Hi Felix,
This news can reply your answer.
Regards,
Anil
Link
http://www.gartner.com/resources/143400/143429/new_mysap_plans_enhance_sap__143429.pdf
Research
Publication Date: 14 September 2006 ID Number: G00143429
© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form
without prior written permission is forbidden. The information contained herein has been obtained from sources believed to
be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although
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advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors,
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are subject to change without notice.
New mySAP Plans Enhance SAP Strategy but May Add
Complexity
Yvonne Genovese
SAP will stabilize mySAP ERP at the 2005 version and limit changes to smaller
releases. This helps validate SAP's service-oriented-architecture plans, but may
increase users' need to govern their environments diligently.
Publication Date: 14 September 2006/ID Number: G00143429 Page 2 of 4
© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
NEWS ANALYSIS
Event
On 12 September 2006, SAP announced that mySAP ERP 2005 is now the "go to" version for
R/3 users committed to upgrading, and that SAP will enhance the product in a series of optional
release packages tightly integrated to version 6.0 of its Enterprise Central Component (ECC) core
product. SAP also announced a commitment that the core will not change through 2010.
Analysis
SAP seeks to entice more users to move to the current version of mySAP ERP, whose adoption
is critical to SAP's long-term service-oriented architecture (SOA) strategy. A large installed base
on an older release increases SAP’s support costs. Moreover, since most SAP users (70%, by
Gartner's estimate) have already negotiated new contracts, any lengthening of the period
between payment and product use will cause relationship problems. Getting users to the latest
release will also help SAP realize its strategy of helping users build their own business process
platform (BPP) with SAP at the center.
The announcement will benefit R/3 users that face major decisions about their SAP environments
as R/3 4.6c support moves into extended maintenance at the end of 2006. Many users have been
waiting on SAP to complete its Enterprise SOA — formerly Enterprise Services Architecture
(ESA) — project, which SAP originally said would coincide with its mySAP ERP 2007 release
(formerly due in 2008). SAP will make updates to ECC (now at version 6.0), but not until 2010 or
later. SAP partners will also benefit from the stable core as they integrate their own products with
SAP's.
This evolution of mySAP ERP supports two Gartner expectations — as outlined in "Most Benefits
of Service-Oriented Architecture for Business Applications Are Longer Term” — of potential
benefits brought about by SOA:
• Allowing vendors to innovate faster over smaller segments of code
• Enabling users to take advantage of enhancements at a faster rate
However, this news does pose potential challenges for users, including:
• The risk of increased complexity. Managing the smaller release packages will have an
impact on enterprise-specific configurations and integrations to non-SAP-developed
code.
• The “believability factor" with regard to whether SAP's strategy will really "stick" — a
factor compounded by the fact that SAP previously positioned R/3 4.7 and its extension
sets in a similar context. A key difference this time, however, is that SAP has already
delivered a portion of the ESA and a new technology called the switch framework.
Users should note that SAP is not saying there will never be a big upgrade — just not until after
2010 (at which point, the ECC core will likely be updated). Moreover, users that choose to
implement many mySAP enhancement packages at once will still experience impacts similar to
those of a large upgrade.
Publication Date: 14 September 2006/ID Number: G00143429 Page 3 of 4
© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
Recommendations
• Enterprises preparing cost justifications for an upgrade from R/3 4.6c to mySAP ERP
should include code stabilization as part of the benefits.
• R/3 4.6c users that are close to gaining project approvals for a mySAP ERP upgrade
should negotiate with SAP for an extension of the support period for 4.6c to avoid paying
the extra 2% maintenance at the end of 2006.
• Enterprises that were waiting for mySAP ERP 2007 should now view mySAP ERP 2005
as the go-to release — with the understanding that the full, “marketed” promise of
Enterprise SOA will likely be released over time.
RECOMMENDED READING
• "SAP Banks on Customer Adoption of mySAP ERP” — Without installed-base adoption
of mySAP ERP, SAP's long-term strategy is at risk because it will have to support legacy
products and forgo innovation. By Yvonne Genovese
• "Achieving Agility: Implement a BPP Model to Support Static and Dynamic Processes”
— To enable business agility, enterprises must assess their business application
environments and weigh them against their need to manage static and dynamic
business processes. By Yvonne Genovese
(You may need to sign in or be a Gartner client to access the documents referenced in this First
Take.)
Publication Date: 14 September 2006/ID Number: G00143429 Page 4 of 4
© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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