The SAP FAQ

99 questions about the SAP world.
All 99 answered.

The company, the numbers, the products, SAP TM, the ecosystem, the careers — every answer sourced, none of it vendor copy.

The company
What is SAP?

The company that established the global standard for enterprise resource planning (ERP) software — the integrated systems running finance, procurement, supply chain, HR and customer processes in most of the world’s large companies. Founded 1972 in Germany, today a global cloud company in what SAP itself calls "the age of AI".

From the publisher's chair — Andreas BORN: I have sat in every seat at this table: the customer side at Siemens — 40+ implementation and rollout assignments in the global R/2-to-R/3 transformation — then 16+ years of SAP leadership across five continents: Africa, board-level escalations in the US, Vice President at SAP Labs in Palo Alto. Today, the partner side.

Every seat at the table — the career →
What does "SAP" stand for?

The founding name was Systemanalyse Programmentwicklung ("system analysis program development", 1972); the 1976 company became SAP GmbH — Systeme, Anwendungen und Produkte in der Datenverarbeitung: systems, applications and products in data processing.

Who founded SAP?

Five former IBM employees — Dietmar Hopp, Hasso Plattner, Claus Wellenreuther, Klaus Tschira and Hans-Werner Hector — with one idea: standard business software that processes data in real time instead of overnight batches.

Who was SAP’s first customer?

The German subsidiary of Imperial Chemical Industries (ICI), 1972 — the founders spent most of their time working in the customer’s own data center, a build-with-the-customer habit that shaped the company.

What were R/1, R/2 and R/3?

The first three product generations — the "R" stands for real time. RF (1973, financial accounting) became the cornerstone of R/1; R/2 (1981) took real time to enterprise scale; R/3 (1992) brought client-server architecture and turned SAP into a global player.

From the publisher's chair — Andreas BORN: My own career spans the arc: I started in the R/2 era, and 25+ years later the same discipline — real-time data, standard software, integration — is what makes AI-ready Cloud ERP work.

When did SAP go public?

October 1988, listing in Frankfurt and Stuttgart. The same year Dow Chemicals became the 1,000th customer, and SAP entered the US market.

Where is SAP headquartered?

Walldorf, Germany — the company moved there in 1977 and into its first own building in 1980, retiring punched cards for terminals.

What is SAP HANA?

SAP’s in-memory database platform, launched 2011: analyses that took days or weeks complete in seconds. Its launch generated demand SAP compares only to R/3’s.

What is S/4HANA?

The current-generation business suite, unveiled 2015, built entirely on HANA with the Fiori user experience — delivered on-premise, in private cloud and in public cloud editions.

The deployment decision, worked →
How old is SAP?

Founded April 1, 1972 — SAP turned 50 in 2022, celebrated as the flagship of the German digital economy.

How many people work at SAP?

About 110,650 at the end of 2025 (full-time equivalents; Integrated Report 2025): 50,837 in EMEA, 32,053 in Asia-Pacific-Japan, 27,760 in the Americas. Women make up 35.8% of the workforce.

How many customers does SAP have?

SAP states 400,000+ customers in more than 180 countries and a cloud user base of over 350 million; roughly 80% of SAP customers are small and midsize enterprises (SAP Global Communications fact sheet, July 2026).

What was SAP’s very first product?

A materials, information and accounting system called "MIAS", completed by the end of the founding year 1972 — followed in 1973 by RF, the real-time financial accounting system that became the cornerstone of R/1.

When did SAP first go international?

1975: the first installations outside Germany, at Swiss customers Coop and Georg Fischer. The first international subsidiary followed in 1984 — SAP (Schweiz) AG in Biel, alongside SAP (International) AG as the hub for global business.

When did SAP enter the US market?

1988, the same year as the IPO — SAP opened its US subsidiary alongside Denmark, Italy and Sweden. SAP’s own history calls entering the US "pivotal to the company’s long-term success".

Who leads SAP today?

CEO Christian Klein, with Hasso Plattner’s era on the supervisory side long concluded — Plattner was the last co-founder to leave the Executive Board back in 2003.

What is SAP SE — why the "SE"?

