---
title: An In-Depth Look at Software Giant SAP
description: What is SAP? Learn about the world's leading enterprise software provider, from its history and ERP products to SAP Business AI, Joule, and more with SAP PRESS.
---

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# What Is SAP?

## TL;DR

SAP (Systems, Applications, and Products in Data Processing) is the world's leading enterprise application software vendor, serving over 400,000 customers across more than 180 countries from its headquarters in Walldorf, Germany. Its core ERP product is SAP S/4HANA, whose cloud editions are sold as SAP Cloud ERP at the center of the SAP Business Suite. Other major products include SAP SuccessFactors for HR, SAP Ariba for procurement, SAP Analytics Cloud for business intelligence, SAP Business Data Cloud for data management, and SAP Business Technology Platform (SAP BTP) for development and integration. In 2026, SAP brought its AI offerings together in the SAP Business AI Platform, where Joule, SAP's AI assistant, coordinates AI agents that carry out tasks across finance, HR, procurement, and supply chain.

 

## Table of Contents

1. [The History of SAP](https://learning.sap-press.com/what-is-sap#the-history-of-sap)
2. [Who Needs SAP?](https://learning.sap-press.com/what-is-sap#who-needs-sap)
3. [SAP's ERP Offerings](https://learning.sap-press.com/what-is-sap#sap-erp-offerings) 
     1. [SAP ERP](https://learning.sap-press.com/what-is-sap#sap-erp) 
            1. [SAP Enterprise Resource Planning](https://learning.sap-press.com/what-is-sap#sap-enterprise-resource-planning)
            2. [SAP Customer Relationship Management](https://learning.sap-press.com/what-is-sap#sap-customer-relationship-management)
            3. [SAP Supplier Relationship Management](https://learning.sap-press.com/what-is-sap#sap-supplier-relationship-management)
            4. [SAP Product Lifecycle Management](https://learning.sap-press.com/what-is-sap#sap-product-lifecycle-management)
            5. [SAP Supply Chain Management](https://learning.sap-press.com/what-is-sap#sap-supply-chain-management)
     2. [SAP S/4HANA](https://learning.sap-press.com/what-is-sap#sap-s4hana) 
            1. [SAP S/4HANA Finance](https://learning.sap-press.com/what-is-sap#sap-s4hana-finance)
            2. [SAP S/4HANA's SRM and SCM Offerings](https://learning.sap-press.com/what-is-sap#sap-s4hana-srm-and-scm-offerings)
            3. [SAP S/4HANA Sales](https://learning.sap-press.com/what-is-sap#sap-s4hana-sales)
            4. [SAP S/4HANA R&D/Engineering](https://learning.sap-press.com/what-is-sap#sap-s4hana-rd-engineering)
            5. [SAP S/4HANA Human Resources](https://learning.sap-press.com/what-is-sap#sap-s4hana-human-resources)
     3. [RISE with SAP and GROW with SAP](https://learning.sap-press.com/what-is-sap#rise-and-grow)
     4. [SAP for Small and Midsize Businesses](https://learning.sap-press.com/what-is-sap#sap-for-small-and-midsize-businesses)
4. [SAP Customer Experience](https://learning.sap-press.com/what-is-sap#sap-customer-experience)
5. [Other SAP](https://learning.sap-press.com/what-is-sap#other-sap-cloud-solutions)[Cloud](https://learning.sap-press.com/what-is-sap#other-sap-cloud-solutions)[Solutions](https://learning.sap-press.com/what-is-sap#other-sap-cloud-solutions)
6. [Reporting and Analytics with SAP](https://learning.sap-press.com/what-is-sap#reporting-and-analytics-with-sap)
7. [SAP Business Technology Platform](https://learning.sap-press.com/what-is-sap#sap-btp)
8. [SAP Clean Core](https://learning.sap-press.com/what-is-sap#clean-core)
9. [SAP Business Data Cloud](https://learning.sap-press.com/what-is-sap#sap-business-data-cloud)
10. [SAP Business AI and Joule](https://learning.sap-press.com/what-is-sap#sap-business-ai-and-joule)
11. [SAP User Interfaces](https://learning.sap-press.com/what-is-sap#sap-user-interfaces)
12. [The SAP Back-End](https://learning.sap-press.com/what-is-sap#the-sap-back-end) 
      1. [Customizing SAP](https://learning.sap-press.com/what-is-sap#customizing-sap) 
             1. [Extensions](https://learning.sap-press.com/what-is-sap#extensions)
             2. [Cloud and Mobility](https://learning.sap-press.com/what-is-sap#cloud-and-mobility)
             3. [Integration](https://learning.sap-press.com/what-is-sap#integration)
      2. [Administration](https://learning.sap-press.com/what-is-sap#administration)
13. [Infographic: Key SAP Acronyms](https://learning.sap-press.com/what-is-sap#key-sap-acronyms)
14. [Additional SAP Definitions](https://learning.sap-press.com/what-is-sap#additional-sap-definitions)
15. [Older SAP Product Names](https://learning.sap-press.com/what-is-sap#older-sap-product-names) 
      1. [Renamed SAP Products and Services](https://learning.sap-press.com/what-is-sap#renamed-sap-products-and-services)
      2. [Renamed Acquisitions](https://learning.sap-press.com/what-is-sap#renamed-acquisitions)
16. [FAQ](https://learning.sap-press.com/what-is-sap#faq)

 

## The History of SAP

SAP was founded in 1972 by five former IBM employees: Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther. The company was based in Weinheim, Germany, with an office in nearby Mannheim, and moved its headquarters to Walldorf in 1977. Their goal was to create real-time business software for companies; they started with financial accounting and would eventually expand outward to other areas of business.

