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 clients truly are right now. Let me reduce by way 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 continues to be operating on-premise ERP techniques. Whereas SAP was busy showcasing their AI Basis and enhanced Joule capabilities, I stored excited about 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 fact examine: almost 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 common SAP store operating on-premise techniques, these bulletins would possibly as effectively be science fiction. They’re coping with fundamental integration challenges, combating outdated person interfaces, and combating to get dependable experiences out of their present techniques. The thought of AI brokers autonomously managing their provide chain appears laughably distant.
AI: Helpful Software, Not Magic Wand
Don’t get me improper – the AI capabilities SAP demonstrated are genuinely spectacular. The power for Joule to anticipate person wants and supply contextual insights may certainly enhance productiveness. However let’s pump the brakes on SAP’s declare of “as much as 30% productiveness positive factors.”
I’ve been analyzing enterprise software program implementations for years, and productiveness positive factors of that magnitude usually 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 gained’t repair it – it’ll simply automate the damaged course of quicker.
The extra lifelike wins will come from:
- Decreasing time spent trying to find data throughout a number of techniques
- Automating routine information evaluation and report technology
- Offering higher choice assist by way of predictive analytics
- Streamlining repetitive duties in finance, HR, and provide chain operations
These are priceless 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 important hand-holding to modernize their SAP environments. The Palantir integration suggests SAP acknowledges they will’t be the whole lot 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 sensible enterprise strikes, however additionally they spotlight SAP’s dependencies. If you happen to’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
If you happen to’re presently operating 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, think about these pragmatic steps:
For On-Premise SAP Clients:
- 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 techniques isn’t going away. Use that as your forcing perform.
- Deal with information high quality. AI is barely pretty much as good as the info it really works with. In case your grasp information is a large number, AI gained’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 truly remedy enterprise issues you will have right now, not theoretical future use instances.
- Pilot earlier than you scale. The productiveness claims sound nice, however check them in your surroundings along with your information.
- Spend money on change administration. The most important barrier to AI adoption isn’t technical – it’s getting individuals to alter how they work.
The Backside Line: Evolution, Not Revolution
SAP Sapphire 2025 showcased reputable improvements that can enhance how companies function, however let’s preserve expectations lifelike. The businesses that can profit most from these AI capabilities are those who have already modernized their SAP infrastructure and cleaned up their enterprise processes.
For almost all of SAP clients nonetheless on legacy techniques, the actual query isn’t whether or not AI will remodel 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 will have years of technical debt to handle first?
- Map your online business instances for the AI capabilities that caught your consideration. Are you able to quantify the worth they’d ship in your particular surroundings?
- Construct a sensible roadmap that acknowledges each the thrilling prospects and the sensible constraints of your present SAP panorama.
- Begin the dialog along 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 learn from the AI revolution or left behind with legacy techniques.
The AI future SAP is promising will arrive ultimately, however for many firms, the trail there runs by way of cloud migration, information governance, and course of optimization. Deal with constructing that basis first, and the AI capabilities will observe if you’re truly prepared to make use of them successfully.