aims for total revenue acceleration through 2027 and beyond, leveraging data and AI to enhance its offerings [15][17] AI and Technology Integration - The integration of AI into SAP's business processes is viewed as essential for future growth, with a focus on creating agentic AI solutions that enhance customer operations [18][21] - SAP's Business Technology Platform (BTP) is positioned as a foundational element for its applications, facilitating seamless integration and extensibility [42][43] - The company is investing in AI tooling to assist customers in migrating to the cloud, addressing challenges related to data cleansing and system configuration [35][36] M&A Strategy - SAP's M&A strategy is focused on acquiring companies that enhance its data and AI capabilities, with recent acquisitions aimed at modernizing its recruiting platform [37][38] - Future acquisitions will prioritize companies that can accelerate SAP's roadmap in agentic AI and data platforms [39][40] Partnerships and Ecosystem - SAP is enhancing its partnerships to ensure integration with its AI foundation, emphasizing the importance of a cohesive ecosystem for delivering end-to-end business solutions [40][41] Conclusion - SAP is on a positive trajectory, with strong financial performance, a clear strategy for AI integration, and a commitment to expanding its cloud offerings. The company is well-positioned to capitalize on future growth opportunities in the evolving technology landscape [43]

LONDON, Dec. 02, 2025 (GLOBE NEWSWIRE) -- Applied Blockchain, the company behind Silent Data, today announced that its enterprise client CRYOPDP, part of DHL Health Logistics, has won the SAP Digital Transformation Award – Software at the 2025 Supply Chain Excellence Awards. The SAP-sponsored category celebrates innovation through digital transformation and attracted seven global finalists, including leading supply chain and logistics organizations such as Cryoport Systems, EORI, Finmile, Reckitt, The Clear ...

Tech & Business Developments - Deutsche Telekom and the Schwarz Group are collaborating to construct an AI data center, referred to as an "AI gigafactory" [2] - This initiative is part of a German consortium that includes SAP and Ionos, aiming for a share of the European Commission's €20 billion ($20.9 billion) "AI gigafactories" initiative [2] - Each gigafactory is projected to require an investment of €3-5 billion (US$3.39-5.66 billion) and is expected to house approximately 100,000 AI chips for training advanced AI models [2] Economic Indicators - New Zealand's building permits fell by a seasonally adjusted 5.2% month-on-month to 2,850 units in October, following a 7.2% increase in September [5] - The total number of new dwellings consented dropped by 16% year-on-year to 33,467 units [6] - The annual value of non-residential building work consented decreased by 3.5%, totaling NZ$9.3 billion [6] Military Operations Under Scrutiny - Defense Secretary Pete Hegseth is facing controversy over allegations of ordering a "second boat strike" in the Caribbean, which he has denied as "fabricated" [7] - U.S. forces have conducted over 20 boat strikes in the Caribbean and eastern Pacific since September, resulting in at least 80 deaths [7]

Core Insights - SAP has launched the EU AI Cloud, consolidating its digital sovereignty initiatives into a framework tailored for Europe, offering customers various options for data sovereignty and deployment [1][3] - The platform is designed to meet EU data residency and regulatory compliance requirements, allowing enterprises to incorporate AI into core business processes while adhering to local regulations [2][3] Deployment Options - The EU AI Cloud provides multiple deployment options, including SAP Sovereign Cloud, on-site models, and partnerships with approved European cloud providers, ensuring compliance with European regulations [3][5] - AI workloads are hosted in European data centers, ensuring independence from non-European hyperscalers, which is crucial for maintaining data sovereignty [4] Partnerships and Collaborations - SAP has partnered with Cohere to integrate agentic AI capabilities into the SAP Business Technology Platform, enhancing AI integration for enterprises with data residency constraints [2] - Tata Consultancy Services (TCS) has been selected to support SAP's cloud and generative AI transformation under a five-year agreement, focusing on streamlining IT operations and enhancing AI capabilities [6][7]