 

The software at the center of SAP’s first financial accounting solution was termed the R/1 system. Its adoption provided enough funds for the company to continue developing updated and newer features; by the end of the 1970s, the R/1 system was overhauled and released to the public as R/2. New to this iteration was a database and dialog control system.

 

SAP grew its market share during the 1980s; at one point, half of the top 100 German companies used SAP software in their organizations. Eventually, international offices were opened to sell products to other markets, and by 1990 subsidiaries were located in Austria, Denmark, Sweden, Italy, and the United States.

 

The 1990s saw more growth for the German company, from becoming listed on the New York Stock Exchange to introducing its third-generation enterprise computing software. R/3 provided more front-end accessibility for end users and ran on a new three-tier client/server architecture. During this decade, SAP also began integrating its products with e-commerce and web technologies in a partnership with Microsoft.

 

By 2004, SAP was the third-largest software vendor in the world, behind Microsoft and IBM. To keep its ERP software current, SAP employed a two-pronged strategy: the first was to release a new flagship application, SAP ERP Central Component (SAP ECC, but regularly shortened to SAP ERP—which will be used in this document going forward). The second was to look to the future by creating a new approach to business software. Co-founder Plattner led this team as they searched for the answer to the question, “How do I get business questions answered the moment they’re asked?”

 

In 2010, SAP had its answer, one that would be its biggest contribution to the computing industry: the in-memory database known as [SAP HANA](https://learning.sap-press.com/sap-hana). In the eight years following its general availability release in 2011, more than 30,000 customers began utilizing SAP HANA.

 

SAP HANA would also serve as the foundation of a new flagship product. Launched in 2015 with financials as its first focus, SAP S/4HANA was announced as SAP's replacement for SAP ERP. SAP has since added lines of business (LoBs) covering procurement, manufacturing, supply chain, asset management, sales, R&D, and HR.

 

Between 2008 and 2021, SAP acquired a number of market-leading products to fill gaps in its portfolio and add functionality alongside its ERP software. These included BusinessObjects (2008), SuccessFactors (2012), Ariba (2012), hybris (2013), Concur (2014), and Signavio (2021). More recent acquisitions include LeanIX (2023), WalkMe (2024), and SmartRecruiters (2025).

 

In the early 2020s, SAP committed to a cloud-first strategy. It expanded SAP BTP, introduced RISE with SAP and GROW with SAP to move customers to cloud ERP, and promoted a clean core approach so customers could adopt new releases without accumulating custom code. In 2023, SAP introduced [Joule](https://blog.sap-press.com/what-is-sap-joule), its generative AI assistant.

 

In 2025, SAP launched SAP Business Data Cloud and began selling the cloud editions of SAP S/4HANA under the name SAP Cloud ERP, the core of a new business suite. At SAP Sapphire in May 2026, SAP introduced the SAP Business AI Platform, which combines SAP BTP, SAP Business Data Cloud, and SAP Business AI in one environment, along with Joule agents designed to carry out business processes on their own. That same year, SAP acquired Reltio, Dremio, and Prior Labs to strengthen its data and AI offerings.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## Who Needs SAP?

SAP offers products for a wide range of industries and business processes, from leading oil and gas production firms to sports teams to product-and service-based companies. This means, in theory, that anybody doing business should be able to find something from SAP that can help them run their business better.

 

SAP offers licenses of individual solutions for companies who need help in just one functional area, provides full-suite platforms for companies that choose to operate all business with SAP software.

 

SAP releases new versions of its public cloud ERP twice a year, in February and August, with smaller updates in between. On-premise and private cloud editions of SAP S/4HANA get a new release every two years, with feature packs in between and seven years of mainstream maintenance per release.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## SAP’s ERP Offerings

SAP has two major ERP suites: SAP ERP (also called SAP ECC), its legacy suite, and SAP S/4HANA, its current one. The product names can get confusing. In 2025, SAP began selling the cloud editions of SAP S/4HANA as SAP Cloud ERP, which sits at the center of a new SAP Business Suite that also includes SAP Business Data Cloud, SAP Business AI, and SAP BTP. This new SAP Business Suite is a different product from SAP Business Suite 7, the older package that includes SAP ERP (ECC). For smaller companies, SAP also offers SAP Business One (see below).

 

### SAP ERP

SAP ERP is SAP’s legacy business suite. Building off the R/1, R/2, and R/3 solutions, it was this application that first integrated with the internet on a large scale. Customers using SAP ERP can deploy it on a variety of supported operating systems and database platforms.

 

SAP is phasing out SAP ERP in favor of SAP S/4HANA. Mainstream maintenance for SAP ERP 6.0 with enhancement packages 6 through 8 ends on December 31, 2027 (enhancement packages 0 through 5 left mainstream maintenance at the end of 2025). Customers can pay for extended maintenance through the end of 2030. A limited option, the SAP ERP, private edition, transition option, lets select large customers run SAP ERP in SAP's private cloud through 2033, provided they move to it before the end of 2030 under a RISE with SAP contract.

