Since SAP VP John Wookey’s announcement on June 9th regarding SAP’s stepped-up SaaS strategy, there has been no shortage of speculation, misinformation and sensationalism in the news reporting on the why, what, how and when of SAP’s plan.

For more on this, and for some helpful and accurate reporting that is balanced and objective -- what reputable journalism is supposed to be -- check out post by Bob Evans on his Global CIO Blog.

Read Bob Evans' Global CIO Blog Post: SAP Turns To SaaS 'To Avoid Extinction,' Says BusinessWeek'

For more accurate reporting on SAP's On-demand plan, see roundup below of news articles compliled by the Optimal SAP News Desk.

In a keynote presentation at the OnDemand Europe conference in Amsterdam yesterday, SAP executive VP John Wookey made clear SAP's commitment to on-demand applications: “On demand is the next stage in the evolution of application development [… ] It is absolutely essential from SAP’s perspective that we embrace this change.”

In the days, weeks, and months ahead, much will be made of Wookey's address. There no-doubt will be a great mish-mash of fact, speculation, fawning and bashing. The Optimal SAP Advisor editorial team will do our best to serve as your one-stop resource for all breaking news and commentary relating to SAP's latest initiative to advance the on-demand cause. Check back frequently as this post will be updated regularly.

The story of SAP's expanded on-demand strategy breaks...

While direct reporting of Wookey's address first broke with a post by ZDnet blogger Phil Wainewright, Wall Street Journal enterprise technology blogger Ben Worthen and Financial Times reporter Richard Waters both wrote pieces one day prior to the OnDemand Europe conference. All three articles present interesting and unique high-level perspectives on SAP's latest major announcement pertaining to on-demand applications.

Read WSJ blog post by Ben Worthen: SAP to Make Online Push

Read Financial Times article by Richard Waters: SAP Reshapes Online Strategy

Read ZDnet blog post by Phil Wainewright: Wookey: SAP's Future is On-demand

Setting the table with a bit of background on SAP's on-demand play...

Most are familiar with SAP's Business ByDemand offering, the company's first major foray into the on-demand space loudly announced in 2007 and targeted sharply at the low end of the SME space. SAP made some pretty bold claims on the future of BBD:

• BBD will generate $1 B in annual revenue by 2010
• SAP will rack up more than 1,000 BBD customers by 2008 and more than 10,000 customers by 2010
  
• Market potential for BBD is $15 B
• SAP co-CEO Kagarmann on BBD: "the most important announcement of my career"

SAP's BBD launch hit a few snags -- the more serious of which revolve around devising a profitable business model for the fledgling product. Today, SAP has 80 BBD customers and has pushed full market rollout to sometime in 2010 - 2011, with SAP co-founder Hasso Plattner stating that "a market-ready [BBD] product will become available within two years."

Rummors of BBD death, however, have been greatly exaggerated. According to Jeff Stiles, Senior Vice President of SME Marketing, "SAP is 100 percent, unequivocally committed to bringing Business byDesign to market for the long haul." Moreover, during his 2009 SAPPHIRE keynote address, SAP co-CEO Leo Apotheker said he was there to "kill a rumor" about the death of BBD, and invited attendees to check out the BBD demo at SAP's booth.

Read Michael Krigsman's ZDNet blog post: Understanding SAP's Business ByDesign SaaS Strategy

Read InformationWeek article: Inside SAP's Idled Business ByDesign Suite

Read InformationWeek article: SAP Braces for Change

Read Rob Preston's Global CIO blog oost: SAP's Apotheker Holds Forth

Stay tuned for our next post: Opening eyes wide shut -- BBD is just one piece of SAP's broader on-demand play... 

"See Your Way Clear" was the theme for SAPPHIRE 2009, and SAP clearly sees changes ahead in how the company and its partners will deliver and support SAP solutions. One striking example of this change is Optimal Solutions' FlexChoice Advantage offering, a first-of-its kind subscription-based pricing and delivery model for providing SAP Business All-in-One qualified partner solutions to SMEs across North America and Canada.

