SAP#Enterprise SOA
{{Short description|German multinational enterprise-software company}}
{{other uses}}
{{Use British English|date=June 2022}}
{{Use dmy dates|date=November 2021}}
{{Infobox company
| name = SAP SE
| logo = 200px
| image =
| image_caption =
| type = Public
| traded_as = {{Unbulleted list|{{FWB|SAP}}|{{FWB|SAPA}} (ADR)|{{NYSE|SAP}} (ADR)|DAX component}}
| ISIN = {{Unbulleted list|{{ISIN|sl=n|pl=y|DE0007164600}}|{{ISIN|sl=n|pl=y|US8030542042}}}}
| caption =
| foundation = {{start date and age|1972}} in Weinheim, West Germany
| founders = {{Unbulleted list|Dietmar Hopp|Hans-Werner Hector|Hasso Plattner|Klaus Tschira|Claus Wellenreuther}}
| location_city = Walldorf, Baden-Württemberg
| location_country = Germany
| area_served = Worldwide
| key_people = {{Unbulleted list|Pekka Ala-Pietilä (chairman{{cite web|url=https://www.sap.com/investors/en/governance/supervisory-board.html|title=Supervisory Board SAP SE |publisher=SAP SE |access-date=19 May 2024}})|Christian Klein (CEO)}}
| industry = {{Unbulleted list|Enterprise software|Business software|Cloud computing|Consulting}}
| products = {{hlist|SAP AppGyver|SAP S/4HANA |SAP HANA |SAP ERP |SAP CRM |SAP PLM |SAP SCM |SAP SRM |SAP SuccessFactors |SAP NetWeaver |SAP Business ByDesign |SAP Business One |BusinessObjects | SAP IQ |SAP Ariba |ABAP |SAP Cloud Platform |SAP Converged Cloud |(Full list) }}
| services = {{hlist|Applications|Cloud }}
| revenue = {{Increase}} €34.18 billion (2024)
| operating_income = {{Decrease}} €4.665 billion (2024)
| net_income = {{Decrease}} €3.150 billion (2024)
| assets = {{Increase}} €74.12 billion (2024)
| equity = {{Increase}} €45.81 billion (2024)
| num_employees = 109,973 (2024)
| homepage = {{url|https://www.sap.com/|sap.com}}
}}
SAP SE ({{IPAc-en|ˌ|ɛ|s|.|eɪ|ˈ|p|iː}}; {{IPA|de|ɛsʔaːˈpeː|-|De-SAP.ogg}}) is a European multinational software company based in Walldorf, Baden-Württemberg, Germany. The company is the world's largest vendor of enterprise resource planning (ERP) software, and the most valuable company in Europe.{{cite news |newspaper=The New York Times |url=https://www.nytimes.com/2019/10/10/business/sap-ceo-bill-mcdermott.html |title=SAP Chief to Leave as Software Giant Shakes Up Management |date=10 October 2019}}{{cite web |url=https://assets.cdn.sap.com/sapcom/docs/2017/04/4666ecdd-b67c-0010-82c7-eda71af511fa.pdf |title=SAP: The World's Largest Provider of Enterprise Application Software |publisher=SAP Global Communications |date=28 April 2023 |access-date=11 May 2023}}{{Cite web |last=Reid |first=Jenni |date=2025-03-25 |title=Software giant SAP becomes Europe's most valuable firm amid German stock market boom |url=https://www.cnbc.com/2025/03/25/sap-becomes-europes-most-valuable-firm-amid-german-stock-boom.html |access-date=2025-04-25 |website=CNBC |language=en}}
SAP GbR became in 1981 fully Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications and Products in Data Processing) abbreviated SAP GmbH after a five-year transition period beginning in 1976.{{cite web|url=https://www.sap.com/about/company/history/1972-1980.html |title=The early years: 1972–1980 |publisher=SAP SE}} In 2005, it further restructured itself as SAP AG.{{cn|date=October 2024}} Since 7 July 2014, its corporate structure is that of a pan-European societas Europaea (SE);{{cite web|url=https://www.sap.com/corporate/en/company/history.html|title=SAP Company History|access-date=25 October 2024 |publisher=SAP SE}}{{cite web|url=https://www.sap.com/about/what-is-sap.html|title=What is SAP? |publisher=SAP SE}}{{Cite web |date=2014-07-07 |title=SAP Now European Company (SE) |url=https://news.sap.com/2014/07/sap-se-now-european-company/ |access-date=2020-07-11 |website=SAP News Center |publisher=SAP SE |language=en-US}}{{Cite web |title=SAP SE - Germany - HRB719915 |url=https://beta.e-justice.europa.eu/489/EN/business_registers__search_for_a_company_in_the_eu |access-date=2020-07-10 |publisher=European e-Justice Portal European Commission}} as such, its former German corporate identity is now a subsidiary, SAP Deutschland SE & Co. KG. It has regional offices in 180 countries{{Cite web |url=https://www.panorama-consulting.com/resource-center/erp-database/sap |title=SAP Software, SAP Implementations, SAP Company Profile |publisher=Panorama Consulting Solutions |date=15 February 2010 |language=en-US |access-date=2019-03-19}}{{cite web
|url=http://global.sap.com/corporate-en/our-company/index.epx |title=SAP at a Glance: Company Information |access-date=27 January 2015 |archive-url=https://web.archive.org/web/20140629053917/http://global.sap.com/corporate-en/our-company/index.epx |archive-date=29 June 2014 |url-status=dead}} and over 111,961 employees.{{Cite web |url=https://www.sap.com/documents/2017/04/4666ecdd-b67c-0010-82c7-eda71af511fa.html |title=SAP Corporate Fact Sheet |website=SAP |language=en |access-date=2019-03-19}}
SAP is a component of the DAX and Euro Stoxx 50 stock market indices.{{cite web |url=http://www.boerse-frankfurt.de/en/equities/indices/euro+stoxx+50+EU0009658145/constituents
|title=Börse Frankfurt (Frankfurt Stock Exchange): Stock market quotes, charts and news |access-date=22 October 2015 |archive-url=https://web.archive.org/web/20190208093448/http://www.boerse-frankfurt.de/en/equities/indices/euro%20stoxx%2050%20EU0009658145/constituents|archive-date=8 February 2019 |url-status=dead}} The company is the largest non-American software company by revenue and the world's third-largest publicly traded software company by revenue. As of December 2023, SAP is the largest German company by market capitalization.{{Cite news |date=2023-12-29 |title=Apple bleibt wertvollstes Unternehmen: SAP und Siemens in den Top 100 |language=de |publisher=FAZ.NET |url=https://www.faz.net/aktuell/wirtschaft/unternehmen/apple-bleibt-wertvollstes-unternehmen-sap-und-siemens-in-den-top-100-19413847.html |access-date=2023-12-29 |issn=0174-4909}}
History
When Xerox exited the computer hardware manufacturing industry in 1971,{{cite news |newspaper=Computerworld |first=Edith |last=Holmes |page=42 |date=26 January 1976 |title=IBM Opposes Retelling of Whole Xerox Story in Court}} it asked IBM to migrate its 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)/SAPE software repository.