 

Sometimes there is confusion around the terms SAP and ERP and whether they mean the same thing. ERP is, generally, enterprise resource planning software that helps businesses perform their activities. SAP is one of many vendors of ERP software. SAP ERP is the option that SAP offers to customers.

 

While many organizations have already migrated to SAP S/4HANA, thousands of businesses around the world still run SAP ERP (ECC). Because enterprise software projects often span many years, both platforms remain important for SAP professionals. Understanding SAP ERP concepts provides valuable context for learning SAP S/4HANA and newer cloud solutions.

 

As a complete platform, SAP ERP consists of transactional and analytical systems. The applications below make up its core areas. Most of them belong to SAP Business Suite 7, so their mainstream maintenance also ends at the end of 2027, and each description notes its successor.

#### SAP Enterprise Resource Planning

The SAP Enterprise Resource Planning application focuses on financial, human capital, operational, and corporate services. This includes both financial and managerial accounting, personnel information and career development processing, day-to-day business operations, and external activities such as travel management.

 

*![SAP ERP Overview](https://learning.sap-press.com/hs-fs/hubfs/05_002.jpg?width=3951&name=05_002.jpg)*

 

Note that SAP ERP in this case refers to an application and not the business suite known as SAP ERP Central Component (ECC, *also* SAP ERP). To avoid confusion, a good rule of thumb is to assume that when SAP ERP is being mentioned on its own (“we run SAP ERP and are moving to SAP S/4HANA”) that SAP ECC is being referred to, and when SAP ERP is followed by a specific system (“we run SAP ERP FI-CO in the organization”) that the SAP ERP application is being referred to.

 

#### SAP Customer Relationship Management

SAP Customer Relationship Management (SAP CRM) focuses on customer management. This includes areas such as marketing, sales, service, and e-commerce. By using SAP CRM, businesses can keep in touch with customers and learn how to best serve them.

 

*![SAP ERP CRM Overview](https://learning.sap-press.com/hs-fs/hubfs/08_001.jpg?width=3678&name=08_001.jpg)*

Its successors are SAP Sales Cloud and SAP Service Cloud, along with the sales functions in SAP S/4HANA.

#### SAP Supplier Relationship Management

SAP Supplier Relationship Management (SAP SRM) focuses on the procurement process and the different stakeholders involved. This includes monitoring and measuring the efficiency of suppliers and vendors, tracking procurement activities, sourcing assignment of orders, managing contracts and invoices, and more.

 

![SAP SRM Overview](https://learning.sap-press.com/hs-fs/hubfs/09_003.jpg?width=3035&name=09_003.jpg)

 

Its successors are SAP S/4HANA Sourcing and Procurement and SAP Ariba.

#### SAP Product Lifecycle Management

SAP Product Lifecycle Management (SAP PLM) focuses on the products a business offers from conceptualization to sunset. Operations such as portfolio planning, research and development, and manufacturing are considered tasks to complete with SAP PLM.

 

*![SAP ERP PLM Overview](https://learning.sap-press.com/hs-fs/hubfs/11_001-1.jpg?width=3593&name=11_001-1.jpg)*

 

Its successor is the R&D and engineering functionality in SAP S/4HANA.

#### SAP Supply Chain Management

The SAP Supply Chain Management (SAP SCM) tools help businesses meet market demand. Activities include planning stock levels, manufacturing products from raw materials, fulfilling orders, transporting finished products, and collaborating with suppliers and other vendor partners.

 

*![SAP ERP SCM Overview](https://learning.sap-press.com/hs-fs/hubfs/12_001.jpg?width=3349&name=12_001.jpg)*

 

Its successors include SAP Integrated Business Planning and the supply chain functionality in SAP S/4HANA.

### SAP S/4HANA

SAP S/4HANA is SAP’s current flagship enterprise application suite. First released in 2015, the platform was the biggest change to SAP’s core offerings since the introduction of the R/3 system in 1992.

 

SAP S/4HANA is available on-premise and in two cloud editions. The public edition, sold as SAP Cloud ERP, is a standardized system that SAP runs and updates. The private edition, sold as SAP Cloud ERP Private, gives companies more room to tailor the system and is the usual destination for RISE with SAP customers moving from SAP ERP. SAP has committed to supporting SAP S/4HANA until at least 2040.

 

Among the key changes from SAP ERP were the utilization of SAP HANA’s in-memory computing architecture, the ability to gain real-time business statistics and analytics, and the convergence of transactional and analytical systems into one.

 

In addition to this, SAP used the product’s launch to reallocate some of the individual modules of SAP ERP into new lines of business (LoBs). SAP S/4HANA’s current LoBs are listed below.

 

#### **SAP S/4HANA Finance**

The SAP S/4HANA Finance LoB focuses on all money-related activities of a business. This includes financial accounting, controlling, treasury and risk management, financial planning, financial close, and consolidation. SAP now incorporates AI capabilities into finance processes to help automate routine tasks, improve forecasting, and assist with financial analysis. 

 

[Learn more about SAP S/4HANA Finance here](https://learning.sap-press.com/sap-s4hana-finance).

