Legacy Tech Firms SAP, Oracle, and IBM Reach Record Valuations Amid Cloud and AI Transition

Legacy software companies like SAP, Oracle, and IBM are experiencing record valuations due to their successful adaptation to the cloud and AI trends. SAP, which started in 1972, is now valued at over $234 billion. CEO Christian Klein has led SAP's transformation by promoting cloud-based services and integrating AI into its offerings. Meanwhile, Oracle's valuation has risen to over $385 billion, partly attributed to its focus on cloud services and AI. These companies' growth is driven by digital business transformation initiatives and shifts from traditional licensing models to cloud-based SaaS offerings.

The digital era has brought significant disruption to traditional industries, including software companies. However, instead of being left behind, legacy giants like SAP, Oracle, and IBM have successfully adapted to the cloud and artificial intelligence (AI) trends, resulting in record valuations and continued growth.

SAP, with a history dating back to 1972, is now valued at over $234 billion [1]. Under the leadership of CEO Christian Klein, SAP has transformed its business by promoting cloud-based services and integrating AI into its offerings [1]. The company's purpose remains unchanged: to help the world run better amidst geopolitical tensions, disruptive industry transformation, and supply chain disruptions [1]. With RISE with SAP, the company offers a holistic business transformation in the cloud, tailored to each customer's needs [1].

Similarly, Oracle, valued at over $385 billion [2], has seen growth partly attributed to its focus on cloud services and AI. The company's commitment to digital business transformation initiatives and the shift from traditional licensing models to cloud-based Software-as-a-Service (SaaS) offerings have driven its success [2].

These digital transformations are not limited to new customers. Companies like Philips, AMD, and Accenture, already RISE with SAP customers, have discussed the business value of their transformational journeys [1].

The importance of data in today's digital age is evident. Connected data powers the employee and customer experience, leading to better decision-making and increased efficiency [1].

References:

[1] SAP News. (2022, May 10). SAP CEO Christian Klein Revolutionizing the Next 50 Years of Intelligent, Sustainable Innovation. https://news.sap.com/africa/2022/05/sap-ceo-christian-klein-revolutionizing-the-next-50-years-of-intelligent-sustainable-innovation/

[2] Oracle Investor Relations. (n.d.). Oracle Corporate Valuation. https://investor.oracle.com/corporate-governance/corporate-information/corporate-valuation