Five IBM engineers from the AI department{{cite web |title=History of SAP AG |url=http://www.fundinguniverse.com/company-histories/sap-ag-history |publisher=FundingUniverse |access-date=3 May 2013}}International Directory of Company Histories, Vol. 16. St James Press, 1997. (Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner, and Claus Wellenreuther, all from Mannheim, Baden-Württemberg) were working on an enterprise-wide system based on this software, only to be told that it would no longer be necessary. Rather than abandoning the project, they decided to leave IBM Tech and start another company.{{cite web
|author=Staff |title=SAP History: From Start-Up Software Vendor to Global Market Leader |url=http://www.sap.com/corporate-en/about/our-company/history/index.html |access-date=10 October 2010 |archive-date=16 February 2016 |archive-url=https://web.archive.org/web/20160216153527/https://www.sap.com/corporate-en/about/our-company/history/index.html |url-status=dead}}
In June 1972 they founded the SAP {{lang|de|Systemanalyse und Programmentwicklung}} ("System Analysis and Program Development" / "SAPD") company, as a private partnership under the German Civil Code.{{Cite web
|url=https://www.sap.com/corporate/en/company/history/1972-1980.html
|title=The early years {{!}} SAP History {{!}} About SAP SE|website=SAP|language=en|access-date=2019-01-23}}
Their first client was the German branch of Imperial Chemical Industries in Östringen,[http://www.sap.com/uk/about/success/casestudies/ici.epx SAP UK – ICI Success Story] {{Webarchive|url=https://web.archive.org/web/20080904233938/http://www.sap.com/uk/about/success/casestudies/ici.epx |date=4 September 2008 }}, Sap.com (1 January 1999). Retrieved 24 April 2011. 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 in the Electronic System while using a common Logical database for all activities of Organization.{{clarify|date=April 2017}} Therefore, they called their software a real-time system, since there was 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 also a standalone software that could be offered to other interested parties.{{Cite web|url=http://www.sap.com/corporate-en/about/our-company/history/1972-1981.html|title=Standard Application Software for Real-time processing was developed|publisher=SAP|access-date=7 August 2015|archive-date=13 February 2016|archive-url=https://web.archive.org/web/20160213111207/http://www.sap.com/corporate-en/about/our-company/history/1972-1981.html|url-status=dead}}
In 1973, SAP launched its first commercial product, the RF financial accounting system. This system served as the cornerstone in the ongoing development of other software modules of the system that eventually bore the name SAP R/1.
This 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.{{cite web |url=http://chbeck.metapress.com/content/ph64048135784551 |title=Vom Programmierbüro zum globalen Softwareproduzenten: Die Erfolgsfaktoren der SAP von der Gründung bis zum R/3-Boom, 1972 bis 1996 |publisher=Chbeck.metapress.com |date=14 November 2008|access-date=27 March 2014|url-status=dead|archive-url=https://archive.today/20130128164657/http://chbeck.metapress.com/content/ph64048135784551|archive-date=28 January 2013}}
In 1976 SAP GmbH Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications, and Products in Data Processing") was founded as a sales and support subsidiary. Five years later, the private partnership was dissolved and its rights were passed on to SAP GmbH.The headquarters moved the following year to Walldorf, Germany.
In 1979, SAP launched SAP R/2, expanding the capabilities of the system to other areas, such as materials management and production planning.
In 1981, SAP brought a re-designed product to market. However, SAP R/2 did not improve until between 1985 and 1990.
In 1992, SAP released SAP R/3. SAP developed and released several versions of R/3 through 1995.
