SAP has a message for all software companies, after stock goes down by over 20%: Pendulum will swing back, as …

SAP is telling the software industry not to write off traditional SaaS companies as AI changes how businesses build and buy software. Despite SAP’s stock falling by more than 20% over the past year amid the wider “SaaSpocalypse”, SAP global president of customer success and Americas Jan Gilg believes the sell-off has gone too far. “As usual, I feel the pendulum will swing back,” Gilg told Business Insider. Gilg further added that there will be “users,” “losers and winners” and said he believes SAP will be among the winners.

The comments come as AI tools from companies such as Anthropic and OpenAI raise questions about whether businesses will continue paying for traditional software. SAP, Salesforce and Workday have all faced pressure as investors assess how AI could change the software market.