 

*![The Universal Journal in SAP S/4HANA](https://learning.sap-press.com/hs-fs/hubfs/02_002.jpg?width=2872&name=02_002.jpg)*

 

#### **SAP S/4HANA’s SRM and SCM Offerings**

SAP breaks down logistics processes into four different LoBs rather than lumping them into the Supplier Relationship Management and Supply Chain Management categories as SAP ERP does. Across these logistics areas, AI helps organizations improve demand forecasting, inventory optimization, and supply chain planning.

 

[Learn more about SAP S/4HANA’s logistics capabilities here](https://learning.sap-press.com/sap-s4hana-logistics).

##### *SAP S/4HANA Sourcing and Procurement*

The SAP S/4HANA Sourcing and Procurement LoB focuses on the activities surrounding the obtainment of raw materials needed to fulfill orders. This includes extended procurement, operational purchasing, and contract and supplier management.

##### *SAP S/4HANA Manufacturing*

The SAP S/4HANA Manufacturing LoB focuses on the product creation process. This includes responsive manufacturing, production operations, scheduling and delivery planning, and quality management.

##### *SAP S/4HANA Supply Chain*

The SAP S/4HANA Supply Chain LoB focuses on overall business planning activities, from pre-planning production runs to dispatching products to purchasers. This includes production planning, batch traceability, warehousing, and inventory and transportation management.

 

![SAP ERP to SAP S/4HANA WM Map](https://learning.sap-press.com/hs-fs/hubfs/04_012.jpg?width=3143&name=04_012.jpg)

##### *SAP S/4HANA Asset Management*

The SAP S/4HANA Asset Management LoB focuses on the maintenance of a business’ fixed assets, from smaller assets such as tools all the way up to buildings. This includes plant maintenance and EHS monitoring.

#### **SAP S/4HANA Sales**

The SAP S/4HANA Sales LoB focuses on the activities associated with the buyers’ decision process. This includes pricing, sales inquiries and quotes, sales contracts and agreements, free-of-charge orders, available-to-promise checks, incompletion checks, repair orders, individual requirements, return authorizations, credit and debit memo requests, picking and packing, billing, and revenue recognition.

#### **SAP S/4HANA R&D/Engineering**

The SAP S/4HANA R&D LoB focuses on the lifecycle of a product. This includes defining the product structure and bill of materials, product lifecycle costing, managing portfolios and projects, managing innovation, managing chemical data and other sensitive materials used in development, and staying compliant with safety and health regulations.

#### **SAP S/4HANA Human Resources**

The SAP S/4HANA Human Resources LoB covers on-premise HR processes including personnel administration and payroll. For cloud-based HR, [SAP SuccessFactors](https://learning.sap-press.com/sap-successfactors) remains SAP's primary offering and is the strategic direction for most new HR implementations. Embedded AI assists HR teams with recruiting, job description creation, skills matching, and workforce planning.

### RISE with SAP and GROW with SAP

As organizations move to SAP Cloud ERP, SAP offers two programs designed for different starting points.

 

RISE with SAP is intended primarily for existing SAP ERP customers that want to modernize. It combines cloud ERP with migration tools, implementation methodology, and expert guidance to help organizations move to SAP Cloud ERP and the SAP Business Suite while following SAP's clean core principles.

 

GROW with SAP is designed for organizations adopting SAP Cloud ERP for the first time. It focuses on fast implementation using preconfigured business processes, best practices, and implementation services.

 

In 2026, SAP expanded both programs with on-site architects and consultants, an AI-powered migration platform that SAP says can cut migration effort by up to 50%, and a contractual commitment to activate three Joule assistants in the first year.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

### SAP for Small and Midsize Businesses

SAP also offers ERP software sized for smaller companies. SAP Business One is an ERP application for small businesses that can run on-premise, in a hosted environment, or as a cloud subscription. It began as TopManage, a product that SAP acquired in 2002. Growing midsize companies often choose SAP Cloud ERP through GROW with SAP instead, since it can scale as the business expands.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## SAP Customer Experience

In summer 2018, SAP announced a suite of customer experience management solutions under the moniker SAP C/4HANA, and renamed it in 2020 to SAP Customer Experience. SAP Customer Experience consists of six core areas:

#### Customer Data

The SAP Customer Data Platform focuses on ethically collecting, keeping, and protecting customer information. It helps provide businesses with ways to initially and securely gather information filled in via form, and allows customers to control their data by being GDPR compliant. SAP Customer Identity and Access Management helps with customer authentication and onboarding.

#### Marketing

SAP Engagement Cloud (formerly SAP Emarsys) focuses on the tasks a business uses to earn and retain customers. This solution takes a look at data from all marketing activities and evaluates the impact of each. With this data, businesses can make informed decisions on how to speak to customers.

#### E-Commerce

SAP Commerce Cloud focuses on product content management, experience management, personalization, and order management. This solution provides users with out-of-the-box functionality to create and maintain an e-commerce presence. SAP Recommerce focuses on the operations regarding preowned inventory.

#### Sales Automation

SAP Sales Cloud focuses on serving the needs of a business’ sales team. The solution uses artificial intelligence to handle forecasting and other data collection and reporting, and provides employees with a 360-degree view of customers, ensuring nobody gets lost during the sales process.

