History of SAP
SAP SE (Systems, Applications & Products in Data Processing) is a European multinational software corporation that makes enterprise software to manage business operations and customer relations. SAP is headquartered in Walldorf, Baden-Württemberg, Germany, with regional offices in more than 130 countries.
SAP is the world leader in enterprise applications in terms of software and software-related service revenue. Based on market capitalization, SAP is world’s third largest independent software manufacturer.
Company facts and information:
- More than 296,000 customers in 190 countries
- More than 75,600 employees – and locations in more than 130 countries
- A 43-year history of innovation and growth as a true industry leader
- Annual revenue (IFRS) of € 17.56 billion
- Listed under the symbol "SAP" on stock exchanges, including the Frankfurt Exchange and NYSE
A 43-year history of innovation:
In 1972, five entrepreneurs had a vision for the business potential of technology. With one customer and a handful of employees, SAP set out on a path that would not only transform the world of information technology, but also forever alter the way companies do business.
In 1973, the first commercial product was launched. It was called SAP R/98, 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 point of view, therefore, a database was necessary.
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.
Now 43 years and 296,000 customers stronger, we’re just getting started. Building on a track record of innovation and a vision proven true throughout every economic and IT shift, now more than ever, SAP is fuelled by the pioneering spirit that inspired its founders to continually transform the IT industry.
SAP’s 43-year history of success is defined by a few key themes:
- A belief that “real-time” data processing can help bring people closer to business intelligence
- A dedication to innovation and an entrepreneurial spirit that enable SAP to continually push what’s technically possible
- And an early commitment to collaboration and co-creating solutions with our customers
Foundation: Five former IBM employees start a company they call SAP Systemanalyse und Programmentwicklung ("System Analysis and Program Development").
Vision: Standard application software for real-time data processing is developed.
Associations: Taking the initial form of a private partnership under the German Civil Code, the company establishes its headquarters in Weinheim, Germany, and opens an office in nearby Mannheim. However, SAP's five founders spend most of their time in the data centers of their first customers, which include the German branch of Imperial Chemical Industries in Östringen.
Night owls: Development of the fledgling company's first programs takes place mainly at night and on weekends.
Initial success: At the end of its first year in business, SAP employs nine people and generates DM 620,000 in revenue.
Modularity: SAP completes its first financial accounting system – RF. This system serves as the cornerstone in the on-going development of other software modules of the system that will eventually bear the name SAP R/1.
New customers: More clients in southwest Germany are running SAP software, including the tobacco company Rothändle in Lahr and the pharmaceutical firm Knoll in Ludwigshafen. Meanwhile, SAP itself is using IBM servers and the DOS operating system.
Flexible: SAP demonstrates its flexibility for the first time, converting its RF system from the DOS operating system to OS over an eight-week period.
Customer base: Still just two and a half years in existence, SAP has a list of 40 reference customers.
Integration: Companies can now handle their purchasing, inventory management, and invoice verification with SAP's RM system.
Trademark: An SAP trademark begins to emerge – the integration of all of the company's applications. Materials management data flows directly into financial accounting on a value basis, while invoice verification and posting can be completed in one step.
Legal transition: The limited-liability company SAP GmbH Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications, and Products in Data Processing") is founded as a sales and support subsidiary. Five years later, the private partnership is dissolved and its rights are passed on to SAP GmbH.
Continued business success: SAP and its 25 employees generate DM 3.81 million in revenue.
Relocation: SAP moves its headquarters from Weinheim to nearby Walldorf.
First steps abroad: The company begins installing its system for customers outside of Germany for the first time. Two companies in Austria decide to implement SAP software.
Sales: SAP's reorganization strengthens its active sales.
Branching out: SAP completes the module Asset Accounting and a corresponding implementation project at a pilot company.
SAP parle français: The farm equipment manufacturer John Deere demonstrates SAP's international viability by developing a French-language version of the company's accounting software in an in-house project.
Centralization: SAP begins operations on its own server, Siemens 7738, for the first time. Up until this point, its employees' development activities have been distributed across the data centers of regional customers such as ICI, Thermal, Knoll, Grünzweig+Hartmann, and Freudenberg.