Read eWeek Channel Insider article: Optimal Unveils Subscription SAP for SMEs

Read press release from Optimal Solutions Integration, Inc.: Optimal Solutions Announces Subscription-Based Model for Buying, Implementing and Supporting SAP Solutions

Read "Times are Changing' post below for more on how times are changing in the SAP world!

One of the major changes for SAP widely discussed at SAPPHIRE is the pending appointment of Leo Apotheker as SAP's sole CEO. During his keynote address, Apotheker touched on the theme of change frequently, underscoring the need for SAP to be a more agile, responsive and customer-centric company. Signs of change are present in SAP's newly launched Business Objects Explorer, a solution that allows business users to easily search extensive databases for vital information using natural language. Another recent and significant example of change is SAP's willingness to work closely with customers to prove the value of its across-the-board 22%-of-license cost for maintenance. SAP and SUGEN have established Value Key Performance Indicators for SAP Enterprise Support to ensure that the value delivered by Enterprise Support aligns with the needs and expectations of SAP customers. Specifically, an independent party will monitor 100 Enterprise Support test customers, and SAP will implement its 22% price tag for support only if this study reveals a 30% improvement in critical areas such as total cost of ownership. Change indeed. No other large enterprise applications vendor (i.e., Oracle charges 22% for maintenance) is willing to validate its support offering in such an objective manner.

Change is also present on the SAP SME front. During SAPPHIRE, Optimal Solutions announced FlexChoice Advantage, a new, highly flexible subscription-based pricing and delivery model that makes it easy and affordable for midsize companies to implement and quickly realize the benefits of running their business on SAP solutions. Optimal's FlexChoice Advantage provides SMEs the option of fixed monthly payments over 3, 5 or 7-year contracts that cover SAP licensing, maintenance, implementation, hardware, hosting, and support. To date, Optimal Solutions is the only vendor offing a subscription-based model for pricing and delivery of SAP All-in-One qualified partner solutions.

Read InformationWeek article: SAP Braces for Change

Read press release from Optimal Solutions Integration, Inc.: Optimal Solutions Announces Subscription-Based Model for Buying, Implementing and Supporting SAP Solutions

Soon after launching FinanceOne, a qualified SAP Business All-in-One partner solution for midsize companies that provides built-in, preconfigured financial planning, reporting and governance capabilities, Optimal Solutions notched a major customer win in Cano Petroleum, an independent Texas-based energy producer with properties throughout the mid-continent region of the United States.

Optimal announced the Cano win at SAPPHIRE 2009

Read press release from Optimal Solutions: Cano Petroleum Selects OPTIMIZE FinanceOne for Finance and Controlling from Optimal Solutions

Corporate finance has never been more challenging. In addition to traditional duties like financial planning, reporting, and governance, CFOs and financial managers are now being tasked with far more strategic responsibilities. Join Optimal Solutions and Ben Daitch, SVP & CFO of Cano Petroleum , a leading oil and gas producer, for an informative webinar hosted by Business Finance Magazine to discuss how Cano is leveraging OPTIMIZE FinanceOne from Optimal Solutions to streamline finance operations and drive growth despite the current economic turbulence.

When: May 19, 2009  2:00 EST

Webinar available for download: STREAMLINE FINANCE OPERATIONS AND DRIVE GROWTH IN A CHALLENGING ECONOMY

Attending educational sessions currently holds the top SAPPHIRE 2009 agenda spot, racking up 38% of votes cast in an informal poll conducted by Optimal SAP Advisor. Evaluating an SAP vendor service or solution ranks a close second with 25% of votes. Demoing an SAP solution, attending a keynote session and taking in a Don Henley concert, rank 3rd, 4th, and 5th, respectively.

The SAP Advisor SAPPHIRE 2009 Top Agenda Item 'Quick Poll' will stay open through Friday, May 8.

Be sure to cast your vote if you haven't already. And be sure to visit Optimal Solutions at SAPPHIRE 2009: Booth#344!

SAPPHIRE 2009, aptly themed “See Your Way Clear,” is sure to be one of the more work-intensive conferences ever as SAP customers keep agendas clearly focused on learning new, meaningful ways SAP can help their organization pull through today’s tough economy and capitalize on immediate market opportunities.

