SAS Institute

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Statistical Analysis System (SAS) Institute Inc.
Type Private company
Industry Software
Founded 1976 (1976)
Founder(s) Anthony James Barr
James Goodnight
John Sall
Jane Helwig
Headquarters Cary, North Carolina
Key people James Goodnight, CEO and Co-founder
John Sall, Co-founder and Executive Vice President
Revenue Increase $3.02 billion US$ (2013)
Employees 13,814 (2013)
Website www.sas.com

Coordinates: 35°49′37″N 78°45′44″W / 35.82694°N 78.76222°W / 35.82694; -78.76222

SAS Institute Inc is a developer of analytics software based in Cary, North Carolina. It owns the largest market share for advanced analytics[1] and is one of the world's largest private software companies.[2][3] SAS (pronounced "sass") develops and markets its software (also called SAS), which helps companies gather, store, access, analyze and report on corporate data to aid in decision-making.[4] SAS' software is used by about 79% of Fortune 500 companies.[5]

History[edit]

SAS Institute began as a project at North Carolina State University originally funded by the National Institute of Health and later by a coalition of university statistics programs called the University Statisticians of the Southern Experiment Stations.[6] University faculty James Goodnight and Anthony Barr led the project.[7] By 1976 the software had 100 customers.[8][9] A SAS user, Abbott Labs, organized the first SAS user conference in Florida that year.[10] Afterwards Goodnight, Barr, as well as other early participants Jane Helwig and John Sall, incorporated SAS Institute as a private company separate from the university and moved into offices across the street.[6][7]

SAS' tradition of polling users for suggestions to improve the software through the SASWare ballot was adopted during its first year of operation.[11][12] Many of the employee perks the company later became known for, such as fresh fruit, reasonable work hours[5] and free M&Ms every Wednesday also became part of the company's practices that first year.[13][14][15] In the 1970s, the company established its first marketing department[16] and some of the founders sold their interest in the company.[17]

SAS started building its current headquarters in a forested area of Cary, North Carolina in 1980.[18][19] Later that year it started providing on-site daycare in order to keep an employee that was planning on being a stay-at-home mom.[5] By 1984, SAS had begun building a fitness center, medical center, on-site cafe and other facilities.[5] It had also developed some of its other benefits programs.[20][21] SAS became known as a good place to work[21] and was frequently recognized by national magazines like BusinessWeek, Working Mother and Fortune for its work environment.[15][22]

During the 1980s, SAS was one of Inc. Magazine's fastest growing companies in America for six consecutive years.[16][22] It grew more than ten percent per year from $10 million in revenues in 1980[17] to $1.1 billion by 2000.[22] By the late 1990s, SAS was the largest privately held software company.[20] The Associated Press reported that analysts attributed the growth to aggressive R&D spending.[19] It had the highest ratio of its revenues spent on R&D in the industry for eight years, setting a record of 34 percent of its revenues in 1993, as it was working on a new menu-based interface.[12] The company began its relationship with Microsoft and development for Windows operating systems in 1989. Shortly afterwards it established partnerships with database companies like Oracle, Sybase and Informix.[12]

An education division was created in 1997 to create software for schools. In 2003 the Bank of America Foundation purchased and donated licenses for the software to 400 schools in North Carolina.[23] The SAS certification program was established in 1999[24] and SAS Publishing was created in 2000 as a separate entity that works to make SAS-related books more accessible.[25] SAS funded its first advertising program in 2000 with a $30 million television and radio campaign.[22] The company considered making 25 percent of the company available on the stock market and providing employees with stock-options during the dot-com bubble before the following downturn, but ultimately chose not to.[26] SAS was one of the few technology companies that did well during the downturn and hired aggressively to take advantage of available staff.[20]

SAS introduced its first reseller program intended to expand implementations in small to medium-sized businesses in 2006.[27][28] As of 2011, SAS had more than 50,000 customer sites and 200 products.[1] In 2011, SAS provided funding and curriculum to help start a Masters program in analytics near North Carolina State University.[29]

Operations[edit]