A home of its own: SAP's first data center is still located in leased space, but the company has already broken ground on the initial construction of its own facility.
Technological shift: An in-depth examination of IBM's database and dialog control system causes SAP to rethink its software, paving the way for SAP R/2.
Consolidation: SAP moves into its first facility on Max-Planck-Strasse in the Walldorf industrial park. Its development area – now 50 computer screens strong – is finally unified under one roof.
Upgrade: SAP augments its data-processing infrastructure by pairing its existing Siemens 7738 with an IBM/370-148, which the company then replaces in the same year with a more powerful IBM 4341. This model boasts 4MB of memory.
Further expansion: SAP expands its product portfolio with RV, a custom development for sales and distribution.
Debut: SAP makes its first event appearance at the IT trade show Systems in Munich, Germany.
Stabile: SAP R/2 achieves high level of stability.
Performance driving sales: The growing power of mainframe servers is enabling SAP to expand its customer base to approximately 200 companies.
Joint development: With the help of its customers, SAP expands its range of products with a production management module.
1982-1991: the SAP R/2 era
Real-time touches more of the business: SAP R/2 packaged mainframe software application processes in real time and integrates all of an enterprise’s business functions.
SAP turns 10: The company celebrates 10 years in business. More than 250 companies in Germany, Austria, and Switzerland now work with SAP software. Having already outgrown its own facilities, SAP constructs an expansion in record time.
Growth by the numbers: SAP generates DM 24 million in revenue and reaches the 100-employee milestone. Approximately 96% of its customers use SAP software to manage business processes.
Taking leave: One of SAP's cofounders, Claus Wellenreuther, departs the company.
Expansion in all areas: A third construction project is necessary to create space for the company's workforce, which continues to grow at a rapid pace.
Key figures: By midyear, SAP employ 125 people, and generates DM 41 million by the end of the fiscal year.
Trendsetter: Heraeus of Hanau, Germany, becomes the first customer to install SAP's RM-PPS module for production planning and control.
Human resources: SAP hires 48 new employees, in particular to meet its significant personnel needs in developing the new modules RK, PPS, and RP.
Alpine outpost: SAP (International) AG is founded in Biel, Switzerland, as the starting point for SAP's efforts in markets abroad.
Number crunching: SAP and its 163 employees generate revenues of around DM 48 million.
Tools for the job: SAP's data center now boasts three IBM servers and one Siemens server. Employees can access a total of 64MB of main memory in developing and enhancing the company's software.
International business: Around midyear, five SAP employees from Walldorf move into the new office in Switzerland and begin supporting the company's international efforts. At the end of 1985, more than 250 people work at SAP, generating DM 61 million for the year.
Increasing quality: A new quality assurance committee is established to help increase the stability of SAP software.
More business abroad: SAP opens its first international subsidiary in Austria. It also strengthens its presence in western Germany's Rhine-Ruhr region, opening its first branch office in Ratingen (near Düsseldorf).
Organization: SAP significantly increases its capital stock to DM 5 million, an increase of DM 4.5 million. The company's workforce has also grown to a point where its 300 employees now require smaller organizational units led by department managers.
Revenue: Thanks to new legislation requiring governing balance sheets, 100 new orders for SAP's Asset Accounting modules are received. SAP's revenues reach the DM 100 million – enabling SAP to reach this milestone sooner than expected.
Development: After three years in development, SAP's software for human resources management is made available to customers.
Presentation: The company showcases itself at the world's largest computer trade show CeBIT in Hanover, Germany, for the first time.
Under construction: SAP breaks ground on its new training center in the Walldorf industrial area. Construction also continues at the company's main facility on Max-Planck-Strasse – now in the fifth phase of expansion.
More business abroad: Following the foundation of its first non-German-speaking subsidiary in the Netherlands, SAP makes the leap to open offices in France, Spain, and Great Britain in the same year. Meanwhile, customers in northern Germany receive support from the company's new office in Hamburg, and those in the south from its Munich branch. At the end of the year, SAP has grown to employ more than 500 employees and generated DM 152 million in revenue.
