German software giant SAP SE has recently announced a significant restructuring plan, aimed at realigning the organization towards the booming artificial intelligence (AI) industry. With a whopping 2 billion euro ($2.17 billion) investment, SAP is determined to position itself at the forefront of AI-driven business areas.
Recognizing the transformative potential of generative AI, SAP plans to commit over $1 billion towards this cutting-edge technology. In addition, the company intends to foster innovation by actively engaging with AI-powered startups through its enterprise capital firm, Sapphire Ventures.
The primary objective of SAP’s restructuring program is to concentrate its resources on key growth areas, particularly in the realm of business AI. By optimizing its workforce, SAP aims to build the necessary expertise and capabilities required to navigate the rapidly evolving AI landscape.
To implement the restructuring plan, SAP will primarily rely on voluntary leave programs and internal re-skilling measures. It expects the overall headcount to remain stable by the end of 2024, similar to current levels, as it streamlines operations and aligns its workforce with the strategic focus on AI.
While the restructuring expenses are anticipated to impact operating profit in the first half of 2024, SAP remains bullish about its future prospects. The company is forecasting cloud revenue of 17 billion euros to 17.3 billion euros for 2024, with an adjusted cloud gross profit of approximately 16.2 billion euros by 2025.
SAP’s commitment to AI and its aggressive restructuring initiative reflect a clear vision for the future. By embracing the AI revolution and investing in emerging technologies, SAP is positioning itself as a leader in the dynamic and competitive AI-driven business landscape. As stakeholders eagerly watch the company’s progress, it is evident that SAP’s focus on AI will shape its future growth and success.
FAQ:
1. What is SAP’s restructuring plan?
SAP SE, a German software giant, has announced a significant restructuring plan aimed at realigning the organization towards the artificial intelligence (AI) industry. The plan involves optimizing resources and workforce to focus on key growth areas, particularly in business AI.
2. How much is SAP investing in AI?
SAP plans to commit over $2 billion euro towards the AI industry. Specifically, it will dedicate over $1 billion towards generative AI technology and will actively engage with AI-powered startups through its enterprise capital firm, Sapphire Ventures.
3. How does SAP plan to implement the restructuring plan?
To implement the restructuring plan, SAP will primarily rely on voluntary leave programs and internal re-skilling measures. The company expects the overall headcount to remain stable by the end of 2024 as it streamlines operations and aligns its workforce with the strategic focus on AI.
4. How will the restructuring expenses impact SAP’s operating profit?
The restructuring expenses are anticipated to impact operating profit in the first half of 2024. However, despite this, SAP remains optimistic about its future prospects and is forecasting strong cloud revenue and profit growth in the coming years.
5. What is SAP’s vision for the future?
SAP’s commitment to AI and its aggressive restructuring initiative reflect a clear vision for the future. By embracing the AI revolution and investing in emerging technologies, SAP aims to position itself as a leader in the dynamic and competitive AI-driven business landscape.
Definitions:
– SAP SE: A German multinational software corporation that specializes in enterprise software solutions.
– Artificial Intelligence (AI): The simulation of human intelligence processes by machines, particularly computer systems, to perform tasks that would normally require human intelligence.
– Enterprise Capital Firm: A type of venture capital firm that focuses on investing in startups and emerging companies in specific industries, in this case, AI-powered startups.
Related Links:
– SAP Official Website
– SAP AI and Machine Learning
The source of the article is from the blog queerfeed.com.br