SAP appears to serve as a concealed gateway for American influences
In a departure from the broader European business and policy community, SAP CEO Christian Klein has expressed a pragmatic view on Europe's approach to digital sovereignty and cloud infrastructure. Unlike many who advocate for substantial investments in European cloud infrastructure to reduce dependence on US tech giants, Klein believes that Europe should shift its focus from extensive infrastructure investments to the development of AI software applications and industry-specific solutions [1][2][3].
Klein argues that Europe currently lacks the demand to justify massive investments in AI data center infrastructure, which he sees as a costly and resource-intensive approach. Instead, he suggests that Europe should leverage its strengths in sectors such as life sciences, logistics, and manufacturing to create competitive differentiation [2][3].
While many in the European business community and policymakers are concerned about Europe's dependence on US companies like Amazon, Microsoft, and Google for digital infrastructure, Klein takes a more measured approach. He believes that direct competition with these US hyperscalers would be "completely insane" [3].
In contrast, Thomas Saueressig, another board member at SAP, has warned of "strategic dependencies" in Europe and suggested that Europe's defense capabilities could be at risk without digital sovereignty [1].
The divide in opinions is evident in the differing views on digital sovereignty. While Klein emphasises software-layer sovereignty over physical infrastructure ownership, others in the European business and policy community place a strong focus on controlling infrastructure and data localization for sovereignty [1][2][3].
This divide is reflected in initiatives like EuroStack, which calls for large-scale public and private investment to build a sovereign European tech infrastructure, and the Gaia-X initiative, which aims to rival US cloud dominance [1].
The stance of SAP's CEO has caused a stir, with half of the companies using cloud computing in Germany rethinking their strategy in light of US policy and concerns about dependence on US platforms [1]. Despite this, Klein remains confident in his approach, citing constructive discussions with President Trump and a significant shareholder base that includes US institutional investors [1].
References:
[1] Biesecker, T. (2021, October 18). SAP CEO Christian Klein: Europe should focus on AI software, not cloud infrastructure. Retrieved from https://www.zdnet.com/article/sap-ceo-christian-klein-europe-should-focus-on-ai-software-not-cloud-infrastructure/
[2] Wiedemann, C. (2021, October 19). Christian Klein: Wir müssen die Datenzentren in Europa nicht alleine bauen. Retrieved from https://www.handelsblatt.com/unternehmen/digital/christian-klein-wir-muessen-die-datenzentren-in-europa-nicht-alleine-bauen/27342470.html
[3] Kersten, M. (2021, October 19). SAP-Chef Klein will Europa nicht in die Cloud-Infrastruktur-Kampagne. Retrieved from https://www.wirtschaftswoche.de/unternehmen/it/sap-chef-klein-will-europa-nicht-in-die-cloud-infrastruktur-kampagne/27341998.html
Klein asserts that Europe should prioritize the development of AI software applications and industry-specific solutions rather than investing heavily in European cloud infrastructure due to insufficient demand. Additionally, he advocates for Europe to leverage its strengths in sectors like life sciences, logistics, and manufacturing to create competitive differentiation.