See SAPPHIRE 2009 'Quick Poll' to the right to vote for your top SAPPHIRE 2009 agenda item.

Be sure to visit Optimal Solutions at SAPPHIRE 2009: Booth#344

Sam Sliman, president for Optimal Solutions Integration, is busy building his SAPPHIRE 2009 schedule. Part Two of Sam’s article “Survive Commoditization and Capitalize on Change” will run in a post-SAPPHIRE installment of Optimal SAP Advisor (as soon as Sam catches his breath ;).

Read article by Sam Sliman: Survive Commoditization and Capitalize on Change – Part One

Read article by Sam Sliman, President, Optimal Solutions Integration, Inc.: SAP's Role in the Economic Upturn - Part Three  

Read article by Sam Sliman, President, Optimal Solutions Integration, Inc.: SAP's Role in the Economic Upturn - Part Two

Read article by Sam Sliman, President, Optimal Solutions Integration, Inc.: SAP's Role in the Economic Upturn - Part One

In this three-part article, Sam Sliman shares his best bets on what the top three SAP spending trends might be in 2009. Sam's first pick was SAP upgrades. He spread his second wager among SAP projects in the areas of consolidation, GRC and BI. Closing out Sam's trifecta for SAP spending in 2009 is accelerated adoption of SAP among small businesses and midsize enterprises (SMEs).

Read article by Sam Sliman, President for Optimal Solutions Integration, Inc . SAP 2009 Spend Trend Trifecta - Part Three

In this three-part article, Sam Sliman shares his best bets on what the top three SAP spending trends might be in 2009. Sam's first pick -- SAP upgrades -- was covered in Part One . Sam spread his second wager among cost-reducing, efficiency-driving SAP projects in the areas of consolidation, GRC and BI.

Read article by Sam Sliman, President for Optimal Solutions Integration, Inc.: SAP 2009 Spend Trend Trifecta - Part Two

According to a recent report by financial analyst firm UBS, European and US businesses expect to cut technology spending by 2% in 2009. While bad news for most tech vendors, the same study forecasts spending on SAP to increase this year. So what are the top three trends that will drive SAP spending in 2009? In this three-part article, Sam Sliman, president for Optimal Solutions Integration, shares his best bets for the SAP 2009 Spend Trend Trifecta.

Read article by Sam Sliman, President of Optimal Solutions Integration: SAP 2009 Spend Trend Trifecta - Part One 

Do not underestimate the importance of professionalism in the SAP consulting industry, particularly during tough economic times.

While strong technical skills will always be at the top of the list for SAP consultants, professional skills rank a close second, and can often be the differentiator among equally qualified SAP consultants.

Read article by Valeri Wickersham, HR Director for SAP Consulting firm Optimal Solutions Integration: Professionalism Helps SAP Consultants Stand Out

Part One of this two-part article by Rory Doherty, editirial director of Optimal SAP Advisor, examined SAP’s use of Web 2.0 tools and technologies to harness the power of collective intelligence to educate its expansive ecosystem of customers and partners on the many changes and opportunities that accompany the transition to SAP 6.0 and the SOA-ready NetWeaver platform. In Part Two of “SAP’s Web 2.0 Smarts” Doherty examines how SAP is leveraging Web 2.0 collective intelligence to help its customers spike productivity and drive business process innovation.

Read article by Rory Doherty, editorial director of Optimal SAP Advisor: SAP's Web 2.0 Smarts: Part Two -- Tapping Collective Intelligence to Innovate

SAP, the world’s largest provider of enterprise applications, is utilizing cutting-edge Web 2.0 tools and techniques to accomplish a Herculean task at a time when the stakes -- from an economic perspective -- have never been higher.

Read article by Rory Doherty, editorial director, Optimal SAP Advisor: SAP's Web 2.0 Smarts, Part One - Tapping Collective Intelligence to Educate the Market

What most SAP customers know about SAP’s new Enterprise Support maintenance program is limited to a few basic facts; namely, that it comes with a 22%-of-license-cost price tag; that it is mandatory for all new SAP customers (SAP 6.0); and that, eventually, Enterprise Support will be the only maintenance program SAP offers to its customers.

