Test Owner
Artificial Intelligence (AI) is revolutionizing the way businesses operate, transforming how data is managed, decisions are made, and processes are streamlined. SAP is leading this transformation with a bold vision: to integrate AI into every aspect of business operations. By combining advanced AI technologies with open-source models, SAP is redefining intelligent enterprises, enabling companies to adapt, innovate, and grow in today’s fast-paced world.
Addressing Business Challenges with AI
Modern businesses face critical challenges, such as handling vast amounts of data from multiple systems and making fast, informed decisions. SAP offers solutions to these challenges through integrated, AI-powered tools designed to improve operational efficiency and decision-making.
At the heart of SAP’s AI initiative is Joule, its advanced AI assistant. Joule empowers businesses by automating routine tasks, analyzing complex datasets, and delivering actionable insights. Its natural language capabilities allow users to interact conversationally, simplifying decision-making for employees at all levels. For instance, a salesperson can ask Joule for insights into customer leads, and Joule can analyze past interactions, recommend outreach strategies, and even prioritize leads for optimal engagement.
Joule integrates seamlessly with SAP’s core systems, such as SAP S/4HANA for enterprise resource planning and SAP C/4HANA for customer relationship management. This integration supports diverse business functions, including financial reporting, supply chain management, and sales optimization. By extending compatibility to third-party platforms, Joule ensures a consistent AI experience across systems, further enhancing productivity.
The Vision of Intelligent Enterprises
SAP’s vision centers on enabling companies to become intelligent enterprises—organizations that proactively address challenges, automate routine operations, and derive strategic insights from data.
This transformation is particularly impactful across industries:
- Manufacturing: Predictive maintenance powered by AI reduces equipment downtime and ensures smoother operations.
- Logistics: AI optimizes supply chains, improving delivery reliability and reducing costs.
- Healthcare: Patient data analysis leads to personalized treatment plans, enhancing outcomes and efficiency.
By streamlining these processes, SAP’s AI solutions are not just improving operations but fundamentally reshaping how businesses achieve their goals.
Joule: Redefining Business Operations
Joule stands out as a transformative AI copilot, leveraging advanced technologies like natural language processing (NLP), machine learning, and data analytics. Its ability to process complex data and present user-friendly recommendations makes it an indispensable tool for professionals across industries.
Key features of Joule include:
- Natural Language Interaction: Joule understands conversational queries, eliminating the need for technical expertise.
- Seamless Integration: By integrating with SAP products and third-party systems, Joule ensures broad utility and accessibility.
- Real-Time Insights: Joule provides instant updates on metrics like revenue, expenses, and inventory, enabling timely decision-making.
For example, Joule can assist finance teams by automating real-time financial reporting or support supply chain teams by analyzing demand forecasts and optimizing delivery schedules. These capabilities enhance efficiency, minimize errors, and promote data-driven decisions.
Open-Source Models: Powering SAP’s AI Solutions
SAP’s embrace of open-source AI models reflects its commitment to accessibility, innovation, and adaptability. By leveraging frameworks like TensorFlow and PyTorch, SAP accelerates the development of AI-powered features while keeping solutions flexible for customization.
Open-source models offer several advantages:
- Cost Savings: Free access to robust AI tools reduces development costs.
- Community Innovation: Continuous updates from the developer community enhance functionality.
- Transparency: Open-source frameworks allow users to understand how models work, building trust and reliability.
However, open-source technologies also pose challenges, such as ensuring data security and managing frequent updates. SAP addresses these concerns by carefully selecting and customizing tools to meet its high standards for privacy, compliance, and scalability.
By integrating open-source components into Joule, SAP creates a more versatile and adaptable AI assistant. Businesses can further customize Joule by incorporating specialized models tailored to their needs. For instance, a healthcare provider could use a medical imaging model, while a retailer might integrate sentiment analysis for social media monitoring.
Responsible and Transparent AI Development
As AI becomes more widespread, concerns around ethics, privacy, and transparency grow. SAP is committed to developing AI solutions that meet rigorous ethical standards. All of SAP’s AI tools, including Joule, are designed with fairness, accountability, and clarity in mind.
