Business Model

Software AG, Headquarters Building, Darmstadt, Germany

Software at a glance

Business lines

The digital transformation is changing enterprise IT landscapes from inflexible application silos to modern software platform-driven IT architectures which deliver the openness, speed and agility needed to enable the digital real-time enterprise. Companies in every industry are confronted with new competitors, market developments and disruptive technologies created by digital business models. A growing number of innovative businesses are entering the market and overtaking traditional market leaders in record time. At the same time, business processes, massive data volumes and IT infrastructures are all becoming increasingly complex. In light of the unstoppable digitalization of the professional and private spheres worldwide, building in-house software expertise provides the most important source for innovation and growth at any modern company. Digital enterprises need to set themselves apart from their competition through innovation and efficient change processes—and to do so they need modular applications that are flexible and constantly adaptable.

Digital Challenges across all industries

In this business environment, Software AG is acting as a technology service provider for companies in every industry. Software AG offers the first end-to-end Digital Business Platform, based on open standards, with integration, process management, in-memory data, adaptive application development, real-time analytics and enterprise architecture management as core building blocks. With the help of this modular platform, users can develop application systems for the digital future. As a technology leader in the area of application infrastructure and middleware software, Software AG develops comprehensive solutions and services for digitalization, including products for real-time analysis, which have great potential in the Industry 4.0 and Internet of Things growth markets. Software AG’s product portfolio offers companies both investment protection for their existing IT architecture as well as a sustainable future for modern technologies. The customized solutions focus on the customer’s needs, building on existing IT landscapes and improving usage flexibility so that processes and applications can be adapted quickly and easily to changing market conditions in the future. Furthermore, Software AG supports its customers in their digital transformation with custom consulting services and extensive expertise. Software AG’s technology leadership is confirmed again and again in market studies by independent analysts who rank the product portfolio as market leader in numerous technology categories with regard to innovation and digitalization.

Key products, services and business processes

Software AG’s corporate structure is separated into the following three business lines:

  • Digital Business Platform (DBP)
  • Adabas & Natural (A&N)
  • Consulting

In the DBP and A&N business lines, Software AG targets both licensing and maintenance revenues with its software
products. Software AG provides customer-specific consulting services exclusively for its own products in the
Consulting business line.

Business lines

Digital Business Platform business line

Software AG launched the world’s first platform for the digital transformation, the Digital Business Platform, to meet the needs of digitalization. With this agile software platform, businesses and public organizations can optimize their processes, drive innovations, develop agile business applications, boost efficiency and take advantage of sales opportunities in real time. The Digital Business Platform builds on existing systems with modular, vendor-neutral solutions so that innovative applications can now be developed and integrated faster and with greater flexibility. This business line is Software AG’s growth driver and is being expanded through extensive research and development measures as well as targeted technology acquisitions.

Adabas & Natural business line

The mainframe-based database business represents Software AG’s origins. Database products from Software AG remain an indispensable key technology for a large customer base including many well-known major enterprises. Adabas is a long-established, efficient database management system for mainframe computers. The system is able to process more than 320,000 calls or 80,000 transactions per second. Natural is a development environment and is the basis of hundreds of thousands of mainframe software applications that support the core processes of large companies across all industries. Both of these solutions have been optimized for digital business models and supplemented through the technology acquired from CONNX Solutions Inc. in August 2016. With this action, Software AG is helping many longtime customers secure their investments, because the A&N products have been established for nearly 50 years in the IT landscapes of major companies and public administrations. Because of the exceptional loyalty of its A&N customers, Software AG announced in 2016 its intention to offer support for the A&N mainframe products through the year 2050 and beyond.

Consulting business line

The Consulting business line focuses exclusively on projects and services involving Software AG’s own software products. With their proven market experience and industry expertise, Software AG’s consultants provide crucial support for product sales in the DBP and A&N lines and support customers in implementing the systems and digital process organization. Through these efforts, Software AG ensures total support for its customers in their transformation to the digital enterprise.