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. In 1995, SAP was included in the German stock index DAX and, on 22 September 2003, SAP was included in the STOXX Europe 50.{{cite press release |title=STOXX Limited Announces Changes to its Blue-Chip Index Series |date=1 September 2003 |publisher=Stoxx |url=http://www.whitehallresources.co.uk/stoxx-limited-announces-changes-to-its-blue-chip-index-series/ |language=en |access-date=21 October 2016}}
In the mid-1990s, SAP transitioned from mainframe computing to a client–server architecture. In 1996 it began its alliance with the Spanish technology consulting firm Seidor, initiating the expansion of SAP solutions throughout Latin America.{{Cite web |date=2019-11-11 |title=Seidor, los Reyes Magos de la gestión empresarial |url=https://www.viaempresa.cat/es/empresa/seidor-consultoria-software_2074997_102.html |access-date=2025-01-14 |website=VIA Empresa |language=es}}
In 2004, R/3 was replaced with SAP ERP Central Component (ECC) 5.0.{{Cite news|url=http://www.cipherbsc.com/sap-ecc-modules/|title=SAP ECC Modules - Cipher Business Solutions|publisher=Cipher Business Solutions|access-date=2017-03-29|language=en-US}} Architectural changes were also made to transition customers to a service-oriented architecture.
The company's official name became SAP AG (a public limited company) after the 2005 annual general meeting.
In 2006, SAP ERP 6.0 was released. SAP ERP 6.0 is the latest version has since been updated through SAP enhancement packs, the most recent being enhancement package 8 for SAP ERP 6.0 in 2016.{{Cite web |date=2016-03-04 |title=The latest version of SAP ERP available is SAP ECC 6.0 EHP7, What do you understand by ECC ? |url=https://www.linkedin.com/pulse/latest-version-sap-erp-available-ecc-60-ehp7-what-do-you-rakesh-singh |access-date=2018-02-01 |language=en}}
Since 2012 SAP has acquired several companies that sell cloud-based products, with several multi-billion-dollar acquisitions seen by analysts as an attempt to challenge competitor Oracle.{{cite news|url=https://www.bloomberg.com/news/articles/2012-05-22/sap-agrees-to-buy-ariba |title=SAP to Acquire Ariba for $4.3 Billion in Push into Cloud |first1=Kenneth |last1=Wong |first2=Dina |last2=Bass |publisher=Bloomberg L.P. |date=23 May 2012}} In 2016 SAP bought Concur Technologies, a provider of cloud-based travel and expense management software, for $8.3 billion, SAP's most expensive purchase to that date.{{cite news|url=https://www.forbes.com/sites/greatspeculations/2014/09/22/sap-to-acquire-concur-technologies-to-boost-cloud-sales |title=SAP To Acquire Concur Technologies To Boost Cloud Sales |newspaper=Forbes |date=22 September 2014}} 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" move.{{cite news|url=https://www.wsj.com/articles/sap-to-acquire-concur-technologies-1411076535 |title=SAP to Acquire Concur Technologies |newspaper=The Wall Street Journal |first1=Neetha |last1=Mahadevan |first2=Stephan |last2=Doerner |date=19 September 2014}}
On 21 May 2014, SAP AG announced during the Annual General Meeting of Shareholders that 99% of the shareholder votes approved the conversion of legal form to a European stock corporation (Societas Europaea, SE) and at the same time, elected the first supervisory board of SAP SE. The conversion of the company's legal form would take place upon entry in the commercial register, expected to be in July 2014.{{Cite web |date=21 May 2014 |title=SAP 2014 Annual General Meeting of Shareholders |url=https://news.sap.com/2014/05/sap-annual-general-meeting-shareholders-2014/ |website=SAP News Center}}{{Cite web |date=21 May 2014 |title=Conversion of legal form to European company (SE) approved – SAP shareholders elect Jim Hagemann Snabe to Supervisory Board of SAP SE |url=https://news.sap.com/2014/05/conversion-of-legal-form-to-european-company-se-approved-sap-shareholders-elect-jim-hagemann-snabe-to-supervisory-board-of-sap-se/ |website=SAP News Center}}
On 7 July 2014, SAP announced it had changed its legal form to a European Company (Societas Europaea, SE). As a result, its German subsidiary was renamed to SAP Deutschland SE & Co. KG.{{Cite web |date=7 July 2014 |title=SAP Now European Company (SE) |url=https://news.sap.com/2014/07/sap-now-european-company-se/ |website=SAP News Center}} The conversion cost the company approximately €4 million.{{cite web |title=Company Q & A |url=https://www.sap.com/corporate-en/about/investors/investorservices/faq/index.html |archive-url=https://web.archive.org/web/20160224162330/https://www.sap.com/corporate-en/about/investors/investorservices/faq/index.html |archive-date=24 February 2016 |access-date=27 May 2015 |publisher=Investor Relations, SAP}}
In 2014 IBM and SAP began a partnership to sell cloud-based services.{{cite news|url=http://www.businessinsider.com/ibm-and-sap-score-win-over-amazon-2014-10|title=IBM and SAP Score Win Over Amazon|work=Business Insider|date=14 October 2014}} Likewise, in 2015, SAP also partnered with HPE to provide secure hybrid cloud-based services running the SAP platform.{{Cite web|url=http://www8.hp.com/us/en/hp-news/press-release.html?id=1982676|title=HP News - HP and SAP Accelerate Journey to SAP® S/4HANA on HP Helion Managed Cloud|publisher=Hewlett-Packard |language=en|access-date=2017-03-26}} Both HPE and IBM provide infrastructure services to SAP, and SAP runs its SAP HANA cloud solution on top. SAP has announced additional partnerships with Microsoft in order to give customers tools for data visualization, as well as improved mobile applications.{{cite web|url=https://techcrunch.com/2014/05/19/microsoft-sap-strengthen-ties-with-mobile-data-cloud-partnership|title=Microsoft and SAP Strengthen Ties with Mobile, Data, Cloud Partnership|publisher=TechCrunch|date=19 May 2014}}