#### Customer Service

The SAP Service Cloud focuses on handling numerous different requests for service from customers. Whether that means a late-night Facebook message or an in-person chat during call center hours, this solution helps teams give customers consistent service across every channel.

#### Artificial Intelligence

SAP CX AI Toolkit focuses on automating repetitive tasks in the sales, service, and e-commerce areas. It also enables data analysis and recommendations via the Joule AI assistant. AI-powered recommendations, automated customer service, and sales insights help organizations deliver more personalized customer experiences.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## Other SAP Cloud Solutions

Beyond ERP, SAP sells cloud applications for specific business areas, many of which came from acquisitions.

- - SAP SuccessFactors: Human capital management, including recruiting, onboarding, learning, and payroll. SmartRecruiters, acquired in 2025, adds AI-powered recruiting.
    - SAP Ariba: Procurement and supplier management through the SAP Business Network.
    - SAP Concur: Travel and expense management.
    - SAP Fieldglass: Management of contingent workers and external services.
    - SAP Signavio and SAP LeanIX: Process mining, process modeling, and enterprise architecture tools that help companies plan business transformation.
    - SAP WalkMe: In-app guidance that helps employees learn and adopt software.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## Reporting and Analytics with SAP

Businesses are only as good as the conclusions they can draw from their data. For this purpose, SAP has created a suite of reporting and analytics tools to help make these decisions. These include [SAP Analytics Cloud](https://learning.sap-press.com/bi/sap-analytics-cloud), SAP BusinessObjects, [SAP BW/4HANA](https://learning.sap-press.com/sap-bw4hana), and SAP Business Data Cloud.

 

With the advent of SAP S/4HANA, many reporting and analytics capabilities have been rolled directly into the LoBs, and SAP's [intelligent technologies strategy](https://learning.sap-press.com/intelligent-technologies) is now centered on generative AI (delivered through Joule and the SAP Business AI Platform) alongside machine learning, IoT, and analytics capabilities embedded across the SAP portfolio. AI-powered analytics allow users to ask business questions using natural language and quickly uncover trends and insights from enterprise data.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## SAP Business Technology Platform

SAP Business Technology Platform (SAP BTP) brings application development, integration, automation, data management, and AI services together in one cloud platform. Companies use it to build extensions, connect SAP and non-SAP systems, and keep their ERP core clean. Its low-code tools are grouped under SAP Build, which includes SAP Build Apps and SAP Build Process Automation. Since 2026, SAP BTP has been part of the SAP Business AI Platform, alongside SAP Business Data Cloud and SAP Business AI.

 

[Learn more about SAP BTP in-depth here](https://learning.sap-press.com/sap-btp).

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## SAP Clean Core

Clean core is SAP's recommended approach for keeping ERP systems easier to maintain and upgrade. Instead of modifying the core ERP application, organizations are encouraged to extend SAP solutions using SAP Business Technology Platform and modern development frameworks such as ABAP Cloud, SAP's development model for upgrade-safe ABAP code, and the ABAP RESTful application programming model (RAP)).

 

By keeping the core system as close to standard SAP functionality as possible, organizations can adopt new innovations more quickly while reducing the complexity and cost of future upgrades.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## SAP Business Data Cloud

SAP Business Data Cloud brings data from SAP applications and third-party systems into one governed foundation for analytics, planning, and AI. It includes SAP Datasphere and SAP Analytics Cloud, and it packages SAP data as ready-to-use data products so companies spend less time copying and reconciling data.

 

In 2026, SAP acquired three companies to extend SAP Business Data Cloud: Dremio, an open data lakehouse platform; Reltio, a master data management provider; and Prior Labs, which builds AI models for tabular business data. SAP Business Data Cloud is also part of the SAP Business AI Platform, where it supplies the business data that Joule agents work with.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## SAP Business AI and Joule

SAP Business AI is the umbrella term for the AI capabilities built into SAP's applications and platform. At SAP Sapphire in May 2026, SAP introduced the SAP Business AI Platform, which combines SAP BTP, SAP Business Data Cloud, and SAP Business AI in one governed environment. At its center is the SAP Knowledge Graph, which gives AI a structured map of how a company's business entities, processes, and data relate to each other.

 

Joule is SAP's AI assistant and the main way users interact with SAP AI. Users can ask questions and request tasks in plain language across SAP S/4HANA, SAP SuccessFactors, SAP Ariba, and other SAP applications. SAP plans more than 50 Joule assistants, each focused on a business domain such as finance or procurement, that coordinate over 200 specialized AI agents. SAP scheduled Joule Work, a single workspace for these assistants and agents, for general availability later in 2026.

 

Developers and partners can build their own agents with Joule Studio, SAP's environment for creating AI agents, apps, and automated workflows. SAP also partners with companies including Anthropic, Microsoft, Google Cloud, and NVIDIA so Joule can use outside AI models and work alongside agents from other vendors.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## SAP User Interfaces

SAP offers two main user interfaces: SAP GUI for SAP ERP products and the [SAP Fiori](https://learning.sap-press.com/sap-fiori-overview) user interface for SAP S/4HANA and cloud products. SAP GUI can also be set to mimic SAP Fiori, which makes it easier to work across SAP ERP and SAP S/4HANA. More and more, users also work through Joule, which lets them ask questions and complete tasks in plain language instead of opening individual apps or transactions.