SAS Institute has grown in revenue each year since it was incorporated in 1976.[5][30][31] About 20-30% of the company's revenues are spent on research and development, which is the highest ratio among software companies of its size.[5][32] In 1994, Computerworld found that out of the world's 50 largest software companies, SAS had the highest ratio of R&D spending as a percent of revenue and 2.5 times the industry average.[33] Its revenues come relatively evenly from Europe, Africa, the Middle East and the Americas.[5] SAS has about 5,200 employees at its headquarters in Cary, North Carolina, 1,600 employees elsewhere in the US and 6,900 in Europe, Asia, Canada or Latin America.[34] CEO James Goodnight owns about two-thirds of the company and co-founder John Sall owns the other one-third.[8][35] SAS owns six aircraft.[36]

Workplace[edit]

SAS is well known for its workplace culture.[30][37] The company was used as a model for workplace perks at Google[5] and is taught as a case study in management seminars at Stanford.[13] SAS has been ranked in Fortune's annual best places to work rankings each year since the award's inception in 1997.[20][38] It is also regularly in Working Mother Magazine's "100 Best Companies for Working Mothers" list.[12]

Benefits[edit]

Entrance to SAS Campus in Cary, NC.
SAS office in Toronto

SAS offers on-site daycare services to its employees for 850 children for about a third of the normal cost. Medical services are provided to employees and their families for free and 80% of the cost is covered for specialists.[13] Employees are encouraged to work reasonable hours[13] and have free access to a 58,000-square-foot (5,400 m2) recreation and fitness center.[39] SAS also provides employees with life counseling services for things like picking a college for their children, elderly care,[13] adoption, divorce, or raising kids. It hosts a summer camp for kids[5] and provides 22.5 tons of M&Ms each year, in jars that are re-filled every Wednesday.[39] As of 2010, 2,300 lunches a day were made at the company's on-site cafeterias and cafes.[5] Similar amenities and perks are provided at its other offices.[40]

SAS spokespeople say its employee benefits are provided for business, not altruistic, reasons.[13][39] The company evaluates new benefits using three criteria: whether it would benefit the company culture, whether it would serve a significant number of employees and whether it would save more money than is spent on it.[39] According to academics, the company's practices improve the loyalty, focus and creativity of its staff.[5] A professor from Stanford estimated that the company saves $60–$80 million annually in expenses related to employee turnover.[16][39] SAS has an annual employee turnover of three[13] to five[39] percent, while the software industry's average is 20[13] to 25 percent.[20] According to USA Today, the workplace culture has created "intensely loyal" staff who care about the company's well-being.[20] Even though there are unlimited sick days, the average employee takes only two. The 40,000 free medical visits provided to employees annually are estimated to cost the company $4.5 million USD, but save it an additional $4.5 million USD due to the employee productivity lost when staff spend their work-hours in waiting rooms at other hospitals.[5]

Structure and culture[edit]

SAS has a limited corporate hierarchy[30] and an egalitarian culture. There are no special offices, reserved parking or special eating areas for executives.[35] As the company grew it created new divisions, instead of layers of management, creating a flat, simple organizational structure.[39] According to professor Jeffrey Pfeffer from Stanford, there are only three levels in the organization and CEO Jim Goodnight has 27 people who directly report to him. The organizational structure is fluid and employees can change roles rapidly.[41]

Managers are involved in the day-to-day work with their employees.[39] Employees are given a large extent of autonomy[39] and developers are encouraged to pursue experimental product ideas. Input from customers guides the company's marketing and software development.[12] According to SAS, 80 percent of suggestions for product improvements are incorporated into the software.[39] The dress code is informal.[39] According to Fast Company, employees describe the environment as "relaxed."[39]

Employees are encouraged to do volunteer work and the company makes donation to non-profits where employees are involved.[42] The company primarily focuses its philanthropic efforts on improving education. It funds pilot programs for new education models, donates laptops and provides free online software for classrooms called Curriculum Pathways.[35][43]

Acquisitions[edit]

