The early years | SAP History

1972

Foundation
Five former IBM employees (Dietmar Hopp, Hasso Plattner, Hans-Werner Hector, Klaus Tschira und Claus Wellenreuther) start a company they call SAP Systemanalyse und Programmentwicklung ("System Analysis and Program Development").

Night owls
Development of the fledgling company's first programs takes place mainly at night and on weekends.

Vision
Standard application software for real-time data processing is developed.

Initial success
At the end of its first year in business, SAP employs nine people and generates DM 620,000 in revenue.

Associations
Taking the initial form of a private partnership under the German Civil Code, the company establishes its headquarters in Weinheim, Germany, and opens an office in nearby Mannheim. However, SAP's five founders spend most of their time in the data centers of their first customers, which include the German branch of Imperial Chemical Industries in Östringen.

1973

Modularity
SAP completes its first financial accounting system - RF. This system serves as the cornerstone in the ongoing development of other software modules of the system that will eventually bear the name SAP R/1.

New customers
More clients in southwest Germany are running SAP software, including the tobacco company Rothändle in Lahr and the pharmaceutical firm Knoll in Ludwigshafen. Meanwhile, SAP itself is using IBM servers and the DOS operating system.

1974

Flexible
SAP demonstrates its flexibility for the first time, converting its RF system from the DOS operating system to OS over an eight-week period.

Customer base
Still just two and a half years in existence, SAP has a list of 40 reference customers.

1975

Integration
Companies can now handle their purchasing, inventory management, and invoice verification with SAP's RM system.

Trademark
An SAP trademark begins to emerge - the integration of all of the company's applications. Materials management data flows directly into financial accounting on a value basis, while invoice verification and posting can be completed in one step.

1976

Legal transition
The limited-liability company SAP GmbH Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications, and Products in Data Processing") is founded as a sales and support subsidiary. Five years later, the private partnership is dissolved and its rights are passed on to SAP GmbH.

Continued business success
SAP and its 25 employees generate DM 3.81 million in revenue.

1977

Relocation
SAP moves its headquarters from Weinheim to nearby Walldorf.

First steps abroad
The company begins installing its system for customers outside of Germany for the first time. Two companies in Austria decide to implement SAP software.

Sales
SAP's reorganization strengthens its active sales.

1978

Branching out
SAP completes the module Asset Accounting and a corresponding implementation project at a pilot company.

SAP parle français
The farm equipment manufacturer John Deere demonstrates SAP's international viability by developing a French-language version of the company's accounting software in an in-house project.

1979

Centralization
SAP begins operations on its own server, Siemens 7738, for the first time. Up until this point, its employees' development activities have been distributed across the data centers of regional customers such as ICI, Thermal, Knoll, Grünzweig+Hartmann, and Freudenberg.

A home of its own
SAP's first data center is still located in leased space, but the company has already broken ground on the initial construction of its own facility.

Technological shift
An in-depth examination of IBM's database and dialog control system causes SAP to rethink its software, paving the way for SAP R/2.

1980

Consolidation
SAP moves into its first facility on Max-Planck-Strasse in the Walldorf industrial park. Its development area - now 50 computer screens strong - is finally unified under one roof.

Upgrade
SAP augments its data-processing infrastructure by pairing its existing Siemens 7738 with an IBM/370-148, which the company then replaces in the same year with a more powerful IBM 4341. This model boasts 4MB of memory.

Further expansion
SAP expands its product portfolio with RV, a custom development for sales and distribution.