SAP SE (SAP)
Enterprise resource planning (ERP/S4HANA) — finance, supply-chain & operations system of record
AI exposure 5% — derived from reported segment revenue, not asserted.
Where it sits
Software Stack → Enterprise & Business Software · figures rebased to Q2 2026, reported 2026-07-23
Cloud ERP (S/4HANA Cloud, RISE) + SuccessFactors HCM + Ariba/Concur + Business Technology Platform leads 3 businesses in this sub-tier that together are 100% of revenue, so Enterprise & Business Software is effectively the whole company rather than one leg of it.
Reported segments
- Cloud — 64% of revenue
- Software Licenses & Support — 31% of revenue
- Services — 5% of revenue
SAP (~€34B FY2025; Q2 2026 cloud = 64% of revenue) — #1 ERP. Cloud ~64% (S/4HANA Cloud + RISE + SuccessFactors HCM + Ariba/Concur + BTP = the strategic growth core; cCCB €22.9B +26% cc) + Software Licenses & Support ~31% (on-prem ECC installed base migrating to cloud, ECC sunset 2027/2030) + Services ~5%. Primary B5 Enterprise & Business Software. NICHE: ERP — the transactional system of record (finance/supply-chain/operations) for large enterprises. Cloud-migration story (RISE) + Business AI (Joule agents on the Reltio/Dremio/Prior Labs data stack). Competes Oracle/Workday/Microsoft; serves…
How the 5% is built
- Cloud — 64% of revenue × 7% AI-driven (estimate). Estimate, held flat. Q2 2026 cloud revenue EUR 6.28B (+24% cc), of which Cloud ERP Suite is 88% — core ERP migration, not AI. SAP discloses AI/BDC in >90% of its top-50 deals but breaks out no AI revenue line, and the AI contribution to signings is still described as negligible; outcome-based Joule/agent pricing only…
- Software Licenses & Support — 31% of revenue × 2% AI-driven (estimate). Estimate, held flat — on-prem ECC licence/support base (licences fell 32% YoY in Q2 2026); essentially no AI-feature monetisation on the legacy estate
- Services — 5% of revenue × 3% AI-driven (estimate). Estimate, held flat — implementation services tied to core RISE/S4 deployments; declined YoY in Q2 2026
Investment read
Moat. ERP system-of-record lock-in (the transactional backbone of global enterprises) + the RISE cloud-migration cycle; the deepest enterprise switching costs.
Bottleneck / pricing power. Strong pricing power (ERP is the hardest system to rip out + the cloud-migration upsell + AI features); the captive installed base is the moat.
Role in the AI stack. The ERP transactional-backbone (+ AI) layer.
Connected companies
- Oracle (ORCL) — SAP competes with: ERP majors — SAP S/4HANA vs Oracle Fusion/NetSuite
- Workday (WDAY) — SAP competes with: Cloud HCM/financials vs SAP SuccessFactors
- Accenture (ACN) — SAP is supplied by: implements SAP for enterprise clients
- Salesforce (CRM) — SAP competes with: enterprise apps — Salesforce (CRM) vs SAP (ERP)
- ServiceNow (NOW) — SAP competes with: Adjacent/emerging rivalry — ServiceNow (workflow/ITSM) vs SAP (ERP) overlap only at the edges, not core system-of-record competitors
- Siemens (SIEGY) — SAP supplies: Named as a customer in SAP's value chain: uses SAP ERP for financial consolidation and supply chain management
- Alphabet (GOOGL) — SAP is supplied by: Named as a supplier in SAP's value chain: SAP runs workloads on Google Cloud; strategic infrastructure provider
- Dynatrace (DT) — SAP is supplied by: Named as a customer in DT's value chain: Runs Dynatrace across cloud operations for its own application estate
- Microsoft (MSFT) — SAP competes with: RISE with SAP on Azure, run as a joint programme — Microsoft is also the first hyperscaler to adopt RISE internally for its own systems
- Amazon (AMZN) — SAP competes with: RISE and GROW with SAP on AWS, with joint co-selling; AWS was the first cloud to offer GROW with SAP through its marketplace
Others in Enterprise & Business Software
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