What is SAP?

SAP is one of the world’s leading producers of software for the management of business processes.

Overview

Founded in 1972, SAP has grown from a small, five-person endeavor to a multinational enterprise headquartered in Walldorf, Germany, with more than 105,000 employees worldwide.

With the introduction of its original SAP R/2 and SAP R/3 software, SAP established the global standard for enterprise resource planning (ERP) software. Now, SAP S/4HANA takes ERP to the next level by using the power of in-memory computing to process vast amounts of data, and to support advanced technologies such as artificial intelligence (AI) and machine learning.

The company’s integrated applications connect all parts of a business into an intelligent suite on a fully digital platform, thereby replacing the process-driven, legacy platform. Today, SAP has more than 230 million cloud users, more than 100 solutions covering all business functions, and the largest cloud portfolio of any provider.

Christian Klein leads the company, heads up the Executive Board of SAP SE, and, at 44, is the youngest CEO of any major enterprise on Germany’s DAX blue chip market index.

What does SAP stand for?

The name is an initialism of the company’s original German name: Systemanalyse Programmentwicklung, which translates to System Analysis Program Development. Today the company’s legal corporate name is SAP SE—SE stands for societas Europaea, a public company registered in accordance with the European Union corporate law.

What does SAP do?

SAP helps companies and organizations of all sizes and industries run their businesses profitably, adapt continuously, and grow sustainably.

What is SAP software used for?

Traditional business models often decentralize data management, with each business function storing its own operational data in a separate database. This makes it difficult for employees from different business functions to access each other’s information. Furthermore, duplication of data across multiple departments increases IT storage costs and the risk of data errors.

By centralizing data management, SAP software provides multiple business functions with a single view of the truth. This helps companies better manage complex business processes by giving employees of different departments easy access to real-time insights across the enterprise. As a result, businesses can accelerate workflows, improve operational efficiency, raise productivity, enhance customer experiences—and ultimately increase profits.

What is ERP software?

ERP stands for “enterprise resource planning.” ERP software includes programs for all core business areas, such as procurement, production, materials management, sales, marketing, finance, and human resources (HR).

SAP was one of the first companies to develop standard software for business solutions and continues to offer industry-leading ERP solutions.

SAP Solutions

Additional resources

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See news and press releases from SAP on the SAP News Center. Read in-depth feature articles on current business and technology trends, find customer stories, and watch videos on SAP TV.

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FAQs

Was SAP a startup?

SAP began with a small group of friends who had a big idea: a vision of a digitally connected enterprise. Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner, and Claus Wellenreuther started the company as a private partnership in 1972 and launched the first commercial product a year later.

The founders and employees worked closely with customers—often sitting side-by-side in customers’ offices to learn their business needs and processes. Learn more about the company’s history.

Since then, the company has grown steadily, by expansion of its market and acquisitions worldwide, to transform from a small German startup company into one of the world’s largest technology companies and a global leader in business software.

And it has never lost its pioneering spirit nor its determination to create trailblazing solutions that change people’s lives for the better.

What is SAP ariba?

SAP Ariba is a longtime leader in spend management software that was acquired by SAP in 2012. Today, the SAP Ariba solution portfolio provides customers with the tools, services, and expertise they need to get a deeper understanding of spend.

What is SAP S/4HANA?

SAP S/4HANA is an enterprise resource planning (ERP) system with built-in intelligent technologies including AI, machine learning, and advanced analytics. The system runs on SAP HANA, an in-memory database that offers real-time processing speeds and a dramatically simplified data model.

What is SAP Business AI?

SAP Business AI is relevant, reliable, and responsible artificial intelligence. It’s built into our customers’ core business processes—connecting finance, supply chain, procurement, sales, marketing, human resources, and IT.

What is Innovation at SAP?

Innovation at SAP is shaping the future of business with technology that drives progress and sustainability. We use emerging technologies like AI, machine learning, and advanced analytics to turn billions of data points into a clear picture of where your business is today—and where it can go tomorrow.