Open-source collaboration reinforces this commitment by allowing community oversight, ensuring transparency, and fostering trust. Businesses can see exactly how SAP’s AI processes data and makes decisions. SAP also has measures in place to minimize bias, comply with data protection regulations, and monitor AI applications to ensure they remain responsible and reliable.
The Future of SAP’s AI Innovations
SAP is continually evolving its AI capabilities to stay ahead of business needs. Plans for Joule include integrating with the Internet of Things (IoT) to analyze real-time data from connected devices, enabling smarter operations in manufacturing, logistics, and beyond. SAP also aims to enhance Joule’s adaptability using technologies like advanced NLP and reinforcement learning, allowing it to tackle more complex challenges with minimal human input.
These advancements align with SAP’s goal of making AI accessible to businesses of all sizes. By offering scalable, affordable solutions, SAP ensures even small and medium-sized enterprises can benefit from the power of AI.
SAP’s vision for AI goes beyond incremental improvements; it represents a fundamental shift in how businesses operate. By combining advanced AI with open-source models, SAP empowers organizations to navigate complexity with agility and precision. Joule exemplifies this transformation, delivering practical insights and automating processes across diverse industries.With a steadfast commitment to responsible and transparent AI practices, SAP ensures these innovations are effective and trusted. This balanced approach positions SAP as a leader in enterprise AI, equipping businesses to succeed in an increasingly digital world.
In 2024, the tech industry is witnessing an increasing demand for specialized talent, with artificial intelligence (AI) and machine learning (ML) experts at the forefront. Over the past four years, the number of professionals in this field, such as machine learning engineers and data scientists, has grown by 74% annually. Nearly every sector—ranging from healthcare to finance—now leverages AI for data analysis, process automation, and the development of complex models and algorithms.
The pervasive nature of AI across industries underscores the need for the tech workforce to evolve. A Microsoft report projects that the number of tech jobs will skyrocket from 41 million in 2020 to 190 million by 2025. Adapting hiring strategies to bridge this skills gap is crucial for businesses looking to stay competitive.
AI and ML Experts: Core to the Future Workforce
AI and ML are no longer just buzzwords but essential components of modern industry operations. The McKinsey Global Institute predicts that up to 14% of the global workforce may need retraining by 2030 due to shifts driven by digitization, robotics, and AI. The demand for AI specialists and ML engineers continues to surge as businesses seek to build smarter systems and integrate advanced natural language processing.
This demand is especially pronounced in sectors such as healthcare and finance, where AI expertise is crucial for creating predictive models and automating complex workflows.
Cybersecurity: A Top Priority Amidst Remote Work Growth
As remote work becomes more prevalent and cyber threats grow increasingly sophisticated, cybersecurity roles are in higher demand than ever. The U.S. Bureau of Labor Statistics forecasts a 33% increase in cybersecurity jobs between 2020 and 2030. Key roles such as information security analysts, penetration testers, and security engineers are vital for safeguarding organizations against data breaches and maintaining compliance. Skills in risk assessment, incident response, and security frameworks have become essential as cyber risks intensify.
The Expansion of Cloud Computing Roles
The cloud computing market is on track to surpass $1 trillion by 2029, driving the need for professionals who can manage complex, multi-cloud infrastructures. Cloud engineers, proficient in platforms like AWS, Azure, and Google Cloud, are becoming indispensable as businesses continue to expand their reliance on cloud-based solutions.
Blockchain Technology: Beyond Digital Currency
Originally developed to support cryptocurrencies, blockchain technology has found new applications in finance, supply chain, and logistics. According to Precedence Research, the global blockchain market is set to grow from $17.60 billion in 2023 to $26.91 billion in 2024 and could reach $1,879.30 billion by 2034, with a projected CAGR of 52.9% over the forecast period. Companies are increasingly seeking blockchain developers and smart contract engineers capable of designing secure, cost-effective systems for varied uses. Salaries for these professionals often range between $80,000 and $140,000 annually.
High Demand in Tech Hubs and Competitive Salaries
The rapid evolution of AI has spurred a significant rise in job opportunities and salaries. A CompTIA analysis suggests that demand for data scientists is expected to climb by 304% over the next decade, with cybersecurity analysts following close behind at a 267% increase. Major tech hubs like San Francisco, New York, and London are seeing high competition for specialized talent, where top roles can command six-figure salaries.
Salaries differ based on location and living costs, but positions with specialized skills generally offer a premium, especially in high-demand markets.
