SAP has a message for software doomsayers: The pendulum will swing back
SAP executive Jan Gilg argues that the recent stock market sell-off of SaaS companies, dubbed the 'SaaSpocalypse,' is an overreaction. The company is pivoting toward AI-integrated business solutions and consumption-based pricing to maintain its competitive edge.
Why it matters
This reflects broader market trends where established software giants are aggressively integrating AI to defend their market share against emerging tech disruptors.
Jan Gilg, SAP's global president of customer success and Americas. SAP A SAP executive anticipates a recovery from the SaaSpocalypse, driven by advances in business AI. SAP is using AI to solidify its competitive edge against Palantir and other tech giants. SAP is shifting more to consumption-based pricing to align AI costs with business outcomes. A SAP executive says the "pendulum will swing back" from the SaaSpocalypse. Like many software companies, the German software giant has seen its stock hit hard over the past year amid competition from AI tools. This stock sell-off of software-as-a-service (SaaS) companies, known as the SaaSpocalypse , has hit companies like Salesforce, SAP, and Workday as Anthropic and OpenAI have introduced tools that could threaten their businesses. SAP's stock has been down about 20% over the past year, though it's been on an upward trend over the past month.
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