Christian Klein, CEO of SAP, has emerged as a prominent advocate for Europe's strategic approach to cloud computing and artificial intelligence (AI). At a recent investor conference, Klein addressed the growing discourse on data sovereignty and the proposition of Europe developing its own hyperscaler infrastructure. He argued that such an endeavor would be economically impractical and strategically misguided, emphasizing the importance of leveraging existing partnerships with established U.S.-based hyperscalers like Microsoft, Google, Amazon, and Oracle.
Klein highlighted the substantial capital expenditures of these hyperscalers—$100 billion for AWS, $80 billion for Microsoft, $75 billion for Google Cloud, and approximately $25 billion for Oracle. He pointed out that attempting to replicate this infrastructure from scratch in Europe could escalate costs into the trillions, diverting resources from more impactful initiatives. Instead, Klein advocates for focusing on optimizing AI applications and intelligent software to enhance the competitiveness of European industries, such as automotive and chemical sectors. He stated, "We need the best here in Europe to apply AI, to apply intelligent software to be the best to produce much better, much faster, better cars, and be way more efficient running our supply chains." (theregister.com)
This perspective aligns with Klein's broader vision for SAP and Europe's digital transformation. Under his leadership, SAP has undergone a significant shift towards cloud services and AI integration. The company reported a 29% year-on-year increase in cloud backlog to €18.2 billion, with notable clients like Hyundai, Kia, and Mazda adopting its services amid global trade disruptions. Klein has also been vocal about the need for a unified regulatory framework within the EU to facilitate innovation and reduce complexity. He cautioned against over-regulating AI, suggesting that such measures could hinder Europe's competitiveness compared to the U.S. and China. (ft.com, ft.com)
Klein's stance reflects a pragmatic approach to Europe's digital future, emphasizing collaboration with existing global leaders in cloud infrastructure while focusing on developing and applying AI technologies to drive industrial innovation and efficiency.
Source: Cloud Wars SAP'S Christian Klein Becomes 'Elder' Statesman