Since 2014 SAP is a Societas Europaea, a European Company — a legal form underscoring its international orientation; five of the Supervisory Board’s 18 members at conversion came from outside Germany.

What is SAPPHIRE?

SAP’s flagship customer conference. The lineage starts with the first customer training at Hotel Motodrom at the Hockenheimring (1977) and the first user conference in Karlsruhe (1987); by 1996 SAPPHIRE filled Vienna, the US and Japan in one year.

What is ABAP?

SAP’s own programming language — the ABAP/4 environment shipped in 1989, and generations of business logic are written in it. SAP described a five-million-strong ABAP developer community in July 2024.

The Practitioner’s Desk →
What role did IBM play in SAP’s story?

The founders came from IBM; IBM’s database and dialog-control systems shaped the early software; IBM’s Systems Application Architecture (1987) triggered R/3’s multiplatform design — and by 1994 IBM itself ran global operations on R/3, then SAP’s largest contract ever.

How fast did SAP grow in the early decades?

From DM 3.81 million revenue and 25 people (1976) to DM 100 million (1986), a public company (1988), DM 1.1 billion (1993) and the DAX (1995) — with international business reaching nearly half of revenue by 1992.

Where does SAP develop its software?

Across 100+ development locations and 13 SAP Labs — a network that began with Foster City near Silicon Valley (1993) and grew through labs in Bulgaria, Canada, China, France, Hungary, India, Israel, Japan and the US (fact sheet, July 2026; SAP history).

Has SAP always been called SAP?

The brand appeared on letterheads from 1975; the legal names evolved — private partnership (1972), SAP GmbH (1976), SAP AG at the 1988 IPO, SAP SE since 2014. Lowercase-obsessives take note: the company writes itself SAP, always.

Do the world’s biggest companies really run SAP?

Per SAP’s July 2026 fact sheet: 99 of the 100 largest companies in the world are SAP customers, 86 of the 100 largest are S/4HANA customers, and SAP customers generate 84% of total global commerce.

From the publisher's chair — Andreas BORN: Several of those 99 were my accounts — Nestlé, Swiss Post, HSBC, Barclays, Standard Chartered, PETRONAS. What the statistic doesn’t show: each one is a decade-long relationship, not a logo.

Deep dive: Rej Pathania — Condition of Entry →
The numbers — FY2025
How big is SAP’s revenue?

€36.8 billion total revenue in FY2025, up 11% (Integrated Report 2025). Roughly 86% of revenue is now "more predictable" — recurring cloud and support streams.

How fast is SAP’s cloud growing?

Cloud revenue rose 23% to €21.0 billion in 2025; within it the Cloud ERP Suite grew 28% to €18.1 billion. Guidance for 2026: €25.8 billion or more.

Deep dive: Nina Simosko — The Growth Mandate →
What is the Current Cloud Backlog?

SAP’s measure of contractually committed cloud revenue for the next twelve months — €21.1 billion at the end of 2025, having grown around 25% through the year.

How profitable is SAP?

FY2025 operating profit was €9.6 billion IFRS (€10.4 billion non-IFRS), up 31%; free cash flow reached €8.2 billion, nearly doubling year-on-year.

What dividend does SAP pay?

A proposed €2.50 per share for 2025 (2024: €2.35) — roughly €2.9 billion distributed.

How much of the world’s business runs on SAP?

SAP’s July 2026 fact sheet states that SAP customers generate 84% of total global commerce. (The long-standing companion claim: 77% of the world’s transaction revenue touches an SAP system.)

How much does SAP invest in innovation?

R&D expense runs at 18.7% of total revenue (non-IFRS, Q2/2026), with 38,309 R&D employees — 34.2% of the entire workforce — across 100+ development locations and 13 SAP Labs. Sapphire Ventures adds 200+ company investments with over $10 billion under management.

From the publisher's chair — Andreas BORN: In Palo Alto I held executive oversight for production programs, partner validation and release readiness — teams from 10 to 1,000 people, budgets to US$7.5 million. The unglamorous side of that R&D number, and the part customers feel.

The CV behind the claim →
What is SAP’s climate commitment?

Net zero by 2030 along the value chain. Gross greenhouse gas emissions (Scopes 1–3, market-based) were 6.33 million tons CO₂e in 2025, down from 6.9 in 2024 (Integrated Report 2025).

