At SAP Sapphire 2025, SAP reinforced its ambition to lead in enterprise AI by unveiling a range of innovations under its Business AI umbrella. Key announcements include the launch of AI Foundation, positioned as the operating system for SAP’s AI strategy, enabling simplified operations, innovation acceleration, and democratized access to predictive capabilities. Expanding Joule into an omnipresent AI assistant, accessible across SAP and third-party applications, marks SAP’s move toward ambient, context-aware AI. By introducing AI Agent Hub and cross-system Joule agents, SAP is evolving toward agentic automation that spans business silos. Business Data Cloud underpins these capabilities by unifying SAP and non-SAP data to enable real-time insight and orchestration. Introducing modular business suite-as-a-service packages further supports composability and easier adoption.

ServiceNow Knowledge 2025 marked a significant evolution in the company’s AI strategy, positioning the Now Platform as an AI-first operating system for enterprise transformation. Key announcements included the launch of AI Agent Studio – a no-code environment to build task-specific AI agents – alongside AI Control Tower, a governance framework for cross-enterprise agent oversight, and Agent Fabric, which enables seamless coordination between ServiceNow and third-party AI agents. These innovations drive the shift from siloed automation to intent-driven orchestration and autonomous operations. ServiceNow also extended its reach beyond IT with the unveiling of a unified AI-powered CRM that integrates sales, service, and fulfilment processes. In parallel, the company expanded its Core Business Suite to embed AI into HR, procurement, and finance workflows. For enterprises and providers alike, the event underscored emerging opportunities around AI lifecycle services, agent governance, and cross-platform workflow transformation. Scope All industries and geographies This report is based on our assessment of ServiceNow’s Knowledge 2025 event Contents In this report, we examine: Key enterprise issues and objectives related to agentic AI, as well as ServiceNow’s alignment with the objectives ServiceNow’s current positioning and its major AI offerings ServiceNow’s key product and feature announcements at Knowledge 2025

ServiceNow and its partner ecosystem are growing due to its robust IT service management and workflow automation capabilities, industry-specific applicability, and low-code development approach. Enterprises are increasingly adopting ServiceNow modules to address their evolving business needs. The demand for operational agility, workflow automation, and enhanced customer experience is driving its widespread implementation. Organizations are modernizing IT operations, automating legacy processes, and integrating AI-driven capabilities to enhance efficiency and collaboration. Successful case studies and high market impact further reinforce ServiceNow’s market leader position. Despite these driving factors, several challenges, such as talent gaps in ServiceNow-specific expertise and a lack of product knowledge, are hindering enterprises from scaling their ServiceNow portfolios. To address these challenges, enterprises are assessing providers based on key factors such as domain expertise and consulting capabilities. This report examines the different types of providers and how enterprises assess them to align with their specific business needs. In this report, we profile 15 niche providers and highlight their capabilities across key industries, ServiceNow modules, and geographic regions. Scope All industries and geographies Advisory/Consulting services, implementation services, maintenance, and support services across cloud and on-premises deployment of ServiceNow modules Contents In this report, we highlight: Factors driving ServiceNow adoption Key factors inhibiting enterprises to scale their ServiceNow portfolios Key factors enterprises consider when selecting a ServiceNow service provider Enterprises’ satisfaction with Global System Integrators (GSIs) and niche providers Framework for enterprises to choose the right-fit partner Typical business scenarios to leverage GSIs and niche providers Profiles of featured providers

The SAP services market is strategically transforming from traditional enterprise software to a key digital transformation driver. The focus has shifted to cloud adoption, AI integration, and sustainability, with initiatives such as RISE with SAP and GROW with SAP playing a vital role. With 60-70% of enterprises yet to migrate to S/4HANA, the upcoming migration wave will reshape the market. Scalable approaches, such as brownfield and hybrid strategies, are essential to balance business continuity with transformation. Providers are addressing the rising demand for customized solutions by investing in industry-specific accelerators, enhancing S/4HANA expertise, and strengthening hyperscaler partnerships. This ecosystem-driven approach simplifies migrations, accelerates deployment, and delivers tangible business outcomes at a lower Total Cost of Ownership (TCO). As SAP’s innovations align with the S/4HANA migration urgency, enterprises must strategically prepare to seize these opportunities, ensuring smooth migrations that drive digital transformation and sustainable value. This compendium provides comprehensive and fact-based snapshots of 30 SAP business application service providers, highlighting their capabilities. Each profile offers a comprehensive picture of the provider’s service focus, key IP solutions, and domain investments. The report assists buyers in selecting the best-fit provider for their needs and enables providers to benchmark themselves against peers. Scope All industries and geographies This assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading providers, client reference checks, and an ongoing analysis of the SAP business application services market Contents In this report, we: Examine the SAP business application services market Compare providers’ key strengths and limitations Assess each provider’s vision, capability, and market impact Categorize providers as Leaders, Major Contenders, and Aspirants Membership(s) Enterprise Platform Services (EPS) Sourcing and Vendor Management

