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1972

Foundation: Five former IBM employees start a company they call SAP Systemanalyse und

Programmentwicklung ("System Analysis and Program Development").

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

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 stringen.

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

weekends.

Initial success: At the end of its first year in business, SAP employs nine people and generates DM

620,000 in revenue.Less

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 tobaccocompany Rothndle in Lahr and the pharmaceutical firm Knoll in Ludwigshafen. Meanwhile, SAP itself is

using IBM servers and the DOS operating system.Less

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.Less

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.Less

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.Less

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.Less

1978

Branching out: SAP completes the module Asset Accounting and a corresponding implementation

project at a pilot company.

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SAP parle franais: 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.Less

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, Grnzweig+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.Less

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. Thismodel boasts 4MB of memory.

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

distribution.Less

1981

Debut: SAP makes its first event appearance at the IT trade show Systems in Munich, Germany.

Stabile: SAP R/2 achieves high level of stability.

Performance driving sales: The growing power of mainframe servers is enabling SAP to expand its

customer base to approximately 200 companies.

Joint development: With the help of its customers, SAP expands its range of products with a

production management module.

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