SAP SE

1.2 Enterprise resource planning

SAP
SE
(/sepi/)
(Systemanalyse
und
Programmentwicklung; 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 Walldorf, Baden-Wrttemberg,
Germany, with regional oces in 130 countries.[2] The
company has over 293,500 customers in 190 countries.[2]
The company is a component of the Euro Stoxx 50 stock
market index.[3]

In 1973, the rst commercial product was launched. It

was called SAP R/98,[10][11] and oered a common system for multiple tasks. This permitted the use of a centralized data storage, improving the maintenance of data.
From a technical point 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
the capabilities of the system to other areas, such as material management and production 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 the new SAP R/3 in 1992. SAP
1 History
developed and released several versions of R/3 through
1995. By the mid-1990s, SAP followed the trend from
mainframe computing to client/server architectures. The
1.1 Formation
development of SAPs internet strategy with mySAP.com
redesigned the concept of business processes (integration
When Xerox aimed to exit the computer industry in via Internet).[7] SAP was awarded Industry Weeks Best
1975,[4] they asked IBM to migrate their business sys- Managed Companies in 1999.[13]
tems to IBM technology. As part of IBMs compensation for the migration, IBM was given the rights to the
Scientic Data Systems (SDS)/SAPE software, report- 1.3 Corporate restructuring
edly for a contract credit of $80,000.
In August 1988, SAP GmbH became SAP AG, and pubFive IBM engineers from the AI department[5][6]
lic trading started on 4 November 1988. Shares were
(Dietmar Hopp, Klaus Tschira, Hans-Werner Heclisted on the Frankfurt and Stuttgart stock exchanges.[7]
tor, Hasso Plattner, and Claus Wellenreuther, all from
In 1995, SAP was included in the German stock index
Mannheim, Baden-Wrttemberg) were working in an
DAX and, on 22 September 2003, SAP was included in
enterprise-wide system based on this software, only to be
the Dow Jones STOXX 50.[14]
told that it would be no longer necessary. Rather than
abandon the project, they decided to leave IBM Tech and The companys ocial name became SAP AG (a public
limited company) after the 2005 annual general meeting.
start another company.[7]
In 2014, SAP changed from an AG to a European ComIn June 1970, they founded Systemanalyse und Propany (Societas Europaea or SE).[15]
grammentwicklung (System Analysis and Program Development) company, as a private partnership under the
German Civil Code.[7]

1.4 Focus on cloud

Their rst client was the German branch of Imperial

Chemical Industries[8] in stringen, where they developed mainframe programs for payroll and accounting. Instead 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 was no need
to process the punch cards overnight (for this reason their
agship product carried an R in its name until the late
1990s). This rst version was also a standalone software
that could be oered to other interested parties.[9]

Since 2012, SAP has acquired several companies that

sell cloud-based products, with several multibillion-dollar
acquisitions seen by analysts as an attempt to challenge
competitor Oracle.[16] In 2014 SAP bought Concur Technologies, a provider of cloud-based travel and expense
management software, for $8.3 billion, SAPs most expensive purchase to that date.[17] Analysts reactions to
the purchase were mixed, with Thomas Becker of Commerzbank questioning whether Concur was the right
1

5 SAP PARTNEREDGE

choice for SAP, while Credit Suisse called the acquisi- the SAP ERP (Enterprise Resource Planning) system and
tion an aggressive move.[18]
other products dened within the SAP Enterprise SerIn 2014, IBM and SAP began a partnership to sell cloud- vices Architecture (Enterprise SOA).
based services.[19] IBM provides the infrastructure services to SAP, and SAP runs its SAP HANA cloud solution on top. The alliance gives both companies broader
reach in the market.[20] SAP has announced additional
partnerships with Microsoft in order to give customers
tools for data visualization, as well as improved mobile
applications.[21]