Core Insights - SAP SE has launched the EU AI Cloud, a sovereign AI and cloud offering designed specifically for Europe, which allows customers to choose their level of sovereignty and deployment options [1][2][4] - The collaboration with Cohere aims to enhance AI capabilities for European enterprises, integrating advanced AI models into the SAP Business Technology Platform (SAP BTP) [2][3] - The EU AI Cloud is supported by a robust ecosystem of partners, enabling flexible deployment options and compliance with European data protection regulations [3][5] Group 1: EU AI Cloud Overview - The EU AI Cloud provides a full-stack sovereign cloud offering, ensuring compliance with EU data residency and operational requirements [1][5] - Customers can deploy AI models on SAP's infrastructure or trusted European partners, maintaining control over their data and compliance [5][8] Group 2: Partnership and Ecosystem - SAP's partnership with Cohere will unlock agentic AI capabilities, allowing enterprises to integrate AI into their core business processes without compromising on sovereignty [2][4] - The ecosystem includes leading partners like Mistral AI and OpenAI, facilitating the development and scaling of AI-powered applications [3][4] Group 3: Deployment Flexibility - EU AI Cloud offers various deployment options, including SAP Sovereign Cloud and on-site solutions, tailored to meet specific regulatory and operational needs [5][8] - The infrastructure is designed to ensure that all data remains within the EU, aligning with European data protection standards [8]

Core Insights - The leasing industry is facing increasingly complex data management demands, leading to the emergence of various big data governance platforms that provide robust solutions [2][3][6] - These platforms enhance data organization efficiency, ensure data consistency and accuracy, and facilitate seamless data integration across departments, thereby promoting overall business collaboration [2][3][4] - Innovative technologies such as intelligent analytics enable real-time access to critical business insights, significantly improving decision-making efficiency during digital transformation [2][4][7] Data Management Solutions - The solutions offered by companies like Jiangsu New and Huawei Cloud FusionInsight MDM focus on comprehensive data classification and management, ensuring data accuracy and consistency through effective quality control measures [3][4] - IBM InfoSphere MDM and Informatica provide strong data integration capabilities, allowing enterprises to manage data from multiple sources and enhance data availability and accuracy [5][6] - The MDG (Master Data Governance) solution from SAP emphasizes master data management, quality control, and compliance checks, significantly reducing data error rates by over 30% for 85% of surveyed companies [4] Industry Trends - The importance of data governance in the leasing industry is growing, with companies needing to select appropriate big data governance platforms to achieve efficient management [7][8] - The platforms are designed to support both large enterprises and small to medium-sized companies, helping streamline processes and ensure compliance with industry regulations [8] - Successful implementation of data governance strategies can lead to improved data accuracy and reduced time costs during digital transformation [7][8]

Core Viewpoint - o9 Solutions Inc. has filed a lawsuit against SAP SE, alleging that three former executives misappropriated trade secrets related to supply-chain management software, which has led to SAP allegedly altering its software to resemble o9's offerings [1][2][5] Group 1: Lawsuit Details - The lawsuit was filed in Dallas federal court, claiming that the stolen trade secrets pertain to the design, implementation, and testing of o9's supply-chain management software [1] - o9 Solutions asserts that SAP has been losing customers to competitors due to its outdated platform, prompting SAP to launch an aggressive campaign to acquire o9's trade secrets [2] - The lawsuit names three former o9 executives as defendants, who allegedly downloaded tens of thousands of documents before joining SAP [3] Group 2: Executive Movements - The former o9 executives involved in the lawsuit have taken significant positions at SAP: Stephan de Barse is now president of SAP's global business suite, Sean Zonneveld is the global chief revenue officer for procurement, and Stijn-Pieter van Houten is the chief product officer for supply chain management planning [4] Group 3: Company Position - o9 Solutions emphasizes the importance of fair competition and employee mobility but insists that it will not tolerate the misappropriation of its trade secrets, which undermines its investments in developing transformative solutions [5]

SAP SE was sued by supply-chain artificial intelligence firm o9 Solutions Inc., which claimed three of its former executives stole trade secrets for the European software giant https://t.co/VF90Utfss3 ...