Analyst(s): Keith Kirkpatrick
Publication Date: February 21, 2025
On February 13, 2025, SAP launched the SAP Business Data Cloud in collaboration with Databricks, aiming to merge SAP’s business data solutions with Databricks’ advanced data processing capabilities. This integration enables organizations to efficiently manage their data for AI-driven insights. Alongside this, SAP introduced ready-to-use Joule agents spanning finance, service, and sales within the SAP Business Suite, with more to come, facilitating complex business processes. It also unveiled an AI agent builder feature allowing customization and deployment of AI agents alongside SAP’s existing library. SAP also announced it had extended maintenance support for its on-premise SAP ERP Central Component (ECC) software until 2033, aiding current customers in transitioning to SAP’s cloud solutions.
Key Points:
- SAP and Databricks Partnership: SAP announced the SAP Business Data Cloud, developed with Databricks, to unify data across SAP and external sources, ensuring AI can drive insights, decision-making, and automation across various workflows.
- AI and Joule Agent Innovations: SAP introduced pre-built Joule AI agents and a low-code AI agent builder, enabling organizations to deploy ready-made or customized AI solutions tailored to their industry and processes, supporting broader AI-driven automation.
- Ongoing On-Premise Support: SAP extended maintenance for its on-premise SAP ECC software until 2033, acknowledging slow cloud migration among customers while continuing to promote cloud-based ERP adoption.
- AI and Cloud Adoption Challenges: SAP faces the challenge of demonstrating AI-driven ROI and convincing customers to migrate to its cloud-based offerings, emphasizing data accessibility, innovation, and industry-specific strengths to encourage transition.
Overview:
SAP announced several AI-driven innovations in mid-February 2025, including the launch of SAP Business Data Cloud in partnership with Databricks, aimed at integrating SAP and external data sources to enhance AI-powered insights and decision-making.
Additionally, SAP introduced ready-to-use Joule AI agents across finance, sales, and service, along with an AI agent builder to allow organizations to create customized AI solutions tailored to their specific workflows.
To support its on-premise customers, SAP extended maintenance for its SAP ERP Central Component (ECC) software from 2030 to 2033, acknowledging the slow transition to its cloud-based ERP system.
These moves align with broader industry trends, as AI and data accessibility are increasingly seen as critical to enterprise software efficiency. Competitors are expected to emphasize the distinctions in their AI capabilities, particularly in handling complex interactions and delivering ROI. SAP’s challenge will be proving the effectiveness of its AI and cloud offerings to drive customer migration, while also addressing concerns about data access and integration.
The evolving AI landscape, continuing extension of SAP’s on-premise support deadlines, and the potential emergence of platform-agnostic AI solutions will be key factors to watch in the market as SAP and its competitors refine their AI and data-centric strategies.
The full report is available via subscription to the Enterprise Applications IQ service from Futurum Intelligence—click here for inquiry and access.
For more information on SAP’s activities, please see the press release from SAP detailing its recent announcements.
Futurum clients can read more about it in the Enterprise Applications Portal. Nonclients can learn more here: Enterprise Applications Practice.
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Author Information
Keith has over 25 years of experience in research, marketing, and consulting-based fields.
He has authored in-depth reports and market forecast studies covering artificial intelligence, biometrics, data analytics, robotics, high performance computing, and quantum computing, with a specific focus on the use of these technologies within large enterprise organizations and SMBs. He has also established strong working relationships with the international technology vendor community and is a frequent speaker at industry conferences and events.
In his career as a financial and technology journalist he has written for national and trade publications, including BusinessWeek, CNBC.com, Investment Dealers’ Digest, The Red Herring, The Communications of the ACM, and Mobile Computing & Communications, among others.
He is a member of the Association of Independent Information Professionals (AIIP).
Keith holds dual Bachelor of Arts degrees in Magazine Journalism and Sociology from Syracuse University.
