SAP's AI Strategy and Roadmap Are Step in Right Direction -- Market Talk

Dow Jones

May 18

1210 GMT - SAP's update on its AI strategy and roadmap is a positive step, adding value for customers and low barriers to adoption, Deutsche Bank says in a note. According to analyst Johannes Schaller, the German software company has used a "carrot and stick" strategy on its cloud and AI offerings--the carrot being AI innovation, paired with the stick of making customers complete cloud migration from legacy on-premise support before they could access it. Though deadlines on support remain, the AI payoff in SAP's new offering now looks significantly better, he says. Also, on-premise customers that sign a migration deal can now access parts of SAP's AI offering before completing migration, he says. SAP shares trade 0.5% higher at 144.82 euros. (sarah.sloat@wsj.com)

(END) Dow Jones Newswires

May 18, 2026 08:11 ET (12:11 GMT)

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According to analyst Johannes Schaller, the German software company has used a \"carrot and stick\" strategy on its cloud and AI offerings--the carrot being AI innovation, paired with the stick of making customers complete cloud migration from legacy on-premise support before they could access it. Though deadlines on support remain, the AI payoff in SAP's new offering now looks significantly better, he says. Also, on-premise customers that sign a migration deal can now access parts of SAP's AI offering before completing migration, he says. SAP shares trade 0.5% higher at 144.82 euros. 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According to analyst Johannes Schaller, the German software company has used a \"carrot and stick\" strategy on its cloud and AI offerings--the carrot being AI innovation, paired with the stick of making customers complete cloud migration from legacy on-premise support before they could access it. Though deadlines on support remain, the AI payoff in SAP's new offering now looks significantly better, he says. Also, on-premise customers that sign a migration deal can now access parts of SAP's AI offering before completing migration, he says. SAP shares trade 0.5% higher at 144.82 euros. 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