Provided are a network-based high performance SAP monitoring system and method, including a hardware engine selecting packets to be updated from input packets by performing session-based filtering and pattern matching on the input packets, identifying to which application protocol belongs among dynamic information and action gateway (DIAG) protocol, remote function call (RFC) protocol, and hypertext transfer protocol (HTTP) protocol, and adding identification information of the identified application protocol to the packet to be uploaded and a software engine including a DIAG processor processing the DIAG protocol, RFC processor processing the RFC protocol, and HTTP processor processing the HTTP protocol, when receiving the packet added with the identification information from the hardware engine, referring SAP application protocol identification information, extracting data transmitted and received between servers of an SAP client and one of the DIAG processor, RFC processor, and HTTP processor, thereby sorting and processing the three types of SAP application protocol such as the DIAG protocol, RFC protocol, and HTTP protocol.