Independent Research Firm Names SAP Revenue Leader for Analytic Applications

SAP Extends Its Comprehensive Analytic Offerings with General Availability of More Than 100 Analytic Composites

WALLDORF, Germany - November 06, 2006 - In a series of news releases1 underscoring the business value it is delivering with the SAP NetWeaver® platform, SAP AG (NYSE: SAP) today announced that independent research firm IDC named SAP as the leader in the worldwide analytic applications market, a segment of the overall business analytics market, by revenue. In its report, entitled “Worldwide Business Analytics Software 2006 – 2010 Forecast and 2005 Vendor Shares” (Doc #203468, Sep 2006), IDC found that in 2005, the worldwide business analytics market grew at a rate of 11 percent to reach $16.6 billion in revenue. SAP’s business analytic applications revenue grew faster than the overall market, at a rate of 13.4 percent. To further extend its leadership in the analytic applications segment of this market, SAP today also announced general availability of more than 100 analytic composites in the SAP® xApp™ Analytics composite application—software built on the SAP NetWeaver platform that has proven to deploy quickly and seamlessly for early customers.

“Business analytics (BA) is moving beyond traditional business intelligence that improves data capture and information delivery,” said Kathleen Wilhide, research director, IDC. “What is required are analytic applications that support business process improvements such as the introduction of new products, pricing changes, or workforce and inventory optimization, among others. IDC expects a trend towards integrating day-to-day processes with analytics that enhance decision support, a concept IDC calls intelligent process automation (IPA).”

Market Leadership in Analytic Applications
SAP software for analytics delivers critical business insight to improve core horizontal and industry-specific business processes and includes the following:

* Analytics for enterprise resource planning (ERP), including financials and human capital management (HCM), enable enterprise-wide performance management and analysis, improving decisions and actions on all organizational levels.
* Analytics for customer relationship management (CRM) provide customer insights that help organizations to improve sales, marketing and customer service. Analytics for CRM enable organizations to analyze and optimize customer acquisition, customer retention and customer cross-sell and up-sell processes.
* Analytics for supply chain management (SCM) enable companies and individuals to sense and respond through an adaptive supply chain network in which distribution, transportation and logistics are driven by and integrated with real-time planning processes.
* Industry-specific analytics enable information workers within specific industries to gain the business insight they need to target their specific markets, including manufacturing, retail, financial services and many others.

Delivering Innovation in Analytics
Designed to evolve the way information workers leverage software, feeding timely and actionable insight into their daily work, SAP xApp Analytics is a model-driven composite application built on the SAP NetWeaver® platform. SAP xApp Analytics delivers analytics, as part of mySAP™ Business Suite applications, augmenting their analytic functionality and providing embedded support for core business processes. SAP continues to extend its leadership in the analytics applications market by doing the following:

* Providing easy-to-use analytics – Analytic composites from SAP can be used immediately by information workers with no training. The intuitive, modern user experience benefits from the capabilities of the Adobe Macromedia Flex environment and sets the standard for delivering analytics in a rich Internet application.
* Delivering model-driven analytics – Leveraging the SAP NetWeaver® Visual Composer modeling tool, business process experts can work side-by-side with information workers to easily customize the software or create their own analytic applications, with minimal support from the IT department.
* Leveraging enterprise service-oriented architecture (enterprise SOA) – Customers can compose new analytic applications from the rich set of enterprise services available to customers that use mySAP™ ERP with the SAP NetWeaver platform. Customers can innovate rapidly on top of a solid backbone of enterprise processes and can just as easily leverage Web services provided by third-party vendors.
* Bringing together SAP and non-SAP data – SAP xApp Analytics is built on the SAP NetWeaver platform, seamlessly pulling key business information from SAP and non-SAP environments and combining them effortlessly.

“As a long-time SAP NetWeaver Business Intelligence customer, we have been successfully leveraging the Web application designer and enterprise portal technology to build our own analytic applications to understand the performance of the business with key metrics, identify new growth opportunities for the company, evaluate areas for improvement and make immediate business decisions based on this critical insight,” said Mike Masciandaro, Business Intelligence Director, Rohm and Haas. “With SAP xApp Analytics, we are looking to take this foundation to the next level. The seamless integration of analytic composites with our applications and more importantly to other non-SAP based sources will ensure that we continue to leverage our existing investments while enabling us to take advantage of new innovations from SAP.”

“Customers have demanded a new approach to analytics – an approach that delivers real-time actionable insight at the time and place needed, built into daily business processes instead of bolted-on,” said Sanjay Poonen, senior vice president and general manager, analytics, SAP. “Only through this approach can information workers make timely business decisions that align with the strategic objectives of the business. The SAP xApp Analytics composite application delivers on this requirement, while also providing the historical viewpoint of traditional analytical offerings. With today’s announcement, SAP extends its leadership in the analytic applications market by delivering more than 100 analytic composites, empowering information workers with innovative new ways to make better business decisions.”

For more information about the SAP xApp Analytics composite application, please visit: www.sap.com/analytics.

For a list of the more than 100 analytic composites in SAP xApp Analytics, please visit the Business Process Expert Community at: https://www.sdn.sap.com/irj/sdn/developerareas/bpx-analytics

1SAP Drives Innovation and Market Leadership with SAP NetWeaver
Companies increasingly realize that they need to manage and leverage business information as a strategic asset, to control costs, increase competitiveness and accelerate innovation. Moving beyond traditional database-driven information mining, SAP’s innovation and thought leadership in the business process-driven management and delivery of information has rapidly translated into market leadership in the areas of analytics, business intelligence and master data management. (See related press releases: “SAP Reports Significant Market Share Gain in Business Intelligence” and “SAP Leads Product Information Management Market Worldwide”)

About SAP
SAP is the world’s leading provider of business software*. Today, more than 36,200 customers in more than 120 countries run SAP® applications—from distinct solutions addressing the needs of small and midsize enterprises to suite offerings for global organizations. Powered by the SAP NetWeaver® platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at www.sap.com)

(*) SAP defines business software as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Copyright © 2006 SAP AG. All rights reserved.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

Contact Information

Shabana Khan

SAP AG

Contact via E-mail