Welcome to the Cloud Wars Minute — your daily news and commentary show, hosted by Cloud Wars Founder Bob Evans. Each episode provides insights and perspectives around the “reimagination machine” that is the Cloud.
In this Cloud Wars Minute, Bob Evans explains the reasoning behind SAP’s 30% premium for its generative AI capabilities.
00:15 — SAP recently released its Q2 earnings. Bob suggests that the biggest announcement relayed in the earnings call was the 30% premium charge for its new generative AI capabilities, which will only be available in the cloud and specifically for customers that enroll in SAP’s RISE or GROW programs.
01:01 — SAP is making this decision as another incentive for on-premises customers to move to the cloud.
02:07 — As with any big decision like this, there is certainly a risk to it. Will customers see the value in this decision? Yet, where there is risk, there is reward. In the case of SAP, the reward of this premium charge could place them in a greater position as a leader.
02:57 — Relating to the 30% premium, CEO Christian Klein said that “we believe in the immense value” that SAP is delivering to customers.
04:26 — With the immensely new levels of value and innovation for customers, SAP has identified a great opportunity for it to benefit financially. Specifically, Klein noted that the rise of SAP’s generative AI solutions will double the size of its total addressable market.