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Speaker 1: Christian Klein, Chief executive of CEO of SAP. Christian, very

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Speaker 1: nice to have you on the program once again. We'll

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Speaker 1: come to the cloud story and the numbers in a moment,

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Speaker 1: but I want to start with the job story. You've

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Speaker 1: got this a job restructuring, and you've been clear that

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Speaker 1: although this will affect eight thousand rolls, you'll end up

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Speaker 1: with the same number on the payroll as when you started.

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Speaker 1: So can you tell us a little bit more about

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Speaker 1: the types of jobs you'll be subtracting and the sites

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Speaker 1: you'll be adding here what's happening at SAP.

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Speaker 2: Yeah, thanks a lot, first of all, Ana for having me. Yes, indeed,

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Speaker 2: we posted great results.

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Speaker 3: We are very proud.

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Speaker 2: Three years ago we started a transformation and now we

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Speaker 2: kept the promise of accelerating cloudwarn you and also posting

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Speaker 2: double digit profit quotes. Now the next phase is all

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Speaker 2: about an ongoing transformation. We see massive quotes potential. You

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Speaker 2: just interviewed ASML. They are customer of us. They are

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Speaker 2: relying on SEP Business AI to further twive scale to

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Speaker 2: build gacillion supply chains.

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Speaker 3: That's SEP.

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Speaker 2: That's what SEP does. So we are investing in AI

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Speaker 2: over a billion for the next two years, while of

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Speaker 2: course we're also applying AI internally, so we will try

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Speaker 2: for higher automation, automation of activities. So it's all about

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Speaker 2: reskilling and of course also you know, making sure that

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Speaker 2: SEP on its own becomes more productive. So it's actually

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Speaker 2: an adaptation of our workforce to the new retality reality

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Speaker 2: in securing our future guoth Okay, so.

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Speaker 1: It's about rescaling, about adapting the workforce. But with AI

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Speaker 1: mean that you end up with fewer staff in the end,

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Speaker 1: I understand in a year you might not. But in

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Speaker 1: the end is that where AI takes SAP and takes

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Speaker 1: the global software workforce.

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Speaker 2: I mean, anna, what we actually also posted today you saw,

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Speaker 2: you know, we are increasing our guidance. We are very

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Speaker 2: confident about the guose potential of SP until twenty twenty

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Speaker 2: five and the years beyond.

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Speaker 3: And so SEP will also further invest.

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Speaker 2: So we actually expect that at the end of the

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Speaker 2: year we actually end up with the same headcount as

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Speaker 2: we left twenty twenty three, and for.

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Speaker 3: The years to come, there will be investments.

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Speaker 2: There will be headcound quotes of course, under proportional to

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Speaker 2: our top line quotes.

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Speaker 1: You've talked about the cloud business. Growth in the cloud

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Speaker 1: business this morning, it does an analyst seem to be suggesting,

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Speaker 1: and you've said that it's still accelerating in twenty twenty four.

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Speaker 1: Where are we in the underlying customer appetite story around

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Speaker 1: cloud from SAP.

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Speaker 3: We just talked about ASML.

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Speaker 2: It's about supply chain, more resilience, It's about also finding

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Speaker 2: inflation and also coming up with higher productivity. This is

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Speaker 2: what business leaders talk about, and.

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Speaker 3: This is SAP.

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Speaker 2: Actually we are betting AI everywhere we try for automation

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Speaker 2: and also about it's also about sustainability with the Queen

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Speaker 2: Letcher and with the decarbonization. What we can also help

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Speaker 2: our customers with with this is spot on. This is

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Speaker 2: what our customers need, so general motors ASML, all of

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Speaker 2: these customers also now betting on SAP to help them

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Speaker 2: to achieve these business goals.

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Speaker 3: And when you look at our total cloud backlock.

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Speaker 2: Of over forty four billion, you see what is already

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Speaker 2: in the books, which also shows how resilient SIP in

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Speaker 2: the mean term is.

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Speaker 1: Last year on the AI front, Christian, last year you

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Speaker 1: partnered with Google, you invested in alf Alfa in our

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Speaker 1: Spanthropic and in cohere de plant further AI investments this year.

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Speaker 2: Actually we just announced the partnership within Vita and Vta

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Speaker 2: is actually a great story. I mean, there again are

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Speaker 2: our customers and they just made the bed on our

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Speaker 2: technology to also build more resilience into their supply chain,

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Speaker 2: to better predict sales, to further automate other functions inside

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Speaker 2: in Vidia. That's a fantastic showcase. While we're also coinovating

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Speaker 2: together on AI to really build the most powerful AI

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Speaker 2: platform for businesses.

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Speaker 3: And so you're going to see further partnerships.

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Speaker 2: But of course we are investing in law to also

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Speaker 2: further you go into organic innovation in the field of AI.

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Speaker 1: Yes, and I can I ask you about the competitive

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Speaker 1: environments at this point. You've got this big cloud backlog

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Speaker 1: that you've already talked about. What is competition like at

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Speaker 1: this sign Christian?

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Speaker 2: I mean, the good piece is when business leaders are

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Speaker 2: looking at the business case, they want to see higher productivity,

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Speaker 2: they want to see higher resilience, and they also want

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Speaker 2: to turn into a more sustainable ender prise.

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Speaker 3: And this is what the technology does.

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Speaker 2: So sp it's not about lifting and shifting systems to

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Speaker 2: the cloud. We are transforming businesses and the business cases

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Speaker 2: are very, very compelling, and given the great work we

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Speaker 2: have done on the product site the last three years,

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Speaker 2: we have a very modern tax stack, so.

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Speaker 3: We can really one business's end to end.

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Speaker 2: And now with infusing AI, we are touching millions of

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Speaker 2: end users. I mean when you are looking talking about

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Speaker 2: the impact of AI, and now we need to come

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Speaker 2: to return of invest This is what SEP does. We

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Speaker 2: are sitting wide at the nexus between technology and businesses.

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Speaker 1: I wonder what concerns you at this point, Christian? I mean,

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Speaker 1: clearly there's an You're telling a very positive story about

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Speaker 1: cloud sales and you've got this restructuring taking place at

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Speaker 1: the moment. You were listening as we talk to the

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Speaker 1: ASML boss. He talked about being an optimist. The worries

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Speaker 1: a lot, and I wonder what it is that worries

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Speaker 1: the CEO of SAP. The worries might be geopolitical, might

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Speaker 1: be around the AI or something much more. Every day,

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Speaker 1: what are you thinking about a lot of SAP?

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Speaker 2: I mean, and for sure, I mean when you look

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Speaker 2: at the macroeconomic environment, when you look at the geopolitical tensions,

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Speaker 2: it's worrying. The good piece is tech can help. Tech

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Speaker 2: can help to also enable more resilient businesses. But of

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Speaker 2: course the world needs to really come more together. When

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Speaker 2: you look at the sovereign clouds in Europe, we need

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Speaker 2: to become more in union to also help other tech

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Speaker 2: companies startups to scale their business. So they are of

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Speaker 2: course factors which are actually pretty worrying, but I remain

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Speaker 2: extremely confident when it comes to tech and we as

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Speaker 2: SEP helping our.

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Speaker 3: Customers to overcome those challenges.

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Speaker 1: Christian, thanks very much for your time. Good to speak to.

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Speaker 1: Christian Client, the CEO of SAP