SAP SE

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SAP SE
SAP SE logo
Sap-wdf.jpg
Type
Societas Europaea
Traded as
FWB: SAP NYSE: SAP
Industry
Enterprise software
Founded Weinheim, Germany
(1972; 43 years ago)
Founder Dietmar Hopp
Hans-Werner Hector
Hasso Plattner
Klaus Tschira
Claus Wellenreuther
Headquarters
Walldorf, Germany
Area served
Worldwide
Key people
Hasso Plattner (Chairman)
Bill McDermott (CEO)
Products
See list of SAP products
Revenue Increase 17.56 billion (2014) [1]
Operating income
Increase 4.331 billion (2014)[1]
Profit Increase 3.275 billion (2014)[1]
Total assets
Increase 38.374 billion (2014)[1]
Total equity
Increase 19.594 billion (2014)[1]
Number of employees
74,400 (2014)[2]
Slogan Run Simple (formerly: The best-run businesses run SAP.)
Website SAP.com
SAP SE (/?se?'pi/ or /sp/) (Systems, Applications & Products in Data Processing)
is a German multinational software corporation that makes enterprise software to
manage business operations and customer relations. SAP is headquartered in Wall
dorf, Baden-Wrttemberg, Germany, with regional offices in 130 countries.[2] The c
ompany has over 293,500 customers in 190 countries.[2] The company is a componen
t of the Euro Stoxx 50 stock market index.[3]
Contents [hide]
1
History
1.1
Formation
1.2
Enterprise resource planning
1.3
Corporate restructuring
1.4
SAP S/4HANA
1.5
Focus on cloud
1.6
Acquisitions
2
Business and Markets
3
Enterprise Service-Oriented Architecture
3.1
Enterprise SOA
4
Partnerships
5
SAP PartnerEdge
6
Communities
7
Organization
7.1
SAP Labs locations
8
SAP User Groups
9
Conferences
10
Competitive landscape

11
Philanthropic efforts
12
See also
13
References
14
External links
History[edit]
Formation[edit]
When Xerox aimed to exit the computer industry in 1975,[4] they asked IBM to mig
rate their business systems to IBM technology. As part of IBM's compensation for
the migration, IBM was given the rights to the Scientific Data Systems (SDS)/SA
PE software, reportedly for a contract credit of $80,000.
Five IBM engineers from the AI department[5][6] (Dietmar Hopp, Klaus Tschira, Ha
ns-Werner Hector, Hasso Plattner, and Claus Wellenreuther, all from Mannheim, Ba
den-Wrttemberg) were working in an enterprise-wide system based on this software,
only to be told that it would be no longer necessary. Rather than abandon the p
roject, they decided to leave IBM Tech and start another company.[7]
In June 1970, they founded Systemanalyse und Programmentwicklung ("System Analys
is and Program Development") company, as a private partnership under the German
Civil Code.[7]
Their first client was the German branch of Imperial Chemical Industries[8] in st
ringen, where they developed mainframe programs for payroll and accounting. Inst
ead of storing the data on punch cards mechanically, as IBM did, they stored it
locally. Therefore, they called their software a real-time system, since there w
as no need to process the punch cards overnight (for this reason their flagship
product carried an R in its name until the late 1990s). This first version was a
lso a standalone software that could be offered to other interested parties.[9]
Enterprise resource planning[edit]
In 1973, the first commercial product was launched. It was called SAP R/98,[10][
11] and offered a common system for multiple tasks. This permitted the use of a
centralized data storage, improving the maintenance of data. From a technical po
int of view, therefore, a database was necessary.[12]
In 1976, SAP GmbH was founded, and moved its headquarters the following year to
Walldorf, Germany. Three years later, in 1979, SAP launched SAP R/2, expanding t
he capabilities of the system to other areas, such as material management and pr
oduction planning. In 1981, SAP brought a re-designed product to market. However
, SAP R/2 did not improve until the period between 1985 and 1990. SAP released t
he new SAP R/3 in 1992. SAP developed and released several versions of R/3 throu
gh 1995. By the mid-1990s, SAP followed the trend from mainframe computing to cl
ient/server architectures. The development of SAP s internet strategy with mySAP.c
om redesigned the concept of business processes (integration via Internet).[7] S
AP was awarded Industry Week's Best Managed Companies in 1999.[13]
Corporate restructuring[edit]
In August 1988, SAP GmbH became SAP AG, and public trading started on 4 November
1988. Shares were listed on the Frankfurt and Stuttgart stock exchanges.[7] In
1995, SAP was included in the German stock index DAX and, on 22 September 2003,
SAP was included in the Dow Jones STOXX 50.[14]
The company's official name became SAP AG (a public limited company) after the 2
005 annual general meeting. In 2014, SAP changed from an AG to a European Compan
y (Societas Europaea or SE).[15]
SAP S/4HANA[edit]
Written natively for the SAP HANA platform, SAP S/4HANA is the new generation of
SAP Business Suite launched in 2015. It offers cloud, on-premises and hybrid de
ployment options to provide more choice to customers. Some benefits include: a s

