SAP, one of the world’s top software and cloud computing companies, reported on Friday a better-than-expected first quarter revenue, driven in large part by growth in its cloud business. The company also announced that it had plans to integrate the artificial intelligence technology, ChatGPT, into its products.
The German company reported revenue of $8.2 billion, through its first quarter, exceeding analysts’ expectations, with a 24% year on year revenue growth in its cloud business. To cut costs, SAP had previous plans to cut 3,000 jobs in January, but it foresees no more restructuring this year. It also plans to dive into more generative AI technology, such as ChatGPT, powered by OpenAI, which will be available to customers as soon as next month.
SAP is researching into ChatGPT, and has established over 50 use cases that embed the innovation, CEO Christian Klein stated.
As a precaution, SAP has a committee with customers, practitioners, and experts to evaluate AI use cases and manage potential abuse of the technology.
The company had to settle for a lower outlook for 2021, reflecting the divestment of its Qualtrics unit; it predicted non-IFRS operating profit of between 8.6 to 8.9 billion euros, with cloud revenue between 14 to 14.4 billion euros.
Regarding the company itself, SAP is a multinational German software corporation that provides enterprise software to businesses and offer cloud computing services. It is the world’s third-largest software making firm.
Christian Klein is the first non-founder in the company’s 47-year history to serve as the CEO. Mr Klein took over the SAP’s helm in October 2019 and immediately undertook a challenging effort to transform the traditional business software maker into a fast-moving technology pioneer. He previously served as the Co-CEO at SAP. Since taking the reigns, he has been working closely with the newly appointed CFO, Luka Mucic, to help build SAP’s strategy for digital transformation.
