SAP today has announced its own natural-language Generative AI copilot, with the first go-live available before year-end. Expect more details on pricing, tech and route-to-market at upcoming SAP events through October/November. SAP joins Microsoft, Alphabet, Salesforce, Adobe (and others) with GenAI product launches Today SAP announced ''Joule'', its GenAI copilot to be embedded across its application suite in finance, Enterprise Resource Planning (ERP), Human Resources (HR), supply chain, procurement and customer experience as well as its Business Technology Platform underpinning SAP''s cloud offering. Pricing. Penetration. Pedigree. The three Ps that matter with 300m SAP users to target. SAP has not (yet) communicated formal pricing of Joule. We anticipate further detail in upcoming events through October/November (more within). We note CEO Christian Klein has previously indicated a ~30% premium was possible, not dissimilar to the GenAI pricing seen at Microsoft, Salesforce and Adobe as category market leaders seek to price their GenAI offerings at a premium. While too early to gauge, the market could begin the back-of-the-envelope calculations of: ''price premium x user penetration'' for SAP: 30% premium with ~15% penetration of SAP''s cloud revenue base over the mid-term (3 year horizon or 5% p/yr), currently the market''s starting point for Microsoft (and echoed by Microsoft reseller SoftwareOne in our recent CEO roadshow) we estimate could see a ~3% uplift to 2026 Revenue. Regarding pedigree, SAP has partnered with Microsoft and Google Cloud, as well as investing in AI specialists including Cohere and Anthropic (the latter a recent recipient of a multi-billion dollar investment from Amazon), ensuring it has quality technical backing. GenAI adds further incentive for SAP Cloud adoption and suite cross-sell Beyond the direct monetary uplift we see GenAI as a catalyst to 1) accelerate customer S/4 cloud adoption and 2) drive improved cloud...