What is SAP? History of SAP?

This post explains you in brief about "What is SAP? History of SAP? and Versions of SAP?

What is SAP?

SAP Stands for "Systems, Applications & Products in Data Processing". SAP is a German MNC Software company that makes ERP software to manage business and customer relations.

SAP Company is headquartered in Walldorf, Germany, with offices in 130 countries.The company has over 291,000 customers in 190 countries.


SAP is an Enterprise Resource Planning (ERP) system by SAP AG, company based out of Walldorf in Germany. AG is derived from the German word AKtiengesellschaft. According to German Language SAP Stands for Systeme, Anwendungen und Produkte in Der Datenverarbeitung. SAP software suite that is being implemented as part of re-engineering and Provides end to end solutions for financial, logistics, distribution, inventories. Present scenario large number of companies are using sap software for their day to day business activities.

After the hugely successful R/3, SAP created more and more niche software like Customer Relationship Management (CRM), SRM, XI (now called Process Integration or PI) and once again living up to the standards of SAP by maintaining tight integration with their core ECC software. The newest version of the suite is SAP ECC 6.0.

SAP History

SAP Founded in and around 1972 by five IBM engineers Hopp, Wellenreuther, Hector, Tschira and Plattner.

SAP R/1 :- The first version of SAP software was launched in and around 1972 known as the “R/1 system. R” stands for real-time data processing. it is one tier architecture in which three layers Presentation, Application and Database are installed in one system/server
(one – Presentation + Application + Database)

SAP R/2 :- In 1979 second version of SAP R/2 was released. with IBM’s database and a dialogue-oriented business application. SAP R/2 to handle different languages and currencies. R/2 is 2 tier architecture in which three layers Presentation, Application and Database are installed in two separate server.
(Server one – Presentation Server, two – Application + Database )

SAP R/3 :- SAP upgraded R/2 to R/3. SAP R/3 is the client/server version of the software and it is 3 tier architecture in which three layers Presentation, Application and data base are installed in three server/system.

(Server one – Presentation, Server,  Two – Application, server,  Three – Database
Products of SAP
  • SAP R/3 and R/3 Enterprise
  • mySAP Business Suite
  • SAP ERP
  • SAP Industry Solutions
  • SAP xApps
  • SAP Solution Manager
Industry Solutions of SAP
What is SAP? ERP System Definition
SAP R/3 – Modules & Integration
SAP Functional Modules
  • FICO – Finance & Control
  • PP – Production Planning
  • MM – Material Management
  • SD – Sales & Distribution
  • HR – Human Resources
SAP Technical Modules
  • ABAP – Advanced business applications programming
  • XI – Exchange Infrastructure
  • SAP Net weaver
  • Basis
  • BIW – Business Information Warehousing

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