If you want to know what the future holds for S/4 Hana and RISE , look at the stock market

Taking from the quote, I think a crucial aspect of SAP's strategy and its leadership team is ensuring strong financial performance and a high valuation. Over the past year, SAP's share price has surged, signaling investor confidence in the company's future. This stability empowers leadership to invest in innovation and drive long-term growth. I am pretty sure that this stability would empower the leadership to invest in innovation and drive long-term growth.

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While I'm not a stock market analyst, a quick look at recent SAP share price analysis, such as this article,?reveals some common themes. Reading this article down to "Catalysts Driving Growth" section highlights the market's enthusiasm for SAP's cloud backlog, specifically the revenue generated by RISE, GROW, and the Datasphere offerings. Even recent headcount reductions in 2024, which won't impact short-term profits, haven't dampened investor optimism. Additionally, the company's focus on AI is seen as a positive catalyst.

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Aligning Leadership & Market Sentiment - Analysts believe that Cloud revenue growth is a key driver of success. With a 65%?increase in the share price over the past year, the market is clearly validating SAP's cloud strategy, particularly RISE, GROW, and Datasphere.?Anyone who thinks they can deviate from the cloud and subscription model, would be posing a direct challenge to market expectations, which could negatively impact leadership's compensation. It's worth noting that these compensation packages are publicly disclosed.

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Beyond the Cloud Hype - Some feel the subscription model is a short-lived trend and that on-premise solutions remain the optimal choice. However, this perspective doesn't align with the market's valuation of SAP. The cloud offers several advantages: the potential for higher margins, increased customer loyalty through recurring revenue, and the ability to scale services as data volume and business digitization grow.

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The Future of Integrated Solutions - The potential benefits of RISE and GROW extend beyond the initial migration phase. By offering complementary BTP solutions, SAP can drive further revenue growth by enabling fully integrated, end-to-end solutions that are essential for modern businesses. This journey won't conclude once all customers have migrated to S/4HANA via RISE/GROW.

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I honestly believe that SAP's subscription model is here to stay. As the company continues to identify and capitalize on new cloud revenue opportunities, such as sovereign clouds, the Datasphere, and integration hubs, resisting this shift may not be a viable strategy. Unless, of course, market sentiment undergoes a dramatic change or a revolutionary on-premise solution emerges, which seems unlikely at present.