3.1 Enterprise SOA

SAP Enterprise Service Oriented Architecture (or Enterprise SOA) is SAP SEs service-oriented architecture
implementation.[29] Enterprise SOA is enabled by the
SAP NetWeaver platform, and builds on the benets
SAP exceeded its revenue projections due to the expan- of Web services. SAP has positioned Enterprise SOA
sion in its cloud business and the success of SAP HANA. to deliver the benets oered by service-oriented arThe growth can also be partially attributed to the acqui- chitecture, including enabling both exibility and business eciency. SAP markets Enterprise SOA as a
sitions of Concur and Fieldglass.[22]
cost-eective way of adding new applications to existing
infrastructure.[30] SAP Solutions that currently use Enterprise SOA are mySAP CRM, mySAP ERP, and mySAP
1.5 SAP S/4HANA
SRM.
In 2015, the company launched SAP S/4HANA, the
newest generation of the SAP Business Suite. It was written natively for the SAP HANA platform. It oers cloud, 4 Partnerships
on-premises and hybrid deployment options to customers,
with its benets including a smaller data footprint, higher
SAP partners include Global Services Partners with
throughput, faster analytics and faster access to data. It
cross-industry multinational consulting capabilities,[31]
also allows existing SAP Business Suite customers to upGlobal Software Partners providing integrated products
grade to this product from SAP Business Suite.[23]
that complement SAP Business Suite solutions,[32] and
Bill McDermott, CEO of SAP, compared the release of Global Technology Partners providing user companies
SAP S/4HANA to a "moonshot", describing it as the most with a wide range of products to support SAP technolimportant launch in the companys history.[24]
ogy, including vendors of hardware, database, storage
systems, networks, and mobile computing technology.[33]

1.6

Acquisitions

Business and Markets

As of 2007, SAP is the worlds largest business software

company and the third-biggest independent software
provider by revenue. The corporation operates in six geographic regions: EMEA (Europe, Middle East, Africa),
MEE (Middle and Eastern Europe: which includes the
subregions DACH, CEE and CIS), NA (United States and
Canada), LAC (Latin America and Caribbean), Greater
China (PRC, ROC) and APJ (Asia Pacic and Japan).[25]
SAP focuses upon 25 industries and six industry sectors: process industries, discrete industries, consumer industries, service industries, nancial services and public services.[26] It oers integrated product sets for
large enterprises,[27] mid-sized companies and small
businesses.[28]

Extensions partners: this is a small number of companies which provide functionality that complements
SAP product capabilities. Their products are certied, sold, and supported by SAP. These partner companies include Adobe, CA Technologies, GK Software,[34]
Hewlett-Packard, IDS Scheer, OpenText, Redwood Software, Vistex Inc., Insync Techn Solution Ltd, Meridian
Global Services, Knoa Software, Nakisa Inc, ICONSCM, BackOce Associates, Prometheus Group and
SmartOps.[35][36]

5 SAP PartnerEdge
SAP products for small businesses and midsize companies are delivered through its global partner network.
In 2008, SAP signed SAP Global Service partnership
with HCL Technologies, a $6 billion technology service
provider, headquartered in India.[37]

SAP PartnerEdge signed with ENFOS, Inc., a software

as a service company, to develop their EcoHub Partner
3 Enterprise Service-Oriented Ar- Sustainability Solution platform. The SAP PartnerEdge
program, SAPs partner program, oers a set of business
chitecture
enablement resources and program benets to help partners including value added resellers (VARs) and indepenService-oriented architecture has been incorporated into dent software vendors (ISVs) be protable and successful

3
in implementing, selling, marketing, developing and delivering SAP products to a broad range of customers.[38]
.

