SAP SE is a leading software company based in Germany. It offers ERP, database, cloud systems, and various software products. Founded in 1972, SAP has over 111,961 employees worldwide and is a major player in the software industry.
In 1971, Xerox contracted IBM to migrate its business systems onto IBM technology platforms. Five IBM engineers, including Hasso Plattner, Klaus Tschira, Claus Wellenreuther, Dietmar Hopp, and Hans-Werner Hector, based in Monnheim, Germany, began working on the program that eventually led to the formation of SAP.
On April 1, 1972, five former IBM employees - Dietmar Hopp, Hasso Platter, Claus Wellenreuther, Klaus Tschira, and Hans-Werner Hector - started the company SystemAnalyse Programmentwicklung (System Analysis Program Development). Their idea was to create standard enterprise software that integrated all business processes and enabled data processing in real time.
The first financial accounting system, SAP R/1, was introduced in 1973, laying the foundation for SAP's future developments and contributions to the enterprise software market.
In 1974, SAP acquired its first ten customers, including companies like Burda, Schulze-Pharma, and Linde, marking the beginning of its growth in the market.
In 1975, SAP's founders and employees built applications for financial accounting, invoice verification, and inventory management by working closely with customers to understand their business needs and processes.
SAP installs its software outside Germany for the first time at Swiss customers Coop and Georg Fischer, marking a significant expansion of its market reach.
In 1977, the company expanded to Austria, which led to an increase in revenues as they took on new clients outside of the German market.
In 1978, SAP expanded to the French market, introducing a French language version of the software. This move further contributed to the company's growth.
SAP employees Jürgen Hachenberger and Gerald Malter focus on developing SAP R/2, a new generation of software designed for international markets.
In 1980, SAP launched the R/2 version of their software, which featured upgraded supporting servers and tighter integration between functional areas. This version became popular in the software market for the next decade.
SAP R/2 software was introduced, improving data processing speed and integrating business functions for real-time desktop access. It quickly gained stability and was showcased at the 'SYSTEMS' IT trade show in Munich, Germany.
SAP celebrates its 10th anniversary with over 250 companies in Austria, Germany, and Switzerland using its software. Due to growth, a new office extension was constructed in record time.
In 1983, SAP experiences a significant increase in revenue, reaching DM24 million, and hires its 100th employee. Additionally, 96% of its customers rely on SAP software for managing their business operations.
In 1984, SAP establishes its first international subsidiary in Biel, Switzerland, known as SAP (Schweiz AG), marking the beginning of its global presence.
In 1985, SAP hired 48 new employees to meet the demand for development resources for the new modules RK (cost accounting), PPS (production planning and control), and RP (human resources).
In 1986, SAP reached a significant milestone by achieving DM100m in revenue.
SAP achieves the landmark of DM100 million in revenue earlier than anticipated, attributed to the adoption of new financial reporting standards and a surge in orders for its asset accounting software.
In October 1988, SAP lists on the Frankfurt and Stuttgart exchanges, issuing 1.2 million bearer shares at DM750.
SAP expands its data center to accommodate servers from IBM, Siemens, DEC, and Hewlett-Packard, providing 1,224MB of memory.
In 1990, SAP expands eastward by establishing a joint venture, SRS, in Dresden and opening a local office in Berlin. This expansion signifies SAP's strategic move to grow its presence in the newly unified Germany.
In 1991, SAP launched SAP R/3 to incredibly positive reviews.
In 1992, SAP introduced SAP R/3, a new generation solution built on the ABAP programming language and featuring a three-tier architecture.
In 1993, SAP began working with Microsoft to port SAP R/3 to the Windows NT operating system.
In 1994, SAP formed an alliance with Microsoft to make SAP software integratable with Microsoft products like Windows NT and SQL Server.
Version 3.0, released in 1995, offered modules in four basic business areas and faced competition from Oracle.
In 1996, SAP responded to the internet by introducing the e-commerce enabled mySAP.com product suite, expanding its offerings to adapt to the digital age.
In 1997, SAP marked its silver jubilee with a 40% increase in its workforce, reflecting the company's continued growth and success.
