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
• 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).
• 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.
• 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 Business Intelligence

• Activity-Based Management
• Compliance
• Customer Relationship Mgmt.
• Financial Intelligence/BPM
• Human Capital Mgmt.
• IT Management
• Performance Management
• Profitability Management
• Risk Management
• Service Intelligence
• Supplier Intelligence
• Supply Chain Intelligence
• Web Analytics
• OnDemand Solutions
• Reporting
• Query & Analysis
• OLAP
• Integrated Analytics
• Visualization
• Microsoft Office Integration
Enterprise Intelligence Platform
• Data Integration & ETL
• Business Intelligence
• Analytics
• Intelligence Storage

Data Integration & ETL Analytics

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

• 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

Asia Pacific United States

14% 53%

Europe, Middle
East and Africa
29%

Canada
Latin Am erica
2%
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 Healthcare Providers Energy and Utilities

Ford Flevoziekenhuis Alberta Department of Energy
Hyundai Inova Health System Dominion
Shanghai GM NHS Blood and Transplant Reliant Energy
Banking and Financial
Health Insurance Government
Services
AMB Generali HBF Group Australian Taxation Office
BB&T HCSC Indira Gandhi Institute of Development
Public Service Commission
Nedbank Retail NCQA
Business Services Insurance Transportation
Canada Post Codan Group DNATA
Intellidyn NRMA Progress Rail
Securex Suncorp-Metway StateFleet
Communications Life Sciences Media
End2End Accovion GmbH Avenue A
MGTS Daiichi Sankyo Pharma DDB Matrix
Telenor Mobile XOMA Hjemmet Mortensen
Education Manufacturing Retail
Carlos III University Altis Semiconductor Kingfisher Asia Limited
Kennesaw State Robert Bosch Corporation Staples
University of Connecticut Ugine & ALZ 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

• 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
• 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
 (transactions, customer data, supplier info) that is amassed routinely as part of
the ERP process and functionality
o 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