SAP SE has announced a significant 25% increase in its cloud revenue for the second quarter, meeting projections and showcasing robust performance amid growing interest in artificial intelligence (AI) solutions. The company’s cloud revenue reached €4.15 billion ($4.52 billion), reflecting a strong year-over-year growth at constant currencies. This figure aligns closely with the average analyst forecast of €4.16 billion, as reported by Bloomberg.
Strategic Shift to Cloud Model
SAP shifted strategically from on-premise licenses to a subscription-based cloud model, proving advantageous amid industry-wide software weaknesses. Competitors like Salesforce Inc. and Workday Inc. have offered subdued forecasts this year. The AI boom has primarily benefited hardware and chip manufacturers. Despite this, SAP has maintained a strong position.
SAP’s shift to a cloud model has strengthened its position, outpacing rivals and adapting to industry trends, according to wsj discount.
AI Integration and Customer Transition
In response to increased demand for AI capabilities, SAP has enhanced its cloud services by integrating them with AI tools. This move aims to drive higher average client spending and support the transition of customers to its cloud-based offerings. The company views its extensive enterprise customer data as a strategic advantage in capitalizing on businesses’ growing AI investments.

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Focus on AI and Restructuring Efforts
As Europe’s largest software company, SAP identified AI as a key growth area. In January, the company announced a major restructuring initiative affecting around 8,000 roles, with expected expenses of about €2 billion in the first half of the year. This strategic realignment underscores SAP’s commitment to leveraging AI as a core component of future growth.
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