Annual Report 2007
1. The Software AG Group
1/4 forward
1.1 Business activities
Software AG develops and distributes software solutions that increase the value of IT systems of organizations. Our 4,000 customers worldwide achieve measurable business results by modernizing and automating their existing IT systems and speedily building new systems to meet growing business demands. The Company's industry-leading product portfolio includes best-in-class solutions for managing data, enabling Service-Oriented architecture (SOA), and improving business processes. By combining the most advanced IT technology with industry expertise and best practices, our customers improve and differentiate their businesses—faster.
Software AG has 39 years of international experience and has approximately 3,500 employees serving customers in 70 countries. The Company is headquartered in Germany and is listed on the Frankfurt Stock Exchange. Software AG posted total revenues of €621.3 million in 2007.
1.2 Organization
The Company has two business divisions: Enterprise Transaction Systems (ETS) and webMethods (formerly Crossvision). With our ETS business division, we have gained a firm footing in the IT landscapes of companies and government agencies worldwide. Software AG is their preferred partner for mainframe software and the modernization of mainframe-based IT systems, therefore ensuring the customers long-term protection of their investment. The comprehensive product range of our webMethods business division enables customers to develop automated, flexible and efficient business processes from existing systems. This is made possible by making data available that is easy to control and manage as Web services within a Service-Oriented Architecture (SOA) and by Business Process Management. IT therefore optimally supports the development of business.
Software AG generates its revenues from the licensing of enterprise software, maintenance and services in both business divisions ETS, and webMethods.
In the past fiscal year, Software AG dissolved its regional structure and systematically restructured the company's organization, basing it on the two business divisions ETS and webMethods. In August 2007, ETS and webMethods were assigned their own sales, development (ETS already in January 2007) and product marketing departments. This has further improved customer orientation.
The two business divisions are supported by the new and now globally positioned business unit Professional Services, which implements customized, innovative IT solutions based on our infrastructure software for business processes. The product range includes consulting for SOA, Business Process Management (BPM) and modernization as well as specific product-related solutions to problems.
Management structure also reorganized
The two business divisions of Software AG, ETS and webMethods, are now the main pillars of Software AG's activities. For that reason, a strategic decision was made in 2007 to reorganize the Company from having a regional structure for executive management and a business division structure for sales activities to a structure based on business divisions. Each of the two business divisions was assigned one member of the Executive Board to be responsible for product development and one for sales. From being organized regionally in the past, sales activities are now distributed to both business divisions.
Related to this was the appointment of David Broadbent to the Executive Board. He is responsible for Research & Development and product marketing in the ETS business division. Mr. Broadbent is also responsible for the Asia/Pacific region.
