Executive Summary (This is a document excerpt)

Building a long-term growth strategy to hedge against the mature enterprise space, SAP has announced two products for the core midmarket. One is an upgrade to the existing All-in-One offering based on mySAP ERP 2005, known as enterprise service-oriented architecture (SOA) by evolution — formerly code-named A1N. The other, a much more ambitious undertaking to be officially announced at the end of Q1 2007 and delivered later in 2007, is referred to as enterprise SOA by design — code-named A1S. This offering will provide advanced flexibility via graphical configuration tools and componentized business services and will be offered through a multitenant software-as-a-service (SaaS) deployment model. In the near term, SAP will likely create confusion regarding the new version of the All-in-One solution and A1S product positioning, as well as potential conflicts with SAP Business One for SMBs. Longer term, as the A1S product matures, SAP will have a significant upside opportunity to capture share in the enterprise resource planning (ERP) midmarket with a leading edge SOA product.

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