The Importance of Soft Skills for Tech Leaders
While technical skills remain essential, the importance of soft skills such as communication, adaptability, and leadership is growing. For IT leaders, including CTOs and project managers, strong interpersonal skills are now critical for team management and guiding digital transformation initiatives. Companies increasingly prioritize hiring candidates who can blend technical expertise with these vital soft skills.
Rising Demand for IT Roles
According to CompTIA, hiring in the U.S. tech sector is expected to rise from 52% in early 2023 to 61% by the end of 2024. Although the second quarter of 2023 experienced a slight dip due to seasonal trends, growth resumed in the latter half of the year, signaling recovery and continued expansion in the tech sector.
To attract and retain top talent, companies must revamp recruitment strategies, offering competitive salaries, career development opportunities, and flexible work arrangements that appeal to skilled professionals.
The Challenge of Finding Specialized Talent
Despite the demand, filling roles in AI, cloud computing, and cybersecurity remains a challenge. According to Robert Half, 90% of hiring managers report difficulty in finding qualified candidates for these positions. Upskilling initiatives are emerging as a solution, enabling companies to develop their current workforce and foster career advancement, thereby addressing the talent shortage from within.
Upskilling and Lifelong Learning: Essential for Success
The fast-paced nature of technological change makes continuous learning a necessity for both employers and employees. Professionals are increasingly turning to certifications in programming, cloud computing, and cybersecurity offered by online platforms to stay competitive. These upskilling efforts not only help close the skills gap but also enhance job satisfaction and retention.
Conclusion: A Promising Outlook
The hiring landscape for 2025 holds both opportunities and challenges. While economic pressures and past layoffs persist, the demand for tech talent in the U.S. continues to rise. Companies must adapt, implementing strategic hiring and training programs to secure qualified talent. The global nature of work and the normalization of remote work are reshaping recruitment practices, encouraging businesses to source talent internationally.
Forward-thinking organizations that prioritize flexibility, continuous learning, and a strong focus on soft skills will be best positioned to thrive in this dynamic environment.
Meta Connect 2024 showcased some of the most groundbreaking advancements in augmented reality (AR), virtual reality (VR), and artificial intelligence (AI), positioning Meta at the forefront of technological innovation. Held with the intent to redefine how people interact with technology, this year’s event highlighted the seamless convergence of AI with immersive technologies, along with updates to Meta’s hardware lineup. CEO Mark Zuckerberg introduced major AI-driven breakthroughs, AR devices, and tools that will shape the future of digital interactions.
The Unveiling of Orion AR Glasses
One of the headline announcements was Meta’s new Orion AR glasses, a revolutionary step in AR technology. The Orion glasses are Meta's first fully holographic AR device, offering a design that closely resembles traditional eyewear but is equipped with advanced capabilities. These glasses track voice, eyes, and hands, providing users with a deeply immersive and interactive experience.
The Orion glasses go beyond simple AR applications by integrating personalized AI assistants. These virtual helpers can anticipate user needs, respond to commands, and display holographic information in real time, making them ideal for both personal and professional use. Meta envisions Orion as a device capable of all-day wear, marking a significant leap in the wearable tech space.
Llama 3.2: Powering the AI Revolution
Meta’s AI division took center stage with the introduction of Llama 3.2, the latest version of its large language model (LLM). Llama 3.2 now includes vision-based LLMs with medium-sized parameters of 11B and 90B, as well as lighter text-only models with 1B and 3B parameters, optimized for mobile devices.
What sets Llama 3.2 apart is its ability to process both text and visual data, making it a versatile tool for industries ranging from virtual reality and robotics to content creation and customer service. This multimodal capability allows businesses and developers to create more intuitive, intelligent systems that can understand complex environments and deliver more personalized experiences.
Ray-Ban Meta Glasses Get Smarter
Meta also announced significant upgrades to its Ray-Ban Meta Glasses, enhancing their capabilities with integrated multimodal AI. These smart glasses now offer real-time language translation, natural conversational interaction, and memory assistance. The upgrades aim to make the glasses more user-friendly, particularly for those with visual impairments, while enhancing their utility for everyday users looking for seamless technology integration in their daily lives.
