SAP SE SAP announced that NEC Corporation has chosen SAP S/4HANA Cloud via the RISE with SAP solution on Amazon Web Services (AWS). NEC will utilize generative AI technology and SAP's Joule copilot to facilitate the migration.

NEC is a leading Japanese multinational in IT and network integration, which aims to cut costs and enhance data integration across its business units. To support its digital transformation, NEC will transition from on-premise SAP S/4HANA to SAP S/4HANA Cloud.

NEC will use generative AI to streamline migration costs and boost efficiency by transforming its system to a clean-core model. SAP's Joule copilot for natural language processing coupled with generative AI will automate essential tasks like add-on analysis, report interpretation and code generation.

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The current migration aligns with NEC's 2025 mid-term management plan, which emphasizes digital transformation for internal processes, customers, and society. This will help NEC to minimize future upgrades and operational expenses.

Headquartered in Walldorf, Germany, SAP is one of the largest independent software vendors in the world and the leading provider of Enterprise Resource Planning (ERP) software.

In March, SAP announced its association with Deutsche Telekom DTEGY to bring digital transformation to the latter’s cloud infrastructure. DTEGY is deploying SAP’s RISE with SAP solution to upgrade a significant portion of its ERP landscape to SAP S/4HANA Cloud.

Growing trends in the company’s cloud business, especially the Rise with SAP and Grow with SAP solutions, are boosting its performance. Momentum in SAP’s business technology platform, particularly the S/4HANA solution, along with the proliferation of generative artificial intelligence (AI), bodes well.

SAP remains optimistic about the generative AI trend and expects it to positively impact revenues going forward. The company recently announced that it will be focusing on vital strategic growth areas, especially Business AI, and position the company for future growth.

SAP currently carries a Zacks Rank #5 (Strong Sell). Shares of the company have gained 45.1% compared with the sub-industry’s growth of 34.4% in the past year.

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