While all true, these facts do little to help SAP customers understand how Enterprise Support protects their SAP investment, helps them to realize greater value from their SAP landscape, and ensures they achieve faster ROI and lower TCO from their SAP solutions.

Read article by Sam Sliman, president for Optimal Solutions Integration, Inc.: SAP Packs More Value into Enterprise Support

One might suppose that recent economic pressures are forcing ‘green’ initiatives off the table for cash- and credit-strapped companies. While this may be the case with a handful of superficial, public-facing initiatives intended solely to enhance a company’s image – a disparaging practice known as “green washing,” the truth is that more and more companies are green lighting genuine green initiatives today because, done right, going green reduces costs and drives operational excellence, and no company today can afford to leave money on the table or let sluggish operations cut into profits.

Read article by Elliott Garofalo, SVP SME Practice for Optimal Solutions Integration, Inc: Green Lighting SAP Green Initiatives

Let’s face it, companies are less likely to make big IT spends with a tumultuous economy. Virtualization technology, because of its maturity and because it saves money, is a source of light in an otherwise murky enterprise IT sector. Leveraging advancements in virtualization made by SAP and its bourgeoning enterprise virtualization community is one way SAP customers can keep business process innovation on track during economic doldrums.

Read article by SAM Sliman, president for Optimal Solutions Integration, Inc: SAP Virtualization Pays

Despite today’s rough economy, recent IT spending forecasts are far from bleak. To be sure, the spendthrift ways of the late 1990s are not likely to return anytime soon, but leading companies understand that under investing in technology – particularly during lean times – can erode profits and cost market share.

Read article by Sam Sliman, president for Optimal Solutions Integration, Inc: SAP Innovation Imperative in a Tough Economy

A scarcity of experienced talent has helped pump up pay considerably for SAP-related skills in recent months, according to a new report.

Read InformationWeek article: What's Hot? SAP Skills and Pay

Ironically, this talent crunch –- arguably the greatest challenge SAP and SAP customers face today and for the near future –- is a direct result of the speed and efficiency with which SAP has succeeded in ushering in the service-oriented architecture (SOA) era.

Read article by Sam Sliman, president for Optimal Solutions Integration, Inc.: SAP TechEd 2008: Business Process Experts Needed

Of all the news that came out of the 12th annual SAP® TechEd conference held last week in Las Vegas, nothing resonated as loudly and as clearly as the heightened importance and growing need for SAP business process experts (BPX).

Read article by Sam Sliman, president for Optimal Solutions Integration, Inc.: SAP TechEd 2008: Business Process Experts Needed

That SAP ERP is too complex and expensive for small and midsize organizations has been a misleading myth for too long -- a myth that SAP’s ramping up fast-start program for SAP Business All-in-One solutions quickly debunks.

Read article by Elliott Garofalo, SVP SME Practice, Optimal Solutions Integration: SAP's Fast-Start Program Debunks SME ERP Myths

As if the regulatory pressure of Sarbanes-Oxley and Basel II is not enough to contend with, corporations must soon exhibit proof of a formal and effective risk-management program in order to secure a positive credit rating from Standard & Poor’s (S&P). The good news: SAP GRC provides the solutions and services companies need to satisfy S&P’s enterprise risk management (ERM) evaluations and keep their good credit.

Read article by Sam Sliman, president for Optimal Solutions Integration: The Link Between SAP GRC and Good Credit

Gurvendra Suri, founder and CEO of Optimal Solutions, has grown his company significantly every year for the past 13 years providing SAP solutions and services to some of the world’s largest corporations and government organizations. His plan now is to grow Optimal fourfold over the next 3 - 4 years by expanding aggressively into the burgeoning SAP midmarket.

Read SiliconIndia article: Optimal Solutions: Smart Moves Fuel Fast Growth

Announced in February, rolled out in May and soon to be mandatory for all maintenance customers, SAP’s Enterprise Support program has created quite a stir. While some customers applaud the enhanced offering and extended coverage, others lambast the mandatory 22%-of-license-cost price tag. So what are SAP customers to make of Enterprise Support?

