SAP icon Hasso Plattner can be satisfied with the timing of his departure. In May he hands over control over a company that, after a transformative effort, shows the promised profit momentum, solidifying credibility with investors. This was reflected in a share surge by more than 7% for the Dax heavyweight, a signal of trust, seemingly undeterred by the consequences that the announced restructuring program will have on this year's financials. The 2 billion euros allocated to this effort will naturally initially impact profit and cash flow.

More crucial than this minor setback, which SAP addresses communicatively with slightly raised targets for 2025, is the signal of increased agility. The software giant underscores this by swiftly adapting its personnel structure to technologically driven changes. This move helps the company align itself with Big Tech. US giants like Microsoft, Alphabet, or Nvidia owe their growth and profitability not only to their own innovation but also to a rapid and decisive adaptation to new technologies with disruptive potential. In particular, Microsoft has recently reallocated its resources in a short time, accompanying substantial job cuts with new hires in the field of artificial intelligence (AI).

SAP is essentially taking a similar path by rebuilding the 8,000 jobs that are being cut elsewhere. This distinguishes the transformation from a mere cost-cutting action. CEO Christian Klein is acting from a position of strength after two strenuous years, during which SAP investors had lowered their thumbs so much that his position seemed precarious. However, he cannot rest on his laurels. AI will accelerate software development cycles once again, and Klein would be wise not to overstrain investor trust in organic growth. A bold M&A strategy is also part of the recipe for success for Big Tech, which is specifically appreciated by US investors.

Meanwhile, German investors must hope that SAP's newfound proximity to Big Tech does not induce wanderlust. The lifting of the cap limit in the Dax, which will be implemented in mid-March, comes just in time for the heaviest index constituent, which recently held about 12% weight after yet another record high.