 

![SAP GUI and SAP Fiori User Interfaces](https://learning.sap-press.com/hs-fs/hubfs/1649_001_and_003_combo.jpg?width=1761&name=1649_001_and_003_combo.jpg)

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## The SAP Back-End

SAP is constantly adding and improving functionality for its solutions, but there are a host of ways users themselves can add customizations to fit their unique needs and perform routine data management and administration tasks. Therefore it’s important to understand a little more about the technical aspects of SAP solutions.

### Customizing SAP

#### Extensions

SAP allows its customers to customize its solutions and offers a host of extensibility options for users to take advantage of. This extension can range from the simple modification of existing application code to the creation of brand-new applications that run directly on or alongside an SAP system.

 

Developers can choose, depending on the goal they’re looking to accomplish, from a host of coding languages when building applications with SAP. This includes Java, SQL and SQLScript, JavaScript, and HTML5 ([SAPUI5](https://learning.sap-press.com/sapui5)). The most oft-used language, however, is the SAP-developed [Advanced Business Application Programming (ABAP)](https://learning.sap-press.com/abap) language. Modern SAP development also emphasizes side-by-side extensions on SAP Business Technology Platform to support clean core principles.

 

ABAP is a multi-paradigm programming language, meaning programmers can utilize general principles such as procedural or object-oriented programming. Developers can also make use of two ABAP-specific programming models: the ABAP programming model for SAP Fiori and [ABAP RESTful programming model](https://blog.sap-press.com/what-is-the-restful-abap-programming-model).

 

#### Cloud and Mobility

SAP offers a wide range of cloud apps that let users work on the go. And what isn’t naturally (or “natively”) mobile can likely be made mobile with the help of a developer and the platform-as-a-service [SAP Business Technology Platform](https://learning.sap-press.com/sap-and-the-cloud/#sap-business-technology-platform) (formerly SAP Cloud Platform). SAP also provides a handful of software development kits (SDKs) to help programmers extend SAP ERP and SAP S/4HANA.

 

#### Integration

Quite often organizations utilize both SAP and non-SAP systems to do business. SAP offers a host of integration options with solutions such as SAP Integration Suite, SAP Process Orchestration, SAP Gateway, and SAP S/4HANA extensions such as adding custom fields or CDS views.

 

SAP Integration Suite is SAP's strategic integration product. SAP Process Orchestration follows the SAP Business Suite 7 timeline, with mainstream maintenance ending at the end of 2027, and SAP encourages customers to move those integrations to SAP Integration Suite.

 

Additionally, SAP has created various tools for interfacing with non-SAP systems, such as Business Application Programming Interfaces (BAPIs), electronic data interchanges (EDIs), intermediate documents (IDocs), and application link enabling (ALE). SAP is also compatible with OData.

 

*![13\_003](https://learning.sap-press.com/hs-fs/hubfs/13_003.jpg?width=926&name=13_003.jpg)*

### Administration

[SAP Solution Manager](https://learning.sap-press.com/sap-solution-manager) (known colloquially as "SolMan") has long been used to maintain SAP systems, manage change control, and monitor system health. Its mainstream maintenance ends at the end of 2027, and SAP recommends that customers finish moving to SAP Cloud ALM before 2028. Customers who buy extended maintenance for SAP Business Suite 7 receive extended maintenance for selected SAP Solution Manager functions through 2030.

 

[SAP Cloud ALM](https://blog.sap-press.com/what-are-the-differences-between-sap-cloud-alm-and-sap-solution-manager) is SAP's strategic successor to SAP Solution Manager for cloud and hybrid landscapes, and new implementations should consider SAP Cloud ALM as the primary application lifecycle management tool going forward. SAP Cloud ALM comes pre-loaded with guidance from SAP powered by content from the SAP Activate methodology, along with processes from the Enterprise Architecture Reference Library. The product helps you not only in implementations, but also in your operations and service deliveries.

 

A set of SAP HANA tools is also available for maintaining that database and platform. This includes options such as SAP HANA Cockpit, SAP HANA XS Administration Tools, and SAP HANA Lifecycle Manager. SAP HANA Studio has been deprecated as of SAP HANA 2.0.

 

Other tools that allow you to provision and clean data, manage information and databases, [ensure security and data privacy compliance](https://learning.sap-press.com/sap-security), and manage user access are available to SAP users.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## Infographic: Key SAP Acronyms

![Key SAP Acronyms](https://learning.sap-press.com/hs-fs/hubfs/key_sap_acronyms_infographic.png?width=1775&height=3639&name=key_sap_acronyms_infographic.png)

[![Want to save this infographic? Click here to download!](https://no-cache.hubspot.com/cta/default/5707200/7bdfe6d1-1993-464a-a239-ce007c8021f3.png)](https://cta-redirect.hubspot.com/cta/redirect/5707200/7bdfe6d1-1993-464a-a239-ce007c8021f3)

## Additional SAP Definitions

SAP operates in multiple industries, each with its own lexicon. However, you’re likely to come across certain terms that span these industries during your time using SAP solutions. Let’s take a look at some of the most common.

