AWS and SAP Unlock New Innovation with Generative AI
Amazon Web Services (AWS) and SAP have announced an expanded collaboration to enhance enterprise resource planning (ERP) experiences using generative AI. This strategic partnership integrates SAP AI Core with Amazon Bedrock models, enabling advanced AI-driven insights and process automation. AWS's support of SAP solutions accelerates generative AI adoption, boosts performance, and optimizes energy efficiency, significantly benefiting SAP workloads. Notably, SAP's use of AWS's Graviton3 chips has led to substantial performance gains and cost savings. Additionally, Amazon's Project Kuiper is now using RISE with SAP to streamline its operations and improve productivity.
- Expanded AWS and SAP collaboration to enhance ERP experiences.
- Integration of AI models from Amazon Bedrock with SAP AI Core.
- Generative AI-driven insights and automation for enterprise customers.
- Performance and efficiency improvements for SAP workloads on AWS.
- SAP's use of AWS Graviton3 chips results in up to 30% better compute and 45% carbon footprint reduction.
- Next-generation Amazon EC2 High Memory U7i instances with up to 32TiB memory improve performance for SAP HANA.
- Amazon's Project Kuiper leverages RISE with SAP for improved operational efficiency.
- Potentially high costs associated with adopting and integrating advanced AI solutions.
- Dependence on AWS infrastructure could pose risks if there are service disruptions.
- Transitioning to new technologies may involve significant upfront investment and training.
- No clear financial projections or revenue impacts provided from the collaboration.
Insights
The integration of generative AI models from Amazon Bedrock into SAP AI Core is a significant step toward modernizing enterprise applications. By leveraging models like Anthropic Claude 3 and Amazon Titan, enterprises can now embed powerful AI capabilities directly into their business processes. This means improved analytics, automation of routine tasks and enhanced decision-making. Using generative AI can streamline complex workflows that traditionally require significant manual effort. This collaboration can potentially bring down operational costs and improve the efficiency of enterprise resource planning (ERP) systems.
Moreover, SAP's use of AWS Graviton3 chips and future deployment of Graviton4, Trainium and Inferentia chips for AI workloads promise substantial gains in performance and energy efficiency. These chips are designed specifically to handle compute-intensive tasks like machine learning model training. This not only results in faster processing times but also lowers the carbon footprint, aligning with global sustainability goals.
By adopting these advanced technologies, SAP can offer its customers a more robust, efficient and scalable cloud infrastructure. For retail investors, the long-term benefits include the potential for higher margins due to reduced operational costs and increased customer satisfaction from improved service offerings.
From a financial perspective, the expanded collaboration between AWS and SAP can be viewed as a strategic move to solidify their positions in the enterprise cloud market. SAP's deployment of AWS Graviton3 chips has already demonstrated
Additionally, the integration of generative AI functionalities within SAP’s ERP applications can drive new revenue streams. Businesses adopting these advanced features might be willing to pay premium prices for the enhanced capabilities, thus boosting SAP's top-line growth. For AWS, this partnership can lead to increased usage of its cloud services, thereby driving further growth in its revenue from the cloud segment.
However, investors should also be mindful of the competitive landscape. Other major cloud providers are also integrating AI and offering similar capabilities. Monitoring the adoption rate and customer feedback will be important in assessing the long-term financial impact of this partnership.
Generative AI hub in SAP AI Core integrates with foundation models in Amazon Bedrock to deliver generative AI-driven insights and streamline manual processes for enterprise customers
“AWS was the first cloud provider certified to support the SAP portfolio and today, thousands of enterprise companies run SAP solutions on AWS to get the most out of their mission-critical applications,” said Matt Garman, incoming CEO at AWS. “Now, AWS and SAP are making it faster and easier for companies to apply generative AI to their core business data to become more efficient, responsive, and sustainable.”
“Partnerships like this collaboration with AWS are critical as we embed generative AI solutions across our ERP applications so that customers can drive innovation at an accelerated pace,” said Christian Klein, Chief Executive Officer, SAP SE. “In addition to delivering modern cloud ERP to our joint customers, we are excited to support Amazon on their own transformation journey as they adopt RISE with SAP for pioneering areas such as Project Kuiper, Amazon’s satellite initiative intended to increase global broadband access.”
