One of Germany's best dividend (and AI) stocks
Software company with 15 years of increased dividends
SAP, based in Walldorf, Germany, is a global leader in enterprise software solutions. As one of the largest technology companies in the world with a market cap of €241 billion, SAP plays a crucial role in helping businesses streamline their processes, manage data effectively, and implement innovative solutions.
This post, available for all free subscribers to dividendhike.substack.com (thank you all!), delves into what SAP does, who their competitors are, how they are handling artificial intelligence (AI), and what threats they might face.
What Does SAP Do?
SAP offers a wide range of software products and services that help businesses improve their operations. At the core of their offerings is SAP S/4HANA, an enterprise resource planning (ERP) suite that assists companies in managing their finances, logistics, human resources, and other business processes. Additionally, SAP provides solutions for customer relationship management (CRM), supply chain management, and business intelligence.
SAP also has a strong presence in the cloud with SAP Cloud Platform, enabling businesses to develop and integrate their applications. This platform supports companies in their digital transformation by providing flexible and scalable solutions.
Competitors of SAP
SAP operates in a highly competitive market and faces competition from several major players. Some of the key competitors are:
Oracle: Oracle offers a wide range of enterprise software solutions, including ERP, CRM, and supply chain management. Oracle's strong cloud offerings directly compete with SAP's cloud solutions.
Microsoft: With Microsoft Dynamics, Microsoft provides powerful ERP and CRM solutions that rival SAP's offerings. Additionally, Microsoft’s robust cloud platform, Azure, helps businesses accelerate their digital transformation.
Salesforce: Salesforce is particularly strong in CRM solutions and has built a strong position with its cloud-based products. Their platform is widely used by companies looking to enhance their sales, service, and marketing processes.
Workday: Workday is a significant player in the HR and financial software market, offering cloud-based solutions that compete with SAP's offerings.
SAP and Artificial Intelligence
SAP has embraced AI as an integral part of their strategy to transform business processes. Their AI offering, known as SAP Leonardo, integrates AI, machine learning, Internet of Things (IoT), and blockchain into their enterprise software. This helps businesses work smarter through automated processes and enhanced data analytics.