SAP America represents its German parent, SAP, in the US, providing enterprise software and services for managing accounting, distribution, human resources, and manufacturing functions. The company's products include business intelligence, enterprise resource planning, customer relationship management, and supply chain management software. SAP America offers industry-specific applications for markets ranging from aerospace and defense to wholesale distribution. Its services include consulting and support, as well as custom development and application hosting. SAP America accounts for more than one-quarter of SAP's sales.
SAP America operates from 30 offices across the US. It also has eight research and development centers, called SAP Labs, and a dozen locations for subsidiary Sybase.
Sales and Marketing
The software giant uses a direct sales force to sell its software and consulting services. The company has a broad enough product portfolio that it serves anywhere from small companies to large enterprise organizations.
SAP software serves a number of different industries, including manufacturing, services, energy and natural resources, consumer products, retail, and others. Manufacturing customers are by far the largest group, and they comprise discrete manufacturers (makers of products that go directly to consumers) and process manufacturers.
Revenue for SAP America increased 4% from €4.4 billion ($5.8 billion) in 2012 to €4.6 billion ($6.4 billion) in 2013. Having the greatest growth come in its largest customer set -- discrete manufacturing -- played a big part in the year's positive result.
Mergers and Acquisitions
Although SAP has favored internal growth instead of aggressively pursuing acquisitions like rival Oracle, it has pursued some smaller acquisitions in the US. In 2013 it bought four companies, beginning with insurance software maker Camilion. Next came supply chain software company SmartOps, e-commerce software firm hybris, and predictive analytics maker KXEN. It also bought assets from Los Angeles-based KMS Software for its SuccessFactors line.
In previous years the company made some larger purchases in the US. In 2012 it bought human capital management provider SuccessFactors for about $3.4 billion in cash. Its cloud-based approach was a selling point as SAP aggressively pursues the software-as-a-service model. Later that year it bought Ariba for about $4.3 billion. Ariba offers a cloud-based business commerce network that allows buyers and sellers connect with each other. The deal strengthened SAP America's cloud portfolio and its presence in the business collaboration space. In 2010 it paid $5.8 billion for Sybase, which helped expand its reach into mobile platforms.
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