AI-Powered Instagram Reels Translation
One of the most intriguing AI-driven features revealed at Meta Connect 2024 was the AI-powered translation for Instagram Reels. This new tool automatically dubs and lip-syncs content into different languages, allowing creators to expand their reach to global audiences with minimal effort. This innovation is set to change how content creators connect with international audiences, making Meta's platforms more accessible worldwide.
Human-Like Meta AI Chatbot
Meta also introduced a major update to its Meta AI chatbot, which has been enhanced to offer more human-like interactions. One of the standout features is the ability to interact with the AI using celebrity voices, including John Cena, Keegan-Michael Key, and Kristen Bell. This personalized approach enhances user engagement, providing a more entertaining and immersive experience across Meta’s platforms, including Messenger, Instagram, and WhatsApp.
Meta’s Vision for AI-Driven, Immersive Experiences
Meta Connect 2024 demonstrated how far the company has come in integrating AI into AR and VR platforms. These advancements reflect Meta's long-term vision of creating a more immersive and interactive digital world, where users can seamlessly transition between virtual and physical spaces, aided by intelligent AI systems.
The event emphasized the convergence of Meta’s AI and AR/VR ecosystems, with AI becoming a foundational technology that powers new levels of personalization, interactivity, and accessibility across the company’s platforms and devices.
Expanding Business Horizons with AI
Meta’s focus on practical AI applications was another key highlight. The integration of AI into Meta's business tools and platforms is helping companies automate tasks, enhance customer service, and improve workflows. AI agents, designed to execute specific actions and achieve goals autonomously, are now widely used across Meta's ecosystem to drive efficiency and innovation in business operations.
Conclusion: A Glimpse into Meta’s Future
Meta Connect 2024 made it clear that the future of digital interaction will be deeply immersive, intuitive, and powered by AI. With major innovations like the Orion AR glasses, advancements in the Llama AI model, and enhanced features for both Ray-Ban Meta Glasses and Instagram Reels, Meta is positioning itself as a leader in the next era of technological transformation.
By blending AR, VR, and AI, Meta is not only enhancing the user experience but also reshaping how businesses, creators, and everyday users interact with digital spaces. As Zuckerberg concluded the event, it’s clear that Meta's vision for the future is one where digital and physical realities merge seamlessly, transforming the way we live, work, and connect.
Microsoft Expands AI Integration with Bing Chat Enterprise and Sales Copilot at Inspire Event
At its recent Inspire event, Microsoft made a series of major announcements centered around generative AI, introducing Bing Chat Enterprise and Sales Copilot. The company also revealed the pricing for its Copilot tool within Microsoft 365.
During the Inspire conference, where Microsoft gathered its partners, the company elaborated on its strategy for deploying generative AI capabilities across its product lineup. It was announced that Copilot will be available to customers using Microsoft 365 E3, E5, Business Standard, and Business Premium at a price of $30 per user per month, excluding taxes.
Copilot, integrated into Microsoft’s suite of productivity and collaboration applications, can automate tasks and create content, such as analyzing Excel data, designing PowerPoint presentations, and summarizing Teams meetings. This pricing will take effect once Copilot is "generally available," though Microsoft has not provided a specific date. Currently, 600 enterprise customers are enrolled in the early access program.
Bing Chat Enterprise Debuts
Microsoft also announced the expansion of Bing Chat with a new Enterprise version and introduced Visual Search. Bing Chat Enterprise is a professional version of the AI-powered chat function Microsoft launched in February. This offering allows users to ask questions and receive responses from GPT-4, the large language model (LLM) developed by OpenAI, in which Microsoft has heavily invested since late 2022.
In a blog post, Microsoft executives Yusuf Mehdi and Jared Spataro noted that "similar to Bing Chat, Bing Chat Enterprise relies on web data and delivers thorough and verifiable responses, complete with citations and visual elements such as charts, tables, and images, all crafted in alignment with our AI principles." To ensure data protection, the service does not record any chat data or use it to train the underlying LLM. Additionally, Microsoft does not have direct access to the data, meaning that no one, including the company, can view the information used to power the tool.
