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Legacy Software Giants Thrive on Cloud and AI Transitions
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Legacy software giants SAP, Oracle, and IBM are soaring. SAP hit a $234 billion valuation, up 50% in a year. CEO Christian Klein pushed cloud and AI, boosting cloud revenue 24%.
Oracle's at $385 billion, up 20% last year. CEO Safra Catz credits AI-fueled cloud growth. Cloud revenue jumped 20%, thanks to deals with Microsoft, Google, and OpenAI.
IBM's at $160 billion, up 30% last year. CEO Arvind Krishna focused on AI and cloud, launching Watsonx. Goldman Sachs sees potential in IBM's modern software pivot.
These companies thrive on cloud and AI transitions. Gartner's John-David Lovelock notes digital transformation drives growth. Ray Wang from Constellation Research points to reduced competition and a stagnant IPO market.
Legacy firms leverage market presence and customer bases. Their cloud transitions align with AI's cloud dependence. Strategic acquisitions like IBM's HashiCorp and SAP's WalkMe bolster their relevance.
AI's impact may be minimal now, but Wall Street demands it. Gartner's hype cycle warns of a potential disillusionment trough. Yet, legacy firms like SAP, Oracle, and IBM are well-positioned for mainstream AI adoption.
| Scores | Value | Explanation |
|---|---|---|
| Objectivity | 6 | Comprehensive reporting and in-depth analysis. |
| Social Impact | 4 | Influences some public opinion. |
| Credibility | 5 | Solid evidence from authoritative sources. |
| Potential | 5 | Almost certain to trigger larger events. |
| Practicality | 4 | Highly practical, directly applicable. |
| Entertainment Value | 3 | Some entertainment value, attracts audience. |