Sun, 17 September 2023
On July 20, 2023, during SAP's Q2 earnings call, SAP CEO Christian Klein made bold statements regarding the future of SAP innovation - in particular RISE, AI, and why SAP's close relationship with customers, including opt-in customer data, give SAP an AI advantage (and premium AI pricing). It is our view that these statements constitute a notable change/evolution in innovation strategy that warrant debate, user group dialogue - and discussion on how customers should track these issues.
Since Klein's earnings call statements, other executives inside of SAP have re-iterated and provided more context to these statements. These points are not necessarily firm policy yet, but are definitely messaging to look hard at. Since that time, along with my podcast guests Geoff Scott, CEO ASUG, and analyst Josh Greenbaum, we've had a chance to clarify these points and press questions. We don't have all the answers, and this is still unfolding, but we now have enough information to have an informed debate with our own views.
Some of the hottest issues, such as AI pricing, reflect a surging market that has not yet gelled around the value of AI and what that will look like for customers. These AI pricing/value issues are not unique to SAP, but warrant scrutiny nonetheless. We taped this podcast as a way of letting listeners know what we've learned so far, and to lay out the questions we can pursue across SAP events this fall, culminating in SAP TechEd India, virtual SAP TechEd, and ASUG TechConnect New Orleans, which occur across the same times in November.
Strong opinions are declared in this podcast but we do want to point out that SAP may yet shift and further clarify the policies we are debating. Those customers with specific questions should not treat this podcast as definitive, but contact SAP with open questions. We would also like to thank DSAG for providing their views, some of which are incorporated here. Also a thank you to our various contacts at SAP, who worked hard to get us the most current information that is publicly available.
They may not agree with our opinions, in fact we are pretty certain they will not, but we are much better informed due to SAP's efforts, and SAP's willingness to engage in an important community dialogue. Any inaccuracies will be corrected in the podcast description, but these topics are too important to wait for perfect information, some of which is likely to be tied to event announcements this fall, yet to be made public.
We expect to regroup with a shorter podcast later this fall to discuss what we learned at those events. Finally, we did cover, in brief, our initial takes on SAP's LeanIX acquisition, though we are out of time for a thorough review. This discussion relies almost entirely on published information in our prior blog posts, and in other news stories and transcripts: