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SAP’s latest shareholder meeting showcased impressive growth in sales, a surge in new customers, and significant product enhancements. With SAP expanding its cloud-first approach and AI-driven solutions, businesses need to understand the implications for their IT investments. More importantly, customers looking to purchase or renew SAP solutions must employ strategic negotiation tactics to maximize savings.
SAP reported a 10% increase in total revenue, reaching €34.18 billion, fueled by its shift to cloud services. The cloud revenue saw a 25% surge to €17.14 billion, highlighting the company’s aggressive push toward SaaS and subscription-based models. Additionally, the cloud backlog grew by 32% to €18.08 billion, demonstrating SAP’s strong market position and demand for its solutions.
SAP continues to acquire high-profile customers across industries such as manufacturing, financial services, and retail. Fortune 500 companies are adopting SAP’s solutions, further cementing its leadership in enterprise software.
SAP unveiled multiple product innovations aimed at improving automation, efficiency, and decision-making capabilities:
These advancements reinforce SAP’s commitment to innovation and digital transformation, making it essential for businesses to align their IT strategies accordingly.
Given SAP’s growth and pricing trends, businesses must implement effective negotiation tactics to optimize costs. Here’s how:
Compare SAP pricing with industry benchmarks to gain negotiation leverage. Understanding competitive rates ensures you get fair pricing.
Assess your software usage and select the most cost-effective model—cloud subscription, perpetual licensing, or hybrid—to avoid overpaying.
Starting negotiations well before the renewal deadline provides room for securing multi-year discounts and additional incentives.
Consolidating multiple SAP solutions (e.g., SAP S/4HANA, SAP SuccessFactors, and SAP Business AI) can unlock bulk discounts and added service benefits.
SAP’s indirect access policies can lead to unexpected fees. Carefully review and negotiate these terms to avoid hidden costs.
SAP offers promotional pricing and migration credits for businesses transitioning from on-premises to cloud solutions—leveraging these incentives can reduce expenses.
Engaging specialists like KontractOne ensures you receive optimized pricing, improved contract terms, and significant cost reductions in your SAP agreements.
SAP’s continued expansion and product innovation make it essential for enterprises to take a strategic approach to negotiations. KontractOne helps businesses navigate SAP contracts, uncover savings opportunities, and align IT investments with operational needs.
Contact KontractOne today for a free consultation and start securing maximum savings on your SAP deals.
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