SAP snaps wallet shut for travel and hiring so it can keep shoveling cash into AI
Enterprise software giant confirms it's 'applying discipline' when it comes to hiring and business trips as tries to keep pace
AI AND ML
SAP snaps wallet shut for travel and hiring so it can keep shoveling cash into AI
Enterprise software giant confirms it's 'applying discipline' when it comes to hiring and business trips as tries to keep pace
SAP is cutting hiring and business travel to boost its investment in AI amid intensifying competition in the enterprise application market.
According to an internal email, SAP is set to "exclusively focus new hiring on selected profiles only, mainly core AI roles, that are critical for our long-term success."
The missive, seen by Bloomberg, said travel unrelated to AI development would also be put on hold. The German software giant will also seek to cut spending with suppliers.
In a statement, an SAP spokesperson told The Register: "SAP continually reviews its investments to ensure resources are focused on the areas that will drive long-term customer value and innovation. As part of this approach, we are prioritizing investments in AI-related capabilities, talent, and technologies while applying greater discipline to hiring, external spending, and internal travel. Customer-facing activities and critical AI initiatives remain fully supported."
In May, SAP introduced the Autonomous Enterprise concept, backed by a new SAP Business AI Platform for building and deploying enterprise AI grounded in "real business context" from its ERP, CRM, and HCM applications, and elsewhere in the enterprise.
New products include Joule Studio 2.0, which helps developers create and manage AI agents. Agents created in Joule Studio will natively support Model Context Protocol and Agent2Agent to improve interoperability among AI agents, tools, and data sources. This allows SAP to connect and collaborate with third-party tools and agents.
Other features, such as agentic orchestration, are also designed to run across hybrid IT environments, while real-time data ingestion supports "context-aware processes" across SAP and third-party systems.
However, its big push for AI relevance comes despite SAP missing its earlier self-imposed targets to get users to the cloud and SaaS.
In 2022, then-CFO Luka Mucic told investors that SAP expected support revenue to fall to €8.5 billion by 2025, down from around €11.5 billion in 2021, as users move from on-prem licenses and support to cloud subscriptions.
But the 2025 full-year figure for on-prem software support is €10.5 billion, down 7 percent from 2024's €11.29 billion and €2 billion off SAP's target. ®
Originally published on The Register
