Business Model
            

2022

Software AG uses its technological expertise to connect people, systems, and devices, enabling customers and partners—and the Company itself—to have a positive impacton people's lives. That applies to delivering better product offerings in the present as well as embracing co-innovation toward a smarter, more connected, and sustainable future.

For more than 50 years, Software AG has provided its customers with products and services that expand existing IT architectures through innovation and allow integration of new functions and technologies. Software AG uses its industry expertise to support companies with data integration, regardless of its source, and with process management.

The Company's digital business solutions are intended to enable customers to develop new business models and robust solutions that meet the needs of their end users. This is underpinned by horizontal integration capabilities both within the Company's own product portfolio as well as the partners’ technology segments.

Software AG offers open technology and pursues a vendor-neutral approach to integrating the best software solutions available anywhere. The Company preserves customer choice, the ability to use whatever applications they need, and the agility to react to rapidly changing markets and economic conditions. With the broad availability of its software solutions in the cloud, Software AG also enables its customers to quickly implement use cases and create incremental value while reducing operating costs at the same time.

Software AG considers its sustainable success to be the reason for its long-term customer relationships. This allows customers’ IT investments to be protected and enables Software AG's long-term planning, ongoing product innovations, and smart technology acquisitions. Customers are also at the center of Software AG’s flexible licensing options. And, in line with Software AG’stransformation, the Company’s focus on shifting its licensing model toward subscriptions including usage-based licenses (Software as a Service, SaaS) aligns with its customers’ preference for subscriptions over traditional licensing models.

Finally, as a global technology provider, Software AGhas a special connection to customer and employee issues. Responsible conduct and integrity are of key importance in a highly competitive market environment.

Software AG operates three complementary business lines to address differing customer requirements and business objectives:

• Digital Business
• Adabas & Natural (A&N)
• Professional Services (PS)

The first two business lines, Digital Business and A&N, represent Software AG’s broad product portfolio and are the primary revenue drivers through license and maintenance fees. Licenses for Software AG’s product portfolio can be term (subscription) or perpetual. Maintenance contracts consist of support services and regular product enhancement updates. In addition,Software AG customers can use products as part of SaaS offerings.

The Professional Services (PS) business line comprises consulting and implementation services that accelerate customer deployment of Software AG products.

Together, the business lines allow enterprises to successfully master the digital transformation from any starting point and in whatever direction they choose to go.