Since May 2015, the company has dealt with a series of high-profile bribery investigations,{{Cite news |date=1 February 2016 |title=PanamaBribery: SAP settles with SEC over Panama bribery scheme |url=https://www.reuters.com/article/us-sap-se-sec-idUSKCN0VA3HW |access-date=2017-07-14 |publisher=Reuters}}{{Cite news |title=#GuptaLeaks: Software giant paid Gupta front R100m 'kickbacks' for state business |url=http://www.news24.com/SouthAfrica/News/guptaleaks-software-giant-paid-gupta-front-r100m-kickbacks-for-state-business-20170711 |access-date=2017-07-11 |publisher=News24}}{{Cite web |date=28 February 2019 |title=SAP, EOH affiliate TTCS caught up in bribery allegations - TechCentral |url=https://techcentral.co.za/sap-eoh-affiliate-ttcs-caught-up-in-bribery-allegations/87871/ |access-date=2019-07-08 |publisher=techcentral.co.za}} including one that led to them paying $3.9 million to settle U.S. Securities and Exchange Commission civil charges over a former executive's scheme to bribe Panama government officials in order to win lucrative technology contracts.{{Cite press release |title=SEC Charges Software Company With FCPA Violations |date=1 February 2017 |url=https://www.sec.gov/news/pressrelease/2016-17.html |access-date=19 September 2020 |website=sec.gov}}
SAP exceeded its revenue projections due to the expansion in its cloud business and the success of SAP HANA. The growth can also be partially attributed to the acquisitions of Concur and Fieldglass.[https://www.forbes.com/sites/greatspeculations/2015/01/22/sap-posts-strong-2014-results-cloud-business-to-drive-future-growth "SAP Posts Strong 2014 Results, Cloud Business to Drive Future Growth" ], Forbes, 22 January 2015 Since 2017, SAP is a founding member of the EU Cloud Code of Conduct.{{Cite web|title=History|publisher=EU Cloud CoC|url=https://eucoc.cloud/en/about/history.html|access-date=2021-08-22|archive-date=22 August 2021|archive-url=https://web.archive.org/web/20210822214154/https://eucoc.cloud/en/about/history.html|url-status=dead}} Since May 2021 SAP has listed selected Cloud Service adherent to the EU Cloud Code of Conduct as one of the first Cloud Service Providers.{{Cite web|title=List of adherent services|publisher=EU Cloud CoC|url=https://eucoc.cloud/en/public-register/list-of-adherent-services.html|access-date=2021-08-22}}
In July 2017 allegations were made that SAP had been involved in business transactions with the controversial and politically influential Gupta family in South Africa. SAP was accused of paying CAD House, a Gupta-controlled company, R100 million in order to secure a Transnet deal. SAP denied the allegations, claiming that the money was paid as "an extension of the sales force", despite CAD House having no prior SAP experience.{{Cite web |title=GuptaLeaks: Software giant SAP paid Gupta front R100m "kickbacks" for state business |url=http://amabhungane.co.za/article/2017-07-11-guptaleaks-software-giant-sap-paid-gupta-front-r100m-kickbacks-for-state-business |archive-url=https://web.archive.org/web/20170711085312/http://amabhungane.co.za/article/2017-07-11-guptaleaks-software-giant-sap-paid-gupta-front-r100m-kickbacks-for-state-business |archive-date=2017-07-11 |access-date=2017-07-11 |publisher=AmaBhungane |language=en}} The dealings of the Gupta family with SAP were revealed in a widely publicized e-mail leak.{{Cite news |title=Guptas just tip of SA's corruption ice-berg - Saftu |url=http://www.fin24.com/Economy/guptas-just-tip-of-sas-corruption-ice-berg-saftu-20170711 |access-date=2017-07-11 |publisher=Fin24}}{{Cite news |title=Software giant pulled into Gupta saga with allegations of R100 million kickbacks |url=https://businesstech.co.za/news/business/184559/software-giant-pulled-into-gupta-saga-with-allegations-of-r100-million-kickbacks/ |access-date=2017-07-11 |publisher=businesstech.co.za |language=en-US}} As a consequence of the allegations SAP launched an investigation that led to four of its South African managers being placed on administrative leave along with the seizure of their mobile phones and computers.{{Cite news |last1=Cotterill |first1=Joseph |date=13 July 2017 |title=Germany's SAP to investigate South Africa kickback allegations |url=https://www.ft.com/content/d8d693c0-67d8-11e7-8526-7b38dcaef614 |url-access=subscription |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/d8d693c0-67d8-11e7-8526-7b38dcaef614 |archive-date=10 December 2022 |newspaper=Financial Times}} Claas Kuehnemann was named as acting managing director for Africa while the investigation continued.