This should work for both "Firstname Lastname" and "Firstname Middlename Lastname" combinations.
DECLARE @name AS NVARCHAR(50)
SET @name = 'Firstname Middle Lastname'
SELECT SUBSTRING(@name, 1, 1) + --First initial
SUBSTRING(@name, CHARINDEX(' ', @name) + 1, 1) + --Middle/Last initial
CASE WHEN 0 <> CHARINDEX(' ', @name, CHARINDEX(' ', @name) + 1) -- More than two words
THEN SUBSTRING(@name, CHARINDEX(' ', @name, CHARINDEX(' ', @name) + 1) + 1, 1) --Last initial
ELSE '' --Have to add empty string to avoid NULLing entire result
END
Of course, if users have a space in one of their names for some reason you will have an issue parsing this out, but I suspect that would be the case anyways when not storing your names in separate fields.
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