SAP moving from subscriptions to AI use-based pricing

"It would be foolish to still charge subscription base, because AI is so powerful that it will automate a lot of tasks. That shift directly challenges the very rationale of the current revenue model. AI agents taking over tasks from employees make the traditional per-user rate less relevant."

"Starting in July, SAP will launch so-called forward-deployed engineering teams, composed of consultants and developers with industry-specific knowledge. These teams will be stationed at customer sites to build customized AI solutions on top of the SAP platform. If a customer wants to improve its delivery times, you need to talk to the truck drivers and really see what they are doing today."

SAP plans a fundamental shift in its business model, moving away from traditional per-user subscription pricing toward AI usage-based pricing. CEO Christian Klein argues the current SaaS model is obsolete because AI agents automate tasks, making per-user charges irrelevant. To support this transition, SAP will establish forward-deployed engineering teams starting in July—consultants and developers with industry-specific expertise stationed at customer sites to build customized AI solutions. These teams will work directly with customers to understand their operations and design tailored implementations. This strategic pivot addresses shareholder concerns about AI undermining traditional SaaS revenue models and positions SAP to capitalize on enterprise AI adoption.

Read at Techzine Global