User conference: SAP holds its first software conference in Karlsruhe, Germany, to establish a platform that enables current and potential users to share experiences.
Branching out: IBM's new generation of servers makes SAP's software available to midsize customers, generating between DM 30 million and DM 200 million. SAP establishes SAP Consulting to support new customers.
The next generation: Early attempts at establishing norms in software production are a key reason why SAP begins developing its next software generation: SAP R/3.
Transformation, going public: SAP transforms from a private, limited-liability company into the publicly traded SAP AG. In two increments, the company increases its capital stock from DM 5 million to DM 60 million. SAP then issues its initial public offering in October 1988 at a share price of DM 750. The 1.2 million shares issued in the names of their respective owners are listed at the German stock exchanges in Frankfurt and Stuttgart.
Ongoing expansion: SAP continues to bolster its global business by opening international subsidiaries in Denmark, Sweden, Italy, and the United States. Back in Walldorf, the company also opens its International Training Center, which includes an adjacent fitness area for the SAP workforce – now 940-strong and generating annual revenues of DM 245 million.
Customer milestone: Dow Chemicals becomes SAP's 1,000th customer. Meanwhile, SAP begins developing RIVA – a billing and administration system for utility companies – to meet the requirements of select industries.
Easier to use: SAP introduces its new, more user-friendly interface for SAP R/2. The company also kicks off various development projects – in production and other areas – with new tools, such as the ABAP/4 programming environment.
Growth demands investment: SAP R/3 is also beginning to take shape. A total of four UNIX systems from different manufacturers are incorporated into the company's development efforts. At this point, SAP is investing around DM 85 million – approximately 33% of its revenue – in research and development alone.
A bigger datacenter: SAP's data center now contains servers from IBM, Siemens, DEC, and Hewlett-Packard – providing a total memory capacity of 1,224MB.
International business: SAP (International) AG in Switzerland controls 12 international subsidiaries in Canada, Singapore, Australia, and other countries. With offices in 15 countries, SAP's 1,400 employees generate DM 370 million in revenue.
Financial markets: In its very first full year on the stock exchange, SAP is named "Company of the Year" by Manager magazine.
Research and development: By issuing preference shares, SAP AG increases its capital stock to DM 85 million. These additional funds enable the company to finance its rising investments. SAP invests DM 110 million in research and development to further develop SAP R/2 and the new SAP R/3 system. Initial prototypes of the financial accounting and materials management modules are already complete.
Holdings and acquisitions: SAP increases its focus on midsize companies by acquiring a 50% holding in the German software company Steeb and taking over the software firm CAS outright.
Reunification and expansion: The reunification of West and East Germany brings the nations' economies and currencies together – giving SAP the chance to expand to the latter region as it founds the joint venture SRS in Dresden along with Siemens Nixdorf and Robotron. The company also opens a branch office of its own in Berlin.
New and ongoing construction: Having exhausted the real estate on Max-Planck-Strasse in Walldorf, SAP begins building a sales and development center next to its training center. The company invests DM 135 million into this new construction project. Meanwhile, its 1,700 employees help surpass DM 500 million in revenue.
Sneak preview: SAP presents the first applications in its SAP R/3 system at CeBIT in Hanover, where the response is highly positive. With its client-server concept, uniform graphical interface, dedicated use of relational databases, and support for servers from various manufacturers, SAP is set to tap into new market potential: midsize companies, as well as the branch offices and subsidiaries of larger corporate groups.
Looking east: SAP responds to the fall of the "Iron Curtain" with numerous activities in eastern Europe. It concludes a cooperative agreement with the largest Russian software company ZPS and begins developing a Russian version of SAP R/2.
Trending upward: SAP's revenue and employee numbers continue their rapid ascent, reaching DM 707.1 million and nearly 2,700 members, respectively. The company now has 14 international subsidiaries and more than 2,200 customers in 31 different countries using its software.