{{Cite news |title=SAP names Kuehnemann as acting MD |url=http://www.itweb.co.za/index.php?option=com_content&view=article&id=163367 |access-date=2017-07-17 |publisher=ITWeb Technology News}} On 26 October 2017 SAP announced that it had voluntarily reported itself to the U.S. Securities and Exchange Commission (SEC) for a possible violation of US law, including the Foreign Corrupt Practices Act (FCPA), related to the South African bribery allegations. SAP's own investigation, conducted by law firm Baker McKenzie, revealed that SAP had paid $7.7 million in commissions to third-parties linked to the Gupta family while securing contracts worth $48 million with Transnet and Eskom.{{Cite web |date=26 October 2017 |title=SAP Provides Update on Ongoing Investigation into Its South Africa Business |url=https://news.sap.com/sap-provides-update-on-ongoing-investigation-into-its-south-africa-business/ |url-status=dead |archive-url=https://web.archive.org/web/20171026143054/https://news.sap.com/sap-provides-update-on-ongoing-investigation-into-its-south-africa-business/ |archive-date=26 October 2017 |publisher=SAP News Center}}{{Cite web |last=Meyer |first=David |date=26 October 2017 |title=SAP Is Being Investigated by the U.S. Over a Major International Kickback Scandal |url=http://fortune.com/2017/10/26/sap-south-africa-gupta-doj-sec-corruption/ |url-status=dead |archive-url=https://web.archive.org/web/20171026143214/http://fortune.com/2017/10/26/sap-south-africa-gupta-doj-sec-corruption/ |archive-date=26 October 2017 |publisher=Fortune}}{{Cite web |date=26 October 2017 |title=US justice department launches investigation into SAP-Gupta dealings |url=https://mg.co.za/article/2017-10-26-us-justice-department-launches-investigation-into-sap-gupta-dealings |archive-url=https://web.archive.org/web/20171026143251/https://mg.co.za/article/2017-10-26-us-justice-department-launches-investigation-into-sap-gupta-dealings |archive-date=26 October 2017 |newspaper=Mail and Guardian}}
The company announced plans in 2016 to invest heavily into technology relating to the Internet of things (IoT) as part of a strategy to capitalize on the growth in that market. For that purpose, €2 billion is planned for investment in relevant sectors by the end of 2020.{{Cite web|url=http://fortune.com/2016/09/28/sap-invest-billion-internet-things-2020/|title=SAP Plans to Invest $2.2 Billion in the Internet of Things by 2020|agency=Reuters|work=Fortune|access-date=2017-07-17}} SAP will also launch a new product line called SAP IoT, which "will combine large amounts of data from things connected to the Internet with machine learning and SAP's real-time database S/4 HANA."
In 2018 and in an ongoing court battle, Teradata accused SAP of IP theft and fraudulent behaviour.{{Cite web |date=12 November 2021 |title=The dark side of SAP |url=https://www.spiegel.de/wirtschaft/unternehmen/sap-die-dunkle-seite-des-digitalkonzerns-a-bb2a621a-825c-44ee-be90-e6e74ceeea2d |access-date=30 June 2022 |publisher=spiegel.de}}{{Cite web |date=13 November 2021 |title=The dark side of SAP |url=https://www.manager-magazin.de/unternehmen/sap-die-dunkle-seite-des-digitalkonzerns-a-25f28c7b-8fe8-4495-9db8-63690f2e9442 |access-date=30 June 2022 |website=manager-magazin.de}} In 2021, in the German weekly news magazine Der Spiegel, additional claims were made of questionable behaviour with regards to SAP's funding of researchers at the University of Mannheim - who were in effect paid by SAP to investigate competitors technology.{{Cite web |date=12 November 2021 |title=Mit Datendiebstahl an die Weltspitze? |url=https://www.tagesschau.de/investigativ/mdr/sap-geistiges-eigentum-101.html |access-date=30 June 2022 |website=tagesschau.de}} In a later article, Der Spiegel magazine maintained that SAP had been neglectful in maintaining strict governance for years.{{Cite web |date=13 May 2022 |title=Hasso Plattner's smokescreen tactics |url=https://www.spiegel.de/wirtschaft/kritik-am-sap-patriarchen-die-vernebelungstaktik-des-hasso-plattner-a-7cd1ea12-e351-456f-ab47-f59e2c187ed9 |access-date=30 June 2022 |website=spiegel.de}} In June 2022 the German business magazine Manager Magazin published an article stating the management style of the leadership might be responsible for an increased compliance risk.{{Cite web |date=24 June 2021 |title=Der fragwürdige Führungsstil der SAP-Spitze wird zum Risiko |url=https://www.manager-magazin.de/unternehmen/tech/sap-verliert-manager-wie-christian-klein-in-walldorf-den-frust-schuert-a-a2f8b342-afcd-41d9-b8f8-e34a9f53ba52 |access-date=30 June 2022 |publisher=manager-magazin.de}}
On 29 January 2019 SAP announced plans to cut approximately 4,000 positions at the company in a strategic plan to shift to more modern cloud-based technologies such as blockchain, quantum computing, machine learning, Internet of Things, and artificial intelligence.{{cite news |last=Miller |first=Ron |url=https://techcrunch.com/2019/01/29/sap-job-cuts-prove-harsh-realities-of-enterprise-transformation/ |title= SAP job cuts prove harsh realities of enterprise transformation |work=TechCrunch |date=2019-01-29 |access-date=2019-01-29 }}
In February 2019 SAP was accused of 'improper conduct' linked to state contracts in Kenya and Tanzania. An anonymous whistle-blower claims, through a firm of attorneys, that SAP used Twenty Third Century Systems (TTCS) to bribe officials at the Tanzania Ports Authority (TPA) to win a US$6.6 million enterprise resource planning software tender that involved the provision of software licenses and services.