The SAP services market is strategically evolving from traditional enterprise software to a key digital transformation driver. With initiatives such as RISE with SAP and GROW with SAP, the focus has now shifted to cloud adoption, AI integration, and sustainability. With 60-70% of enterprises yet to migrate to S/4HANA, the upcoming migration wave will reshape the market. Scalable approaches such as brownfield and hybrid strategies are vital to balance business continuity with transformation. Providers are addressing the rising demand for customized solutions by investing in industry-specific accelerators, enhancing S/4HANA expertise, and strengthening hyperscaler partnerships. This ecosystem-driven approach simplifies migrations, accelerates deployment, and delivers tangible business outcomes at a lower Total Cost of Ownership (TCO). As SAP’s innovations align with S/4HANA migrations’ urgency, enterprises must strategically prepare to seize these opportunities, ensuring smooth migrations that drive digital transformation and sustainable value. In this report, we assess 30 providers featured on the SAP Business Application Services PEAK Matrix® Assessment 2025 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings. Scope All industries and geographies The assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading providers, client reference checks, and an ongoing analysis of the SAP business application services market Contents This report features detailed assessments, including strengths and limitations, of 30 providers that focus on SAP business application services. Membership(s) Enterprise Platform Services (EPS) Sourcing and Vendor Management

On September 10, 2024, ServiceNow launched Xanadu, its comprehensive offering of AI innovations tailored for the telecom, retail, banking, and public sector industries. This release significantly enhances its gen AI offerings, expanding the reach of Now Assist services to address key enterprise needs, including security and threat management. The release also features the Now Assist Skill Kit, which helps create custom gen AI skills and prompts. Additional innovations include data visualization, chat- and email-reply generation, change summarization, and proactive prompts. Scope All industries and geographies The report is based on our assessment of ServiceNow’s Xanadu release announcement Contents In this report, we examine: Consider key enterprise workflow automation issues and objectives, as well as themes driving and inhibiting demand Evaluate ServiceNow’s current positioning and its workflow automation product offerings Discuss ServiceNow’s Xanadu release announcement Provide Everest Group’s view on ServiceNow’s Xanadu release Membership(s) Application Services Banking and Financial Services Information Technology Cloud and Infrastructure Services Clinical Development Technology Cybersecurity Data & Analytics Digital Services Digital Workplace Enterprise Platform Services (EPS) Healthcare Payer and Provider Information Technology Insurance Information Technology Marketing and Interactive Experience> Life Sciences Information Technology Retail and CPG Sustainability Technology and Services Sourcing and Vendor Management

SAP’s mid-market services market has made a significant impact, contributing over US$10 billion and growing at a double-digit rate year-over-year. The launch of SAP BTP, RISE with SAP, and GROW with SAP has fueled this momentum, leading more Small and Mid-sized Businesses (SMBs) to adopt SAP solutions. Mid-market customers prioritize packaged, pre-configured solutions for process and experience transformation, unlike larger clients that have the resources for complex customizations. SMBs prefer cost-effective solutions and shorter engagement cycles. To address these unique demands, providers are investing in talent and developing specialized IP to support enterprises in their SAP journey. In this report, we examine the value delivered by SAP business application services, including customer satisfaction across key parameters. The report also identifies the top five providers that have delivered superior value to mid-market enterprises. Scope All industries and geographies Services: advisory/consulting services, implementation services, maintenance, and support services across cloud and on-premises deployment of SAP business applications The assessment is based on over 40 unique interviews conducted in 2023-24 with global enterprises, nominated as reference clients by different providers and evaluated using the Everest Group PEAK Matrix® for SAP Business Application Services for Mid-market Enterprises Contents In this report, we examine: Enterprises’ overall satisfaction with SAP business application services Enterprises’ satisfaction across key parameters such as implementation, support, innovation, and value for money Top five providers for SAP mid-market enterprises Insights from mid-market enterprises on their experiences with the top five SAP providers Membership(s) Enterprise Platform Services (EPS) Sourcing and Vendor Management