Read article by Sam Sliman, president for Optimal Solutions Integration, Inc: Putting SAP Enterprise Support in Context

Delivering on a roadmap laid out soon after SAP's acquisition of Business Objects, SAP and BOBJ recently unveiled SAP Strategy Management 7.0, SAP Business Planning and Consolidation 7.0, BusinessObjects Financial Consolidation 7.0 and BusinessObjects Profitability and Cost Management 7.0. These applications were formerly from Pilot Software, OutlookSoft, Cartesis and ALG products, respectively, but they're now integrated with SAP NetWeaver and the Business Objects BI platform.

Read Intelligent Enterprise article: SAP Business Objects Takes Next Steps on Performance Management, BI

Underscoring the companies' commitment to empowering and supporting small and midsize companies in their business intelligence strategies, SAP and Business Objects recently announced that SAP Business One now gives customers access to BI with free version of BOBJ's Crystal Reports software.

Read CIOL article: Business Objects, SAP offering for SMBs

Partnering with choice SAP consulting firms is vital to Business Object's strategy for further penetrating the mid-market. On this front, Optimal Solutions Integration, an SAP® channel partner authorized to resell the SAP Business All-in-One solution to midsize companies in North America, and a leading consulting and staffing firm that has achieved premier-level status in the SAP Consulting Partner Program in North America, recently announced the addition of advanced BI solutionsto its offering of SAp solutions for midsize companies.

Read Optimal press release: Optimal Solutions Joins Business Objects Solution Provider Partner Program

Optimal Solutions Integration , Inc., an SAP channel partner authorized to resell the SAP Business All-in-One solution to midsize companies in North America, and a leading consulting and staffing firm that has achieved premier-level status in the SAP Consulting Partner Program in North America, today announced that the company’s new Optimize LodeOne for metals and mining solution is now a qualified SAP Business All-in-One partner solution.

"The North American metals and mining industries are very dynamic and competitive and are experiencing unprecedented growth. To succeed in this business climate, midsize companies must streamline and automate vital business processes, adapt quickly to satisfy changing customer needs, and stay in compliance with a growing host of legal and regulatory mandates," said Elliott Garofalo, SVP, SME practice, for Optimal Solutions Integration, Inc. "Optimize LodeOne is preconfigured utilizing metals and mining industry best practices, and can be implemented quickly in a low-risk, fixed-scope project. The solution is affordable and scalable and provides fast-growing midsize mining companies a sustainable competitive edge at a low total cost of ownership."

Read Optimal Solutions press release: Optimal Launches Optimize LodeOne for Metals and Mining

Optimal's launch of LodeOne comes on the heels of Tailwind Capital Partners' announcement in May that it has made a majority equity investment in Optimal and has agreed to be the lead investor for providing and arranging up to $100 million in financing to accelerate Optimal’s aggressive growth strategy of selling SAP solutions and services to middle-market companies.

Read Tailwind press release: Tailwind Capital Invests in Optimal

For more information on Optimal's mid-market strategy, read Optimal SAP Blog post from May: Optimal's Big Mid-market Push

SAP today announced a mandatory transitioning of all of its customers to the new Enterprise Support maintenance program which will go into effect as of January 1, 2009.

The primary drivers for this transition, according to SAP:  "The ongoing growth of SAP’s robust product offerings, the pervasiveness of business networks and mass adoption of service-oriented architecture (SOA) have challenged traditional support models [...] Enterprise Support goes beyond bug fixes and support packages to provide companies with a holistic offering that helps to reduce the risk and maximize the value that customers receive from their IT investments."

Read SAP press release: SAP Enterprise Support Offering Roled Out To All Customers

Forrester analyst Ray Wang cites SAP's loss of potential revenue resulting from its Business ByDesign snafu, coupled with increased competitive pressure from the likes of Oracle, as the true drivers behind SAP's forced transition to Enterprise Support. He advises SAP customers to explore offerings from 3rd-party maintenance providers, and to prod SAP user groups into protesting the increase.

Read InfoWorld article article by Chris Kanaracus: SAP Customers Forced to Move to Pricier Support

Over the last six months, more than 350 customers have signed up for the new service, which SAP calls its "next generation" of support. SAP will implement a graduated pricing scheme with Enterprise Support that incrementally moves customers from their current agreements to the new service's pricing. SAP plans to complete the transitioning of customers from their current agreements to the new service's pricing model of 22% of license fees by 2012.

