SAP (SAP) Financial Analyst Conference summary

Strategic vision and growth drivers

• Product innovation, go-to-market simplification, and people development are core pillars for sustained growth and productivity, with a focus on integrating applications, data, and AI to lead in enterprise management.

• Embedded AI, Business Data Cloud (BDC), and modular suite integration are key differentiators, driving customer value, financial performance, and supporting over 400 AI use cases by end of 2025.

• Cloud migration, cross-sell, and upsell strategies are expected to multiply support revenue by up to 5x, with current conversion rates between 2-3x and a target to increase further; 77% of customers use fewer than four solutions, indicating significant cross-sell potential.

• Expansion in the mid-market and SME segments is prioritized through reseller channels, simplified contracts, scalable solutions, and a robust partner ecosystem, aiming to capture a significant share of a large addressable market.

• SAP is statistically tied for #1 in the global enterprise applications market, with strong YoY cloud growth and €2bn annual cloud revenue from new customers since 2020.

Product innovation and transformation

• SAP Business Suite integrates applications, data, and AI, offering industry-specific, networked, and sustainable solutions, with over 15,000 legacy customers migrating to the cloud.

• BDC and Knowledge Graph provide a unified data layer for SAP and non-SAP applications, supporting real-time business insights and automation.

• 400+ AI use cases and 40+ new Joule Agents are being developed, with 14% project time savings and 250M+ lines of ABAP code optimized.

• Continuous product innovation includes quarterly industry app launches and AI-driven features, supporting both install base expansion and net new customer acquisition.

• SAP's partner ecosystem includes 1,500+ certified partners for BDC and collaborations with major consultancies.

Go-to-market and customer growth

• Go-to-market model has been overhauled: segmentation, partner-driven sales, and role simplification enable broader reach and higher productivity.

• 80% of new customers are acquired through partners, and customer acquisition costs have dropped by over 10% since 2021.

• Upsell and cross-sell trends are positive, with a 50% increase in cloud revenue per cohort and 23% of customers now using four or more SAP cloud solutions.

• Simplified engagement models and automation have moved 40% of customers to digital-first engagement, reaching 400k accounts via partners.

• SME market is addressed through scalable, high-margin solutions and an expanded partner ecosystem, with strong traction and brand perception improvements.