1992-2001: the SAP R/3 era
Real-time reaches the desktop: A client-server version of the standard application software allows businesses to run more efficiently around the world.
The next generation arrives: Following successful installations with select pilot customers, SAP brings SAP R/3 to the general public and enters a new level of growth.
Ten twice over: Not about to let its 20th birthday pass without a proper celebration, SAP marks the occasion by opening its new sales and development center. Erwin Teufel, Minister President of the state of Baden-Württemberg, is among the guests. The company now manages its 15 international subsidiaries from Walldorf to make better use of its existing infrastructure.
Increasingly international: Of its DM 831 million in total revenue, SAP is now generating nearly 50% of it outside of Germany. Meanwhile, its global workforce grows to 3,157 employees by the end of the year.
Preparations: To ready itself for potential acquisitions and holdings, SAP adds another DM 15 million to its capital stock, bringing it to a total of DM 100 million.
Joint success: Expecting high demand for SAP R/3, SAP augments its partner strategy. Independent consulting firms, which SAP refers to as "logo partners," support customers in implementing the new system.
Partnerships: SAP begins working with Microsoft, the world's largest software maker, to port SAP R/3 to the Windows NT operating system. SAP also begins participating in the IXOS project, a joint undertaking involving the development and marketing of an electronic archiving system for original documents.
International expansion: The construction of a development centre in Foster City, California, gives SAP a presence near Silicon Valley. Meanwhile, the company establishes its 18th international subsidiary in the Czech Republic.
Technology: SAP delivers a version of SAP R/3 with support for kanji characters to the Japanese market. SAP R/3 is also being ported to SUN hardware, enabling it to run on all relevant RISC platforms.
By the numbers: SAP reaches the 10-figure mark for the first time, generating DM 1.1 billion in revenue with a workforce of more than 3,600.
SAP R/3 and Microsoft: The SAP R/3 system is released for Windows NT. One month later, a Swiss company becomes the first customer to go live with this new version.
Reinforcing retail: SAP bolsters its efforts in developing a retail solution for SAP R/3 by acquiring a 52% holding in DACOS Software GmbH.
In faraway lands: SAP kicks off its marketing activities in the Chinese market with presentations in Beijing, Shanghai, and Tianjin. It also opens its 19th international subsidiary in Mexico City.
Partners and customers: The IBM corporation, a longstanding SAP partner, is now using SAP R/3 to manage its global business processes. The corresponding contract is the largest in SAP's 23-year history.
Key figures: SAP's revenues have grown to DM 1.8 billion, of which the United States accounts for 34.3%. At year's end, the company is employing 5,229 people
A midmarket push: SAP begins to focus more marketing efforts on midsize companies with the help of system resellers.
Customer trust: The U.S. company Burger King, Inc., becomes the 1,000th customer to implement SAP's software for human resources management. Meanwhile, Microsoft joins the ranks of high-tech companies opting for SAP R/3. Deutsche Telekom AG sets a new record as the largest of SAP's contracts to date with 30,000 SAP R/3 workstations and collaborates with SAP on a solution for the telecommunications industry.
Success in the capital market: SAP's share price soars following its addition to Germany's DAX stock index and the transition to a minimum par value of DM 5. Shortly thereafter, Manager magazineonce again names SAP "Company of the Year." Now nearly 7,000 strong, SAP's workforce generates DM 2.7 billion in revenue.
SAP goes online: SAP introduces its joint Internet strategy with Microsoft. Through open interfaces, customers can now connect online applications to their SAP R/3 systems. They can also take advantage of IBM's new AS/400 platform.
Accolades: SAP is named "Company of the Year" by the European Business Journalists Association and for the third time by Managermagazine.
More renowned customers: Coca-Cola, the world's largest manufacturer of soft drinks, decides to implement SAP R/3.
Ubiquitous: SAP raises the bar with its numerous customer events, welcoming 4,300 guests interested in the company's products and strategy to the European SAPPHIRE event in Vienna. Meanwhile, over 8,000 attendees flock to the corresponding event in the U.S., and more than 5,000 are on hand for the first SAPPHIRE event in Japan.
