Sas Institute

Prepared by Nisha Koshy

Company Overview

SAS Institute Inc., headquartered in Cary, North Carolina, USA, has been a major producer of software since it was founded in 1976 by Anthony Barr, James Goodnight, John Sall and Jane Helwig. Some Facts

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SAS is a global company with more than 10,000 employees. Together, we provide software and services to more than 43,000 SAS sites in more than 100 countries Leader in business intelligence and analytical software and services SAS is the world's largest privately held software company (prepackaged software).

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Approximately 25% of the revenue of the SAS Institute goes to R&D, which is widely considered to be the one factor which keeps them ahead of their competitors.

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In 2006, more than 1,300 new customers added to the SAS family. Among them are Alliance Bank, Ambank, Citi ,Info, Google Inc., hanaro Telecom, HSBC Bank, netflix, National Stock exchange of India, Texas Instruments France and UTI Bank.

Business Solutions

Solution Lines • Activity-Based Management • Compliance • Customer Relationship Mgmt. • Financial Intelligence/BPM • Human Capital Mgmt. • IT Management • Performance Management

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Profitability Management Risk Management Service Intelligence Supplier Intelligence Supply Chain Intelligence Web Analytics OnDemand Solutions

Data Integration & ETL • Connectivity & Metadata • Data Cleansing & Enrichment • ETL • Migration & Synchronization • Data Federation • Master Data Management

Business Intelligence • Reporting • Query & Analysis • OLAP • Integrated Analytics • Visualization • Microsoft Office Integration

Enterprise Intelligence Platform • Data Integration & ETL • Business Intelligence • Analytics • Intelligence Storage

Analytics • Statistics • Data & Text Mining • Forecasting & Econometrics • Optimization • Model Mgmt. and Deployment • Quality Improvement

Business Partnerships The SAS Alliance - designed to create new avenues for delivering and implementing SAS solutions. The partners bring high-level business content to the mix and SAS brings

functional and technical expertise around solution areas. SAS Alliance Partners Technology Partners Application Partners Hewlett-Packard ESRI IBM Corporation NICE Systems Intel Corporation TeaLeaf Technology Sun Microsystems Outsourcing Partners Teradata Acxiom Unisys EDS Consulting Partners Reseller Partners Accenture Comsys Amdocs Mainline Information Systems BearingPoint Qualex Capgemini ThotWave Computer Sciences Corporation Deloitte Consulting Grant Thornton IBM Global Services RSM McGladrey

Reseller Partners The SAS Alliance Reseller Program provides customers with access to SAS software through indirect channels that allow customers to work with their vendor of choice to acquire a complete services and software solution. Consulting Partners The intent of the Consulting Program is to establish and grow targeted SAS solution practices with other leading business organizations around the world. Members of the SAS Alliance Consulting Program commit significant time, resources and expertise to provide customers with the best quality services and support. Application Program The SAS Alliance Application Program has been designed to encourage and promote the integration of strategic SAS technologies and applications into third-party software to extend the coverage of SAS in specific market segments and provide customers with world-class Intelligence solutions. Outsourcing Program Members of the SAS Alliance Outsourcing Program host applications in a professionally managed environment and outsource business or IT process, helping customers achieve fast access to mission-critical applications and reduced costs. Technology Program Members of the SAS Alliance Technology Program drive targeted lead-generation programs to support our joint revenue initiatives. For the best execution of SAS solutions and applications,

members of the Technology Program offer a variety of services to both joint and potential customers.

Financials Annual Revenue: $1.9 billion (2006) •

Since its founding in 1976, SAS has continuously grown, this year earning US$1.9 billion, a 12 percent increase over 2005

Revenue by geography In 2006, Revenue from the Americas increase 14 percent, while revenue in EMEA and Asia Pacific each rose 13 percent.

Revenue By Industry • • •

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Retail-based sector grew 18 percent as retailers continue to recognize the competitive advantage they gain from our applications, such as forecasting and optimization. Financial services’ revenue jumped 17 percent, demonstrating strong growth in risk management and SAS’ dominance as a provider of Basel II compliance software. Life sciences revenue grew 12 percent Public sector revenue rose 10 percent , where fraud detection solutions helped drive demand

Employee Statistics

United States 53%

Asia Pacific 14%

Europe, Middle East and Africa 29%

Latin Am erica 2%

Canada 2%

Customers Number of Countries Installed SAS has customers in 111 different countries Total Worldwide Customer Sites Approximately 43,000 business, government and university sites SAS Customers or their Affiliates Represent: 96 of the top 100 companies on the 2007 FORTUNE Global 500 list

