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 9% from €4.6 billion in 2013 to €4.9 billion in 2014. This rise was due to changes in volumes and prices as well as the impact of currency affects.
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 2014 it made two notable deals for US-based companies.
In the first half of 2014, SAP bought Fieldglass, a technology provider for contingent labor and services. Fieldglass’ cloud-based Vendor Management System helps SAP provide management for flexible workforces.
SAP closed its purchase of Concur Technologies, which develops cloud-based technology for managing corporate travel and expenses, in late 2014. The $8.3 deal helps SAP round out its business network offerings.
In 2013, SAP bought four US-based 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.