SAP has a message for software doomsayers: The pendulum will swing back
SAP executive Jan Gilg discusses the SaaSpocalypse impact and its AI investments. It's been competing more with Palantir and other AI companies.
SAP's global president of customer success and Americas, Jan Gilg, anticipates a recovery from the recent SaaS crash, driven by advancements in business AI. The German software giant is shifting towards consumption-based pricing to align AI costs with business outcomes. Gilg believes that the pendulum will swing back from the SaaSpocalypse, with SAP positioning itself on the side of winners.
The company has been reinventing itself with AI, investing in its data capabilities, and changing its pricing models. Despite a 20% stock decline over the past year, SAP's stock has been on an upward trend in recent months, thanks to its cloud-led growth and business AI advancements. Gilg expects customers to continue using SAP's software, even as companies leverage AI tools to build software more rapidly.
SAP's strength lies in its data from over 10,000 customers, which enables the development of more useful AI capabilities. The company is also investing in natural language and voice interactions, ontology capabilities, and AI agents to improve decision-making for customers.
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