Read InformationWeek article by Antone Gonsalves: SAP To Migrate Customers To More Expensive Support Service

Also in the SAP support arena, SAP's abrupt switching last week of Business Objects customers to the SAP support site didn't go as smoothly as SAP (and Business Objects customers) would have liked. Reports abound of BOBJ customers not receiving new logon IDs and critical support cases getting dropped in the transition.

Read blog post by Cindi Howson: The SAP/Business Objects Blunder

For more on SAP Enterprise Support, check out roundup of news stories presented in our blog post below.

Here's the skinny on SAP’s new ERP maintenance program, “Enterprise Support,” rolled out in February and announced in May:

• End to 17% basic support
• End to 22% premium support
• Only option for new SAP ERP customers is the Enterprise Support package available at 22%.
  

The good news? Enterprise Support includes 24/7 support and end-to-end coverage, including coverage of non-SAP network components.

Existing customers can continue basic support. But for how long?

Read ComputerWeekly.com article: SAP Customers May Be Hit with High Maintenance Cost

Read CIO article: SAP Raises Software Maintenance Fees for New Customer

A high ranking SAP exec recently confirmed a potential deficit of 30,000 - 40,000 SAP consultants over the next few years. For its part, SAP is working to fill the gap by increasing its investment in the SAP University Alliances program, a network of nearly 900 colleges and universities in 30 countries that provides SAP training to 150,000 students worldwide. While admirable, many experts feel the SAP Alliance program will do little to ease today's SAP's talent crunch.

Read InformationWeek article: How Bad is the SAP Talent Shortage?  

Read SAP press release: SAP Helps Companies Win Today’s Race for Tomorrow’s Talent

ERP, NetWeaver and BI skills development are a priority for SAP as the spread of its software outpaces the supply of people to implement it. SAP now reaches out to prospective IT workers and offers online courses in multiple languages to attract new talent to the SAP ecosystem.

Read CIO article: SAP skills shortage impacts SAP customers, partners and, ultimately, SAP

SAP's growth plans hinge heavily on its partner ecosystem. And we're not just talking about the big boys. SAP's 3,000 tier-two consulting partners are deepening their SAP talent pools. To ensure a "baseline of quality" in SAP skills on the market, SAP is aggressively extending a broad array of educational and training support program throughout its partner ecosystem. The appetite for SAP training and continual education is voracious among SAP partners. According to industry sources, in the first quarter of 2008, there was a 38% jump in the number of people taking SAP certification programs.

Read InformationWeek article: How SAP is Trying to Fill the Talent Pipeline

According to Gartner Research , a new shortage of skills and talent in IT and business is threatening business growth. More specifically, Gartner maintains that the current demand requires IT pros with strong business process expertise as well as technology proficiency -- an increasingly rare sort of  hands-on experience that cannot be rushed or faked.

Read Computing SA article: Looming IT Shortage

On this front, SAP is pumping new incentives, tools and resources into it rapidly growing BPX Community , a collaborative online environment where currently 350,000 members share business process solutions, organizational expertise and best-practices to increase business agility.

Read SAP press release: SAP Fosters Collaboration and Education Among its Growing Business Process Expert Community

The upshot of all this for SAP consultants with demonstrable business experience? Can you say, "Ka-ching!" According to some sources, salaries for certain SAP skills have spiked as much as $40,000 in the past few years because the release of new applications outpaced the skills needed to manage them. Hot skill sets, such as SAP BI and Basis, in-house IT job applicants with the latest NetWeaver skills are now demanding between $120,000 and $140,000 a year. Consultants with hot SAP skills are billing between $135 and $200 an hour.

According to recent research conducted by Foote Partners LLC, an IT skills staffing consultancy, the SAP skills shortage is worse than that of any other vendor. Increased pay is the best indicator of increased demand, and pay has increased by more than 10% over the past year for eight SAP skills, among them SAP MDM, SAP ERP, NetWeaver BI, and SAP HCM.

Read SearchSAP.com article: SAP Seeks to Overcome Skills Shortage