SAP SE (/ˌɛs.eɪˈpiː/; German pronunciation: [ɛsʔaːˈpeː] ⓘ) is a European multinational software company based in Walldorf, Baden-Württemberg, Germany.
[14] As well as its main ERP products, the company also sells database software and technology (particularly its own brand, SAP HANA) and cloud-engineered systems.
Five IBM engineers from the AI department[16][17] (Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner, and Claus Wellenreuther, all from Mannheim, Baden-Württemberg) were working on an enterprise-wide system based on this software, only to be told that it would no longer be necessary.
[3][18] In June 1972 they founded the SAP Systemanalyse und Programmentwicklung ("System Analysis and Program Development" / "SAPD") company, as a private partnership under the German Civil Code.
[19] Their first client was the German branch of Imperial Chemical Industries in Östringen,[20] where they developed mainframe programs for payroll and accounting.
In 1996 it began its alliance with the Spanish technology consulting firm Seidor, initiating the expansion of SAP solutions throughout Latin America.
[26] Since 2012 SAP has acquired several companies that sell cloud-based products, with several multi-billion-dollar acquisitions seen by analysts as an attempt to challenge competitor Oracle.
[28] Analysts' reactions to the purchase were mixed, with Thomas Becker of Commerzbank questioning whether Concur was the right choice for SAP, while Credit Suisse called the acquisition an "aggressive" move.
SAP has announced additional partnerships with Microsoft in order to give customers tools for data visualization, as well as improved mobile applications.
[36] Since May 2015, the company has dealt with a series of high-profile bribery investigations,[37][38][39] including one that led to them paying $3.9 million to settle U.S. Securities and Exchange Commission civil charges over a former executive's scheme to bribe Panama government officials in order to win lucrative technology contracts.
[43] In July 2017 allegations were made that SAP had been involved in business transactions with the controversial and politically influential Gupta family in South Africa.
SAP was accused of paying CAD House, a Gupta-controlled company, R100 million in order to secure a Transnet deal.
[45][46] As a consequence of the allegations SAP launched an investigation that led to four of its South African managers being placed on administrative leave along with the seizure of their mobile phones and computers.
[48] On 26 October 2017 SAP announced that it had voluntarily reported itself to the U.S. Securities and Exchange Commission (SEC) for a possible violation of US law, including the Foreign Corrupt Practices Act (FCPA), related to the South African bribery allegations.
[49][50][51] The company announced plans in 2016 to invest heavily into technology relating to the Internet of things (IoT) as part of a strategy to capitalize on the growth in that market.
An anonymous whistle-blower claims, through a firm of attorneys, that SAP used Twenty Third Century Systems (TTCS) to bribe officials at the Tanzania Ports Authority (TPA) to win a US$6.6 million enterprise resource planning software tender that involved the provision of software licenses and services.
[64] In May 2022, multiple claims were made of bullying and sexual harassment within the company, with many cases of unwanted advances by senior male managers on female colleagues.
[67] In 2024 after investigations by the U.S. Justice Department and the Securities and Exchange Commission, 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.
[70][69]: 4 In March 2024, SAP agreed to pay R500 million as part of an agreement with South Africa's Special Investigating Unit.
[72][73] Following the news of this incident it was reported on September 13, 2024 that German prosecutors have opened a formal investigation of sexual harassment between him and the female employee.
[78] In April 2020 it was announced that Jennifer Morgan will leave SAP and Christian Klein will continue to operate as the sole CEO, citing that the current environment of the COVID-19 recession requires "companies to take swift, determined action which is best supported by a very clear leadership structure".
[81][82] 45 employee representatives were elected in 2022 to the SAP SE Works Council, including 15 candidates from the Ver.di and IG Metall trade union lists.
[84] The company also encourages employees to volunteer through social sabbaticals, sending teams of people to different countries to aid non-profits.
The group significantly contributes to SAP's product portfolio and extends its leading position in the market by identifying and shaping emerging IT trends and generating breakthrough technologies through applied research.