In 2021 SAP admitted in a United States court that it exported software to firms in Iran, contrary to US sanctions against Iran, which led to a fine of $8 million.{{Cite web |date=29 April 2021 |title=German software giant SAP hit with $8 million fine over Iran exports |url=https://www.dw.com/en/german-software-giant-sap-hit-with-8-million-fine-over-iran-exports/a-57382290 |access-date=2021-05-10 |publisher=Deutsche Welle |language=en-GB}}{{Cite web |date=2021-04-29 |title=SAP Admits to Thousands of Illegal Exports of its Software Products to Iran and Enters into Non-Prosecution Agreement with DOJ |url=https://www.justice.gov/opa/pr/sap-admits-thousands-illegal-exports-its-software-products-iran-and-enters-non-prosecution |access-date=2021-05-10 |publisher=justice.gov}}{{Cite web |last=Osborne |first=Charlie |title=SAP admits to 'thousands' of illegal software exports to Iran |url=https://www.zdnet.com/article/sap-admits-to-thousands-of-illegal-software-exports-to-iran/ |access-date=2021-05-10 |publisher=ZDNet}}
On 13 April 2021 SAP announced the formation of the joint venture SAP Fioneer, a dedicated Financial Services Industry (FSI) Unit between SAP and investment company Dediq GmbH.{{Cite web |date=2021-04-13 |title=SAP and Dediq GmbH Form Strategic Partnership |url=https://news.sap.com/2021/04/sap-dediq-strategic-partnership-financial-services/ |access-date=2021-10-24 |publisher=SAP News Center }}{{Cite web |date=2021-09-01 |title=SAP Fioneer Starts Operations |url=https://news.sap.com/2021/09/sap-fioneer-starts-operations/ |access-date=2021-10-24 |publisher=SAP News Center}} Dediq GmbH invested over €500 million in the newly formed unit and received an 80 percent share in return. [https://neodumps.com/sap/ SAP] brought its products, organizational units and the sales network into the business and holds 20 percent of the shares.{{Cite web |title=SAP reiterates, reinforces, and rebuilds its commitment to Financial Services Industry with SAP Fioneer |url=https://blogs.sap.com/2021/06/11/sap-reiterates-reinforces-and-rebuilds-its-commitment-to-financial-services-industry-with-sap-fioneer/ |access-date=2021-10-24 |publisher=blogs.sap.com |date=11 June 2021 }}
In May 2022, multiple claims were made of bullying and sexual harassment within the company, with many cases of unwanted advances by senior male managers on female colleagues. When complaints were made or information made available, HR were found to be unhelpful or hostile. For example, in one case a female employee was groped by a male manager in Sydney while at a company event, but he was never brought to account. In another case, a female employee was sexually targeted by a manager and asked to keep her web camera on during the day. She then complained and was placed under "performance management" - a precursor to being asked to leave the company.{{Cite web |date=6 May 2022 |title=SAP Wrestles With Concerns Over Women's Treatment, Senior Exits |url=https://www.bloomberg.com/news/articles/2022-05-06/sap-wrestles-with-concerns-over-treatment-of-women-female-exits |access-date=2 June 2022 |publisher=Bloomberg L.P.}} Several female executives, including the Co-CEO left the company, adding to concerns that women were negatively treated, despite SAP then hiring several other senior women from Microsoft.{{Cite web |date=6 May 2022 |title=SAP Wrestles With Concerns Over Women's Treatment, Senior Exits |url=https://news.bloomberglaw.com/esg/european-tech-giant-shaken-by-bullying-claims-exodus-of-women |access-date=2 June 2022 |publisher=bloomberglaw.com}}
In 2024 after investigations by the U.S. Justice Department and the Securities and Exchange Commission, SAP was ordered to pay $220 million to resolve violations of the Foreign Corrupt Practices Act in South Africa, Indonesia, Tanzania, Malawi, Ghana, Kenya, Zimbabwe and Azerbaijan. It paid bribes to officials in state-owned enterprises to gain government contracts. It entered into a three-year deferred prosecution agreement, paying a criminal penalty of $118.8 million and an administrative forfeiture of $103,396,765.{{Cite web |date=2024-01-10 |title=Eastern District of Virginia {{!}} SAP to Pay Over $220M to Resolve Foreign Bribery Investigations {{!}} United States Department of Justice |url=https://www.justice.gov/usao-edva/pr/sap-pay-over-220m-resolve-foreign-bribery-investigations |access-date=2024-01-12 |website=www.justice.gov |language=en}}{{Cite web |title=SECURITIES EXCHANGE ACT OF 1934 - Release No. 99308 |url=https://www.sec.gov/files/litigation/admin/2024/34-99308.pdf}} In South Africa SAP used third-party intermediaries to acquire tenders from various state-owned entities, including Transnet, the South African Revenue Service, the City of Johannesburg, Eskom and the Department of Water and Sanitation.{{Cite web |last=Jika |first=Thanduxolo |title=Joburg official's R2.2m SAP bribe diverted to 'unnamed political party' |url=https://www.timeslive.co.za/news/south-africa/2024-01-11-joburg-officials-r22m-sap-bribe-diverted-to-unnamed-political-party/ |access-date=2024-01-12 |website=TimesLIVE |language=en-ZA}}{{Rp|page=4}} In March 2024, SAP agreed to pay R500 million as part of an agreement with South Africa's Special Investigating Unit. The agreement indemnifies them against further financial claims related to the bribery, but does not absolve any parties from criminal prosecution.{{Cite web |last=Cronje |first=Jan |title=Software giant SAP to pay R500m to draw line under shady Eskom contracts |url=https://www.news24.com/fin24/companies/software-giant-sap-to-pay-r500m-to-draw-line-under-shady-eskom-contracts-20240325 |access-date=2024-03-25 |website=Business |language=en-US}}
On September 3, 2024 it was announced that CTO and Executive Board Member Juergen Mueller reached a mutual agreement to leave the company by the end of the month due to incident of inappropriate behavior at a company event.{{Cite news |date=2024-09-03 |title=SAP's CTO Mueller to Leave Company Over 'Inappropriate' Behavior |url=https://www.bloomberg.com/news/articles/2024-09-03/sap-s-cto-mueller-to-leave-company-over-inappropriate-behavior?embedded-checkout=true |access-date=2024-09-03 |work=Bloomberg.com |language=en}}{{Cite web |date=2024-09-03 |title=Juergen Mueller to Leave SAP Executive Board |url=https://news.sap.com/2024/09/juergen-mueller-to-leave-sap-executive-board/ |access-date=2024-09-03 |website=SAP News Center |publisher=SAP News |language=en-US}} Following the news of this incident it was reported on September 13, 2024 that German prosecutors have opened a formal investigation of sexual harassment between him and the female employee.{{Cite web |last=Robuck |first=Mike |date=2024-09-13 |title=SAP CTO faces German criminal probe |url=https://www.mobileworldlive.com/ai-cloud/sap-cto-faces-german-criminal-probe/ |access-date=2024-09-16 |website=Mobile World Live |language=en-GB}}
Acquisitions
{{Main articles|List of mergers and acquisitions by SAP}}
Since 1991, SAP has acquired more than 70 companies.
