SAP was founded in 1972 and is today one of the world"s largest independent business software providers – and one of the three largest independent software companies based on market capitalization.
Today, SAP has approximately 46,100 customers in over 120 countries and employs more than 43,800 employees in more than 50 countries in the Europe, Middle East, and Africa (EMEA), Americas, and Asia Pacific Japan regions.
SAP"s core business is developing and licensing business software solutions. The product portfolio includes the SAP NetWeaver technology platform and the following software applications:
SAP Business Suite applications, which help enterprises improve business operations ranging from supplier relationships, to production to warehouse management, sales, and all administrative functions, through to customer relationships
SAP solutions for small businesses and midsize companies, including SAP Business ByDesign, SAP Business All-in-One packages, and SAP Business One
Solution portfolios for more than 25 industries including financial services, consumer products, public sector, manufacturing, service industries, and discrete industries
As the world"s leading provider of business software, SAP delivers products and services that help accelerate business innovation for our customers. We believe that doing so will unleash growth and create significant new value – for our customers, SAP, and ultimately, entire industries and the economy at large. Today, more than 46,100 customers in more than 120 countries run SAP applications – from distinct solutions addressing the needs of small businesses and midsize companies to suite offerings for global organizations.
As we build on our strong position in core markets, SAP continues to seek opportunities in new market segments. Our strategy for capturing these opportunities includes focusing on mid-market customers, key industry segments, and emerging economies. In addition, we are increasing our efforts to attract new customers through Safe Passage programs, through solutions aimed at a wider range of business users, and through our SAP NetWeaver technology platform.
Key growth areas include:
-Small and midsize enterprises – IT spending among small and midsize enterprises (SMEs) with up to 2,500 employees currently outpaces that of larger companies – a trend that is expected to accelerate in the years ahead. SAP already leads the world with IT solutions for this market. In 2005, some 30% of order entry was achieved with SMEs. The company"s aim is to grow that share to a range of 40% - 45% by 2010.
-Key industries – SAP is the leading provider of enterprise software solutions in virtually every major industry. Going forward, we will continue to refine and expand our solutions for more than 25 industries. Through new solutions, strategic partnerships, and small acquisitions to enhance our solution portfolio, we will expand our capabilities in key industries that represent exceptional opportunities for growth, namely retail, financial services, public sector, and healthcare.
-Emerging economies – SAP continues to achieve outstanding gains in virtually all of the geographic areas in which we operate. In addition, we are making a special effort to increase our presence in several of the world"s emerging economies, including Brazil , Russia , India , and China , which are experiencing economic growth at rates well above global averages. In 2005, SAP"s revenue in those countries grew by 30%.
- Safe Passage – Safe Passage programs are comprehensive offerings that address the concerns of customers facing the uncertainties arising out of market consolidation activities and resulting end-of-life of competitive solutions.
Safe Passage programs can include access to SAP"s best-in-class solutions, protection for a customer"s existing investment in competitive solutions, immediate integration benefits through the SAP NetWeaver technology platform, and migration support services. During 2005, SAP introduced specialized Safe Passage programs for customers running PeopleSoft, JD Edwards, Siebel Systems, Inc., and Retek Inc. solutions, as well as specific support elements for the SME segment of the marketplace and for business process outsourcing organizations.
- Extended business-user market – By delivering Duet, SAP xApp Analytics, and the new SAP CRM on-demand solution, SAP is reaching a broader array of business professionals with tools that suit their particular requirements – in effect, expanding our potential market to include virtually 100% of all business users.
- Platform market – Where SAP is traditionally known for its application software, we are now adding a reputation for leadership in the platform space. With robust capabilities built on open standards, the SAP NetWeaver technology platform has become instantly attractive to ISVs as a platform upon which they can develop and market new, innovative software solutions. In 2005, more than 1,000 ISVs registered their commitment to bring forward a wave of new software innovation to meet customer challenges – all built with the same platform delivered with every SAP solution.