Year Company Business Country References
2012 rPath, Inc. Software appliance  United States [44]
2011 AssetLink Integrated Marketing Management  United States [45]
2010 Vision Systems and Technology (VSTI) Advanced Analytics Professional Services  United States [46]
2010 Memex Intelligence Management Software  Scotland [47]
2008 Teragram Natural Language Processing  United States [48]
2008 IDeaS Revenue Management Software for the hospitality industry.  United States [49]
2006 Veridiem Customer Intelligence  United States [50]
2003 Marketmax Merchandise Planning and Analytics Software  United States [51]
2003 Risk Advisory Risk Management  United States [11]
2003 OpRisk Analytics LLC Management Consulting Services  United States [52]
2002 Verbind Software Behavioral Tracking and Event-Triggering Software  United States [53]
2002 ABC Technologies Inc. Software Developer and Wholesaler  United States [54]
2001 Intrinsic Ltd Campaign Management Software  United Kingdom [55]
2000 DataFlux Data Quality, Data Integration and Master Data Management  United States [56]
1997 Statview Life Sciences software from Abacus Concepts Business Analytics  United States [57]
1993 GESCAN International, Inc. Document and Workflow Management Systems  United States [58]
1988 NeoVisuals Inc. 3D Computer Graphics and Animation Software  United States [59]
1986 The Lattice C compiler, often considered the first C programming language on the IBM PC C Compiler  United States [59]
1984 The System 2000 Database Management System from Intel Corporation Database Management  United States [59]

Software[edit]

Main articles: SAS (software) and SAS language

As of 2012, SAS is the largest privately owned software company in the world.[60] It develops, supports and markets a suite of analytics software also called SAS (statistical analysis system), which captures, stores, modifies, analyzes and presents data.[33] The SAS system and SAS programming language are used by most of the Fortune 500.[5] The SAS software includes a Base SAS component that performs analytical functions and more than 200 other modules that add graphics, spreadsheets or other features.[12][61] Some of its uses include analyzing financial transactions for indications of fraud, optimizing prices for retailers, or evaluating the results of clinical trials.[5][60] As of 2012, SAS is the largest market-share holder in the advanced analytics segment with a 36.2 percent share and the fifth largest for business intelligence software with a 6.9 percent share.[62]

User community[edit]

SAS Institute operates the SAS Global Certification Program, which it started in 1999.[24] A SAS division called SAS Publishing hosts an online bookstore, develops product documentation and publishes SAS-related books authored by users.[25][63] There are more than 200 SAS users groups devoted to a specialty, an individual client, or a geography. There are local, regional, national and international users groups.[12]

See also[edit]

References[edit]