Customer By Industry Automotive Ford Hyundai Shanghai GM Banking and Financial Services AMB Generali BB&T

Healthcare Providers Flevoziekenhuis Inova Health System NHS Blood and Transplant

Energy and Utilities Alberta Department of Energy Dominion Reliant Energy

Health Insurance

Government

HBF Group HCSC

Nedbank Retail

NCQA

Australian Taxation Office Indira Gandhi Institute of Development Public Service Commission

Business Services Canada Post Intellidyn Securex Communications End2End MGTS Telenor Mobile Education Carlos III University Kennesaw State University of Connecticut

Insurance Codan Group NRMA Suncorp-Metway Life Sciences Accovion GmbH Daiichi Sankyo Pharma XOMA Manufacturing Altis Semiconductor Robert Bosch Corporation Ugine & ALZ

Transportation DNATA Progress Rail StateFleet Media Avenue A DDB Matrix Hjemmet Mortensen Retail Kingfisher Asia Limited Staples Williams-Sonoma

Competitor Analysis

N.B This table does not take into account any M&A that closed since January 2006 • SAS It offers the most comprehensive BI platform in the industry with no other vendor matching its advanced analysis capabilities. Its key strengths include customer support, vendor viability and vertical domain knowledge. The main hurdle it faces is that there is user perception that it lacks usability and has strict licensing policies. Going further SAS needs to remain price competitive as other players are softening their pricing policies • Business Objects First vendor in the market to break the billion dollar revenue milestone and it has been adjudged as the overall market leader by Gartner’s Magic Quadrant in 2006. It has initiated a focus on the midsize market, launched a SAAS business (crystalreports.com). Licensing revenue from its core BI platform has declined in the first 3 quarters of 2006 with the major growth driven primarily from acquired products • COGNOS With the release of Cognos 8, it has significantly improved its BI platform. Elongated sales cycle leaves Cognos vulnerable to the changing competitive dynamics of the market, particularly to improvements made by Microsoft, Oracle and SAP. The recent acquisition of Celequest opens new market opportunities for Cognos

Oracle Its acquisitions have given the company a large heterogenous applications and infrastructure installed base. Its Business Intelligence Suite Enterprise Edition and Oralce Analytical Applications will be adopted much more broadly given the products capabilities, pricing and integration with Oracle’s collection of business applications. In ters of sheer size – total BA software revenue, Oracle leads the way. Microsoft It has traditionally adopted a follower’s rather than leader’s approach in BI platform and application products. Gartner predicts that Microsoft will continue to grow its BI investments, leveraging the integration and product strength of Office and SQL server and become a strong competitor and ultimately a leader by 2012 SAP With 13000 deployments, SAP has been remarkably succesfull in getting its cutomers to embrace Netweaver BI. However almost all SAP BI deployments happen in heavy SAP R/3 and mySAP application environments. To become a leader, SAP needs to demonstrate its that it can succeed as a BI platform in non SAP centric environments as well.

Major Events in the company

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SAS and Teradata Corporation (NYSE: TDC), the global leader in enterprise data warehousing announced a strategic partnership that will enable customers to exploit the best of both companies’ core strengths. (Oct 8, 2007) Sept 2007 - SAS recognized as leader in business intelligence by CRM magazine June 2007 – SAS named as one of the best places to work in IT by COMPUTERWORLD

Summary and My take • Long term prospects for the market looks solid, especially as large organizations are investing in performance management initiatives and employ BI to comply with stringent reporting requirements. The BI platform market will continue to grow at a solid pace with a CAGR rate of 9.5% through 2010. • Scope of BI deployments is expanding beyond mere reporting, adhoc querying and OLAP to include other capabilities like dashboards, scorecards, advanced visualizations and predictive modeling

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Consolidation seems to be happening across the BI industry not only to eliminate competition but also to gain strategic symbiosis as a result of the new alliances. o Oracle Acquiring Hyperion for $3.3 Billion o SAP buying BO – 6.78 Billion – the Idea is to provide a clients with an analytical enterprise - BO’s business analytics tools applied on the enterprise wide data

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(transactions, customer data, supplier info) that is amassed routinely as part of the ERP process and functionality Talks of Microsoft acquiring Cognos has been buzzing for some time now

References http://www.sas.com/partners/ProgramGuide.pdf http://www.businessobjects.com/pdf/company/gartner_2007_q1_bi_platforms.pdf http://www.oracle.com/corporate/analyst/reports/infrastructure/bi_dw/203468ea.pdf http://www.sas.com/news/analysts/idc_dwtools_0906.pdf http://www.sas.com/corporate/annual_report_06.pdf http://en.wikipedia.org/wiki/SAS_Institute