"Bing Chat Enterprise is rolling out in preview today and is included at no additional cost with Microsoft 365 E3, E5, Business Standard, and Business Premium," Microsoft stated. It will also be available later as a standalone product for $5 per user per month. Moreover, Bing Chat will soon integrate image search via GPT-4. Users can upload an image to Bing Chat to search for similar content, learn more about the context of the image, or ask questions related to it. Visual search within Bing Chat is already being deployed for the Bing Desktop and mobile apps, with plans to add it to Bing Chat Enterprise later.
Introducing Sales Copilot for Microsoft 365 and Dynamics 365
At the Inspire event, Microsoft also unveiled Sales Copilot. "Designed for sales professionals, this version of the generative AI assistant is distinct from Microsoft 365 Copilot and Dynamics 365 Copilot," the company clarified, adding that the assistant can be accessed through tools used by sales teams, including Outlook, Teams, and Dynamics 365 Sales.
According to Jason Wong, an analyst at Gartner, Sales Copilot is "essentially a rebranded version of Viva Sales with added generative AI capabilities." He also noted that certain editions of Dynamics 365 will require a Sales Copilot license to integrate with Salesforce and other third-party systems.
SAP Shares Surge as AI-Driven Restructuring Promises €200 Million Profit Boost and Additional Job Cuts
SAP shares soared following the German software giant's announcement that its artificial intelligence-driven restructuring will lead to an additional €200 million in profits and result in more job cuts than initially anticipated.
The company, headquartered in Weinheim, Germany, initially outlined a comprehensive restructuring plan in January, projecting that around 8,000 employees would be affected at a cost of €2 billion ($2.2 billion). However, SAP now expects the restructuring to impact 9,000 to 10,000 jobs, with costs rising to approximately €3 billion.
SAP, Europe’s second-largest tech company after ASML, saw its shares on the Frankfurt Stock Exchange climb 6% on Tuesday, building on a 40% year-to-date increase. Meanwhile, SAP's New York-listed shares gained 4% in after-hours trading on Monday, having risen 30% so far this year.
The company, known for developing database software for major U.S. firms like Apple, Pfizer, and ExxonMobil, stated that the expanded restructuring plan is expected to enhance profits by approximately €200 million by 2025. SAP now forecasts profits of €10.2 billion in 2025, up from its previous estimate of €10 billion.
SAP emphasized that most of the job reductions will occur through voluntary leave programs and internal re-skilling initiatives.
In its second-quarter results, SAP reported a 10% increase in revenue, reaching €8.29 billion, slightly surpassing analysts' expectations of €8.25 billion, according to FactSet. The company’s net income for the quarter came in at €1.28 billion, exceeding the €1.22 billion forecasted by analysts.
Deutsche Bank analyst Johannes Schaller noted that SAP achieved double-digit organic revenue growth for the first time in five years, driven by agreements with companies such as ExxonMobil, ADP, Accenture, BASF, and Lenovo. Schaller added, "We believe SAP is still in the early stages of its 'harvest phase' following three years of substantial investments."
SAP's generative AI assistant, Joule, is revolutionizing enterprise operations by offering insights, tailored outcomes, and personalized experiences. According to SAP, this innovation significantly boosts productivity and efficiency. "We are entering a new phase of AI with endless opportunities for all of us," said SAP CEO Christian Klein at the Sapphire 2024 conference in Barcelona. By the end of 2024, Joule will manage 80% of the most frequently used tasks, increasing productivity by 20%.
Joule will streamline tasks in management, billing, cash collections, and finance, expediting processes and compliance checks. It will also serve as a powerful analytical engine, providing strategic recommendations using an extensive business-to-business data model. This model includes finance, supply chain, HR, sales, and ESG data from thousands of customers, enabling Joule to optimize operations.
During Klein's keynote, Nvidia CEO Jensen Huang praised SAP's role in managing Nvidia's complex supply chain, highlighting Joule's transformative potential. "This is the beginning of a new computing age, the beginning of a new industrial revolution," said Huang.
Dr. Philipp Herzig, Chief AI Officer of SAP, noted that internal use of Joule saved SAP consultants up to 2 hours daily. With over 50 SAP certification programs and 2TB of curated content integrated into Joule and powered by Nvidia's technology, these productivity gains could save up to 600 million working hours annually.
SAP has expanded its strategic partnerships with Google and Meta. The collaboration with Google enhances supply chain risk prediction by integrating Joule with Google’s Gemini AI assistant and Cloud Cortex Framework. The partnership with Meta leverages its advanced language model to enhance SAP SuccessFactors and SAP Analytics Cloud, transforming enterprise requirements into actionable insights.