  1. ^ a b By Chris Baysden, Triangle Business Journal. "SAS grows analytics market share." June 13, 2011. Retrieved September 27, 2011.
  2. ^ Van Kooten, Michel (August 23, 2011). "Global Software Top 100 - Edition 2011". Retrieved March 14, 2013. 
  3. ^ By Steve Lohr, The New York Times. "At a Software Powerhouse, the Good Life Is Under Siege." November 21, 2009. Retrieved September 27, 2011.
  4. ^ Forbes. "America's Largest Private Companies: #188 SAS." Retrieved September 27, 2011.
  5. ^ a b c d e f g h i j k l m n By David Kaplan, Fortune. "SAS: A new no. 1 best employer." January 22, 2010. Retrieved September 27, 2011.
  6. ^ a b Alan Agresti; Xiao-Li Meng (2 November 2012). Strength in Numbers: The Rising of Academic Statistics Departments in the U. S.: The Rising of Academic Statistics Departments in the U.S.. Springer. p. 177. ISBN 978-1-4614-3649-2. 
  7. ^ a b Nourse, E. Shepley; Greenberg, Bernard G.; Cox, Gertrude M.; Mason, David D.; Grizzle, James E.; Johnson, Norman L.; Jones, Lyle V.; Monroe, John et al. (1978). "Statistical Training and Research: The University of North Carolina System". International Statistical Review / Revue Internationale de Statistique 46 (2): 171. doi:10.2307/1402812. ISSN 0306-7734. 
  8. ^ a b Lane, Randall (November 8, 2007). "Pampering the customers, pampering the employees". Forbes. Retrieved April 10, 2014. 
  9. ^ Wayne Cascio (August 2011). Responsible Restructuring: Creative and Profitable Alternatives to Layoffs. ReadHowYouWant.com. p. 120. ISBN 978-1-4596-2635-5. 
  10. ^ Oral History Interview with Jim Goodnight, Oral Histories of the American South, July 22, 1999, retrieved April 8, 2014 
  11. ^ a b Company History, SAS, retrieved April 9, 2014 
  12. ^ a b c d e f g Romani, Jane (December 1993). "SAS Institute: 21st Century Technology ... Today". Business Leader. Retrieved April 9, 2014. 
  13. ^ a b c d e f g h Leung, Rebecca (February 11, 2009). "Working the Good Life". CBS News. Retrieved October 17, 2011. 
  14. ^ Marron, Kevin (October 14, 1999). "Firms use perks to relieve HR stress Massages, health clubs and M&Ms among extras that keep staff happy and productive". The Globe and Mail. pp. T4. 
  15. ^ a b Darrow, Barbara (December 12, 2005). "James Goodnight, Founder and CEO, SAS Institute". Computer Reseller News. p. 23. 
  16. ^ a b c Buchanan, Leigh (September 2011). "How SAS Continues to Grow". Inc. Magazine. Retrieved September 28, 2011. 
  17. ^ a b Eisenstadt, Steven (July 21, 1996). "SAS: A hard-to-define product but simple success". News & Observer. Retrieved May 19, 2014. 
  18. ^ "SAS corporate timeline". WRAL. March 3, 2011. Retrieved October 17, 2011. 
  19. ^ a b Nowell, Paul (June 28, 1992). "Cary software firm handles growth without losing human touch". Associated Press. Retrieved April 8, 2014. 
  20. ^ a b c d e f Maney, Kevin (April 21, 2004). "SAS Workers Won When Greed Lost". USA Today. Retrieved October 17, 2011. 
  21. ^ a b Nowell, Paul (June 15, 1997). "Software company SAS Institute evolving along with its customers". Associated Press. Retrieved April 8, 2014. 
  22. ^ a b c d Dalesio, Emery (May 5, 2001). "Little-known software giant to raise its profile". Associated Press. Retrieved April 8, 2014. 
  23. ^ Dalesio, Emery (August 18, 2003). "SAS to offer free software to schools". Associated Press. Retrieved April 8, 2014. 
  24. ^ a b Rai, Sarbjit, SAS Certification: Is it for You?, North Carolina State University, retrieved September 27, 2011 
  25. ^ a b "SAS Institute to create publishing arm". The Dispatch. July 1, 2000. Retrieved April 8, 2014. 
  26. ^ Harvey, Fiona (July 6, 2001). "SAS Institute delays plans for partial flotation". Financial Times. p. 24. 
  27. ^ Dalesio, Emery (August 28, 2006). "SAS Institute targets smaller businesses". The Associated Press. Retrieved April 8, 2014. 
  28. ^ Cowley, Stacy (August 28, 2006). "SAS Institute Shakes up BI Space with Reseller Effort; Company changes course after years of selling products direct". Computer Reseller News. 
  29. ^ Glazer, Emily (October 24, 2011). "Problems-and Solutions". The Wall Street Journal. Retrieved April 9, 2014. 
