SAP SE’s shares rose in premarket trading as cloud revenue soared at Europe’s biggest software company, which is transitioning customers away from locally run systems with the promise of artificial-intelligence tools and analytics.

The company’s bottom line benefits from its customers’ shift to the cloud, where it has been able to pitch its growing range of AI services. When SAP’s customers move to the cloud, they generally spend more money on subscription fees than they do on its legacy, on-premises licenses.

Shares in SAP were up 5% at market open on Tuesday, hitting an all-time high of 221 euros ($239.21) after the German software company raised its full-year targets on a strong cloud business in the third quarter.

SAP SE’s shares rose the most since July as cloud revenue soared at Europe’s biggest software company, which is transitioning customers away from locally run systems with the promise of artificial-intelligence tools and analytics.