Communities

SAP Community Network (SCN) is a community of SAP

customers, partners, employees, and inuencers typically in roles such as: developers, consultants, integrators,
and business analysts who gain and share knowledge
about ABAP, Java, .NET, SOA, and other technologies,
plus analytics and dashboards, business process best prac- SAP Labs Locations
tices, cloud, mobile, big data, and a range of other topics
via blogs, discussion forums, downloads and code samSAPs main 4 Labs locations are Germany, India, China
ples, training materials, and a technical library.[39]
and the US. Labs Walldorf was founded in 1972 and became SAPs rst location. At the beginning, the focus
of SAP expansion was entering highly developed IT mar7 Organization
kets: in 1993 Palo Alto becomes a part of SAP Labs locations. Aiming to acquire talented employees, in 1998,
SAP uses a two-tier structure of boards, with an executive SAP opens its Labs in Bangalore, in 2003 in China.
board and a supervisory board. As of 2016, members
Among the latest SAP Labs locations are Labs Vietnam
of the executive board were Bill McDermott (CEO and
and Labs Berlin. Labs Vietnam was established in 2015,
Chairman, joined in 2008), Robert Enslin (2014) Bernd
Labs Berlin in 2016.
Leukert (2014), Luka Mucic (CFO, 2014), Michael
Kleinemeier (2015), Stefan Ries (2016), Steve Singh Based on SAP HANA in-memory platform, SAP Labs
develop innovative products for 98 of the 100 most(2016) and Gerhard Oswald (1996).[40]
valuable global brands using cutting-edge methodologies
Functional units of SAP are split across dierent orand technologies.
ganizational units for R&D needs, eld activities and
customer support. SAP Labs are mainly responsible In order to manage SAP Labs, SAP Labs Network
for product development whereas the eld organizations (SLN)[43] was created. SLN is a global unit that manages
spread across each country are responsible for eld activi- regional Labs and shares best business practices. It coorties such sales, marketing and consulting. Headquarters is dinated and distributes development projects among indiresponsible for overall management as well as core Engi- vidual SAP Labs locations, accelerates product delivery,
neering activities related to product development. World- gives SAP full access to talent, and drives SAP corporate
wide customer support is not provided by the eld organi- strategy regarding innovation and business growth.
zations but by a unied organization called Active Global
Support (AGS).[41]

9 SAP User Groups

8

SAP Labs

Main article: SAP Research

SAP Labs[42] are R&D locations that develop and improve SAP core products. SAP Labs are strategically located in high-tech clusters around the globe.

SAP User Groups are independent, non-prot organizations of SAP customers and SAP 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 companys largest
user group, with 100,000 individuals at 3,800 companies. ASUG members 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 experience, and come from small businesses to
global corporations, as well as universities. In 2007, the
SAP User Group Executive Network (SUGEN) was established.

SAP Labs are located in Germany (main locations:

Walldorf/Rot, Markdorf, Berlin), United States (main location: Silicon Valley), India (main location: Bangalore),
China (main location: Shanghai), Brazil (main location: Sao Leopoldo), Bulgaria (main location: Soa),
Canada (main locations: Vancouver, Montreal), Vietnam
(main location: Ho Chi Minh City), Israel (main location:
Raanana), CIS (main location: Moscow), France (main SAP provoked controversy and frustration among its
location: Paris, Sophia Antipolis), Ireland (main location: users in 2008 by raising the cost of its maintenance conDublin), Hungary (main location: Budapest).
tracts. The issue was the subject of intense discussion

14

among user groups.[44]

10

Conferences

SAP has two annual conferences: SAPPHIRE and

SAP TechEd. SAPPHIRE is SAPs customer-facing
event.[45][46] It is generally where SAP announces major
product changes and strategic direction. It is typically
held in the spring in North America.
SAP TechEd is the more technical conference, aimed at
SAPs ecosystem of consultants and software development partners.[47][48] SAP TechEd has been held since
1995, usually in four locations in the fall. In 2014-15,
SAP TechEd was held in three locations, between fall and
early spring.

