What is SAP: Systems, Applications & Products in Data Processing

Preface – This post is part of the ABAP Beginner series.

What is SAP?

SAP is software as well as a Company which provides ERP solution.The initialism SAP stands for Systems, Applications & Products in Data Processing.

It is pronounced as S-A-P. (In German language, sap means idiot. That’s why they forbid it to call sap and rather call it S.A.P)

The SAP software is built on ABAP Programming language which was developed by SAP itself.

The Headquarter of SAP is in Walldorf, Germany.

The current version of SAP software is called SAP-ERP 6.0 which is an upgraded version of SAP-R/3, here R stands for ‘Real Time Processing’ and 3 stands for ‘3 tier’ platform i.e.

  1. Database
  2. Application server
  3. Client (GUI)
what is sap
Basic Architecture of NetWeaver Stack

SAP-ECC i.e. ERP Central Component is the core component of the SAP’s Business Suite which consists of:

  • ERP
  • CRM
  • SCM
  • S/4 HANA

What are Modules in SAP?

Initially, SAP was single software for all operations but with time it evolved and started focusing upon different processes.

To lower the load on single software and to divide the work on the basis of field, it came in different modules. SAP has following major Modules:

  • MM: Material Management
  • PP:Production Planning
  • SD:Sales and Distribution
  • HR:Human Resources or HCM: Human Capital Management
  • QM:Quality Management
  • FICO:Financial Accounting and Controlling

What is SAP-NetWeaver?

SAP-NetWeaver is a technology by SAP which is developed primarily using ABAP.  It is a solution stack of SAP’s technology products.

In simpler words, it is a breadboard on which other hardware’s (here SAP-Modules/ Non-SAP modules) can be attached.

What is SaaS?

SaaS stands for software-as-a-service.It is a way of delivering applications/Apps over the web/internet.

Customers can access SaaS Apps right from any Web browser via any of their devices (Mobile, PC, tablet). It means there is no requirement to buy, install, maintain, or update any Hardware or Software.

The SaaS provider will take care of every next required operations– and the customer will always have the latest version of the application.

Following are the major SaaS products:

  • SAP-SuccessFactors HR Solutions
  • SAP-Hybris Cloud for Customer
  • Ariba Network: Sourcing, Procurement, & Finance
  • Concur: Travel & Expense Management


  • Barry Allen

    A Full Stack Developer with 10+ years of experience in different domain including SAP, Blockchain, AI and Web Development.

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2 responses to “What is SAP: Systems, Applications & Products in Data Processing”

  1. Am so happy to reach on this blog, these blog very useful for me. It has very good information for what is SAP? . Such a nice Blog

  2. Most of the videos are unavailable it was a great help in case of understanding the whole concept Excellent !

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