Business Model
            

                Key Figures 2020
            

Fundamental to the long-term success of Software AG’s business model is delivering continuous value to ist customers. For fifty years, Software AG has focused on delivering products and services that provide customers with a competitive edge, through the latest innovative software developments that can be fully integrated with their existing IT architectures.

Simultaneously protecting past IT investments while providing customers with the tools to build state-of-the-art applications has ensured a level of customer value, and therefore loyalty, that enables long-term planning, continuous product innovation and dynamic and timely Technology acquisitions. 

Add to this a culture of complete technology “openness,” a vendor-neutral approach to integrating the best Software solutions available anywhere. Software AG preserves customer choice, the ability to use whatever applications they need and the agility to react to rapidly changing markets and economic conditions.

As a global technology provider, Software AG has a special connection to customer and employee concerns. Responsible conduct and integrity are a key social concern in a highly competitive market environment, where the use of Software AG’s innovative technologies can also help its customers conserve resources.

As a result, Software AG can bring its 50 years of Technology development, customer relationship experience, complete vendor neutrality and industrial domain Knowledge to guide Enterprises through today’s Transformation to a digital economy through the Internet of Things (IoT) or Industry 4.0.

Finally, Software AG offers a flexible approach to licensing: subscriptions, term-limited, perpetual and annual maintenance. And, in line with Software AG’s transformation, the Company is focused on shifting its licensing model towards subscriptions.

While remaining focused on providing continuous Business value, Software AG’s business model has adapted to changing market conditions for half a century and is optimal for addressing the challenges to the global digital transformation.

BUSINESS LINES

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

  • Digital Business (incl. Cloud & IoT)
  • Data Management (Adabas & Natural/A&N)
  • Professional Services

Digital Business and Data Management contain Software AG’s wide product portfolio and are the primary revenue drivers through license and maintenance fees. License fees for Software AG’s product portfolio can be perpetual, term-limited or subscription. Maintenance charges apply to perpetual licenses and give customers access to support services and product enhancement updates.

The third business line, Professional Services, provides software development services and expertise in Business organization. This accelerates customer deployment of Software AG’s products and significantly shortens the time to providing real business value.

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

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