Key figures: SAP's revenues climb to DM 3.7 billion, and its employees number 9,202 by year's end.
A quarter-century: SAP celebrates its 25 years in existence in Mannheim. German Chancellor Dr. Helmut Kohl is among the guests at the festivities.
An outstanding year: SAP sees its financial results before taxes reach the billions for the first time (DM 1.6 billion). The company's revenues grew by 62% to DM 6.02 billion, 81% of which comes from outside of Germany. SAP's workforce also expanded to nearly 13,000 employees – a 40% increase.
SAP R/3 still resonating: High-profile customers, such as Deutsche Post AG, Daimler-Benz, and General Motors, implement SAP R/3. More than two million users work with SAP solutions. Right on schedule, SAP completes release 4.0 of SAP R/3 and delivers it to pilot users at the end of the year.
Further internationalization: SAP resolves to enter the New York Stock Exchange (NYSE) in Q3 1998. In doing so, it mainly aims to raise its profile and presence in the world's biggest and most important market for information technology and strengthen its relationships with shareholders.
Changing of the guard: Dietmar Hopp and Klaus Tschira, two of SAP's cofounders, announce in February their decision to resign from the company's Executive Board. Both make the transition to the SAP Supervisory Board in May, where Hopp takes over as chairman. Meanwhile, the Supervisory Board names Henning Kagermann co-CEO of the company alongside cofounder Hasso Plattner.
SAP takes New York: On August 3, 1998, the letters "SAP" appear for the first time on the big board at the New York Stock Exchange, the world's largest trading floor. SAP co-CEO Hasso Plattner calls the company's debut on Wall Street a necessary and momentous milestone in SAP's history.
EnjoySAP: More than 15,000 customers, partners, and other interested individuals descend upon Los Angeles, California, for SAP's 10th SAPPHIRE event – breaking the previous attendance record. The event focuses on a new strategy, EnjoySAP, which places its focus squarely on SAP users. SAP plans to make its software easier to learn, faster to work with, and simpler to customize to customers' needs.
Help wanted: SAP plots a course for further success, which will continue to require motivated, qualified employees. It hires 6,500 new employees in 1998 – a 50% increase that expands the company's workforce to over 19,000 by year's end. SAP's fiscal year revenues come to €4.3 billion.
The mySAP.com revolution: In May, SAP co-CEO Hasso Plattner announces a new strategy that completely realigns the company and its product portfolio: mySAP.com. This reorientation will combine e-commerce solutions with SAP's existing ERP applications on the basis of cutting-edge Web technology.
Excelling with Enjoy: The EnjoySAP initiative serves as the foundation for mySAP.com's success. Studies carried out in the summer of 1999 by Mannheim University clearly show how much time customers can save in training and everyday use with mySAP.com.
A new self-perception: Along with its products, SAP's self-image is changing due to mySAP.com. The company reorganizes its Executive Board areas and founds the German Internet subsidiary e-SAP.de, reflecting an even stronger focus on the customer in the Internet age.
Major successes: SAP does not have to wait long to welcome its first mySAP.com customers. The soccer club FC Bayern Munich, the financial services provider MLP, and others sign up in October, while November and December witness the arrival of Hewlett-Packard, the Ford subsidiary Visteon, and the pharmaceutical group Hoechst Marion Roussel.
Key figures: More than 20,000 employees generate €5.1 billion in revenue for SAP. The company invests nearly 15% of this sum into research and development.
The new economy: SAP is now the world's leading provider of e-business software solutions that integrate processes within and among companies. The company is also the third-largest independent software vendor on the planet. Its workforce now numbers more than 24,000 employees in over 50 countries, generating revenues of €6.3 billion in the 2000 fiscal year (a 23% increase compared to 1999).
Cooperating without boundaries: Comprehensive e-business solutions, innovative technologies, and extensive services come together in the forward-thinking mySAP.com platform. As a result, employees, customers, suppliers, and other business partners can work together across company borders – anytime, anywhere.
