In today's Cloud Wars Minute, I discuss Christian Klein's plan for SAP's continued success.

Highlights

00:00 — Hello, my friends. Welcome back to Cloud Wars Minute, where 2026 is off to a racing start here into the AI economy. And I wanted to talk today a little bit about the results for Q4 and full-year 2025 from SAP, which is now number four on the Cloud Wars Top 10, moved up from the number five spot earlier this month.

00:37 —So let’s focus on the strength that’s going on here, and why customers are reacting to the dynamics in enterprise apps and agents and AI and data marketplaces — not just apps anymore. I think SAP wrapped up a very strong Q4. CEO Christian Klein laid out a 5-point growth plan for 2026 and beyond. Before we get to that, here are my choices for the key numbers from the SAP Q4 earnings results.

01:15 — First of all, most important, total cloud backlog was up 30% to about $88 billion — very, very strong momentum going into the future. This is similar to what other companies call their RPO, remaining performance obligation. This is contracted business, locked in, but not yet recognized as revenue. Cloud revenue was up 26% for the year to $24.2 billion, so across the board, doing great.

01:57 — Within that, the Cloud ERP Suite was up 32% to $20.8 billion, and the closer-in current cloud backlog up 25% to $24.2 billion. Based on those strong numbers, Christian Klein revealed a 5-point growth plan. He said these backlog deals go out up to four years, and often customers add more. This gives SAP’s on-prem customers confidence as they move to the cloud.

03:03 — Klein said when customers migrate to the cloud, SAP often gets a two- to three-times boost in revenue as customers add more applications. He also cited a booming mid-market ecosystem through partners.

03:53 — Finally, he said the most strategic parts of future growth will be Business AI and the Business Data Cloud. In Q4, 90% of SAP’s 50 largest deals included one or both.

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