A SAP executive predicts a shakeout among software's winners and losers
Yan Gil, President of SAP Global Customer Success and Americas, predicts that the “panic” in the SaaS industry caused by AI tools will reverse, and a survival-of-the-fittest process will occur in the software market. SAP’s stock price has fallen by about 20% over the past year due to competitive pressure, but investors have been positive about its cloud growth and progress in business AI, resulting in a recovery of about 40% after the financial report at the end of July. Gil believes that this selling off is an overreaction in the industry, emphasizing that customers will not replace SAP with “vibe codes” in critical scenarios due to core requirements such as auditing, governance, and maintenance. SAP is strengthening its advantage by investing in data capabilities, rethinking pricing models, and using AI to improve its output, firmly believing that the company will stand among the winners.