Generative AI models from Amazon Bedrock available on the generative AI hub in SAP AI Core
The generative AI hub in SAP AI Core infrastructure provides customers with secure access to a broad range of large language models (LLMs) that can easily be integrated into SAP business applications. With the integration of generative AI models from Amazon Bedrock such as the Anthropic Claude 3 model family and Amazon Titan, SAP customers will be able to access high-performing LLMs and other foundation models (FMs) to build applications customized with their own data. Tens of thousands of customers use Amazon Bedrock to easily, quickly and securely build and scale generative AI applications using FMs from leading AI companies such as AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon.
With this integration, SAP customers may accelerate the adoption of generative AI and modernize key business processes built on SAP solutions. These innovations can be used in embedded use cases within RISE with SAP and the intelligent scenario lifecycle management functionality as an integration component or side-by-side directly on SAP Business Technology Platform (SAP BTP). SAP and AWS plan to expand the use of Bedrock capabilities in the generative AI hub to further enable embedded AI functionality within SAP’s portfolio of cloud solutions and applications. This includes additional use cases across finance and product lifecycle management.
SAP to use AWS chips to train and deploy future SAP business AI offerings
SAP’s use of AWS Graviton3 chips to support SAP HANA Cloud helps to deliver performance gains, cost savings, and energy efficiency to SAP. By using Graviton3-based Amazon Elastic Compute Cloud (EC2) instances, SAP has realized up to
SAP plans to use AWS Trainium and AWS Inferentia chips, purpose built for AI and machine learning (ML) workloads, for training and deploying future SAP Business AI offerings. Using Trainium and Inferentia2-based instances in a proof of concept, SAP engineers trained and fine-tuned generative AI LLMs in two days versus 23 days with comparable Amazon EC2 instances. By leveraging Trainium's specialized architecture designed for efficient ML model training, SAP can accelerate the development process while maintaining high levels of accuracy and reliability.
Increased performance for RISE with SAP on AWS
Thousands of customers have selected RISE with SAP on AWS to run their largest, most complex, global SAP solution implementations. Now generally available, the next-generation Amazon EC2 High Memory U7i instances offer up to 32TiB of memory in a single instance and provide customers the memory and flexibility they need to support expanding SAP HANA database requirements. Amazon EC2 High Memory U7i instances are the first DDR5 memory-based 8-socket offering by a leading cloud provider to improve the performance of memory-intensive applications such as SAP S/4HANA Cloud as part of RISE with SAP.
Amazon’s Project Kuiper selects RISE with SAP
Amazon companies, including Twitch, Zappos.com, and Zoox Inc., already use SAP software on AWS to support their operations. And now Project Kuiper—Amazon’s satellite broadband network—is deploying RISE with SAP to support its complex supply chain and manufacturing operations, and get the best performance and most value out of its mission-critical SAP software. Running SAP solutions on AWS allows Kuiper to take advantage of the latest SAP capabilities embedded in RISE with SAP to help drive impactful transformation, accelerating company decisions and enhancing overall performance and productivity. Hundreds of millions of people lack adequate internet access and Project Kuiper’s goal is to help close the digital divide by delivering fast, affordable broadband to a wide variety of customers operating in places without reliable internet connections. Delivering on that vision requires Kuiper to build satellites at an unprecedented rate. RISE with SAP allows the Project Kuiper team to leverage the most reliable and scalable infrastructure to run a modern, cloud ERP as a managed service, so they can focus on innovation instead of IT management.
To learn more about the SAP and AWS partnership, tune in to the SAP Sapphire conference, June 3-5, in
About Amazon Web Services
Since 2006, Amazon Web Services has been the world’s most comprehensive and broadly adopted cloud. AWS has been continually expanding its services to support virtually any workload, and it now has more than 240 fully featured services for compute, storage, databases, networking, analytics, machine learning and artificial intelligence (AI), Internet of Things (IoT), mobile, security, hybrid, media, and application development, deployment, and management from 105 Availability Zones within 33 geographic regions, with announced plans for 18 more Availability Zones and six more AWS Regions in
About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.
About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
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