- SAP was founded by five former IBM employees, in 1972, to develop a standard ERP business application software, with the goal of processing business information in real-time. The company, SAP GmbH, was started in Mannheim, Germany.
- During 1973, the company released its first financial accounting software, ‘R1’ (the letter ‘R’ stands for ‘Real-Time Processing).’
- In the late 1970s, SAP ‘R/2’ was released with IBM’s database and a dialogue-oriented business application.
- R/2 was further stabilized during the early 1980s and the company came out with a version capable of processing business transactions in several languages and currencies to
meet the needs of its international clientele.
- SAP GmbH became SAP AG in 1988. Later on, the company established subsidiaries in countries such as the United States, Sweden, Denmark, and Italy.
- The 1990s saw the introduction of SAP ‘R/3,’ with client-server architecture and GUI, which ran on almost any database, and on most operating systems. SAP R/3 heralded a new era in enterprise computing, moving from a ‘mainframe’ to a 3-tier architecture (Database- >Application->User interface), which became the new industry standard.
- By 1996, the company had more than 9,000 installations worldwide. By the end of the 1990s, SAP had introduced the e-commerce enabled mySAP suite of products for leveraging ever-expanding web technology.
- SAP began the twenty-first century with the Enterprise Portal and role-based access to business information.
- SAP continues to evolve and innovate, bringing cutting-edge technologies to business information processing. SAP has already introduced SAP NetWeaver, which is based on Enterprise Services Architecture (ESS) with application integration across diverse platforms for providing one-stop end-to-end business processing. With NetWeaver, companies can now integrate people, information, and processes.