SAP

SAPSAP America Inc.
3999 West Chester Pike
Newtown Square, PA 19073  USA
www.sap.com

History

SAP was founded in 1972 as Systems Applications and Products in Germany by five former IBM employees. In 1973, the company announced the first product called R/1 with the R meaning “real time”. In the late 1970′s the product became R/2 using the IBM database. The company went public in 1988. R/3 was introduced in the early 1990′s to take advantage of client-server architecture. The product evolved to mySAP in the late 1990′s to take advantage of Internet technologies.

SAP is the largest of the ERP vendors today with over 38,000 customers.

The company’s best known products are its enterprise resource planning application(SAP ERP), SAP BusinessObjects software, and most recently, Sybase mobile products and in-memory computing appliance SAP HANA.

SAP Financial Information for Fiscal Year

Total RevenueLicense FeesService FeesR&D ExpenseProfit
$23,224,372$6,236,622$19,267,791$4,598,749
Financial results displayed in thousands of US dollars.
Financial period ending 12/31/13.

SAP Financial Information for the Quarter

Total RevenueSupportService FeesR&D ExpenseProfit
$5,085,538$4,201,276$884,262$754,992$734,363
Financial results displayed in thousands of US dollars.
Financial period ending 12/31/13.

Markets

Revenue breakdown by major industry is:

  • Process = 24%
  • Discrete = 21%
  • Service = 21%
  • Consumer = 17%
  • Public Service = 11%
  • Financial Services = 6%

Vertical Industries

  • Aerospace and Defense
  • Automotive Supplier
  • Banking
  • Chemical Manufacturing
  • Consumer Products
  • Contract Manufacturing
  • Defense & Security
  • Electronic Equipment
  • Food & Beverage
  • Healthcare
  • Higher Education & Research
  • High Tech
  • Industrial Equipment
  • Insurance
  • Media
  • Medical Equipment
  • Metal Fabrication
  • Mining
  • Oil & Gas
  • Plastics Fabrication
  • Professional Services
  • Public Sector
  • Pharma Manufacturing
  • Retail
  • Sports, Entertainment
  • Telecommunications
  • Travel, Transportation
  • Utilities
  • Wholesale Distribution

ERP Software Products

SAP’s flagship software is called mySAP. Ver. 6.0 release notes can be found here.

SAP has 2 versions of mySAP:

  • mySAP Suite – which includes ERP, CRM, SCM, SRM, PLM, Financials, and Human Resources

In 2006 SAP began to market vertical industry versions of mySAP called “All in One.”  These versions are aimed at the SMB (small/medium business) market. They are marketed primarily by SAP re-sellers that specialize in that vertical market. The All in One solutions are pre-configured versions for the vertical market.

In 2002, SAP announced a new offering called “Business One.”  This product was acquired in Europe and is now offered for companies ranging in size from 10 employees to several hundred.

In 2007 SAP rolled out its “software as a service” offering called Business On Demand. SAP BusinessByDesign is now the SAP cloud offering.

Technology

With the introduction of SAP ASE 16.0 and the ability to process transactions within one database system, SAP products such as SAP Business Suite and SAP HANA benefit from heightened performance and manageability.

The SAP Replication Server, also for use with SAP Business Suite and SAP HANA, ensures synchronous replication, allowing for heightened security and disaster recovery.

SAP SME clients can now benefit from a “buy now, pay later” plan, allowing small to medium-sized business a flexible and customizable plan for acquiring necessary technologies.

A recent Enhancement Package for SAP ERP allows for 100 new functions, increased security for software investments, faster MRP runs, and real-time access to ERP data.

With the launch of SAP Fiori, 25 new apps geared towards common business functions are available to SAP users.

SAP NetWeaver is SAP’s integrated technology computing platform and is the technical foundation for many SAP applications since the SAP Business Suite. SAP NetWeaver is marketed as a service-oriented application and integration platform. SAP NetWeaver provides the development and runtime environment for SAP applications and can be used for custom development and integration with other applications and systems. SAP NetWeaver is built using primarily the ABAP programming langugage, but is also comprised of C (programming language), C++, and Java EE. It also employs open standards and industry de facto standards and can be extended with, and interoperate with, technologies such as, Java EE, Microsoft .Net and IBM Websphere.

SAP NetWeaver’s release is considered as a strategic move by SAP for driving enterprises to run their business on a single, integrated platform that includes both applications and technology. Industry analysts refer to this type of integrated platform offering as an “applistructure” (applications + infrastructure). According to SAP, this approach is driven by industry’s need to lower IT costs through an enterprise architecture that is at once (1) more flexible; (2) better integrated with applications; (3) built on open standards to ensure future interoperability and broad integration; and, (4) provided by a vendor that is financially viable for the long term.

Marketing Channels

SAP markets their products through their direct sales force in companies exceeding $500M
For organizations less than $500M SAP will market their products through their indirect partner channel.

Mid-Market Channel

SAP’s North American Headquarters in in Newtown Square PA with 16 district offices dispersed throughout the United States.

SAP’s Main Office in the Midwest is located at:
3010 Highland Parkway, Downers Grove, IL 60515
For other US Office Locations:
http://www.sap.com/contactsap/directory/usadirectory.epx

Key SAP ERP Partners

Answerthink - www.answerthink.com
Itelligence Group – www.itelligencegroup.com
Yash Technologies - www.yash.com