Online marketplaces and portals: SAP enters the world of electronic marketplaces and corporate portals by outsourcing its corresponding area to its SAP Portals subsidiary and starting a partnership with Commerce One.
Solution-oriented: In continuing to expand its product and service portfolio, SAP demonstrates its commitment to evolving from a component vendor into a solution provider. Other world-leading companies recognize the value in this approach – Nestlé, for one, signs the largest SAP contract to date.
A new market: SAP adds a number of corporate portals to its solution portfolio by taking over TopTier, the leading company in the corresponding Israeli market. TopTier's founder, Shai Agassi, takes over the management of this business area and is appointed to the SAP Executive Board one year later.
From revolution to evolution: SAP expands mySAP.com, making it a comprehensive technology for business applications. As a result, SAP has the architecture it needs to help companies integrate a wide variety of IT systems.
Ongoing growth: The "New Economy" bubble has burst, and the IT market is suffering from the resulting decline in investment. However, customer faith in SAP's solutions remains undaunted, and SAP increases its revenues once again by 17%.
2002-present: real-time data where and when you need it
Real-time moves to the Web and beyond: Cloud computing, mobile, and in-memory computing open up new horizons for real-time data access – anywhere.
More birthday cake: Thirty years after its foundation, SAP is the third-largest independent software provider in the world and a paragon of the German economy. The SAP brand stands for high-quality business software.
A rising star: SAP's portfolio is not the only thing witnessing constant growth. The company's workforce also increases to around 29,000 by the end of 2002. Approximately 1,300 employees move into the new star-shaped building that has opened directly adjacent to SAP's headquarters in Walldorf.
New blood at the top: The Executive Board bolsters its ranks with Shai Agassi, who assumes responsibility for new technologies, and Léo Apotheker, who takes over global sales.
End of an era: Hasso Plattner resigns from the Executive Board and is elected chairman of the Supervisory Board. Plattner is the final SAP co-founder to leave the company's management team, but remains with SAP in an advisory role. Upon taking his leave, the nautical enthusiast receives a special gift – a sail signed by all of SAP's employees, which they hope will carry him to further success.
Technology of the future: What began in the "new economy" as mysap.com and evolved to mySAP technology reaches a new pinnacle in SAP NetWeaver. This technology enables SAP to offer fast, open, and flexible business applications that support end-to-end business processes – no matter whether they are based on systems from SAP or other providers.
Global developments: SAP Labs China marks the ninth opening of a development location outside of Walldorf. This and the other research centers in India, Japan, Israel, France, Bulgaria, Canada, and the United States help SAP convert IT expertise into business utility for its customers. The company now employs around 30,000 employees, approximately 17,000 of whom work outside of Germany.
Major success: SAP brings the first version of SAP NetWeaver to market. The response to this new integration and application platform is overwhelming. By the end of the year, well over 1,000 customers acquire the product, with even more on the way. Meanwhile, more than 24,000 total customers are running 84,000 SAP software installations in over 120 countries.
Joining forces: SAP announces its intention to acquire the remaining shares of its consulting subsidiary SAP SI and to merge the company into its corporate group. This move strengthens SAP's global portfolio of strategic IT consulting and integration services and makes SAP the go-to provider of many customers – especially those in Germany, Switzerland, and the United States.
A clear vision: SAP plans its future around the concept of enterprise service-oriented architecture (enterprise SOA). According to CEO Henning Kagermann, SAP will make all of its business applications service-based in the medium term to provide its customers with the most flexibility possible. In doing so, SAP sets the standard for the rest of the market.
Strong statistics: Under Kagermann's leadership, quarterly revenue gains and a constantly increasing market share keep SAP at the head of the pack in the rejuvenated IT market. Business Week names Kagermann one of the 25 best business managers in Europe, praising his customer-oriented corporate philosophy.
