Christian Klein, Chief executive of CEO of SAP. Christian, very nice to have you on the program once again. We'll come to the cloud story and the numbers in a moment, but I want to start with the job story. You've got this a job restructuring, and you've been clear that although this will affect eight thousand rolls, you'll end up with the same number on the payroll as when you started. So can you tell us a little bit more about the types of jobs you'll be subtracting and the sites you'll be adding here what's happening at SAP.

Christian Klein, Chief executive of CEO of SAP. Christian, very nice to have you on the program once again. We'll come to the cloud story and the numbers in a moment, but I want to start with the job story. You've got this a job restructuring, and you've been clear that although this will affect eight thousand rolls, you'll end up with the same number on the payroll as when you started. So can you tell us a little bit more about the types of jobs you'll be subtracting and the sites you'll be adding here what's happening at SAP.

Yeah, thanks a lot, first of all, Ana for having me. Yes, indeed, we posted great results.

Yeah, thanks a lot, first of all, Ana for having me. Yes, indeed, we posted great results.

We are very proud.

We are very proud.

Three years ago we started a transformation and now we kept the promise of accelerating cloudwarn you and also posting double digit profit quotes. Now the next phase is all about an ongoing transformation. We see massive quotes potential. You just interviewed ASML. They are customer of us. They are relying on SEP Business AI to further twive scale to build gacillion supply chains.

Three years ago we started a transformation and now we kept the promise of accelerating cloudwarn you and also posting double digit profit quotes. Now the next phase is all about an ongoing transformation. We see massive quotes potential. You just interviewed ASML. They are customer of us. They are relying on SEP Business AI to further twive scale to build gacillion supply chains.

That's SEP.

That's SEP.

That's what SEP does. So we are investing in AI over a billion for the next two years, while of course we're also applying AI internally, so we will try for higher automation, automation of activities. So it's all about reskilling and of course also you know, making sure that SEP on its own becomes more productive. So it's actually an adaptation of our workforce to the new retality reality in securing our future guoth Okay, so.

That's what SEP does. So we are investing in AI over a billion for the next two years, while of course we're also applying AI internally, so we will try for higher automation, automation of activities. So it's all about reskilling and of course also you know, making sure that SEP on its own becomes more productive. So it's actually an adaptation of our workforce to the new retality reality in securing our future guoth Okay, so.

It's about rescaling, about adapting the workforce. But with AI mean that you end up with fewer staff in the end, I understand in a year you might not. But in the end is that where AI takes SAP and takes the global software workforce.

It's about rescaling, about adapting the workforce. But with AI mean that you end up with fewer staff in the end, I understand in a year you might not. But in the end is that where AI takes SAP and takes the global software workforce.

I mean, anna, what we actually also posted today you saw, you know, we are increasing our guidance. We are very confident about the guose potential of SP until twenty twenty five and the years beyond.

I mean, anna, what we actually also posted today you saw, you know, we are increasing our guidance. We are very confident about the guose potential of SP until twenty twenty five and the years beyond.

And so SEP will also further invest.

And so SEP will also further invest.

So we actually expect that at the end of the year we actually end up with the same headcount as we left twenty twenty three, and for.

So we actually expect that at the end of the year we actually end up with the same headcount as we left twenty twenty three, and for.

The years to come, there will be investments.

The years to come, there will be investments.

There will be headcound quotes of course, under proportional to our top line quotes.

There will be headcound quotes of course, under proportional to our top line quotes.

You've talked about the cloud business. Growth in the cloud business this morning, it does an analyst seem to be suggesting, and you've said that it's still accelerating in twenty twenty four. Where are we in the underlying customer appetite story around cloud from SAP.

You've talked about the cloud business. Growth in the cloud business this morning, it does an analyst seem to be suggesting, and you've said that it's still accelerating in twenty twenty four. Where are we in the underlying customer appetite story around cloud from SAP.

We just talked about ASML.

We just talked about ASML.

It's about supply chain, more resilience, It's about also finding inflation and also coming up with higher productivity. This is what business leaders talk about, and.

It's about supply chain, more resilience, It's about also finding inflation and also coming up with higher productivity. This is what business leaders talk about, and.

This is SAP.

This is SAP.

Actually we are betting AI everywhere we try for automation and also about it's also about sustainability with the Queen Letcher and with the decarbonization. What we can also help our customers with with this is spot on. This is what our customers need, so general motors ASML, all of these customers also now betting on SAP to help them to achieve these business goals.

Actually we are betting AI everywhere we try for automation and also about it's also about sustainability with the Queen Letcher and with the decarbonization. What we can also help our customers with with this is spot on. This is what our customers need, so general motors ASML, all of these customers also now betting on SAP to help them to achieve these business goals.

