At SAP's Sapphire conference in Orlando, the company unveiled new AI-enhanced applications and introduced the Joule AI agent, which will now interact with non-SAP systems. However, there are growing concerns among users about the high costs associated with achieving industry-standard service levels for cloud products, with reports indicating a 30-50% premium. Additionally, many users are still navigating the complexities of updating legacy systems as SAP's preferred migration path, RISE with SAP, faces slow adoption among ECC customers.
News that SAP users face a 30-50 percent premium to get some cloud products - including core ERP - to industry-standard service levels threatens to overshadow the German vendor's annual conference as new pricing models, performance, and partner arrangements dominate the conversation.
But observers' concerns were elsewhere, as users grapple with the mammoth problem of updating legacy SAP systems they have invested in and adapted for years.
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