Excellence recognized: A study conducted on behalf of the business magazine Capital names SAP Germany "Best employer of 2005" among other companies with 5,000 employees or more. "I accept this award with pride and gratitude on behalf of the more than 32,000 people who work at SAP. For us as a company, it will mainly serve as motivation for the future. After all, SAP's success will continue to depend on the skills, drive, and dedication of our current and future employees," declares SAP Executive Board member Claus Heinrich upon receiving the award from Wolfgang Clement, Germany's Federal Minister of Economics and Technology.
Something cooking in the east: In February, SAP officially opens its new research and development facility in the Hungarian capital of Budapest. SAP Labs Hungary and its some 50 developers join SAP's global network of research locations, which incorporates the brightest minds in IT all over the world.
Organic growth: The year 2005 is marked by a series of acquisitions. While its competitors initiate their own major takeovers, SAP focuses on organic growth by acquiring smaller companies whose specific solutions augment its portfolio in sensible ways. These companies include the two retail providers Triversity and Khimetrics.
Impressive numbers: The company's software license revenues increase by 18%, and it records particularly high rates of growth in the Americas. The more than 35,800 SAP employees around the world generate total revenues of €8.5 billion.
International recognition: SAP once again garners numerous employer accolades. Along with SAP Germany, SAP Austria, SAP Chile, SAP Andina y del Caribe, SAP Mexico, and SAP Region Sur win the "Great Place to Work" award from the institute of the same name. In addition, SAP Labs India receives the distinction "Recruiting and Staffing Best in Class" from the Indian Institute of Management Studies & Research for its innovative methods in workforce planning and management.
Harmonious partnership: SAP and Microsoft introduce Duet, the first product of the two companies' joint efforts in development, support, sales, and marketing. This software enables users to quickly and easily integrate Microsoft Office and SAP-supported business processes. The partners sell 200,000 licenses in just the first three months.
Onward to further success: At the first SAPPHIRE event of the year in Orlando, Florida, SAP announces the general release of its flagship application, SAP ERP. "SAP ERP constitutes the foundation of SAP's industry solutions and a springboard to enterprise SOA," says SAP Executive Board member Léo Apotheker.
Good news from the midmarket: SAP noticeably expands its share of the midmarket with the solutions SAP All-in-One and SAP Business One. In June, the company announces that the latter solution has gained its 10,000th customer. SAP also has generates around 30% of its €3.1 billion in total software licensing revenues from companies with fewer than 2,500 employees.
Seizing new opportunity: When an acquisition makes sense in enhancing its product portfolio, SAP does not shy away from the investment required. The company buys Pilot Software – a private California provider of strategy management software – as well as Yusa, OutlookSoft, Wicom, and MaXware. SAP also announces its intention to purchase Business Objects, a company specializing in business intelligence applications.
Restructure of the Executive Board: Léo Apotheker is named SAP's deputy CEO at the end of March. SAP also forms an Executive Council, which comprises corporate officers who share responsibilities for market and product strategies and report to the Executive Board. This restructuring follows Shai Agassi's departure from the Executive Board.
Another year, another employer accolade: In its 35th year, SAP takes home the title of "Germany's Best Employer" for the third time in the annual "Great Place to Work" awards. The company also receives a special prize for its comprehensive health management program. SAP Labs India also ranks eighth among other employers in India.
Head start in the midmarket: As part of a special event in New York City, SAP reveals SAP Business ByDesign, a product designed specifically for small businesses and midsize companies. SAP CEO Henning Kagermann states that this new offering "represents SAP's ambitious attempt to create an all-new solution for an untapped market."
In the bag: SAP successfully completes its acquisition of Business Objects. Purchasing the French provider of business intelligence solutions expands SAP's software portfolio and makes it the market leader in business software, enterprise performance management, and business intelligence.
The choice of skilled employees: For the fourth time, SAP is named "Germany's Best Employer" among companies with at least 5,000 employees. The company also receives numerous awards in other countries, including China, Bulgaria, Denmark, India, Japan, and Mexico.
A global focus: The SAP Supervisory Board names Léo Apotheker co-CEO alongside Henning Kagermann. Two longstanding members, Peter Zencke and Claus Heinrich, resign from the Executive Board. The board then welcomes Ernie Gunst, Bill McDermott, and Jim Hagemann Snabe, whose international backgrounds will enrich SAP's executive management.