Major Partnership Enhances Cloud ERP Capabilities
Ahead of its Sapphire 2024 conference in Orlando, SAP has announced an expanded strategic collaboration with AWS to enhance modern cloud ERP experiences using SAP GenAI (generative artificial intelligence). This partnership, led by new AWS CEO Matt Garman, aims to provide a significant boost for SAP cloud customers.
Streamlined RISE with SAP on AWS
The collaboration seeks to simplify the adoption of RISE with SAP on AWS, improve the performance and efficiency of SAP workloads in the cloud, and integrate SAP GenAI into essential business applications.
“AWS was the first cloud provider certified to support the SAP portfolio, and today, thousands of enterprises run SAP solutions on AWS to maximize their mission-critical applications,” said Garman. “Now, AWS and SAP are making it easier for companies to apply generative AI to their core business data to become more efficient, responsive, and sustainable.”
Accelerating Innovation with Generative AI
Christian Klein, CEO of SAP SE, highlighted the importance of this partnership: “Partnerships like this with AWS are critical as we embed generative AI solutions across our ERP applications, enabling customers to drive innovation at an accelerated pace. We are excited to support Amazon on their own transformation journey with RISE with SAP for pioneering projects like Project Kuiper, Amazon’s satellite initiative.”
Integration of Generative AI Models
The SAP AI Core infrastructure’s generative AI hub will provide secure access to a wide range of large language models (LLMs) for SAP business applications. By integrating GenAI models from Amazon Bedrock, SAP customers can leverage high-performing LLMs and foundational models to build customized applications.
This integration will help SAP customers adopt GenAI and modernize key business processes on SAP solutions. These innovations can be used within RISE with SAP and intelligent scenario lifecycle management, either as an integration component or directly on SAP Business Technology Platform (SAP BTP).
SAP and AWS will expand the use of Bedrock capabilities in the generative AI hub to enable further embedded AI functionality in SAP’s cloud solutions, including finance and product lifecycle management.
Leveraging AWS Graviton and Trainium
SAP currently uses AWS Graviton3 chips to support SAP HANA Cloud. The partnership includes collaboration on the next generation of Graviton4 for SAP HANA Cloud and other SAP applications. SAP also plans to use AWS Trainium and AWS Inferentia chips for AI and machine learning workloads, enhancing the development process of SAP GenAI.
Enhanced Memory and Flexibility with Amazon EC2
AWS has improved its memory database with Amazon EC2 High Memory U7i instances, offering up to 32TiB of memory in a single instance. These instances support expanding SAP HANA database requirements and improve the performance of memory-intensive applications like SAP S/4HANA Cloud as part of RISE with SAP.
Microsoft has officially launched GPT-4 Turbo with Vision, a robust addition to their Azure OpenAI Service capable of handling both text and image data. This multimodal AI model, now generally available, marks a significant upgrade in capabilities.
The newly released GA model, named gpt-4-turbo-2024-04-09, supersedes several preview models, including gpt-4-1106-preview, gpt-4-0125-preview, and gpt-4-vision-preview. Customers in Sweden Central and East US 2 regions of the Azure OpenAI Service can seamlessly deploy this advanced model through the Studio UI.
For users currently utilizing the preview models with auto-update functionality enabled, Microsoft will automatically transition them to the latest version starting from June 10th onwards, with prior notification to customers. Although certain features such as Optical Character Recognition (OCR) and video prompts from the preview models are not yet integrated into the GA release, Microsoft assures continuous efforts to incorporate them into future iterations. Furthermore, enhancements such as JSON mode and function calling for image inputs are in the pipeline, promising additional functionalities to augment the model's capabilities.
This GA release signifies a significant advancement in AI technology, empowering businesses to achieve higher levels of efficiency and innovation through robust text and image analysis. With ongoing development and feature integration efforts, Microsoft demonstrates its commitment to maintaining the forefront position of this technology in the AI landscape.
