I'm on the CSU (own) / SAP (don't own) bull side of this for the simple reason that the increase in coding productivity (it's real) will increase, not decrease, the importance of trust for the relevant commercial relationships. Gains in coding will allow good and bad code alike to proliferate. Legacy providers benefit from this trust gap and can otherwise implement the gains themselves. At the end of the day we're talking about conservative businesses who are't going to risk the entire enterprise on small line item costs.

A lot of the AI hype is coming from the engineering side of the equation, which I think substantially underestimates who purchases software and why. Maybe software itself is displaced by agentic AI but that's a separate story and still appears a far ways off if it ever happens.

Re: The CSU results: To me the 1.6 billion committed is the key figure. The capital allocation runway scares me more than the AI threat, and that is significant acceleration in their capital allocation. Especially given that Q1 is typically a lighter quarter for this kind of thing.