Products
{{main|List of SAP products}}
As well as its main ERP products, the company also sells database software and technology (particularly its own brand, SAP HANA) and cloud-engineered systems. It sells other ERP software products{{clarify|date=May 2024}} such as:
- Human capital management (HCM) software
- Customer relationship management (CRM) software
- Enterprise performance management (EPM) software
- Product lifecycle management (PLM) software
- Supplier relationship management (SRM) software
- Supply chain management (SCM) software
- Business technology platform (BTP) software
- The SAP AppGyver programming environment
Finances
class="wikitable floatright"
!Region !share |
United States
|32.7% |
EMEA (without Germany)
|29.1% |
Germany
|15.8% |
Asia Pacific (without Japan)
|10.8% |
Americas (without US)
|8.2% |
Japan
|4.0% |
For the fiscal year 2017 SAP reported earnings of €4 billion, with an annual revenue of €23.5 billion, an increase of 6.3% over the previous fiscal cycle.{{Cite web|url=https://www.wallstreet-online.de/aktien/sap-aktie/bilanz|title=SAP Bilanz, Gewinn und Umsatz {{!}} SAP Geschäftsbericht {{!}} 716460|website=wallstreet-online.de|access-date=2018-12-04}} SAP's shares traded at over US$154 per share, and its market capitalization was valued at US$180 billion in December 2023,{{Cite web|url=https://finance.yahoo.com/quote/SAP/key-statistics?p=SAP&.tsrc=fin-srch|title=SAP Key Statistics {{!}} SAP SE ADS Stock|publisher=Yahoo! Finance|language=en-US|access-date=2018-12-04}} making it the largest German company by market capitalization.
The key trends for SAP are (as at the financial year ending 31 March):{{Cite web |title=Financial Documents |url=https://www.sap.com/investors/en/reports.html |access-date=2023-11-30 |publisher=SAP Investor Relations |language=en}}{{Cite web |title=SAP Fundamentalanalyse {{!}} KGV {{!}} Kennzahlen |url=https://www.boerse.de/fundamental-analyse/SAP-Aktie/DE0007164600 |access-date=2024-04-09 |website=boerse.de |language=de}}{{Cite web |title=SAP 2008-2016 |url=https://www.boerse.de/fundamental-analyse/SAP-Aktie/DE0007164600 |url-status=dead |archive-url=https://web.archive.org/web/20170929103140/https://www.boerse.de/fundamental-analyse/SAP-Aktie/DE0007164600#guv |archive-date=29 September 2017 |access-date=2024-04-09 |website=boerse.de |language=de}}
class="wikitable float-left" style="text-align:center;"
!Year !Revenue !Net income !Total assets !Employees !Sources |
2013
|16.8 |3.3 |27.0 |66,572 | |
2014
|17.5 |3.2 |38.5 |74,406 | |
2015
|20.7 | 3.0 |41.3 |76,986 | |
2016
|22.0 |3.6 |44.2 |84,183 | |
2017
|23.4 |4.0 |42.4 |88,543 | |
2018
|24.7 |4.0 |51.5 |96,498 | |
2019
|27.5 |3.3 |60.2 |100,330 |
2020
|27.3 |5.1 |58.4 |103,876 |
2021
|27.8 |5.2 |71.1 |107,415 | |
2022
|30.8 |2.2 |72.1 |111,961 | |
2023
|31.2 |6.1 |68.2 |106,043 | |
2024
|34.2 |3.1 |74.1 |107,155 | |
Corporate structure and ownership
SAP had the following ownership structure in early 2024:{{Cite news |title=SAP Management {{!}} Profil {{!}} Unternehmen |url=https://www.boerse.de/unternehmensprofil/SAP-Aktie/DE0007164600 |access-date=2024-03-06 |website=boerse.de |language=de}}
class="wikitable"
!Shareholder name !Percentage |
Hasso Plattner
|6.60% |
BlackRock, Inc.
|5.53% |
Dietmar Hopp Stiftung GmbH
|5.04% |
SAP SE
|5.01% |
Capital Group Companies Inc.