The German operator becomes the first major enterprise to announce its transition to SAP's managed offering, Rise and Grow. Over 300 systems will transition to the new generation of software. SAP achieves a significant milestone in its effort to shift its installed base towards its managed offerings, known as Rise with SAP and Grow with SAP. As part of the partnership between SAP and T-Systems on these offerings, the parent company of the German IT services provider, Deutsche Telekom, will migrate a large portion of its ERP environments to Rise. The project involves consolidating over 300 different systems into both public and private cloud, according to a statement from the Waldorf-based software vendor, without further detail.
"With SAP S/4 Hana Cloud, Deutsche Telekom will enhance the efficiency of key business functions such as logistics, procurement, and finance," assures Peter Laukert, CIO of the leading European telecom operator, which boasts over 252 million mobile customers, manages 25 million fixed lines, and 22 million broadband lines. While the project will showcase T-Systems' expertise in this type of migration, it marks a significant endorsement of the strategy of the leading European software vendor, which is now pushing its customers towards its cloud offerings.
GetLink, an 18-month project
In France, Getlink, the operator of the Channel Tunnel infrastructure, has completed its migration to Rise with SAP after an 18-month project. Led by the specialized provider Pasàpas, a subsidiary of the Talan consultancy, the project aimed to replace aging versions of SAP (ECC 6.0, BW 7.0, and CRM 7.0) and was sequenced into two major phases: a progressive technological migration of components and functional optimization.
It is worth noting that SAP's insistence on leading its installed base towards its managed cloud offerings has irked the vendor's customer base, a large portion of which has initiated or plans to modernize their software to the S/4 Hana generation without necessarily embracing the shift towards the latest offerings from the vendor. "Our members would first like to complete the transition to S/4 and understand the value of migrating to Rise. We feel like we're witnessing a rush forward, and the gap between what companies expect and what SAP provides is growing," explained Gianmaria Perancin, president of USF (the French-speaking SAP users' club), in our columns last February. Although since then, the atmosphere has somewhat calmed following assurances, particularly from SAP France.
Recently, SAP has acquired LeanIX, a renowned powerhouse in Enterprise Architecture Management (EAM) software. LeanIX boasts a strong track record of leveraging its Software as a Service (SaaS) solutions, artificial intelligence (AI) enhancements, and expertise in EAM to drive businesses towards modernizing their IT landscapes and spearheading business transformation initiatives.
By joining forces with LeanIX, SAP aims to bolster its business transformation portfolio by introducing a transformation suite. This suite will provide customers with access to a comprehensive set of tools necessary for achieving continuous business transformations. The transaction is slated to close in the fourth quarter of 2023, pending customary closing conditions and regulatory approvals.
LeanIX has long been a strategic partner of SAP and SAP Signavio solutions, playing a pivotal role in numerous CIOs' digital transformation journeys as part of their RISE with SAP initiatives. Christian Klein, CEO of SAP SE, emphasized the symbiotic relationship between systems and processes, highlighting the goal of offering a groundbreaking transformation suite in collaboration with LeanIX. This suite aims to offer holistic support to customers on their business transformation journeys, leveraging generative AI to deliver self-optimizing applications and processes that align with key business objectives.
The acquisition of LeanIX complements SAP Signavio solutions' transformation capabilities, laying the groundwork for AI-enabled process optimization. LeanIX's recent introduction of an AI assistant further demonstrates its commitment to enhancing enterprise architecture management through increased automation and intelligent recommendation engines.
SAP's new business transformation solution suite is designed to provide customers with a comprehensive view of their business processes and applications. By overlaying process dependencies and mapping potential transformations' impact on the IT landscape, SAP aims to enable customers to foster a culture of continuous adaptability and improvement. LeanIX's expertise in IT landscape transformation, combined with SAP Signavio Process Transformation Suite, RISE with SAP, and SAP Business Technology Platform, promises to empower SAP customers across various industries to navigate technological shifts such as cloud computing and AI seamlessly.
With over 1,000 global clients spanning diverse industries, including a significant presence among Fortune 500 companies and half of the German DAX 40, LeanIX has established itself as a formidable player in the enterprise architecture management space. André Christ, CEO and co-founder of LeanIX, underscored the company's unwavering commitment to customer-centricity, superior usability, and seamless ecosystem integration. LeanIX's strategic vision revolves around empowering organizations to adapt continuously in a rapidly evolving business landscape by providing them with an integrated view of IT applications and business processes, thereby accelerating modernization efforts and mitigating transformation risks.