REFERENCES

12 Philanthropic eorts
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.[56]
SAP is funding a project[57] to assess and educate autistic
children.[58] It has also launched an initiative to hire employees with autism and Asperger syndrome, citing their
intelligence in the IT eld 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.[59]

13 See also
List of SAP products
SAP Fiori
SAP Implementation

11

Competitive landscape

SAP competitors are primarily in the enterprise resource

planning software industry. In this eld, Oracle Corporation is SAPs major competitor. SAP also competes
in the customer relationship management, marketing &
sales software, manufacturing, warehousing & industrial
software, and supply chain management & logistics software sectors.[49]
Oracle Corporation led a lawsuit against SAP for malpractice and unfair competition in the California courts in
2007. SAP lost the case in 2010 and was ordered to pay
a sum of US $1.3 billion, which was cited as the largest
copyright infringement judgment in history.[50] The verdict was overturned in 2011[51] and the lawsuit was nally
settled in 2014 for $356.7 million.[52]
The resulting pressure saw SAP and SUGEN (SAP User
Group Executive Network) agree 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 Performance
Indicators).[53]

List of ERP software packages

14 References
[1] SAP Annual Report 2015 (PDF). SAP SE. Retrieved
30 April 2016.
[2] SAP at a Glance: Company Information. Retrieved 27
January 2015.
[3] Brse Frankfurt (Frankfurt Stock Exchange): Stock
market quotes, charts and news.
[4] Holmes, Edith. IBM Opposes Retelling of Whole Xerox
Story in Court, Computerworld, p. 42, 26 January 1976.
[5] History of SAP AG. Retrieved 3 May 2013.
[6] International Directory of Company Histories, Vol. 16.
St James Press, 1997.
[7] Sta. SAP History: From Start-Up Software Vendor to
Global Market Leader. Retrieved 10 October 2010.
[8] SAP UK ICI Success Story, Sap.com (1 January 1999);
retrieved 24 April 2011.

In January 2010, SAP reversed its direction on Enterprise [9] Standard Application Software for Real-time processing
is developed.
Support and reintroduced its standard support package for
customers. The move to reinstate standard support at 18 [10] success story of SAP.
percent of annual license fees, will enable all customers
to choose the option that best meets their requirements, [11] seize new opportunities by SAP.
the company said.[54]
In August 2013, SAP acquired Hybris publicly for eCommerce capabilities after failing in a bid for Neolane. The
rationale for the acquisition of Hybris was really for product catalog and product information management.[55]

[12] Vom Programmierbro zum globalen Softwareproduzenten: Die Erfolgsfaktoren der SAP von der
Grndung bis zum R/3-Boom, 1972 bis 1996.
Chbeck.metapress.com. 14 November 2008. Retrieved
27 March 2014.

[13] Verespej, Michael A. (16 August 1999). Why They're

The Best. IndustryWeek. Penton Media, Inc. Retrieved
15 October 2007.
[14] STOXX Limited Announces Changes to its Blue-Chip
Index Series (PDF) (Press release). Stoxx. 1 September
2003. Retrieved 15 October 2007.
[15] Company Q & A. Investor Relations. SAP.com. Retrieved 27 May 2015.
[16] Wong, Kenneth; Bass, Dina (23 May 2012). SAP
to Acquire Ariba for $4.3 Billion in Push Into Cloud.
Bloomberg News.
[17] SAP To Acquire Concur Technologies To Boost Cloud
Sales. Forbes. 22 September 2014.
[18] Mahadevan, Neetha; Doerner, Stephan (19 September
2014). SAP to Acquire Concur Technologies. The Wall
Street Journal.
[19] IBM and SAP Score Win Over Amazon. BusinessInsider. 14 October 2014.
[20] IBM, SAP to Partner on Cloud Computing for Business.
Fortune. 14 October 2014.
[21] Microsoft and SAP Strengthen Ties with Mobile, Data,
Cloud Partnership. TechCrunch. 19 May 2014.
[22] SAP Posts Strong 2014 Results, Cloud Business to Drive
Future Growth , Forbes, 22 January 2015
[23] Answers on SAP upgradation to SAP S/4HANA.
[24] SAP S4/HANA the user, analyst and partner views,
Diginomica.com, 3 February 2015.
[25] Worldwide Oce Directory of SAP.

