Commercial Banking
2017 ANNUAL REPORT
Transform a world of data
into a world of intelligence
SAS creates for one reason – so you can turn today’s most critical challenges into tomorrow’s great decisions.
Jim Goodnight, CEO of SAS
100% of Fortune 500 companies in these industries rely on SAS®
Health Insurance
Retail Banking
Hotels
Pharmaceuticals
Medical Devices
Aerospace Manufacturing
Food Services
E-Commerce
Computer Services
What We Stand For
SAS commits time and resources to areas we believe will make a lasting, positive impact in the world.

DIVERSITY AND INCLUSION
At SAS, diversity is more than just gender or race. Our culture blends different backgrounds and experiences from 58 countries globally. We want everyone to feel confident in expressing their ideas, and know that they will be respected for their unique contributions and abilities.
Successfully innovating new technology and ways to help our customers is why we continue to be the company people turn to for unrivaled analytics expertise and business solutions.
Jim Goodnight, CEO of SAS

2017 Revenue at a Glance
Increased customer demand for artificial intelligence, machine learning, fraud and risk management, and cloud solutions strongly influenced continued revenue growth and profitability for SAS in 2017. The analytics leader posted US$3.24 billion in total operating revenue. Last year, Asia Pacific and Latin America saw the highest growth as customers in those regions adopted more strategic uses of analytics. Government, manufacturing, retail and sectors of financial services saw strong momentum.

As SAS customers sought to better engage with their own customers, the move to real-time customer engagement became more prominent last year. Targeted solutions like SAS Customer Intelligence 360, SAS Marketing Automation and SAS Marketing Optimization continued helping brands take the next-best action with analytics.
Revenue associated with the cloud rose 15 percent as customers sought cost-effective and rapid access to SAS software in a convenient cloud environment. Customers also recognized the value of adding SAS’ expertise without the cost of building their own internal teams. Using the SAS Platform, customers can capitalize on all of their analytics resources, across all of their technologies – taking advantage of SAS expertise, as well as resources in the open source community.
2017 growth drivers
SAS’ investment in risk management is paying off, as new sales in this area grew by 35 percent – an indicator that more companies see value in creating a risk-aware culture to meet regulatory demands and anticipate the impact of their investments. SAS expected credit loss and stress testing solutions go beyond compliance to help companies orchestrate and manage models and analytics for business benefit.
An uptick in SAS capital management risk solutions was driven by continued banking regulatory stress testing requirements and new financial reporting standards like IFRS 9 and CECL. An increased need to make real-time credit decisions boosted revenue for SAS credit scoring solutions.
The advanced data governance and data quality capabilities offered by SAS Data Management, which grew at 11 percent, became increasingly important for customers to contend with data protection regulations like GDPR. Hybrid data landscapes, which combine on-premises and cloud data, also required more sophisticated data integration technologies last year.
Shifts in fraud patterns that require more sophisticated detection methods, like machine learning, led to an 11 percent increase in SAS fraud and security solutions. Modernization of anti-money laundering programs and a need for proactive policing also contributed to this growth.
SAS enhanced the artificial intelligence portfolio with new product releases in machine learning, deep learning and natural language processing, enabling faster insights and simplifying the end-to-end solution for businesses. This focus to make machine learning easy to use and provide quick time to value was well received by SAS customers, and contributed to double-digit growth in machine learning last year.
2018 focus areas
In 2018 SAS is focused on investment areas supporting continued growth in critical and emerging areas. This includes targeted investments to accelerate growth in core strengths, including artificial intelligence and machine learning, analytics, fraud, risk management, data management and customer intelligence. In addition, there is incredible growth opportunity for SAS in IoT, cloud and expansions into the midmarket.
Last year alone, SAS revenue associated with IoT grew by 60 percent. Industry analyst firm IDC estimates the size of the analytics market in IoT will grow to over $23 billion by 2020. An estimated 55 billion connected things are projected to be generating massive data volumes by 2025. Capitalizing on this opportunity will require innovation, like SAS Event Stream Processing, which gained tremendous traction in 2017. And SAS has created an IoT division combining R&D and marketing expertise that continues SAS’ focus on providing edge analytics that adds great value to customers’ IoT investments. SAS will continue expanding its Fraud and Security Intelligence business unit, which includes fraud management, anti-money laundering, public safety and cybersecurity.
SAS will continue heavy investment in embedding artificial intelligence across the SAS portfolio. Plans are also underway for a center of excellence to help SAS customers understand and apply artificial intelligence in ways that can transform their businesses and the world around us. For example, in financial services, AI-enabled natural language processing can help unlock new services for customers and revenue streams for businesses. In the energy sector, deep learning tools enabled by artificial intelligence can help maximize investments in renewable energy by optimizing placement of wind farms.
New offerings to enhance the cloud experience with SAS applications will include managed container services for customer infrastructure in public or private clouds.
Continuous innovation sustains market leadership
Analysts continue to laud the company’s innovation and market dominance, naming SAS a leader in predictive and advanced analytics. According to analysts, SAS holds a 30.5 percent share of the advanced and predictive analytics market, well over twice the market share of the next-closest competitor. SAS has led – and grown – in this category since IDC started tracking the market in 1997. In 2017, analysts also named SAS a leader in streaming analytics, machine learning, big data, data science platforms, real-time marketing, data integration, data quality, fraud detection, risk management and retail analytics.
Maintaining market leadership is heavily dependent upon innovation. Year after year, SAS reinvests about twice the amount of revenue of major technology firms into R&D – 26 percent in 2017. This investment supported the addition of artificial intelligence capabilities to the SAS Platform. And enhancements to SAS Viya extend the SAS Platform to deliver additional capabilities for analytics-driven organizations, including Cisco, the American Red Cross, Munich Re and Lockheed Martin. This modernization appeals to a growing number of SAS Viya adopters seeking to bring together all their analytics assets, and unite SAS with open source interfaces and languages.
Powerful partner ecosystem
SAS global partnering efforts influenced more than one-third of new sales and nearly half of SAS’ largest deals. This includes a growing demand for cloud solutions by midmarket customers with a desire to purchase through trusted local partners. With an increasing focus on channel sales, SAS grew channel revenue by 79 percent in 2017.
The partner impact result is a channel program of systems integrators, resellers, OEMs and managed analytic services providers all focused on helping customers implement SAS technology in ways that best fit their needs and those of their own customers. Digital transformation in core markets is driving significant growth in delivering SAS through cloud partners and managed service providers. SAS is doing more repeatable business with top global partners like Accenture, Capgemini and Deloitte. And as IoT becomes increasingly prevalent, SAS is enhancing collaboration with partners like Cisco and Intel to drive analytics adoption with IoT.
Revenue Percentages by Region

Revenue Reinvested in R&D


SAS has been ranked on Fortune’s 100 Best Companies to Work For in the US since the list was introduced in 1997. SAS is also recognized globally as a company dedicated to employee well-being.
2017 Workplace Culture Awards
Argentina
Australia
Austria
Belgium
Brazil
Canada
China
Europe
France
Germany
Greece
India
Ireland
Hong Kong
Italy
Luxembourg
Malaysia
Mexico
Portugal
Russia
Spain
Switzerland
UK
US
2017 Great Places to Work Multinational Award

SAS ranks
No. 3
among the world’s best
multinational workplaces.
SAS is continually recognized for providing an enriching work environment that ignites employees’ creativity and gives them the opportunity to change the world.
SAS is considered a best place to work globally among our diverse employee population, including:
Women :: Gender Equity :: IT Professionals :: Millennials :: Working Parents :: Recent Grads :: Diversity & Inclusion
