I simply returned from SAP Sapphire 2025 in Orlando, and whereas SAP painted a compelling imaginative and prescient of an AI-powered future, I couldn’t assist however take into consideration the hole between their shiny new bulletins and the place most SAP prospects really are right this moment. Let me reduce by means of the advertising and marketing hype and provide the analyst perspective on what actually issues.
The Cloud Migration Elephant within the Room
SAP’s greatest problem isn’t constructing cool AI options – it’s that the overwhelming majority of their buyer base remains to be working on-premise ERP programs. Whereas SAP was busy showcasing their AI Basis and enhanced Joule capabilities, I stored fascinated by the 1000’s of firms nonetheless on SAP ECC 6.0 or older variations, a few of which haven’t been up to date in years.
Right here’s the truth examine: practically each thrilling AI announcement at Sapphire requires SAP’s cloud options. The AI Basis? Cloud-based. Enhanced Joule with proactive capabilities? Wants cloud infrastructure. The brand new Enterprise Knowledge Cloud intelligence choices? You guessed it – cloud solely.
For the typical SAP store working on-premise programs, these bulletins would possibly as effectively be science fiction. They’re coping with fundamental integration challenges, fighting outdated person interfaces, and preventing to get dependable stories out of their present programs. The thought of AI brokers autonomously managing their provide chain appears laughably distant.
AI: Helpful Instrument, Not Magic Wand
Don’t get me incorrect – the AI capabilities SAP demonstrated are genuinely spectacular. The power for Joule to anticipate person wants and supply contextual insights might certainly enhance productiveness. However let’s pump the brakes on SAP’s declare of “as much as 30% productiveness good points.”
I’ve been analyzing enterprise software program implementations for years, and productiveness good points of that magnitude sometimes come from course of enhancements and workflow optimization, not simply from including AI on prime of current inefficiencies. In case your procurement course of is damaged, an AI agent received’t repair it – it’ll simply automate the damaged course of quicker.
The extra real looking wins will come from:
- Lowering time spent looking for data throughout a number of programs
- Automating routine information evaluation and report technology
- Offering higher resolution help by means of predictive analytics
- Streamlining repetitive duties in finance, HR, and provide chain operations
These are helpful enhancements, however they’re evolutionary, not revolutionary.
The Partnership Technique: Hedging Their Bets
SAP’s partnerships inform an fascinating story. The Accenture ADVANCE program acknowledges that many mid-market firms want vital hand-holding to modernize their SAP environments. The Palantir integration suggests SAP acknowledges they will’t be every thing to everybody within the information analytics house. The Perplexity collaboration admits that their AI wants exterior information sources to be really helpful.
These partnerships are good enterprise strikes, however in addition they spotlight SAP’s dependencies. Should you’re planning an SAP transformation, you’re not simply shopping for SAP – you’re shopping for into an ecosystem of companions and integrations that provides complexity and price.
What This Means for Your SAP Technique
Should you’re at present working SAP on-premise, Sapphire 2025 ought to reinforce one key message: the innovation practice is leaving the station, and it’s heading to the cloud. However earlier than you panic about lacking out on AI capabilities, contemplate these pragmatic steps:
For On-Premise SAP Prospects:
- Audit your present state first. Most firms I work with aren’t maximizing their current SAP capabilities, not to mention prepared for AI enhancements.
- Plan your cloud migration timeline. SAP’s 2030 end-of-support deadline for older programs isn’t going away. Use that as your forcing perform.
- Deal with information high quality. AI is simply pretty much as good as the info it really works with. In case your grasp information is a large number, AI received’t assist.
- Begin small with cloud integration. Think about hybrid approaches that join your on-premise core with cloud-based analytics and AI instruments.
For Corporations Already in SAP Cloud:
- Consider which AI options really clear up enterprise issues you’ve right this moment, not theoretical future use circumstances.
- Pilot earlier than you scale. The productiveness claims sound nice, however check them in your setting together with your information.
- Spend money on change administration. The largest barrier to AI adoption isn’t technical – it’s getting folks to vary how they work.
The Backside Line: Evolution, Not Revolution
SAP Sapphire 2025 showcased authentic improvements that may enhance how companies function, however let’s hold expectations real looking. The businesses that may profit most from these AI capabilities are people who have already modernized their SAP infrastructure and cleaned up their enterprise processes.
For almost all of SAP prospects nonetheless on legacy programs, the actual query isn’t whether or not AI will rework their enterprise – it’s whether or not they can execute a profitable modernization program that positions them to ultimately make the most of these capabilities.
Your Subsequent Steps
Right here’s what I like to recommend you do that week:
- Assess the place you stand in your SAP modernization journey. Are you cloud-ready, or do you’ve years of technical debt to handle first?
- Map what you are promoting circumstances for the AI capabilities that caught your consideration. Are you able to quantify the worth they’d ship in your particular setting?
- Construct a sensible roadmap that acknowledges each the thrilling potentialities and the sensible constraints of your present SAP panorama.
- Begin the dialog together with your management about long-term SAP technique. The selections you make within the subsequent two years will decide whether or not you’re positioned to profit from the AI revolution or left behind with legacy programs.
The AI future SAP is promising will arrive ultimately, however for many firms, the trail there runs by means of cloud migration, information governance, and course of optimization. Deal with constructing that basis first, and the AI capabilities will observe once you’re really prepared to make use of them successfully.
