SAP and Enterprise Service-Oriented Architecture

Service-oriented architecture moves the ERP landscape toward software-based and web services-based business activities. This move increases adaptability, flexibility, openness and efficiency. The move towards E-SOA helps companies reuse software components and not have to rely as much on in-house enterprise resource planning hardware technologies which helps make ERP adoption more attractive for small- or mid-sized companies.

According to a press fact sheet from SAP, "SAP is the only enterprise applications software vendor that is both building service-orientation directly into its solutions and providing a technology platform (SAP NetWeaver) and guidance to support companies in the development of their own service-oriented architectures spanning both SAP and non-SAP solutions." ^[18]

SAP E-SOA Authentication

SAP E-SOA, client certificate-based authentication is the only authentication method (besides username/password) and the only Single Sign-On method to be supported across all SAP technologies. Kerberos and logon tickets, for example, are not compatible with SAP service-oriented architecture. ^{[19] [20]}

SAP's products focus on Enterprise Resource Planning (ERP). The company's main product is SAP ERP. The current product is called the SAP Business Suite (also known as SAP ERP 6.0). It's previous product was called R/3. The "R" of SAP R/3 stood for realtime - even though it is not a realtime solution. The number 3 related to the 3-tier architecture: database, application server and client (SAPgui). R/2, which ran on a Mainframe architecture, was the predecessor of R/3. Before R/2 came System RF, later dubbed R/1.

SAP ERP is one of five enterprise applications in SAP's Business Suite. The other four applications are:

• customer relationship management (CRM) - helps companies acquire and retain customers, gain marketing and customer insight
• product lifecycle management (PLM) - helps manufacturers with product-related information
• supply chain management (SCM) - helps companies with the process of resourcing its manufacturing and service processes
• supplier relationship management (SRM) - enables companies to procure from suppliers

Other major product offerings include: the NetWeaver platform, Governance, Risk and Compliance (GRC) solutions, Duet (joint offering with Microsoft), Performance Management solutions and RFID. SAP offers SOA capabilities (calling it Enterprise SOA) in the form of web services that are wrapped around its applications.

While its original products were typically used by Fortune 500 companies, SAP is now also actively targeting small and medium sized enterprises (SME) with its SAP Business One and SAP Business All-in-One. On September 19th, 2007 SAP announced a new product named SAP Business ByDesign. SAP Business ByDesign was known under the code name "A1S" before.^[21]

SAP officials say there are over 100,600 SAP installations serving more than 41,200 companies in more than 25 industries in more than 120 countries.^[22]