How is SAP’s workforce developing?

Headcount grew to ~110,650 FTE (2021: ~102,660); employee turnover was 8.2%, the Employee Engagement Index 76%, and 35.8% of employees are women (Integrated Report 2025).

What does SAP expect for 2026?

Cloud revenue of €25.8–26.2 billion, cloud and software revenue of €36.3–36.8 billion, non-IFRS operating profit of €11.9–12.3 billion and free cash flow of about €10 billion — with total revenue growth expected to accelerate through 2027 (Integrated Report 2025, outlook).

How to read the Integrated Report →
What is SAP worth on the stock market?

€256.0 billion market capitalisation at the end of 2025 (2024: €290.3 billion) against €45.1 billion of book equity — more than five times the balance sheet, which SAP itself attributes to competitive intangibles that never appear in the accounts.

The €211 billion you can’t audit → Deep dive: Michael Crawley — The Value Ledger →
Why did SAP’s reported emissions halve?

A methodology update: from 2026 SAP recalculates gross greenhouse gas emissions, restating the baseline from 6.33 to 3.6 million tons CO₂e — a rebaselining under the GHG Protocol, disclosed as such. The net-zero-2030 commitment stands.

When the tape measure changes →
What does SAP spend on research versus sales?

FY2025: €6.63 billion on R&D (18.0% of revenue, 37,965 development FTEs — about a third of the company) versus €8.88 billion on sales and marketing, which declined 2% (Integrated Report 2025).

How predictable is SAP’s revenue really?

The share of "more predictable revenue" — cloud and support — climbed from 74.6% in 2021 to 85.7% in 2025 (five-year summary). The subscription transition is, by this measure, essentially complete.

Deep dive: Katarina Lantuh — Time-to-Money →
What dividend history does SAP have?

Per share: €2.45 (2021), €2.05, €2.20, €2.35, and a proposed €2.50 for 2025 — roughly €2.9 billion distributed (Integrated Report 2025).

What is Cloud CSAT?

SAP’s new customer-experience KPI from 2026, replacing the former Customer Net Promoter Score: 75% in 2025, with a 75–76% outlook. The old NPS closed at 9 (2024: 12).

What is SAP’s Core Services segment?

€3.95 billion of services revenue at a deliberately thin €0.43 billion profit — SAP’s stated strategy is to use it to drive adoption and consumption of the cloud portfolio rather than maximise services margin.

Deep dive: Tobias Unger — The Transformation Office →
Products & strategy
What is RISE with SAP?

SAP’s 2021 offering bundling the move of core ERP to the cloud into one subscription — one contract for service levels, operations and support. SAP describes customers choosing RISE first, then expanding across the portfolio ("land and expand").

From the publisher's chair — Andreas BORN: I led RISE engagements from the inside — as executive lead for Standard Chartered Bank and PETRONAS in Singapore. The contract is the easy part; the operating-model change is the decision.

RISE vs GROW — the decision →
What is GROW with SAP?

The 2023 counterpart for midsize companies: S/4HANA Cloud Public Edition with preconfigured processes, accelerated adoption and embedded AI — go-lives in as little as four weeks, per SAP.

SAP for midsize companies →
Public cloud or private cloud — what’s the difference?

Public cloud means standardised software, continuous updates and adopting standard processes; private cloud preserves more of the existing system and its custom logic. The right answer is a business-model decision, not a preference.

The decision, worked →
What is Clean Core?

The discipline of keeping the ERP core unmodified — extensions live on the platform beside it, so updates keep flowing. Simple to say, consequential to do.

The Clean Core decision →
What is SAP BTP?

The SAP Business Technology Platform: application development, data and analytics, integration and AI in one platform — where Clean Core extensions live, and a central element of RISE.

BTP & extensibility →
What is Joule?

SAP’s AI copilot and, increasingly, its agent framework — positioned as the AI user experience for every user, with agentic AI embedded into end-to-end processes (Integrated Report 2025).

AI agents in ERP →
What is SAP Business Data Cloud?

SAP’s data foundation for Business AI — the layer meant to make business data accessible across cloud infrastructures, successor territory to the BW-era warehouse world.

