I find it challenging to predict because that is really notoriously difficult to predict. But obviously, we have that kind of ambition 2025 very firmly in mind and would need to show some progress between ’23 and ’25 to give you confidence about that kind of materializing.
Operator: The next question is from the line of Johannes Schaller with Deutsche Bank.
Johannes Schaller: Christian, you referred to those three strategic investments you made on the AI side, Aleph Alpha, Cohere and Anthropic. Can you maybe talk a little bit more about what each of those really bring to the technology side for you? And where you feel those assets are really uniquely positioned and how they can help you become more competitive on the AI side?
Christian Klein: Yes. To give you 2 examples, take Aleph Alpha, they have very good technology, not that they can only integrate the large language models with our own but they actually also are able to put their large language models and that technology in the customer’s data center. Now you can imagine when you talk to a public sector customer in the European Union, this is actually a unique selling point for them to keep the data in their data center while actually also having access to the SAP data and then really build one model for generative AI. For these type of customers with Cohere, we are seeing that they have unbelievable good also technology for businesses for B2B. So we are using them in retail and in some others where we already in some concrete customer projects where we are applying our technology and also go to market together.
And of course, you’re doing these investments also to have a seat at the table. I mean they — we want have them as part of our huge ecosystem because while we are sitting on immense valuable data, our offering becomes even stronger if we can also embed non-SAP content and data. And this is what we are also doing with these investments to have them on our side and make our AI offering even more valuable.
Operator: The next question is from the line of James Goodman with Barclays Capital.
James Goodman: I wanted to ask on the EBIT upgrade of €50 million. I think EBIT this quarter was over €100 million, I think it was €50 million last quarter. So really, the question is why not a little bit more generous in terms of the EBIT upgrade. I think the low end of the full year guide now implies a decline year-on-year in the second half. And — just I guess as part of that, the statement notes that you completed the converged cloud project, I think, early in Q2. Is that right? And if so, why not more of an impact on the cloud gross margin SaaS.
Dominik Asam: Maybe on the upgrade, I mean, this was, again, a pretty mechanical update. I mean you’ve seen that we basically took the midpoint of the cloud revenue guidance down by €100 million. We took the overall software and cloud revenue up by €50 million. So there’s €150 million offsetting that. And if you think about the delta in gross margin between cloud and software and a slight increment that gives you exactly that €50 million kind of uptick. So it was quite mechanical. It is true that we are on a very good trajectory in H1 on the cost side. Honestly, we have to also say that on the EBIT side, the comps were quite easy. So Q2 is more difficult if you think about prior year’s impacts we had. And yes, indeed, we think we have a high degree of confidence on reaching the new kind of updated guidance on EBIT and IFRS and operating profit be precise.
