Think SAP Is the Next Blockbuster? You’re Watching the Wrong Movie.

Every few years, someone in the enterprise technology space predicts SAP’s downfall. The latest comparison making the rounds draws parallels between SAP and Blockbuster or BlackBerry, two companies that failed to see disruption coming until it was too late. It is a compelling story. It fits neatly into the “giant gets complacent” narrative.

But it is also the wrong story.

SAP is not Blockbuster, clinging to outdated stores in a streaming world. Nor is it BlackBerry, arrogantly dismissing innovation until the market left it behind. SAP has been rewriting its own script for years, modernizing its technology stack, expanding into AI, and reshaping its cloud strategy to meet customers where they are, not where analysts think they should be.

I can say this with some perspective. I worked at BlackBerry during its rise and fall, and the difference between what happened there and what is happening at SAP could not be more stark. SAP is not refusing to disrupt itself. It is disrupting itself methodically, while continuing to run the mission-critical systems that global business depends on.

Recently, a fellow industry thought leader compared SAP’s future to Blockbuster’s, suggesting that SAP’s grip on enterprise ERP could fade as nimbler competitors gain traction. I understand the concern, but from my perspective, grounded in years of leading SAP transformation projects, that conclusion misses the bigger picture.

1. A Business Platform, Not Just Software

SAP is more than an ERP vendor. It is the digital foundation that powers the world’s most complex industries, supply chains, and government operations. When an organization runs SAP, it is not simply managing its business processes. It is connecting finance, procurement, manufacturing, HR, and analytics into one unified platform that runs the business in real time.

Competitors such as Workday, Oracle Cloud, and Acumatica have made strong progress in specific areas, but none match SAP’s ability to deliver an integrated, end-to-end business platform. That depth of integration is not a byproduct of legacy complexity; it is a deliberate design that continues to be SAP’s biggest competitive advantage.

This depth of functionality, paired with decades of industry experience, means SAP does not just serve companies, it shapes the industries they operate in. That is a level of influence few technology vendors ever reach.

2. A Flexible, Modern Cloud Strategy

One of the most common criticisms is that SAP “forces” customers onto S/4HANA. The truth is more nuanced. SAP offers several deployment options: on-premise, private cloud, and public cloud. It is clear, however, that the company’s long-term innovation will happen in the cloud.

The private and public cloud offerings, formerly known as RISE with SAP and GROW with SAP, represent a fundamental shift in strategy. They move SAP from periodic releases to continuous innovation, with simplified upgrades, AI-driven extensibility, and lower total cost of ownership. This is not just about infrastructure; it is about transforming how businesses consume, operate, and extend SAP.

SAP continues to support its on-premise customers. At the same time, it is transparent about where it is investing. The cloud is where SAP can deliver new functionality faster, ensure compliance and security at scale, and keep customers connected to the broader SAP ecosystem.

SAP also recognizes that transformation takes time. Some organizations face data sovereignty or regulatory barriers that prevent an immediate move. SAP’s unified S/4HANA code line allows those customers to modernize at their own pace while staying aligned with the company’s future direction.

That combination of encouragement to modernize and real flexibility in timing sets SAP apart from vendors that only offer fixed SaaS models. It is a practical, customer-first strategy that respects the realities of enterprise transformation.

3. The Next Frontier: Business AI

The next great differentiator for SAP will not come from generic AI tools or consumer-grade chatbots. It will come from business AI, intelligence that is deeply embedded within enterprise processes, using real operational data to automate decisions and drive measurable outcomes.

This is where SAP’s strength becomes obvious. Generative AI is only as good as the data and business context it operates in, and SAP has both in abundance. From intelligent invoice matching to predictive maintenance and workforce optimization, SAP can deliver AI that is not just clever, but commercially valuable.

I explored this topic in more detail in my Business AI article on the CONTAX Knowledge Center (read it here). SAP’s approach to AI is not about hype or headlines. It is about integrating intelligence responsibly, ensuring transparency and governance while still delivering automation that drives tangible value.

This philosophy, grounded, practical, and enterprise-grade, is why SAP’s Business AI strategy is so compelling. It is not chasing trends; it is engineering the next generation of intelligent business systems.

4. What SAP Should Do to Strengthen Its Market Position

SAP’s trajectory is strong, but there are areas where it can expand its influence, particularly in the midmarket and SMB sectors.

1. Simplify pricing and licensing
SAP has made great strides in simplifying its subscription and cloud pricing, but it remains more complex than the models offered by SMB-focused competitors such as Acumatica. Acumatica uses document-based pricing that makes it easy for smaller companies to understand total cost of ownership. SAP’s public cloud offering is compelling and delivers strong value, but a simplified entry point could make the platform more approachable without sacrificing its premium positioning.

2. Strengthen partner enablement
SAP’s partner ecosystem is one of its greatest assets, but it requires continued investment in tools, training, and packaged implementations to accelerate adoption. CONTAX has delivered multiple Acumatica implementations, and we have seen first-hand that SMB customers value speed, clarity, and low friction as much as functionality. Making it easier for partners to deliver these quick wins would broaden SAP’s reach.

3. Accelerate implementation and time-to-value
SAP projects have traditionally been associated with complexity and long timelines. Continued investment in low-code extensions, preconfigured industry templates, and simplified integration tools will demonstrate that SAP can be both robust and agile.

4. Enhance user experience
SAP has made tremendous progress with Fiori, modernizing the UI for S/4HANA. However, there are still opportunities to improve the initial user experience for less technical teams. Out-of-the-box configuration can feel restrictive until IT teams customize it, and some interfaces still lag best-in-class UX expectations. Additional focus on intuitive, plug-and-play experiences would strengthen adoption and end-user satisfaction.

5. Encourage innovation adoption and modularity
SAP’s platform is vast, which can make it intimidating for smaller or less experienced teams. Clearer guidance, industry accelerators, and modular deployment templates would allow companies to adopt functionality incrementally while realizing measurable benefits early. This approach makes SAP more accessible without compromising the depth and power of the platform.

These refinements would not change SAP’s core identity as the most capable enterprise ERP platform. They would simply expand access and appeal, allowing more organizations to experience SAP’s value efficiently and confidently.

Final Thoughts

SAP is not the next Blockbuster. If anything, it is the Netflix of enterprise technology, continually reinventing itself while remaining grounded in what it does best.

While newer entrants attract attention, SAP continues to power the global economy quietly and reliably. It runs the industries that cannot afford disruption: manufacturing, utilities, healthcare, and the public sector.

The company’s pivot to a cloud-first, AI-enabled platform is not a desperate move to stay relevant. It is a deliberate, well-funded evolution that keeps SAP decades ahead of the curve. Far from being an outdated incumbent, SAP remains one of the few technology companies with both the scale and credibility to define what the future of intelligent enterprise looks like.