SAP SE (SAP): history, ownership, mission, how it works & makes money

SAP SE (SAP): history, ownership, mission, how it works & makes money

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A Brief History of SAP SE (SAP)

Company Overview

SAP SE is a German multinational software corporation headquartered in Walldorf, Baden-Württemberg. Founded in 1972 by five former IBM engineers, the company develops enterprise software to manage business operations and customer relations.

Financial Metric 2023 Value
Total Revenue €30.78 billion
Operating Profit €7.92 billion
Net Income €6.04 billion
Total Employees 113,803

Key Business Segments

  • Cloud Enterprise Resource Planning (ERP)
  • Customer Experience Solutions
  • Supply Chain Management
  • Business Analytics

Market Position

SAP is the world's largest enterprise software company, with a market capitalization of €146.3 billion as of December 2023.

Global Market Share Percentage
Enterprise Software Market 22.4%
Cloud ERP Market 31.7%

Recent Strategic Developments

In 2023, SAP continued to focus on cloud transformation and artificial intelligence integration.

  • Acquired Taulia for €1.23 billion
  • Invested €2.5 billion in AI and machine learning research
  • Expanded SAP Business AI portfolio

Global Presence

Region Revenue Contribution
Europe, Middle East, Africa €14.6 billion
Americas €11.2 billion
Asia Pacific Japan €5.1 billion


Who Owns SAP SE (SAP)

Major Shareholders

Shareholder Ownership Percentage
Hasso Plattner 9.4%
SAP SE (Treasury Shares) 9.2%
BlackRock Inc. 5.1%
The Vanguard Group 4.3%

Institutional Ownership

As of Q4 2023, institutional investors own approximately 65.7% of SAP SE shares.

Founding Shareholders

  • Hasso Plattner
  • Dietmar Hopp
  • Hans-Werner Hector
  • Klaus Tschira
  • Claus Wellenreuther

Public Trading Details

SAP SE is listed on multiple stock exchanges, including Frankfurt Stock Exchange (FWB) and NYSE under ticker symbol SAP.

Ownership Structure

Market capitalization as of January 2024: €122.3 billion

Free float: 81.4%



SAP SE (SAP) Mission Statement

Corporate Mission Overview

SAP SE aims to help businesses run better by providing enterprise software solutions that enable digital transformation across industries.

Key Mission Components

  • Enable intelligent enterprise transformation
  • Deliver comprehensive cloud and software solutions
  • Support business process optimization

Financial Performance Metrics

Financial Metric 2023 Value
Total Revenue €29.66 billion
Cloud Revenue €9.98 billion
Operating Margin 29.1%
R&D Expenses €5.22 billion

Strategic Focus Areas

  • AI and Machine Learning integration
  • Sustainability solutions
  • Cloud computing expansion
  • Industry-specific digital transformation

Market Position

Global Market Share in Enterprise Software: 21.7%

Customer Base

Customer Segment Number of Customers
Total Enterprise Customers 437,000
Fortune 500 Companies 87% use SAP solutions


How SAP SE (SAP) Works

Company Overview

SAP SE is a German multinational software corporation headquartered in Walldorf, Germany. Founded in 1972, the company develops enterprise software to manage business operations and customer relations.

Business Segments

Segment Revenue (2023) Key Products
Cloud Software €9.22 billion SAP S/4HANA Cloud, SAP SuccessFactors
Cloud & Software €23.54 billion Enterprise Resource Planning, Customer Experience
Services €2.63 billion Consulting, Support Services

Financial Performance

In 2023, SAP reported:

  • Total Revenue: €30.78 billion
  • Operating Profit: €8.32 billion
  • Net Income: €5.61 billion
  • Cloud Revenue: €12.43 billion

Global Presence

SAP operates in:

  • 180+ countries
  • 105,000+ employees
  • 400,000+ customers worldwide

Product Portfolio

Product Category Key Solutions Market Position
Enterprise Resource Planning SAP S/4HANA Market Leader
Customer Experience SAP Customer Experience Suite Top 3 Provider
Analytics SAP BusinessObjects Leading Solution

Cloud Strategy

Cloud subscription revenue growth rate in 2023: 24% year-over-year

Research & Development

R&D Investments in 2023:

  • Total R&D Spending: €5.64 billion
  • Percentage of Revenue: 18.3%
  • Focus Areas: AI, Machine Learning, Quantum Computing

Stock Performance

As of December 2023:

  • Stock Price: €145.50
  • Market Capitalization: €171.3 billion
  • Dividend Yield: 1.6%


How SAP SE (SAP) Makes Money

Revenue Streams

SAP SE generates revenue through multiple business segments as of 2024:

Revenue Segment 2023 Revenue (€ Billion) Percentage of Total Revenue
Cloud Software 9.44 39.2%
Cloud & Software Licenses 5.32 22.1%
Software Support 6.78 28.2%
Services 2.56 10.5%

Cloud Software Revenue Breakdown

  • SAP S/4HANA Cloud: €3.2 billion
  • SAP Business Technology Platform: €1.8 billion
  • SAP SuccessFactors: €1.5 billion
  • SAP Ariba: €1.1 billion

Global Customer Base

As of 2024, SAP serves:

  • Total customers worldwide: 475,000
  • Enterprise customers: 212,000
  • Small and medium businesses: 263,000

Geographical Revenue Distribution

Region 2023 Revenue (€ Billion) Percentage
EMEA 10.2 42.3%
Americas 8.7 36.1%
Asia Pacific 5.1 21.6%

Pricing Model

SAP's primary pricing strategies:

  • Subscription-based cloud services
  • Perpetual software licenses
  • Per-user and per-transaction pricing
  • Enterprise-level contract pricing

Annual Financial Performance

Financial Metric 2023 Value (€)
Total Revenue 24.02 billion
Operating Profit 7.86 billion
Net Income 5.41 billion

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