And when you look at our total cloud backlock.

And when you look at our total cloud backlock.

Of over forty four billion, you see what is already in the books, which also shows how resilient SIP in the mean term is.

Of over forty four billion, you see what is already in the books, which also shows how resilient SIP in the mean term is.

Last year on the AI front, Christian, last year you partnered with Google, you invested in alf Alfa in our Spanthropic and in cohere de plant further AI investments this year.

Last year on the AI front, Christian, last year you partnered with Google, you invested in alf Alfa in our Spanthropic and in cohere de plant further AI investments this year.

Actually we just announced the partnership within Vita and Vta is actually a great story. I mean, there again are our customers and they just made the bed on our technology to also build more resilience into their supply chain, to better predict sales, to further automate other functions inside in Vidia. That's a fantastic showcase. While we're also coinovating together on AI to really build the most powerful AI platform for businesses.

Actually we just announced the partnership within Vita and Vta is actually a great story. I mean, there again are our customers and they just made the bed on our technology to also build more resilience into their supply chain, to better predict sales, to further automate other functions inside in Vidia. That's a fantastic showcase. While we're also coinovating together on AI to really build the most powerful AI platform for businesses.

And so you're going to see further partnerships.

And so you're going to see further partnerships.

But of course we are investing in law to also further you go into organic innovation in the field of AI.

But of course we are investing in law to also further you go into organic innovation in the field of AI.

Yes, and I can I ask you about the competitive environments at this point. You've got this big cloud backlog that you've already talked about. What is competition like at this sign Christian?

Yes, and I can I ask you about the competitive environments at this point. You've got this big cloud backlog that you've already talked about. What is competition like at this sign Christian?

I mean, the good piece is when business leaders are looking at the business case, they want to see higher productivity, they want to see higher resilience, and they also want to turn into a more sustainable ender prise.

I mean, the good piece is when business leaders are looking at the business case, they want to see higher productivity, they want to see higher resilience, and they also want to turn into a more sustainable ender prise.

And this is what the technology does.

And this is what the technology does.

So sp it's not about lifting and shifting systems to the cloud. We are transforming businesses and the business cases are very, very compelling, and given the great work we have done on the product site the last three years, we have a very modern tax stack, so.

So sp it's not about lifting and shifting systems to the cloud. We are transforming businesses and the business cases are very, very compelling, and given the great work we have done on the product site the last three years, we have a very modern tax stack, so.

We can really one business's end to end.

We can really one business's end to end.

And now with infusing AI, we are touching millions of end users. I mean when you are looking talking about the impact of AI, and now we need to come to return of invest This is what SEP does. We are sitting wide at the nexus between technology and businesses.

And now with infusing AI, we are touching millions of end users. I mean when you are looking talking about the impact of AI, and now we need to come to return of invest This is what SEP does. We are sitting wide at the nexus between technology and businesses.

I wonder what concerns you at this point, Christian? I mean, clearly there's an You're telling a very positive story about cloud sales and you've got this restructuring taking place at the moment. You were listening as we talk to the ASML boss. He talked about being an optimist. The worries a lot, and I wonder what it is that worries the CEO of SAP. The worries might be geopolitical, might be around the AI or something much more. Every day, what are you thinking about a lot of SAP?

I wonder what concerns you at this point, Christian? I mean, clearly there's an You're telling a very positive story about cloud sales and you've got this restructuring taking place at the moment. You were listening as we talk to the ASML boss. He talked about being an optimist. The worries a lot, and I wonder what it is that worries the CEO of SAP. The worries might be geopolitical, might be around the AI or something much more. Every day, what are you thinking about a lot of SAP?

I mean, and for sure, I mean when you look at the macroeconomic environment, when you look at the geopolitical tensions, it's worrying. The good piece is tech can help. Tech can help to also enable more resilient businesses. But of course the world needs to really come more together. When you look at the sovereign clouds in Europe, we need to become more in union to also help other tech companies startups to scale their business. So they are of course factors which are actually pretty worrying, but I remain extremely confident when it comes to tech and we as SEP helping our.

I mean, and for sure, I mean when you look at the macroeconomic environment, when you look at the geopolitical tensions, it's worrying. The good piece is tech can help. Tech can help to also enable more resilient businesses. But of course the world needs to really come more together. When you look at the sovereign clouds in Europe, we need to become more in union to also help other tech companies startups to scale their business. So they are of course factors which are actually pretty worrying, but I remain extremely confident when it comes to tech and we as SEP helping our.

Customers to overcome those challenges.

Customers to overcome those challenges.

Christian, thanks very much for your time. Good to speak to. Christian Client, the CEO of SAP

Christian, thanks very much for your time. Good to speak to. Christian Client, the CEO of SAP