From BW to Business Data Cloud →
When does the ECC era actually end?

The dates are moving parts with committed maintenance horizons — the real question is what your timeline decision costs at each waypoint. sapperment keeps a worked decision timeline rather than a scare-date.

The ECC decision timeline →
Which acquisitions built SAP’s cloud?

TopTier (2001), Business Objects and Sybase opened the era; then the defining wave — SuccessFactors (announced 2011, €2.5bn), Ariba (2012), hybris (2013), Fieldglass and Concur (2014, then the largest SaaS acquisition in history) — and Signavio (2021) for process intelligence.

What is the SAP Business Network?

Announced 2021: the merger of the Ariba Network, SAP Logistics Business Network and SAP Asset Intelligence Network into one business-to-business network — over 5.5 million organisations, per SAP.

What was mysap.com?

SAP’s 1999 answer to the Internet and the new economy — the umbrella that later evolved into mySAP Business Suite and, via NetWeaver (2003), into the platform thinking that still shapes SAP today.

What is SAP’s AI strategy?

SAP’s CEO letter calls 2025 "an inflection point" where Business AI "graduated from a possibility to an absolute necessity": Joule everywhere, agentic AI in processes, industry AI applications co-developed with customers, and Business Data Cloud underneath. The stated goal: to be the #1 Business AI company.

AI governance — the decision →
What is the Autonomous Enterprise?

SAP’s vision of a business where AI assistants and agents manage and execute many end-to-end processes, with humans keeping control of critical decisions — delivered through Joule as the engagement layer, the SAP Autonomous Suite, and Industry AI planned across 26 industries (fact sheet, July 2026).

The Autonomous Enterprise, examined → The human side: Robert Lienhard — What Must Remain Human →
What is the SAP Business AI Platform?

Announced for delivery in Q3/2026: process context, unified business data and purpose-built models with enterprise governance — including Joule Studio for building agents, the SAP Knowledge Graph as semantic layer, Business Data Cloud, BTP, and capabilities from the Reltio, Dremio and Prior Labs acquisitions.

Data & Business AI — the decision →
What is SAP Fiori?

SAP’s user-experience design system, launched with S/4HANA in 2015 to reflect mobile-era design principles — the visual and interaction language of the modern suite, now being joined by Joule as the conversational layer.

What is SAP NetWeaver?

The 2003 integration and application platform that ended the mysap.com era — open, connecting SAP and non-SAP systems, with well over 1,000 customers in its first year. Its platform thinking is BTP’s ancestor.

What is the Cloud ERP Suite?

SAP’s core cloud portfolio — S/4HANA Cloud, BTP and the line-of-business solutions for people, spend, commerce and customer data. It represents 88% of SAP’s total cloud revenue and grew 28% to €18.1 billion in 2025.

Cloud ERP licensing, decoded →
What is SAP Datasphere?

The 2023 successor to SAP Data Warehouse Cloud — a data service on BTP running against every cloud and hybrid environments, and part of the lineage that leads to SAP Business Data Cloud.

From BW to Business Data Cloud →
What is Joule Studio?

The design environment inside the SAP Business AI Platform (delivery announced for Q3/2026) for building and extending AI agents, applications and workflows grounded in business context.

What is the SAP Knowledge Graph?

The semantic layer of SAP’s AI platform: it encodes business meaning — connecting data, processes and relationships — so AI can reason over the enterprise accurately rather than guess from text.

What is SAP Industry AI?

Vertical AI with built-in process knowledge, data models and regulatory logic — starting with 7 autonomous industry domains and planned to expand across 26 industries (fact sheet, July 2026).

What is SAP Build?

SAP’s low-code toolset on BTP, announced at TechEd 2022: drag-and-drop apps, process automation and business sites for users with limited technical background — paired with a Coursera partnership to train the next developer generation.

Deep dive: Philip Zhang — The Builder’s Proof →
Which hyperscalers run SAP’s cloud?

Customer choice across Alibaba, Amazon, Google and Microsoft — plus SAP’s own infrastructure: 43 data centers in 24 locations across 15 countries (fact sheet, July 2026).

What is Catena-X?