SAP AG transformed into SAP SE in 1998.
In 1999, SAP introduced ABAP Objects as the next generation of the ABAP programming language. This object-oriented extension to ABAP provided enhanced capabilities for SAP applications.
In 2001, SAP acquired Israeli software development company TopTier Inc. for $400m, integrating their Netweaver portal solution into the SAP landscape with the R/3 4.6 release in 2004.
The release of SAP R/3 Enterprise Edition 4.7X200 in September 2003 further solidified SAP's position as a leader in the ERP market. This version showcased the continuous development and improvement of SAP software.
In 2004, SAP launched SAP ERP, replacing the R/3 system with ERP Central Component (ECC), which evolved from SAP ECC5.0 to SAP ECC6.0 within two years.
In 2005, SAP introduced SAP HANA with its innovative in-memory database technology, revolutionizing data processing and analytics.
In 2006, SAP acquired Praxis Software Solution, a company engaged in making software for web-based applications and e-commerce.
In 2007, SAP introduced the SAP Business ByDesign platform, a notable addition to its product offerings.
In 2008, SAP acquired the French business intelligence company Business Objects, expanding its portfolio and capabilities in the business intelligence sector.
In 2009, SAP introduced a new business suite, SAP Business Suite 7 software, designed to optimize business performance and reduce IT costs.
In 2010, SAP unveiled SAP HANA, an innovative in-memory database and platform that transformed data processing and analytics. This marked a significant milestone in SAP's technological advancements.
SAP launched the first SAP HANA platform, allowing customers to analyze data in seconds. The launch of SAP HANA generated high demand similar to the introduction of SAP R/3. SAP also focused on mobile business applications, shipping applications to users working in the field.
SAP acquires hybris, a prominent leader in commerce technology, to enhance its e-commerce platform and provide options for on-premise or cloud deployment.
The entire SAP Business Suite migrates to SAP HANA, a move that results in significant revenue generation, with SAP HANA becoming one of the fastest-growing products in enterprise software history.
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 elected the first supervisory board of SAP SE.
SAP changed its legal form to a European Company (Societas Europaea, SE) and renamed its German subsidiary to SAP Deutschland SE & Co. KG. The conversion cost the company approximately €4 million.
In 2015, SAP launched SAP S/4HANA, the latest generation of business software that operates entirely on SAP HANA, marking a significant advancement in SAP's product offerings.
SAP partnered with Apple to enhance the mobile experience for SAP enterprise customers by delivering a new SAP HANA Cloud Platform SDK exclusively for iOS, allowing developers to create applications for iPhone and iPad devices.
In July 2017, allegations surfaced that SAP had engaged in business transactions with the controversial Gupta family in South Africa. SAP was accused of paying R100 million to a Gupta-controlled company to secure a Transnet deal. This led to an investigation and self-reporting to the US Securities and Exchange Commission.
SAP announces its intent to acquire Qualtrics International, a pioneer in experience management software, to accelerate the experience economy and Intelligent Enterprise.
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.
SAP transitions from a co-CEO to a sole-CEO model with Christian Klein taking over after Jennifer Morgan's departure. Klein outlines a growth strategy focused on industry cloud, SAP Business Network, business process intelligence, and sustainability.
On 13 April 2021, SAP announced the establishment of the joint venture SAP Fioneer with investment company Dediq GmbH, focusing on the Financial Services Industry. Dediq GmbH invested over €500 million and acquired an 80 percent share, while SAP contributed its products, organizational units, and sales network, retaining a 20 percent stake.
SAP celebrated its 50th anniversary with a global party and on-site celebrations in 20 locations. The event featured live concerts, stage shows, and a company history trail. German Chancellor Olaf Scholz and Prime Minister of Baden-Württemberg Winfried Kretschmann praised SAP as a leader in the German digital economy.
By December 2023, SAP emerged as the largest German company based on market capitalization, solidifying its position in the global market.
In March 2024, 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. The company paid bribes to officials in state-owned enterprises to secure government contracts.
SAP pledges to achieve carbon neutrality in its operations by the year 2025. The company is enhancing its efforts to reduce greenhouse gas emissions through various initiatives and programs.