  30. ^ a b c Shivapriya, N (September 25, 2008). "SAS Steams Along as Unlisted Firms Amid US Financial Chaos". The Economic Times. Retrieved October 17, 2011. 
  31. ^ Buchanan, Leigh (September 2011). "How SAS Continues to Grow". Inc. Magazine. Retrieved May 9, 2014. 
  32. ^ Fishman, Charles (December 31, 1998). "Sanity Inc.". Fast Company. Retrieved April 8, 2014. 
  33. ^ a b Anthes, Gary (November 24, 1997). "Pillar of the community". Computerworld. p. 91. 
  34. ^ Company facts and financials, SAS Institute, retrieved May 9, 2014, "2013 R&D investment: 25% of revenue" 
  35. ^ a b c Bankhert, Ellen; Lee, Mary; Lange, Candice, SAS Institute: A case (with teaching note) on the role of senior business leaders in driving work/life cultural change, University of Pennsylvania, retrieved April 9, 2014 
  36. ^ "FAA Registry". Federal Aviation Administration. Retrieved 2009-06-08. 
  37. ^ Hardy, Quentin (June 9, 2011). "SAS-We Spurned IBM, Now to Win". Forbes. Retrieved October 17, 2011. 
  38. ^ Wiscombe, Janet (October 8, 2010). "SAS Optimas Award Winner for General Excellence, 2000". Workforce.com. Retrieved October 18, 2011. 
  39. ^ a b c d e f g h i j k l Fishman, Charles (December 31, 1998). "Sanity Inc.". Fast Company. 
  40. ^ Creating cultures that lead to success: Lincoln Electric, Southwest Airlines, and SAS Institute 41 (1), Organizational Dynamics, January–March 2012, pp. 32–43 
  41. ^ Joel, Kurtzman (July 1, 1998). "An Interview with Jeffrey Pfeffer" (12). Strategy+Business. Retrieved April 10, 2014. 
  42. ^ Shields, Anthony (February 16, 2013). "Good Business: 10 Companies With Ethical Corporate Policies". Minyanville. Retrieved May 16, 2014. 
  43. ^ Raishay, Lin (August 23, 2011). "Free curriculum resource helps educators teach to common core standards". eSchoolNews. Retrieved April 9, 2014. 
  44. ^ Malik, Om (November 28, 2012). "Cloud app services company rPath acquired by SAS". GigaOm. Retrieved April 10, 2014. 
  45. ^ Collins, Kimberly (February 23, 2011), Assetlink Buy Moves SAS Into Software as a Service and Mainstream MRM, Gartner, retrieved November 20, 2011 
  46. ^ "Cary's SAS buys VSTI". News Observer. July 17, 2010. Retrieved November 20, 2011. 
  47. ^ Hubler, David (June 23, 2010). "Acquisition boosts SAS' goal of security market leadership". Washington Technology. Retrieved April 10, 2014. 
  48. ^ Kanaracus, Chris (March 17, 2008). "SAS buys natural language processing vendor Teragram". IDG. Retrieved November 20, 2011. 
  49. ^ Lager, Marshall (August 7, 2008). "SAS Institute Gets Some Bright Ideas". Retrieved April 10, 2014. 
  50. ^ By Hannah Smalltree, Tech Target. SAS snaps up Veridiem for MRM. March 16, 2006. Retrieved November 20, 2011.
  51. ^ Callaghan, Dennis (August 2003). "SAS Buys Marketmax". eWeek. Retrieved November 20, 2011. 
  52. ^ Callaghan, Dennis (October 25, 2004). "SAS Takes on Sarb-Ox Compliance". eWeek. Retrieved April 10, 2014. 
  53. ^ Campanelli, Melissa (November 19, 2002). "SAS Buys Verbind Tech Assets". Direct Marketing News. Retrieved November 20, 2011. 
  54. ^ Earnshaw, Aliza (March 10, 2002). "ABC Technologies agrees to acquisition by SAS". Portland Business Journal. Retrieved November 20, 2011. 
  55. ^ Callaghan, Dennis (February 4, 2001). "SAS Moves to Strengthen CRM Suite". eWeek. Retrieved November 20, 2011. 
  56. ^ Henschen, Doug (February 23, 2010). "SAS's DataFlux Intros Management Platform". TechWeb. Retrieved December 14, 2011. 
  57. ^ "SAS acquires StatView". R&D Magazine 39 (12). November 1997. p. 61. 
  58. ^ "Gescan International Finds More Platforms". Computer Business Review. May 6, 1993. 
  59. ^ a b c SAS Institute to Step Up Investment and Acquisition Efforts, February 8, 2000, retrieved November 20, 2011 
  60. ^ a b Lohr, Steve (March 26, 2012). "BITS; Seeking an Edge in Data Analysis". The New York Times. Retrieved April 17, 2014. 
  61. ^ John R. Schermerhorn (October 11, 2011). Exploring Management. John Wiley & Sons. p. 3. ISBN 978-0-470-87821-7. 
  62. ^ Vesset, Dan; David Schubmehl, Brian McDonough and Mary Wardley (June 2013). "Worldwide Business Analytics Software 2013–2017 Forecast and 2012 Vendor Shares". IDC. Retrieved October 2, 2013. 
  63. ^ Publish with SAS, SAS Institute, retrieved April 9, 2014 

External links[edit]