SAP AG is the largest European software enterprise and the fourth largest in the world, with headquarters in Walldorf, Germany. It is best known for its SAP ERP Enterprise Resource Planning (ERP) software.
SAP was founded in the year 1972 as Systemanalyse und Programmentwicklung ("System Analysis and Program Development") by five former IBM engineers in Mannheim, Baden-Württemberg (Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus E. Tschira, and Claus Wellenreuther). At the time they left IBM, the ex-employees were quite senior engineers in IBM Germany rather than founding engineers in the sense of Hewlett-Packard's founders.
As part of the Xerox exit strategy from the computer industry, Xerox retained IBM to migrate their business systems to IBM technology. As part of IBM's compensation for the migration, IBM acquired the SDS/SAPE software, reportedly for a contract credit of $80,000. The SAPE software was given by IBM to the founding ex-IBM employees in exchange for founding stock provided to IBM, reportedly 8%. ICI was SAP's first ever customer in 1972.
The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications and Products in Data Processing").
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