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SAP Software and Company Coverage

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About: SAP is the largest software company in Europe and the fourth largest in the world. The company operates three segments: Product, Consulting, and Training. SAP currently has sales and development locations in more than 50 countries worldwide and is listed on several exchanges, including the Frankfurt Stock Exchange and NYSE under the symbol "SAP."
Founded: 1972
History: SAPs success story is one of a steady rise from a small, five-person start-up headquartered in southwest Germany's Rhine-Neckar region to one of the world's largest enterprise software companies and an employer of more than 47,598 people in over 50 countries. Major milestones along the ERP software giant's progress include the following:
  • 2010: After less than one year as CEO, Léo Apotheker is replaced by co-CEOs Bill McDermott and Jim Hagemann Snabe. SAP acquires Sybase.
  • 2009: The company unveils its SAP Business Suite 7 software.
  • 2007: SAP acquires Pilot Software, Yusa, OutlookSoft, Wicom, and MaXware, and also announces its intent to acquire Business Objects. The company announces the new Business ByDesign software as a service ERP product.
  • 2006: The company shows success down market with All-in-One and Business One. In June, the company announces that the latter solution has gained its 10,000th customer and generates about 30% of its €3.1 billion in total software revenues from companies with fewer than 2,500 employees.
  • 2004: SAP releases the first version of NetWeaver, an integration and application platform designed to offer fast, open, and flexible business applications that support end-to-end business processes.
  • 2001: SAP acquires TopTier, a leading portal company and founder, Shai Agassi, takes over the management of this business area and is appointed to the SAP Executive Board one year later.
  • 1999: SAP co-CEO Hasso Plattner announces a new strategy that realigns the company and its product portfolio: mySAP.com. The new strategy will combine e-commerce with SAP's existing ERP software applications.
  • 1991: SAP previews its R/3 system at CeBIT in Hanover. The next evolution flagship product is a client-server technology with a uniform graphical interface, dedicated use of relational databases and support for servers from various manufacturers.
  • 1989: SAP releases a more user-friendly interface for SAP R/2. The company also kicks off development projects in production and other areas with new tools, such as ABAP/4.
  • 1988: The company goes public in October 1988 at a share price of DM 750. SAP continues to bolster its global business by opening offices in Denmark, Sweden, Italy, and the United States. The company now employs 940 and generates revenues of DM 245 million. Dow Chemicals becomes SAP's 1,000th customer and the company begins developing RIVA – a billing and administration system for utility companies.
  • 1987: Following the foundation of its first non-German-speaking subsidiary in the Netherlands, SAP opens offices in France, Spain, and Great Britain in the same year. At the end of the year, SAP employs more than 500 and generates DM 152 million in revenue.
  • 1981: The growing power of mainframes enables SAP to grow its customer base to approximately 200 companies. SAP R/2 achieves stability and the company expands its range of products with a production management module.
  • 1980: SAP moves into its first facility on Max-Planck-Strasse in the Walldorf industrial park. The company now employees 50 and expands its product suite with RV, a custom development for sales and distribution.
  • 1975: RF advances to accommodate purchasing, inventory management, and invoicing.
  • 1973: SAP finishes its first financial accounting system called RF. This system becomes the cornerstone in the continued development of other application software that will eventually bear the name SAP R/1.
  • 1972: Five former IBM staff start a company they call SAP Systemanalyse und Programmentwicklung ("System Analysis and Program Development") in Weinheim, Germany, and open an office in nearby Mannheim. SAP's five founders perform most development work at nights and weekends and spend most of their day time in the data centers of their first customers, which include the German branch of Imperial Chemical Industries in Östringen. At the end of its first year in business, SAP employs nine people and generates DM 620,000 in revenue.
Ownership: Public, ETR:SAP
Hasso Plattner Hasso Plattner, Chairman of the Supervisory Board
Together with Dietmar Hopp, Claus Wellenreuther, Hans Werner Hector and Klaus Tschira, Hasso is one the co-founders of SAP AG. He was also chairman of the board until 2003 and is currently the chairman of the supervisory board.
Bill McDermott Bill McDermott, Co-CEO
Bill joined SAP in 2002, was appointed to the executive board in 2008 and was named co-CEO in February 2010. His primary responsibilities include global field operations and global Ecosystem and Partner group.
Jim Hagemann Snabe Jim Hagemann Snabe, Co-CEO
Jim joined SAP in 1990, was appointed to the executive board in 2008 and was named co-CEO in 2010. His primary responsibilities include development of large enterprise solutions, SME solutions, technology platform and SAP BusinessObjects.
Verticals: SAP invests in 26 vertical markets in order to deliver industry specific ERP solutions. The industries which seem to get the most attention include business services, consumer products, financial services (particularly banking), government/public sector, oil and gas, retail, telecommunications, transportation/logistics and utilities. The SAP partner channels and ecosystems provide wide support for additional industry solutions.
Partners: SAP manages nine business partner programs which collectively include thousands of partners and partner solutions and extend SAP's ERP products. The company also facilitates ecosystems of third party solutions, such as its EcoHub which includes about 500 solutions from about 250 partners and gives customers both a marketplace to review and purchase solutions as well as a community forum to review and rate solutions. SAP is now in an assertive push to grow a cloud community of solutions for its Business ByDesign and On Demand line of business apps (such as Sales On Demand) and keep pace with rival SaaS vendors such as Salesforce.com's AppExchange, NetSuite's SuiteCloud and Microsoft's Marketplace which have taken online ecosystems to a new level, and made them necessities for achieving market share in the cloud.
Customers: SAP counts over 102,000 customers of all sizes, industries and locations. While the company's flagship ERP product, Business Suite, is targeted to enterprise companies, that market is increasingly saturated and SAP is clearly moving down market to continue its growth objectives. The middle market is not a new focus but an increased focus for the software company. SAP regards 78%, or just over 80,000, of its 102,500 customers as small and midsize enterprises (SMEs). Granted, the company counts organizations with 2,500 and fewer employees as midsize, possibly a self serving definition, but nonetheless retains a substantial midmarket customer base.

SAP customers have formed sophisticated user groups that engage SAP at the executive levels. These user groups are not-for-profit organizations made up of both customers and partners which deliver education, share experiences and collectively influence SAP. Their influence was most notably recognized when SAP announced significant increases in annual maintenance fees, which were later deferred and more closely aligned with value, based on the user groups input. User groups are organized by geography, such as the Americas SAP Users Group (ASUG) or the German speaking SAP User Group (DSAG).
Competitors: Primary SAP competitors include the following:
  • Oracle - in the enterprise on-premise and hosted ERP and CRM software market
  • Lawson - in the enterprise, on-premise ERP and CRM software market
  • Infor - in the enterprise, on-premise ERP and CRM software market
  • NetSuite - in the SaaS ERP software market
  • Sage - in the SMB on-premise accounting software, CRM and ERP software market
  • Microsoft Dynamics - in the SMB accounting software, CRM and ERP software market




Contact SAP
Address Dietmar-Hopp-Allee 16
Walldorf 69190 Germany
Contact +49.6227.747474
Email [email protected]
Website www.sap.com
Twitter @sapinfo
LinkedIn CRM Group linkedin.com/companies/sap
YouTube youtube.com/user/saptv



As we spend more time with our customers and users, we notice that while competitiveness of products used to be all about features and functions, it is now focused very much on consumability, consistency and usability."

~ Jim Hagemann Snabe, SAP Co-CEO



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