maller data footprint, higher throughput, faster analytics and reports, SAP HANA
Cloud Platform extension, multitenancy, and faster access to data (social, text
, geo, graph and processing). It also allows existing SAP Business Suite custome
rs to upgrade to this product from SAP Business Suite instead of re-implementing
.[16]
Bill McDermott, CEO of SAP, compared the release of SAP S/4HANA to a moonshot , des
cribing it as the most important launch in the company s history.[17] Partners hav
e expressed readiness to implement S/4HANA because of the benefits it offers.[18
] Customers have said they've been waiting for such a solution, according to the
Americas' SAP Users' Group (ASUG): What SAP is promising with S/4HANA is a new s
uite of applications, a new user experience and a new offering of deployment mod
els, all the things that we, as SAP customers, have been clamoring for so long. [1
9]
Analysts at J.P. Morgan have predicted that the new software could help SAP achi
eve more than a 30-percent compound annual growth rate.[20] Yet some analysts, s
uch as Peter Goldmacher of Cowen and Co., question whether it will be adopted as
quickly as the company says, and create the massive growth that SAP foresees.[2
1]
Focus on cloud[edit]
Since 2012, SAP has acquired several companies that sell cloud-based products, w
ith several multibillion-dollar acquisitions seen by analysts as an attempt to c
hallenge competitor Oracle.[22] In 2014 SAP bought Concur Technologies, a provid
er of cloud-based travel and expense management software, for $8.3 billion, SAP'
s most expensive purchase to that date.[23] Analysts' reactions to the purchase
were mixed, with Thomas Becker of Commerzbank questioning whether Concur was the
right choice for SAP, while Credit Suisse called the acquisition an aggressive
ve.[24]
Acquisitions[edit]
Acquisition number
Acquired company
Acquisition date
Specialt
y
Country of origin
Acquisition costs
60
Concur Technologies
Sept 2014
Travel and Expense Management
USA
$8.3b
59
SeeWhy May 2014
Behavioral target marketing
USA
$1.1b
58
Fieldglass
Mar 2014
Contingent labor and services USA
57
KXEN
Oct 2013
Predictive analytics
France
56
hybris May 2013
E-Commerce Solutions
Switzerland
55
Camilion
March 2013
Insurance solutions
Canada
54
SmartOps
Feb 2013
Inventory optimization USA
53
Ticket-Web
Feb 2013
CRM for sports and entertainment promote
rs
USA
52
Ariba Oct 2012
Supplier network
USA
$4.3b
51
Syclo Jun 2012
Mobile asset management USA
50
datango Jan 2012
Electronic performance support technologies
Germany
49
Netbase Dec 2011
Social media analytics USA
48
SuccessFactors Dec 2011
Talent Management
USA
$3.4b
47
Right Hemisphere
Sep 2011
3D visualization
USA
46
Crossgate
Sep 2011
B2B eCommerce USA
45
Secude Mar 2011
Security software (Not the whole company, only s
ome assets were acquired)
Germany
44
Cundus Dec 2010
Disclosure Management Germany
43
Sybase May 2010
Database, middleware, mobile software USA
$5.8b
42
TechniData
May 2010
Environmental, Health and Safety
Germany
41
SAF
Sep 2009
Inventory Management
Switzerland
$91m