[34] SAP Oers Retailers in North America a Full Range of

Store Solutions to Optimize Their Businesses Through
Extended Global Reseller Agreement With GK Software.
sap-news.com (28 May 2013). Retrieved on 22 May
2015.
[35] Solution Extensions Software from, scn.sap.com; retrieved 24 April 2011.
[36] LinguaNext. Facebook. Retrieved 6 November 2012.
[37] SAP HCL Technologies Announces Global Services
Partnership With SAP to Deliver Joint Business Value
Through Customer Centric Ecosystem, Sap.com; retrieved 7 July 2011.
[38] SAP SAP Solutions for Small Businesses and Midsize
Companies: Press Fact Sheet, July 2007. SAP.com; retrieved 7 July 2011.
[39] SAP Communities. go.sap.com; retrieved 7 July 2011.
[40] SAP Executive Board. SAP.
[41] SAP launches Global Support Center.
[42] R&D Locations | SAP Labs | About SAP SE. SAP. Retrieved 2016-04-29.
[43] SAP SLN Presentation.
[44] SAP faces user wrath over price hikes. Computerworlduk.com. Retrieved on 7 July 2011.
[45] SAP unveils SuccessFactors cloud computing roadmap
as it squares up to Oracle. V3.co.uk. Retrieved 29 February 2012.
[46] SAP Rolls Out Updates at SAPPHIRE. InternetNews.
17 June 2003. Retrieved 29 February 2012.

[26] Business in Brief: Markets. SAP. Retrieved 15 October

2007.

[47] SAP TechEd '05 in Bangalore.

cles.timesondia.indiatimes.com.
22
2005. Retrieved 29 February 2012.

[27] Midmarket Solutions: SAP ALL-IN-ONE Solutions

for mid-size companies. Annual Report 2006. SAP.ocm.
Retrieved 15 October 2007.

[48] SAP TechEd to Go Deep on Mobility. Pcworld.com. 8

October 2010. Retrieved 29 February 2012.

[28] Industry Solutions: Innovation One Industry at a Time.

Annual Report 2006. SAP.com. Retrieved 15 October
2007.
[29] SAP - Enterprise Service-Oriented Architecture: Adoption
Program, global.sap.com; accessed 27 May 2015.
[30] When Does a Web Service Become an Enterprise Service?" by Dr Franz-Josef Fritz (SAP AG), SAP Insider,
AprilMayJune 2004.
[31] SAP Global & Local Partner Directories: Global Services Partners. SAP AG. Retrieved 7 July 2011.
[32] SAP Global & Local Partner Directories: Global Software Partners. Sap.com (30 June 2009). Retrieved on 7
July 2011.
[33] SAP Global & Local Partner Directories: Global Technology Partners, go.sap.com; retrieved 7 July 2011.

ArtiSeptember

[49] Sta. SAP Competitors.

[50] Levine, Dan (23 November 2010). SAP to pay Oracle
$1.3 billion in landmark decision. Reuters. Thomson
Reuters. Retrieved 2 October 2015.
[51] Oracle Verdict Against SAP Is Overturned. Associated
Press. 1 September 2011. Retrieved 12 January 2015..
[52] Oracle, SAP Settle Long-Running TomorrowNow Lawsuit. Reuters. 13 November 2014. Retrieved 14 August
2015..
[53] SAP delays Enterprise Support price rises. Computerworlduk.com; retrieved 7 July 2011.
[54] SAP does U-turn on Enterprise Support. Computerworlduk.com; retrieved 7 July 2011.
[55] SAP buys Hybris, gains customer experience, power,
informationweek.com; accessed 27 May 2015.

15

[56] "(RED) Partners. (RED). The ONE Campaign. 14 October 2012. Retrieved 27 May 2015.
[57] SAP TV, SAP-TV.com; retrieved 26 July 2013.
[58] Prayas -Reinforcing Potential. Learn4autism.com. Retrieved on 2013-07-26.
[59] SAP in autism recruitment drive, BBC News, 22 May
2013.

15

External links

Ocial website

Business data for SAP SE:

Hoovers
Bloomberg
Reuters
SEC lings

EXTERNAL LINKS

16
16.1

Text and image sources, contributors, and licenses

Text

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16.2

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