- - **AI agent:** Software that can complete a multistep business task on its own, such as preparing a report or processing an invoice, within limits the organization sets. In SAP, these are called Joule agents.
    - **ASAP methodology:** SAP's original waterfall-based implementation methodology, now superseded by SAP Activate, which follows an agile delivery approach and is the current standard for SAP S/4HANA implementations.
    - **Business object**: A collection of data used in reporting.
    - **Cloud deploymen**t: Refers to an installation of an SAP solution that is not physically hosted on customer property but rather on third-party property and accessed remotely. Compare to “on-premise.”
    - **Embedded functionality**: Functionality that is directly written into the code of an SAP solution, such as the extended warehouse management functionality written into SAP S/4HANA.
    - **Enterprise structure**: The way an organization is laid out, similar to an organizational chart but including organizational units (such as physical locations) in addition to personnel units (such as managers, floor workers, etc.).
    - **Hybrid deployment**: Refers to an installation of an SAP solution that contains both on-premise and cloud elements.
    - **On-premise**: Refers to an installation of an SAP solution that is physically hosted on customer property. Compare to “cloud deployment.”
    - **SAP Cloud ERP:** SAP's name, introduced in 2025, for the cloud editions of SAP S/4HANA.
    - **SAP Fiori apps**: A personalized, role-based user experience application used for performing a specific task in SAP S/4HANA. Their SAP ERP counterparts are transaction codes.
    - **Transaction code**: An alphanumeric shortcut used for performing a specific task in SAP ERP. Also referred to as a t-code. Their SAP S/4HANA counterparts are SAP Fiori apps.

[(Back to ToC.)](https://learning.sap-press.com/what-is-sap#table-of-contents)

## Older SAP Product Names

During the early twenty-first century when SAP was rapidly releasing and acquiring products, in addition to adding or changing available functionality it would occasionally rename them to better fit into its product portfolio. Below are two lists of old SAP product names that will help should you come across one.

### Renamed SAP Products and Services

- - **ABAP SQL** (formerly known as Open SQL)
    - **SAP API Management** (formerly known as SAP Cloud Platform API Management)
    - **SAP Billing and Revenue Innovation Management** (formerly known as SAP Hybris Billing)
    - **SAP Build Apps** (formerly known as SAP AppGyver)
    - **SAP Business Network for Asset Management** (formerly known as SAP Asset Intelligence Network)
    - **SAP BusinessObjects Dashboards** (formerly known as Xcelcius)
    - **SAP Business Technology Platform** (formerly known as SAP Cloud Platform and SAP HANA Cloud Platform)
    - **SAP Cloud ERP** (formerly known as SAP S/4HANA Cloud, public edition; the private edition is now SAP Cloud ERP Private)
    - **SAP Customer Experience** (formerly known as SAP C/4HANA)
    - **SAP Data Intelligence** (formerly known as SAP Data Hub, combined with SAP Leonardo Machine Learning Foundation in 2019; mainstream maintenance ends in 2026 for on-premise and 2028 for cloud, with SAP Business Data Cloud and SAP Datasphere as successors)
    - [**SAP Datasphere**](https://blog.sap-press.com/what-is-sap-datasphere) (formerly known as SAP Data Warehouse Cloud)
    - **SAP Engagement Cloud** (formerly known as SAP Emarsys)
    - **SAP Lumira** (formerly known as SAP Visual Intelligence)
    - [**SAP Master Data Governance**](https://learning.sap-press.com/sap-data-management#SAP-Master-Data-Governance) (formerly known as SAP Master Data Management)
    - **SAP Process Integration** (formerly known as SAP Exchange Infrastructure)
    - **SAP S/4HANA Finance** (formerly known as SAP Simple Finance)
    - [**SAP Vora**](https://learning.sap-press.com/sap-data-management#SAP-Vora) (formerly known as SAP HANA Vora; no longer actively marketed as a standalone product)

### Renamed Acquisitions

- - **AppGyver** (now known as SAP Build Apps)
    - **Ariba** (now known as [SAP Ariba](https://learning.sap-press.com/sap-and-the-cloud#sap-ariba))
    - **Business Objects** (now known as SAP BusinessObjects)
    - **CallidusCloud** (functionality is now part of SAP Customer Experience)
    - **Clear Standard** (functionality is now part of SAP Environmental, Health, and Safety Management)
    - **Concur** (now known as SAP Concur)
    - **Coresystems** (functionality is now part of SAP Service Cloud)
    - **Dremio** (being integrated into SAP Business Data Cloud)
    - **Emarsys** (renamed SAP Emarsys, now SAP Engagement Cloud)
    - **Fieldglass** (now known as [SAP Fieldglass](https://learning.sap-press.com/sap-and-the-cloud#sap-fieldglass))
    - **Gigya** (functionality is now part of SAP Customer Experience)
    - **hybris** (originally renamed to SAP Hybris, functionality is now part of SAP Customer Experience)
    - **KXEN** (functionality is now part of SAP Analytics Cloud)
    - **LeanIX** (now known as SAP LeanIX)
    - **Multiposting** (functionality is now part of SAP SuccessFactors Recruiting)
    - **OpTier** (application performance management; acquired in 2014 and absorbed into SAP)
    - **Plat.One** (functionality is now part of SAP Business Technology Platform)
    - **Prior Labs** (operates as an independent SAP entity focused on AI for tabular data)
    - **Recast.AI** (renamed SAP Conversational AI; functionality is now part of Joule)
    - **Reltio** (master data management; being integrated with SAP Business Data Cloud)
    - **Signavio** (now known as SAP Signavio)
    - **SmartOps** (functionality is now part of [SAP Integrated Business Planning](https://learning.sap-press.com/sap-and-the-cloud#sap-integrated-business-planning))
    - **SmartRecruiters** (now SmartRecruiters, an SAP company; integrated with SAP SuccessFactors)
    - **SuccessFactors** (now known as SAP SuccessFactors)
    - **Sybase** (functionality is now part of SAP Adaptive Server Enterprise and SAP HANA)
    - **Taulia** (now part of SAP; working capital management)
    - **TechniData** (functionality is now part of SAP Environmental, Health, and Safety Management)
    - **TopManage** (now known as SAP Business One)
    - **TopTier Software** (became SAP Enterprise Portal, later SAP NetWeaver Portal)
    - **Transact In Memory** (functionality is now part of SAP HANA)
    - **Virsa Systems** (functionality is now part of SAP Governance, Risk, and Compliance)
    - **WalkMe** (now part of SAP; digital adoption)