|3.27% |
Klaus Tschira Stiftung gGmbH
|3.63% |
Goldman Sachs
|0.39% |
Free float
|70.53% |
{{Broader|SAP and unions}}
SAP uses a two-tier structure of boards with an executive board and a supervisory board.{{Cite web|url=http://supersaver.com.ng/bky4w/board-of-management.html|title=Board of management}}{{cite web |title=SAP Executive Board |url=http://www.sap.com/corporate-en/about/our-company/our-boards/executive-board.html |url-status=dead |archive-url=https://web.archive.org/web/20150729213915/http://www.sap.com/corporate-en/about/our-company/our-boards/executive-board.html |archive-date=29 July 2015 |access-date=4 August 2015 |publisher=SAP}} In October 2019 Jennifer Morgan and Christian Klein were appointed as co-CEOs of SAP.{{Cite web |date=2019-10-10 |title=SAP Sets Course with Next-Generation Leadership Team |url=https://news.sap.com/2019/10/sap-set-course-future-next-generation-leadership/ |access-date=2019-10-11 |publisher=SAP News Center |language=en-US}} In April 2020 it was announced that Jennifer Morgan will leave SAP and Christian Klein will continue to operate as the sole CEO, citing that the current environment of the COVID-19 recession requires "companies to take swift, determined action which is best supported by a very clear leadership structure".{{Cite web |date=2020-04-20 |title=Jennifer Morgan Departs SAP, Christian Klein Continues as CEO |url=https://news.sap.com/2020/04/morgan-departs-klein-continues-as-sap-ceo/ |access-date=2020-04-21 |publisher=SAP News Center |language=en-US}}
The majority of the company's employees are in Germany and United States. About 20,000 employees are based in Germany{{Cite web |date=23 May 2019 |title=Adam speaks at SAPs global HQ in Germany, home to over 20,000 employees |url=https://adamhenderson.co.uk/adam-speaks-at-saps-global-hq-in-germany-home-to-over-20000-employees/}} and about 19,311 employees are based in the United States.{{Cite web |title=SAP America |url=https://fortune.com/best-companies/2020/sap-america/ |publisher=Fortune}}{{Cite web |title=Working at SAP America |url=https://www.greatplacetowork.com/certified-company/1001312 |publisher=Great Place to Work}}
45 employee representatives were elected in 2022 to the SAP SE Works Council, including 15 candidates from the Ver.di and IG Metall trade union lists. They represent 17,000 employees of Germany.{{Cite web |last=Kerkmann |first=Christoph |date=2022-07-22 |title=Softwarehersteller: Überraschung bei SAP: IG Metall gewinnt Betriebsratswahl |url=https://www.handelsblatt.com/technik/it-internet/softwarehersteller-ueberraschung-bei-sap-ig-metall-gewinnt-betriebsratswahl/28232360.html |access-date=2022-04-18 |publisher=Handelsblatt |language=de}}
Headquarters is responsible for overall management as well as core engineering activities related to product development. Worldwide customer support is not provided by the field organizations but by a unified organization called Active Global Support (AGS).{{Cite web |title=SAP Software Solutions Business Applications and Technology |url=https://www.sap.com/index.html |publisher=SAP}}
The company also encourages employees to volunteer through social sabbaticals, sending teams of people to different countries to aid non-profits. SAP employees have volunteered in China, India, Brazil, and South Africa.{{cite web |date=11 February 2014 |title=How EY and SAP are championing corporate volunteering |url=https://www.theguardian.com/sustainable-business/ernst-young-sap-corporate-volunteering |access-date=13 November 2016 |work=The Guardian}}
Research and development
SAP Labs are research and development locations that develop and improve SAP core products. SAP Labs are strategically located in high-tech clusters around the globe.{{cite news |newspaper=The Times of India |url=https://timesofindia.indiatimes.com/business/india-business/Bangalore-to-house-SAPs-biggest-lab-in-Asia/articleshow/800336638.cms |title=Bangalore to house SAP's biggest lab in Asia |first=Satya Prakash |last=Singh |date=15 October 2001}}
The four most prominent labs of SAP SE are located in Germany, Japan, Israel and the US. Labs Walldorf was founded in 1972 and became SAP's primary location. At the beginning, the focus of SAP's expansion was entering highly developed IT markets; in 1993, Palo Alto became a part of SAP Labs. Aiming to acquire talented employees, SAP opened another lab in Bangalore in 2003.
SAP Research is the global technology research unit of SAP SE with a network of 21 research locations worldwide.{{cite web |title=About SAP Labs Network |url=https://www.sap.com/about/company/innovation/labs.html |website=www.sap.com}} Each center is located in close proximity to an SAP development center or on a university campus. The group significantly contributes to SAP's product portfolio and extends its leading position in the market by identifying and shaping emerging IT trends and generating breakthrough technologies through applied research. In contrast to SAP's product groups and development labs that work on new functions and releases, its researchers explore opportunities that have not yet been developed into products.
See also
References
{{reflist|30em}}
Bibliography
- {{cite journal |last1=Iansiti |first1=Marco |last2=Lakhani |first2=Karim R.|date=2 April 2009 |title=SAP AG: Orchestrating the Ecosystem |volume=609-069 |journal=Harvard Business School |ssrn=1408558 |access-date=2023-11-19 |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1408558}}
- {{cite book |last1=Meissner |first1=Gerd |date=2000 |title=SAP: Inside the Secret Software Power |url= |volume= |pages= |publisher=McGraw-Hill |doi= |isbn=978-00-71347-85-3|access-date=}}
- {{cite book |last1=Regan |first1=Gerard O’ |date=2015 |title=SAP SE. In: Pillars of Computing |url= |volume= |pages=189–194 |publisher=Springer Nature Switzerland AG. |doi=10.1007/978-3-319-21464-1_29 |isbn=978-3-319-21463-4|access-date=}}
External links
- {{Official website}}
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