Sustainable business: SAP proves its commitment to sustainable business practices, releasing its first Sustainability Report. As the leader in its market, SAP is in a unique position to provide information technology that helps companies and organizations of all sizes improve their track records and achieve long-term sustainability.
Difficult times: With the effects of the global financial crisis having reached the real economy in 2008, the business world faces its own plight. Susceptible to the situation at hand, SAP initiates personnel cutbacks and other cost-saving measures. As of Q3 2009, SAP still employs some 47,800 people. Meanwhile, the company supports its customers with special programs designed to help them emerge from the crisis with the strength to succeed. Thanks to these programs and its cutbacks, SAP is able to improve its operating margin despite the difficult circumstances.
Another business milestone: At a launch event at its offices in New York City, SAP unveils its SAP Business Suite 7 software, which is designed to help businesses optimize their performance and reduce IT costs. A condensed ramp-up phase enables the first customers to go live with the software in March. In early May, the next generation of the suite is released to the rest of the world.
Passing the torch: After 27 years at the company – including 18 years on the Executive Board – Henning Kagermann bids farewell to SAP. Léo Apotheker becomes the company's sole CEO. In his inaugural address to SAP's employees in June, he stakes out a clear new path for the company, including his plans for SAP's future, its purpose, and the associated values.
In it for the long haul: SAP demonstrates how important it considers social involvement by supporting PlaNet Finance, an international non-profit organization that aids microfinance institutions (MFIs). SAP and PlaNet Finance aim to optimize the microfinance sector with a combination of financing, new technologies, and expanded value chains. In advance of the 15th United Nations Climate Change Conference in Copenhagen (COP15), SAP also offers its assistance to the U.N.'s Hopenhagen initiative. Last but not least, SAP employees continue to volunteer their time in support of social projects all over the world.
Dynamic duo: In February, the Supervisory Board names Bill McDermott and Jim Hagemann Snabe co-CEOs of the company. Chief technology officer Vishal Sikka also joins the Executive Board. Angelika Dammann follows Sikka in July, becoming the first woman to serve on the Executive Board as she assumes responsibility for global human resources and labor relations.
Major acquisition: In May, SAP announces its plans to purchase the California company Sybase for approximately US$5.8 billion. Sybase is the largest business software and service provider specializing exclusively in information management and mobile data use. The synthesis of the two leading companies is to produce solutions for "wireless" companies.
Real-time innovation: More than 50,000 customers and other interested people attend SAP's SAPPHIRE Now event either live or online – a new record. In addition to a comprehensive overview of SAP's product strategy, they witness numerous innovations – chief among them is in-memory technology which ushers in a new era of real-time processing in business applications.
Outstanding results: The new year gets off to a great start. Software revenue of EUR 1.5 billion in the final quarter of 2010 enables co-CEOs Bill McDermott and Jim Hagemann Snabe to point to the best quarter in SAP's history and pleases investors. Double-digit growth in the following quarters shows that more and more customers are turning to SAP's software innovations.
Anytime, anywhere: Customers, already excited in 2010 by SAP's vision of SAP in-memory computing, are able to take full advantage of its benefits in 2011. Initial customers implement the first in-memory product, the SAP HANA platform, enabling them to analyse data in seconds rather than the days or even weeks they would otherwise have needed. Demand for SAP HANA can be compared to that for SAP R/3 software at the time of its launch. SAP's strategy for mobile business applications is also bearing fruit. Since its acquisition of Sybase, an SAP company, in 2010, SAP and its partners now ship mobile applications that open up the SAP world to a new type of user – those who are out in the field rather than in the office.
Growth: SAP announces its plans for growth: It is looking to expand in emerging market economies such as Brazil, India, Russia, and especially China, and it intends to invest some EUR 2 billion in the mid-market sector alone. It also has growth plans for its business in the booming cloud-computing market. Just before the end of the year, SAP announces its EUR 2.5 billion acquisition of Success Factors, the leading provider of cloud applications.