• SAP is an integrated software product of ERP (Enterprise Resource Planning) developed by SAP AG.
  • SAP AG is the name of a company located in Germany. (AG is known as ‘Incorporated’ in German language).
  • 5 IBM employees founded SAP in the year 1972.
  • SAP AG is an older company than both Oracle and Microsoft.
  • The company has about 44,000 employees and supports more than 40 languages50 currencies and 30 industry specific solutions with one million SAP end-users.

SAP R/3:

  • The SAP Architecture has started with its first version as SAP R/1 which was a financial Accounting system, replaced by SAP R/2 at the end of the 1980s.
  • SAP R/2 was in a mainframe based business application software suite that was very successful in the 1980s and early 1990s.
  • Later SAP AG brought out a client–server version of the software called SAP R/3 (“R” was for “Real-time data processing” and 3 was for 3-tier).
  • SAP R/3 was officially launched on 6 July 1992.
  • SAP R/3 Architecture is based on a 3-tier client server principle categorised as Presentation server, Application server and Database server. 

SAP – Types of Projects:

1. Implementation Project

2. Support Project

3. Roll-Out Project

4. Enhancement Project

5. Upgradation Project

SAP has both Technical and Functional modules with few new Dimensional modules too. 

 Advantages of SAP

  • Rich set of modules
  • Data Integrity
  • Easy Administration
  • Only one side Database
  • SAP supports all database & operating system
  • Global support 7 x 24 x 365
  • SAP supports multi languages
  • One GUI for all R/3 systems
  • SAP supports JAVA
  • Easy Add-ons
  • High security
  • User friendly
  • Common programming language which supports OOPS and ABAP


SAP is pronounced as S-A-P, but not SAP.

SAP refers to both the name of a company and the software as well.

SAP stands for “Systeme, Anwendungen, Produkte in der datenverarbeitung” in German.

Major Competitors of SAP are BAAN, Oracle Corporation, PeopleSoft and JD Edwards.


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