mo

40
Highdeal
May 2009
High-volume billing
France
39
Visiprise
Jul 2008
Manufacturing Execution USA
38
Saicon INC
Oct 2014
US Recruitment India
37
Business Objects
Oct 2007
Business Intelligence France
$6.78b
36
Yasu Technologies Pvt. Ltd.
Oct 2007
Business Rules Managemen
t Software
India
35
Wincom Communications May 2007
Internet Communication software
USA
34
MaXware May 2007
Identity software
Norway
33
Outlooksoft
May 2007
Planning & consolidation
USA
32
Pilot Software Feb 2007
Strategy Management software
USA
~$200m
31
Factory Logic Dec 2006
Lean scheduling and supply synchronizati
on
USA
30
Praxis Software Solutions
Jul 2006
Web-based CRM and eComme
rce
USA
29
Frictionless Commerce May 2006
SRM software
USA
28
Virsa Systems Apr 2006
Compliance solutions
USA
27
SAP Systems Integration Dec 2005
Consulting services
Germany
26
Callixa Nov 2005
Enterprise Integration Information software
USA
25
Khimetrics
Nov 2005
retail software USA
24
Triversity
Sep 2005
POS software
Canada
23
Lighthammer
Jun 2005
Manufacturing Intelligence and Collabora
tive Manufacturing
USA
22
DCS Quantum
Feb 2005
Automotive Dealer Management
United K
ingdom
21
TomorrowNow
Jan 2005
grey-market support
USA
20
ilytix Jan 2005
SAP BusinessOne Business Intelligence Norway
19
A2i
Jul 2004
Master Data Management USA
18
SPM Technologies
Dec 2003
IT architecture consulting
Germany
17
DCW Software
Jul 2003
OS/400 Applications
Germany
16
Guimachine
Dec 2002
NetWeaver Visual Composer toolkit
USA
15
IMHC
May 2001
Integrated managed health care from IDS USA
14
Expression
May 2002
real-time file sharing ?
13
Topmanage
Feb 2002
SAP BusinessOne Suite Israel
12
Paynet International AG Dec 2001
Invoice Processing
Germany
11
COPA GmbH
Nov 2001
Beverage industry consulting
Germany
10
Infinite Data Structures
May 2001
Trade Management / CRM
USA
9
Toptier Mar 2001
Enterprise Information Portal and Integration In
frastructure
USA
~$400m
8
Prescient Consulting
Feb 2001
Consulting services
USA
7
In-Q-My Technologies GmbH
2000
J2EE Server
Bulgaria
6
Campbell Software
1999
Workforce Management
USA
5
AMC Development 1998
Call Center telephony integration software
USA
4
OFEK-Tech
1998
Warehousing and distribution center software
Israel
3
Kiefer & Veittinger
1997
Sales force Applications
Germany
2
Dacos 1996
Retail solution Germany
1
Steeb 1991
Consulting services
Germany
Business and Markets[edit]
As of 2007, SAP is the world's largest business software company and the third-b
iggest independent software provider by revenue. The corporation operates in fou
r geographic regions: EMEA (Europe, Middle East, Africa), NA (United States and
Canada), LAC (Latin America and Caribbean), and APJ (Asia Pacific and Japan).[25

