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In SAP R/3, SAP stands for System, Application and Product. Where R is for Real-time and 3 represents the three-tier client server architecture. Hence SAP R/3 System has a three-tier client/server architecture that includes Presentation, Application and Database layer.

  - The presentation layer is the interface to the user and also known as SAPgui frontend.
  - The application layer on the application servers is used for processing data.
  - The database layer is used to store data on database server.

All three layers are connected to each other with networks.

SAP R/3 is an evolution from the SAP R/3 systems, which was based on two tier technology. With the release of 3.1 SAP R/3 was the first to broaden the horizon of three-tier client/server architecture to a multi-tier architecture by introducing new layer for internet between the application and presentation layer by introducing internet transaction server (ITS).

The major changes in the SAP architecture took place with the introduction MySAP 2004 edition. R/3 was replaced with the ERP Central Components (ECC).The purpose of ECC is to enable SAP to build and develop a system that can function as one instance within the central component. The SAP Web Application Server, SAP Business Warehouse, Integration Feature, was incorporated into ECC.

Components of SAP R/3 are: -

    - Presentation Interface - SAP GUI
    - Application Interface
    - Database Interface
    - Internet Communication Manager
    - SAP Instance
    - Dispatcher Process
    - Work Process
    - Message Server
    - Gateway Server

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