The automotive data network SAP co-founded in 2021 to standardise data sharing along the entire automotive value chain — an early template for cross-company data ecosystems.

What is SAP Fioneer?

The 2021 financial-services joint venture with investment company Dediq (over €500 million invested) — expanding banking and insurance solutions built on SAP software beside SAP’s own roadmap.

What risk does SAP itself rate highest?

Cybersecurity — the only risk rated "likely" with "business-critical" impact in the Integrated Report 2025 risk matrix. The partner ecosystem appears twice: as a scaling risk and as a "fundamental pillar" of growth.

What happened to Business Objects and Sybase?

The acquisitions that opened SAP’s expansion beyond ERP — analytics (Business Objects, 2008 era) and database/mobility (Sybase, 2010 era) — absorbed into the portfolio and eclipsed by HANA’s rise from 2011.

What is the mySAP Business Suite?

The 2003 renaming of mysap.com’s application family — the "Business Suite" name that, two decades later, SAP revived as the umbrella for the AI-era cloud portfolio.

SAP TM — the practitioner corner
What is SAP Transportation Management?

SAP’s solution for planning, executing and settling transportation — from transportation demand through freight orders, carrier selection, execution and charge settlement — embedded in S/4HANA or run side-by-side.

The SAP TM Hub → The Architect’s View: Bernd Mosbrucker →
What is a freight order?

The central execution document of SAP TM: the concrete instruction to move goods, carrying the route, the carrier, the charges and the status that everything downstream depends on.

Freight Order Management →
How does carrier selection work in SAP TM?

From simple ranking to the carrier selection optimizer and tendering — direct, broadcast or automatic. Getting it right decides both freight cost and service reliability.

Carrier selection, worked →
What is freight settlement?

Where transportation meets finance: charge calculation, cost distribution and the settlement documents that turn a moved shipment into a correctly posted invoice — the TM discipline where errors get expensive.

Freight settlement →
What is the SAP Business Network for Logistics?

The logistics side of SAP Business Network — connecting shippers and carriers for collaboration beyond one company’s four walls, part of the network SAP merged from Ariba, logistics and asset intelligence in 2021.

SAP Business Network in TM → Deep dive: Deborah Born — SAP TM Hub founder →
Who covers SAP TM on sapperment?

A domain with two generations of authority: Deborah Born, S/4HANA TM principal consultant and founder of the SAP TM Hub and its 2,100+ member community — and Bernd Mosbrucker, an original architect of SAP TM, writing The Architect’s View.

The hub →
The ecosystem & careers
How many SAP consultants are there?

SAP stated in June 2024 that the ecosystem holds more than 5 million consultants — an SAP-reported estimate, not an audited census, and the benchmark sapperment measures itself against.

The world map: the 5m+ ecosystem →
How many ABAP developers are there?

SAP described a "5 million-strong ABAP developer community" in July 2024 — likely overlapping heavily with the consultant ecosystem; the two are never added.

How big is the SAP Community?

Roughly 3 million members with 3 million+ unique monthly visitors (SAP Community) — including learners and many non-consultants.

How many people are learning SAP?

SAP reports 4 million learners reached since 2022, and has pledged to equip 12 million people with AI-ready skills by 2030 — the first is a current indicator, the second an ambition, and they are not today’s professional headcount.

Where do SAP professionals live?

No census exists. sapperment’s scenario model allocates the 5m+ ecosystem roughly: Europe and Asia ~35% each, North America ~19%, South America ~6%, Africa ~3%, Oceania ~2% — modelled central shares with explicit ranges, not measurements.

The modelled map →
How do I start an SAP career?

Domain first, tool second: the practitioners worth hiring connect process, architecture, data and change. sapperment’s Talent pages map the paths, certifications and realities.

SAP Careers → Ask a practitioner: Arghadip Kar →
What is an SAP role really worth?

More than the salary line — car, pension, training, flexibility and role scope belong in the calculation. The Know Your Worth guide covers the full package.

Know Your Worth →
How do employers find verified SAP talent?

Through people, not keyword databases. sapperment’s anonymous Talent Profiles publish skills under reference numbers — the candidate decides who learns their name.

Anonymous talent profiles → Deep dive: Lennaert Buschman — The Mandate Side of SAP Hiring →
What do SAP consultants actually do?