]
SAP focuses upon 25 industries and six industry sectors: process industries, dis
crete industries, consumer industries, service industries, financial services an
d public services.[26] It offers integrated product sets for large enterprises,[
27] mid-sized companies and small businesses.[28]
Enterprise Service-Oriented Architecture[edit]
Service-oriented architecture has been incorporated into the SAP ERP (Enterprise
Resource Planning) system and other products defined within the SAP Enterprise
Services Architecture (Enterprise SOA).
Enterprise SOA[edit]
SAP Enterprise Service Oriented Architecture (or Enterprise SOA) has been define
d by SAP SE as "an open architecture for adaptive business solutions" and "the b
lueprint for an architecture that enables innovation and standardization in a si
ngle environment".[29] Enterprise SOA is enabled by the SAP NetWeaver platform,
and builds on the benefits of Web services. SAP has positioned Enterprise SOA to
deliver the benefits offered by service-oriented architecture, including enabli
ng both flexibility and business efficiency. SAP states that Enterprise SOA prov
ides companies with a "cost-effective blueprint for composing innovative new app
lications by extending existing systems, while maintaining a level of flexibilit
y that makes future process changes cost-effective".[30] SAP Solutions that curr
ently use Enterprise SOA are mySAP CRM, mySAP ERP, and mySAP SRM.
Partnerships[edit]
SAP partners include Global Services Partners with cross-industry multinational
consulting capabilities,[31] Global Software Partners providing integrated produ
cts that complement SAP Business Suite solutions,[32] and Global Technology Part
ners providing user companies with a wide range of products to support SAP techn
ology, including vendors of hardware, database, storage systems, networks, and m
obile computing technology.[33]
Extensions partners: this is a small number of companies which provide functiona
lity that complements SAP product capabilities. These enhancements fulfill high
quality standards and are certified, sold and supported by SAP directly. These p
artner companies include Adobe, CA Technologies, GK Software,[34] Hewlett-Packar
d, IDS Scheer, OpenText, Redwood Software, Vistex Inc., Insync Techfin Solution
Ltd, Meridian Global Services, Knoa Software, Nakisa Inc, ICON-SCM, BackOffice A
ssociates, Prometheus Group and SmartOps.[35][36]
SAP PartnerEdge[edit]
SAP products for small businesses and midsize companies are delivered through it
s global partner network. In 2008, SAP signed SAP Global Service partnership wit
h HCL Technologies, a $6 billion technology service provider, headquartered in I
ndia.[37]
SAP PartnerEdge signed with ENFOS, Inc., a software as a service company, to dev
elop their EcoHub Partner Sustainability Solution platform. The SAP PartnerEdge
program, SAP's partner program, offers a set of business enablement resources an
d program benefits to help partners including value added resellers (VARs) and i
ndependent software vendors (ISVs) be profitable and successful in implementing,
selling, marketing, developing and delivering SAP products to a broad range of
customers.[38]
Communities[edit]
SAP Community Network (SCN) is a community of SAP customers, partners, employees
, and influencers
typically in roles such as: developers, consultants, integrato
rs, and business analysts
who gain and share knowledge about ABAP, Java, .NET, S
OA, and other technologies, plus analytics and dashboards, business process best

practices, cloud, mobile, big data, and a range of other topics via expert blog
s, discussion forums, exclusive downloads and code samples, training materials,
and a technical library.[39]
Organization[edit]
SAP uses a two-tier structure of boards, with an executive board and a superviso
ry board. As of 2015, members of the executive board were Bill McDermott (CEO an
d Chairman, joined in 2008), Robert Enslin (2014) Bernd Leukert (2014), Luka Muc
ic (CFO and COO, 2014), and Gerhard Oswald (1996).[40] Functional units of SAP a
re split across different organizational units for R&D needs, field activities a
nd customer support. SAP Labs are mainly responsible for product development whe
reas the field organizations spread across each country are responsible for fiel
d activities such Sales, Marketing, Consulting etc. Head office located in SAP S
E is responsible for overall management as well as core Engineering activities r
elated to Product Development. SAP customer support, also called Active Global S
upport (AGS) is a global organization to provide support to SAP customers worldw
ide.[41]
SAP Labs locations[edit]
Main article: SAP Research
SAP Labs Latin America
Werner Brandt, Stefan Wagner, Luis Csar Verdi and Gerhard Oswald celebrating the
expansion of SAP Labs Latin America
SAP Labs Israel
SAP Labs is the research and development organization of the parent company.[42]
As of January 2011, some, but not all, labs locations hosted SAP Research group
s.[43]
The labs are located in Germany, France, Ireland, Bulgaria and Hungary (in Europ
e); Palo Alto, California and La Crosse, Wisconsin in the United States; Bangalo
re, Pune and Gurgaon (in India); So Leopoldo, Rio Grande do Sul (in Brazil); Ra'a
nana (in Israel); Montreal, Vancouver, Toronto and Waterloo (in Canada), and Sha
nghai (in China). SAP Labs India[44] is the largest development unit in terms of
number of employees outside the SAP headquarters located in Walldorf, Germany.[
45]
SAP opened in June 2009 its new SAP Labs campus in Brazil, representing the firs
t SAP Labs Center in Latin America and the eighth worldwide. SAP Labs Latin Amer
ica has just received Leadership in Energy and Environmental Design (LEED) Gold
certification for the building.[46]
SAP User Groups[edit]
SAP User Groups are independent, non-profit organizations of SAP customers and S
AP partners. They serve as communications channel for their members towards SAP
and for SAP towards the markets. The Americas' SAP Users Group (ASUG) is the comp
any s largest user group, with 100,000 individuals at 3,800 companies. ASUG member
s are professionals who work in more than 17 industries. Many are technical and
business process experts in the SAP ecosystem; they have varied levels of experi
ence, and come from small businesses to global corporations, as well as universi
ties. In 2007, the SAP User Group Executive Network (SUGEN) was established.
SAP provoked controversy and frustration among its users in 2008 by raising the
cost of its maintenance contracts. The issue was the subject of intense discussi
on among user groups.[47]
Conferences[edit]
SAP has two annual conferences: SAPPHIRE and SAP TechEd. SAPPHIRE is SAP's custo

