Research Summary: Market Overview - The Market For SAP Optimization Options

Forward And Commentary
This market overview provides a starting point to SAP customers seeking optimization solutions.  The document delivers actionable advice and insights into a proven collection of software solutions.  As part of the full series, best practices documents will follow with in- depth case studies and a critical product evaluation of this growing market of SAP optimization solutions. 
A. Introduction
With the average Global 2000 ERP deployment nearing 11.5 years in service, ERP customers face a significant challenge with updating their existing investments. Installed pre-Y2K, users have attempted to work around the best practices of the ‘90s while seeking innovation and application agility. Subsequently, SAP users face three main challenges:
  1. Higher cost of ownership that reduces overall ROI.
  2. An aging and brittle infrastructure that hampers innovation.
  3. Increasing complexity that hampers greater adoption.

B. Research Findings

As SAP customers choose their go- forward apps strategy, interviews from 100's of clients show that four paths emerge (see Figure 1):
  1. Stay with status quo;
  2. Move to shiny new SAP.;
  3. Stabilize SAP and augment; and
  4. Modernize SAP and surround with best-of-breed.
Figure 1. The Four Paths Of SAP Optimization

Consequently, an $80.1 billion third-party SAP ecosystem has emerged to address nine key areas (details on each vendor in the official report):


1. Application extension and usability

- Adobe, ERP-Link, Informatica, Revelation Software Concepts, Synactive, Tibco, Winshuttle

2. Application life-cycle management - CA/Hyperformix, Hayes Technology Group,  HiLn Solutions, IBM Infosphere Optim, Informatica,  Intellicorp, Panaya, Revelation Software Concepts, TIBCO Hawk, Tidal Software, West Trax

3. Office productivity integration - Alloy, Duet, Winshuttle
4. Integration - Informatica, Information Builders iWay, SEEBURGER, TIBCO
5. Database optimization - Microsoft SQL Server for SAP, IBM DB2 For SAP, TIBCO ActiveSpaces Data Grid
6. Archiving, storage, and data management - EMC, IBM, Informatica

7. Virtualization - EMC, Informatica, VMware,

8. Third-party maintenance - Rimini Street

9. License management and optimization - Flexera Software, Susen Software, Used Soft
The Bottom Line: Be Pragmatic Not Dogmatic

SAP still plays a significant role in the apps landscape for most organizations. However, the days of an all SAP or nothing environment are coming to an end. Business leaders suffering under the wrath of an SAP CIO have taken matters into their own hands and voted by choosing SaaS options for their business units. Constellation recommends that organizations take a pragmatic not dogmatic approach to optimization the SAP investment.
C. Report Links
Get the full market overview highlighting the capabilities of the key firms delivering SAP Optimization solutions.
If you are an ASUG member, download the full report. Ask your ASUG representative.
Buy the full research report on the Constellation Research website.

Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Customer Experience!
Your POV
Which path of SAP optimization have you taken?  Have you worked with any of these optimization solutions?  We'd love to hear from you!  Add your comments to the blog or send us a comment at R (at) SoftwareInsider (dot) org or R (at) ConstellationRG (dot) com
Please let us know if you need help with your enterprise apps strategy by:

  • Developing your enterprise apps strategy?
  • Addressing disruptive technologies like Social CRM, Cloud Computing, SaaS deployment, and Two-Tier ERP?
  • Assessing the ROI of a Two-Tier ERP strategy?
  • Working on legacy optimization projects!

Resources and Related Research*
20110303 Product Review: Inside SAP's Line-of-Business OnDemand Strategy
20100808 User Event: SAP Australian User Group Summit
20100802 Vendor Event: SAP Teched 2010 Las Vegas
20100518 Event Report: Sapphire 2010 Brings Customers Back To A New Sense Of Normalcy
20100512 News Analysis: SAP Bets On Innovation With $5.8B Sybase Acquisition

20100302 Tuesday’s Tip: When To Go With A Two-Tier ERP Strategy
20091203  Strategy: 5 Lessons Learned From A Decade Of Naught
20091222 Tuesday’s Tip: 10 Cloud And SaaS Apps Strategies For 2010
20091208 Tuesday’s Tip: 2010 Apps Strategies Should Start With Business Value
20091102 Best Practices: Lessons Learned In What SMB’s Want From Their ERP Provider
20091006 Tuesday’s Tip: Why Free Software Ain’t Really Free
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales .
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy, stay tuned for the full client list on the Constellation Research website.
* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.
Copyright © 2011 R Wang and Insider Associates, LLC All rights reserved.
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