The good ones connect four things: business process, system architecture, data and change. The title says "consultant"; the job is translating between what a business needs and what a system can be made to do.

The Talent Network → Deep dive: Tony Martinez — The Last Mile of ERP →
Is ABAP still worth learning?

Five million developers strong, and every Clean Core strategy still needs people who understand what lives in the core they are cleaning. Low-code grows beside it, not instead of it — the demand shifts toward developers who know both.

The Practitioner’s Desk →
How does SAP train the ecosystem?

SAP reports 4 million learners since 2022, free learning offerings tripled on the SAP Learning site, a Coursera partnership since 2022 — and a pledge to equip 12 million people with AI-ready skills by 2030 (an ambition, not a headcount).

What is SAP PartnerEdge?

SAP’s partner program — the framework of tracks (service, sell, build) and statuses through which some tens of thousands of companies deliver, extend and resell SAP. The Integrated Report calls the ecosystem "a fundamental pillar" of SAP’s growth.

From the publisher's chair — Andreas BORN: I have run this route myself from the partner side — establishing PartnerEdge Service and Sell authorisations. The program rewards exactly one thing: evidence.

Where are SAP careers growing fastest?

Directionally where the model puts the ecosystem’s weight: Asia and Europe carry ~35% each of the modelled 5m+ professionals, and SAP’s own APJ workforce grew fastest of the three regions from 2021 to 2025 (Integrated Report data).

The modelled map →
How do leaders keep up with SAP skills?

Even SAP struggles: completion of at least one relevant learning asset by leaders fell to 22% in 2025 (2024: 36%) as learning shifts to per-person skills-gap analysis (Integrated Report 2025). The gap conversation has replaced the catalogue conversation.

Deep dive: Robert Lienhard — talent attraction →
About sapperment
What is sapperment?

An independent SAP publishing platform: one invited, accountable expert voice per domain — no vendor marketing, no sponsored conclusions — plus a Talent Network connecting the professionals themselves.

Meet the voices →
What does "sapperment" mean?

An old German exclamation of surprise (Flügel, 1854) — roughly "oh my goodness — wow". The reaction good SAP work should earn.

What is sapperment’s goal?

Connect the global SAP professional ecosystem — benchmarked against SAP’s reported 5 million+ consultants. Today’s gross channel footprint is 224,000+ total audience, about 4% of the benchmark, tracked openly on the world map.

Goal vs footprint →
Who writes on sapperment?

Leading Top Voices who each own one domain — from Cloud ERP strategy to SAP TM practice to talent attraction — every one invited, accountable, and carrying a live-verified audience, across five continents.

The expert roster →
Why trust sapperment’s numbers?

Every reach figure is read live from the platform it comes from, rounded down, and carries its qualifier; every market figure carries its source and date; models are labelled as models. The build pipeline enforces these rules mechanically — a violating page cannot deploy.

What is Executive Clarity?

sapperment’s executive funnel: the eight-decision library — ECC timeline, Public vs Private, RISE vs GROW, Clean Core, business case & TCO, BTP, Data & AI, governance — plus one executive read per week, Monday morning, by email.

The decision library →
What is the SAP TM Hub?

The practitioner side of sapperment: a working knowledge base for SAP Transportation Management — process by process, from freight orders to settlement — founded by Deborah Born with an independent 2,100+ member community behind it.

Enter the hub →
What is the sapperment Talent Network?

The part of the platform that connects the professionals themselves: anonymous, skills-first talent profiles, a Recruiting Charter recruiters sign, and The Talent Brief covering the market — built double-blind, with the candidate always moving last.

The Talent Network →
How do I become a sapperment voice?

By invitation, one voice per domain — and every published word passes named editorial approval before it carries your name. If you own a field of SAP practice, there may be a seat with your name on it.

Become an LTV author →
How does sapperment stay independent?

No vendor marketing, no sponsored conclusions — commercial formats (advisory, partnerships, sponsored research) are always disclosed and never buy an editorial outcome. Views are personal and independent of any employer.

The editorial principles →

A question the 99 don't cover? Send yours — a better question replaces a weaker one. The figures behind many answers live on the world map.