mer-facing event.[48][49] It is generally where SAP announces major product chan

ges and strategic direction. It is typically held in the spring, in both North A
merica and Europe.
SAP TechEd is the more technical conference, aimed at SAP's ecosystem of consult
ants and software development partners.[50][51] SAP TechEd has been held since 1
995, usually in four locations in the fall. In 2014-15, SAP TechEd was held in t
hree locations, between fall and early spring.
Competitive landscape[edit]
SAP competitors are primarily in the enterprise resource planning software indus
try. In this field, Oracle Corporation is SAP's major competitor. SAP also compe
tes in the customer relationship management, marketing & sales software, manufac
turing, warehousing & industrial software, and supply chain management & logisti
cs software sectors.[52]
Oracle Corporation filed a lawsuit against SAP for malpractice and unfair compet
ition in the California courts in 2007. SAP lost the case in 2010 and was ordere
d to pay a sum of US $1.3 billion, which was cited as the largest copyright infr
ingement judgment in history.[53] The verdict was overturned in 2011[54] and the
lawsuit was finally settled in 2014 for $356.7 million.[55]
The resulting pressure saw SAP and SUGEN (SAP User Group Executive Network) agre
e to a major benchmarking exercise to prove the value of the new support pricing
policy to customers. In December 2009, SAP delayed its Enterprise Support price
rises until agreement had been reached on the benchmarks and KPIs (Key Performa
nce Indicators).[56]
In January 2010, SAP reversed its direction on Enterprise Support and reintroduc
ed its standard support package for customers. The move to reinstate standard su
pport
at 18 percent of annual license fees, "will enable all customers to choose
the option that best meets their requirements", the company said.[57]
In August 2013, SAP acquired Hybris publicly for eCommerce capabilities after fa
iling in a bid for Neolane. The rationale for the acquisition of Hybris was real
ly for product catalog and product information management.[58]
Philanthropic efforts[edit]
In 2012, SAP was listed as a partner of the (RED) campaign, together with other
brands such as Nike Inc., Girl, American Express and Converse. The campaign's mi
ssion is to prevent the transmission of the HIV virus from mother to child by 20
15 (the campaign's byline is "Fighting for an AIDS Free Generation").[59]
SAP is funding a project[60] to assess and educate autistic children.[61] It has
also launched an initiative to hire employees with autism and Asperger syndrome
, citing their intelligence in the IT field and attention to detail; SAP aims to
compose 1% of its workforce with autistic people by the year 2020. In May 2013,
6 people had been employed.[62]
See also[edit]
Portal icon
Companies portal
Portal icon
Computer Science portal
List of SAP products
SAP Fiori
SAP Implementation
List of ERP software packages
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