In his annual update on SAP’s midmarket portfolio, Rainer Zinow offers a comprehensive view of where SAP is headed - strategically, technologically, and operationally - through 2026 and beyond. The presentation emphasizes SAP’s long-term commitment to the midmarket, underpinned by a tightly integrated architecture that unites applications, data, and artificial intelligence.

A Unified Architecture: Applications, Data, and AI

At the core of SAP’s strategy is a clear architectural vision built on three inseparable layers: the application layer, the data layer, and the AI layer. SAP stresses that artificial intelligence cannot deliver meaningful business value in isolation. Instead, AI must operate on harmonized, semantically rich business data - an area where SAP differentiates itself through decades of enterprise process expertise. The introduction of the SAP Business Data Cloud as a central data foundation is positioned as a cornerstone for scalable, enterprise-ready AI.

SAP’s Pragmatic Approach to Artificial Intelligence

While SAP may appear quieter than some competitors in the AI conversation, the presentation underscores that SAP’s AI capabilities are the result of decades of research and close collaboration with leading universities and institutions. SAP’s focus is not on generic AI hype, but on embedded, business-relevant intelligence.

This is exemplified through Joule, SAP’s AI assistant, which is designed to address real-world shortages - most notably time. Joule enhances productivity across three critical audiences:

• End users can enable natural-language interaction with SAP applications.

• Consultants, provide AI-powered access to SAP-specific knowledge and implementation guidance.

• Developers can accelerate understanding, refactoring, and modernization of existing code.

A key differentiator is SAP’s AI abstraction layer, which decouples applications from specific large language models. This allows SAP to dynamically select the most appropriate AI model based on cost, performance, and accuracy—an approach that provides long-term flexibility in a rapidly evolving AI ecosystem.

Business-Centric AI with SAP Rapid One

One of the most significant announcements highlighted is SAP Rapid One (RAPID1), a pre-trained SAP AI model designed specifically for predictive business scenarios such as sales forecasting, delivery delays, and tax or compliance checks. Trained on anonymized, consent-based customer data, Rapid One allows customers to generate predictive insights without the complexity of traditional machine learning pipelines - bringing practical AI into everyday business processes.

The Return of the Business Suite and End-to-End Processes

SAP also reaffirms its renewed focus on end-to-end business processes with the return of the “Business Suite” concept. Rather than isolated line-of-business solutions, SAP emphasizes integrated processes as the true source of long-term value. Tools like Signavio, scenario explorers, and standardized process documentation are positioned as essential assets for customers evaluating or expanding their SAP landscapes.

Midmarket Portfolio Highlights

• SAP Cloud ERP (S/4HANA Public Cloud) is reinforced as SAP’s strategic growth engine, with rapid expansion in country coverage, APIs, compliance standards, and embedded AI capabilities.

• SAP Business One continues to be SAP’s most widely adopted ERP by customer count, driven by strong partner ecosystems and the accelerating transition to the web client. The roadmap toward the next-generation release (B1 11) focuses on lifecycle management and extensibility.

• SAP Business ByDesign remains a viable solution for existing customers, with continued innovation and stable growth. While it is no longer positioned for net-new customers, SAP emphasizes clear transition paths to SAP Cloud ERP for organizations that outgrow ByDesign. As the top SAP Business ByDesign partner in North America, we offer unmatched support for ByDesign users - check out our service and support offerings for ByDesign.

Looking Ahead to 2026 and Beyond

The presentation concludes with a clear message: SAP offers a comprehensive, future-ready midmarket portfolio grounded in integrated business processes, a robust data strategy, and enterprise-grade AI. With SAP Cloud ERP, formerly known as SAP S/4HANA Cloud Public Edition, at the center, supported by Business One and Business ByDesign, SAP is positioning itself as a stable, innovative platform for midmarket organizations navigating growth, complexity, and digital transformation in the years ahead.