## FAQ

Here are answers to some of the most common things business users want to know about SAP.

 

***What does SAP stand for?***

SAP stands for Systems, Applications, and Products in Data Processing.

 

***What is SAP used for?***

SAP provides enterprise software that helps organizations manage business processes across finance, HR, procurement, supply chain, manufacturing, and more. Its products are used by companies of all sizes across virtually every industry.

 

***What is the difference between SAP ERP and SAP S/4HANA?***

SAP ERP (also called SAP ECC) is SAP's legacy business suite. Its mainstream maintenance ends at the end of 2027, with paid extended maintenance available through 2030 and a limited private cloud option for select customers through 2033. SAP S/4HANA is SAP's current suite, built on the SAP HANA in-memory database, with real-time processing, a simplified data model, and SAP Fiori-based user experiences. SAP S/4HANA is SAP's strategic direction for all new ERP implementations, and its cloud editions are sold as SAP Cloud ERP.

 

***What is SAP BTP?***

SAP Business Technology Platform (SAP BTP) is SAP's cloud platform for application development, integration, data management, and AI. It serves as the extensibility and integration layer across the SAP portfolio and, since 2026, has been part of the SAP Business AI Platform, which powers Joule and Joule agents.

 

***How many customers does SAP have?***

SAP has more than 400,000 customers worldwide across industries including manufacturing, retail, financial services, healthcare, and the public sector.

 

***What is Joule?***

Joule is SAP's AI assistant, embedded across SAP applications including SAP S/4HANA, SAP SuccessFactors, and SAP Ariba. Users can ask questions and request tasks in natural language, and Joule coordinates AI agents that carry out multistep business processes on their own. Developers can build custom agents with Joule Studio.

 

***What is SAP Business Data Cloud?***

SAP Business Data Cloud is SAP's unified data foundation for analytics and AI. It connects SAP and third-party data so organizations can create trusted reports, dashboards, planning models, and AI-powered applications using consistent business information.

 

***What is SAP Cloud ERP?***

SAP Cloud ERP is SAP's name, introduced in 2025, for the cloud editions of SAP S/4HANA. The public edition is a standardized system that SAP runs and updates twice a year, while SAP Cloud ERP Private gives companies more flexibility to tailor their system. SAP Cloud ERP is the core of the SAP Business Suite.

 

***What is the SAP Business AI Platform?***

The SAP Business AI Platform, announced in May 2026, brings SAP BTP, SAP Business Data Cloud, and SAP Business AI together in one governed environment for building, connecting, and managing AI agents.

 

*Is SAP difficult to learn?*

SAP has a reputation for being complex because it supports many different business processes and industries. However, beginners can learn SAP successfully by focusing on one area at a time, such as finance, supply chain, human resources, analytics, or development. Many professionals start with the business processes used in their role before learning the SAP applications that support them.

 

*Which SAP solution should I learn first?*

The best place to start depends on your career goals.

- - Finance professionals often begin with SAP S/4HANA Finance.
    - Supply chain professionals may start with materials management (MM), sales and distribution (SD), or extended warehouse management (EWM).
    - HR professionals typically begin with SAP SuccessFactors.
    - Developers often learn ABAP and SAP Business Technology Platform.
    - Business analysts frequently start with SAP Analytics Cloud.

Choosing a learning path that aligns with your current job or desired career is usually more effective than trying to learn every SAP product.

 

*Is SAP still in demand?*

Yes. SAP continues to be one of the world's leading enterprise software providers, and organizations across industries rely on SAP solutions to manage finance, supply chain, procurement, manufacturing, human resources, customer experience, and analytics. As companies continue migrating to SAP S/4HANA and expanding their use of cloud technologies and AI, demand remains strong for professionals with SAP skills.

 

*Can I learn SAP for free?*

There are many free resources available for learning SAP concepts, including tutorials, documentation, videos, and community content. However, comprehensive books, structured online courses, and hands-on practice systems often provide a more complete learning experience and help learners build practical skills more quickly.

 

*How long does it take to learn SAP?*

The time required depends on your goals and prior experience. Learning the fundamentals of SAP and a single functional area can take a few weeks to a few months of focused study. Becoming proficient enough to implement, administer, or develop SAP solutions typically requires hands-on experience over a longer period.

### What Next?

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