As it is included in the license (according to SAP) we would prefer using Solution Manager over other tools, for the entire life-cycle of software development. Or is it highly recommended to use specific tools for the particular processes like Test Management? Any opinions?
SAP Solution Manager: Which Application Life-Cycle Management Processes are getting covered?
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in general before answering this question, please be aware that SAP will bring out a new support model and the features and functions available in your SolMan installation will differ according to the support you requested from SAP. If you stick to the Enterprise Support you will (nearly) get every functionality, for Standard Support you well get less and a lot of features will not be included. At the moment, SolMan 7.10 is in Ramp Up Phase and 7.20 will be released in 2011. Due to the fact, that SAP changes the kernel of the Solution Manager Stack, which is apparently CRM from 5.0 to 7.0 you should keep in mind, that any functionality you implement in your current SolMan will lead to high migration efforts.
Apart from this, if you look at the Enterprise version, my experience is that not all features are rather good and suitable. It also depends on the organization you are working in. The SAP tools focus only on SAP, so if you are working in an environment where non-SAP Java has an important part I would look for different tools. If you look into the change management (ChaRM), it is suitable for small landscapes and for big ones only with some effort. Here you should also consider at least to have a look at different technologies and tools. From my point, there are some things like monitoring, job scheduling etc. which are quite good, but for the more general application lifecycle management tools you should at least take other options into account.