SAP Enterprise Resource Planning Software
In finding active global installations of SAP's Enterprise Resource Planning (ERP) software, we were able to do rough estimates based on information we gleaned about the average number of instances per company. We were unable to find concrete information on the number of active global installations of SAP's ERP, but using data that we gathered during our search, we were able to do a rough estimation. We were able to calculate that there are approximately 134,205 SAP ERP active installations at this time. We were also unable to do a breakdown as we didn't find market share as it relates to all of SAP ERP offerings, neither did we find concrete numbers for SAP ERP versions. We discuss our methodology below and our calculations and assumptions.
In trying to find the number of active installations there are for SAP's ERP software, we first did a straightforward search for the number of installations of ERPs in general. We did this search first because we surmised that there would be no information readily available for the number of active installations for SAP's enterprise software. In this search, results came up about companies that have installed ERPs. However, they didn't mention anything about the number of times they installed these ERPs, nor did they mention an average. We resorted to doing a straightforward search for active installations of SAP's ERP software, but we were unsuccessful here as well, mainly seeing the results mentioned above. For this, we knew we had to change strategy.
Because the information we found about the number of companies running SAP ERP software was moot, we decided to put that information to the side and look for broader market share information for ERPs. We did this in the hopes of finding graphs and charts showing how much ERP software is used around the world. We found a lot of information about monetary values and the percentage share of companies that use each ERP product. We were unable to find any market share information that relates to installations, but we did find interesting information about market share for SAP ERP versions. However, we couldn't use what we found here as they only talked about the versions with the number of customers, with no information about the share as it relates to all SAP ERP products. We tried finding this information alone, and we even used SAP's financial reports, but this was also unfruitful. We eventually found information stating that based on looking at the number of websites that are currently running ERP, SAP ERP has an 11.18% market share. We decided this number would be good to calculate active global installations because the websites that were analyzed are currently active, meaning that they had to represent SAP ERP active installations.
When we did a search for the average number of ERP installations per company, we were successful in finding information that states that a third of firms were running with 10 or more instances of the software in a multi-ERP environment. With all of this information, we did a very rough estimate of the number of SAP ERP installations. We first calculated the number of installations as if only the one-third of companies that run 10 or more instances matter. Afterward, we calculated the installations for the other two-thirds by finding the median number for 1 to 9. This made sense because we didn't get a number that was too high or too low, even though it was still a very rough estimate. We detail our calculations and assumptions below.
CALCULATIONS AND ASSUMPTIONS
Based on website analysis, which is current, 11.18% of websites have SAP ERP's technology.
With the data that a third of companies run 10 or more instances of ERP software, and with a total of 189,534 companies using ERP software:
189,534/3 = 63,178 companies
63,178 * 11.18% = 7,063.3 for SAP ERP * 10 (least number of instances a third of companies run)
= 70,633 active installations
Two-third of companies run between 1 and 9 instances of ERP. The best course of action would be to find the middle number and use to calculate the total active installations. This removes the possibility of a number being too high or too low. With a total of 189,534 companies using ERP software:
189,534 * 2/3 = 126,356 companies
126,356 * 11.18% = 14,127 for SAP ERP * 4.5 (avg/median of 1-9)
= 63,572 active installations
Therefore, the estimated sum of active SAP ERP installations is 70,633 + 63,572 = 134,205 est. active installations.
There are approximately 70,633 active installations from one-third of companies that have 10 or more instances of SAP ERP.
There are approximately 63,572 active installations of SAP ERP software from the other two-thirds of companies, assuming they all run one instance.
With these figures, there are approximately 134,205 SAP ERP active installations around the world.
The 11.18% figure that we use to calculate the number of active SAP ERP software installations could have a significant error rate due to it relying on Alexa ranking, which doesn't always give an accurate depiction of traffic. We were not able to find market share as it relates to SAP ERP versions, which is why we did not do a breakdown. Also, because it has been made clear that information about the number of customers should not be included, we did not include anything related to that, especially facts about S/4HANA's growth.