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<strong>ERP</strong> <strong>Providers</strong> <strong>Serving</strong> <strong>the</strong> <strong>Midmarket</strong><br />

by Simon Jacobson<br />

Market Services Report<br />

<strong>ERP</strong><br />

2007 Technology and<br />

Vendor Landscape Series<br />

Smaller doesn’t mean less complex or responsive. As midmarket firms innovate<br />

and tackle <strong>the</strong> increased complexities of being demand driven, <strong>the</strong>ir business<br />

applications must follow suit. These firms are making new investments in <strong>ERP</strong><br />

packages, and <strong>the</strong> vendors are taking notice.


Acronyms and Initialisms<br />

A&D Aerospace and defense<br />

ASP Application service provider<br />

BI Business intelligence<br />

BOM Bill of material<br />

BPM Business process management<br />

CP Consumer products<br />

CRM Customer relationship management<br />

DDSN Demand-driven supply network<br />

EAM Enterprise asset management<br />

EMEA Europe, Middle East, and Africa<br />

<strong>ERP</strong> Enterprise resource planning<br />

ETO Engineer to order<br />

EVM Earned-value management<br />

GTM Global trade management<br />

HVAC Heating, ventilation, and air conditioning<br />

IP Intellectual property<br />

IPO Initial public offering<br />

ISV Independent software vendor<br />

M&A Merger and acquisition<br />

MES Manufacturing execution system<br />

MRO Maintenance, repair, and overhaul<br />

© Copyright 2007 by AMR Research, Inc.<br />

AMR Research® is a registered trademark of AMR Research, Inc.<br />

MRP Materials requirements planning<br />

MRP II Manufacturing resource planning<br />

MTO Make to order<br />

MTS Make to stock<br />

PLM Product lifecycle management<br />

PPM Project portfolio management<br />

R&D Research and development<br />

RFI Request for information<br />

RFQ Request for quotation<br />

S&OP Sales and operations planning<br />

SaaS Software as a service<br />

SCM Supply chain management<br />

SFA Sales force automation<br />

SMB Small and midsize business<br />

SOA Service-oriented architecture<br />

SOX Sarbanes-Oxley Act<br />

UI User interface<br />

VAR Value-added reseller<br />

VMI Vendor-managed inventory<br />

XML Extensible markup language<br />

No portion of this report may be reproduced in whole or in part without <strong>the</strong> prior written permission of AMR Research. Any written<br />

materials are protected by United States copyright laws and international treaty provisions.<br />

AMR Research offers no specific guarantee regarding <strong>the</strong> accuracy or completeness of <strong>the</strong> information presented, but <strong>the</strong> professional staff<br />

of AMR Research makes every reasonable effort to present <strong>the</strong> most reliable information available to it and to meet or exceed any<br />

applicable industry standards.<br />

AMR Research is not a registered investment advisor, and it is not <strong>the</strong> intent of this document to recommend specific companies for<br />

investment, acquisition, or o<strong>the</strong>r financial considerations.<br />

This is printed on 100% post-consumer recycled fiber. It is manufactured entirely with wind-generated electricity and in accordance with a<br />

Forest Stewardship Council (FSC) pilot program that certifies products made with high percentages of post-consumer reclaimed materials.


<strong>ERP</strong> <strong>Providers</strong> <strong>Serving</strong> <strong>the</strong> <strong>Midmarket</strong><br />

by Simon Jacobson<br />

In order to thrive in <strong>the</strong> midmarket, <strong>ERP</strong> providers must offer integrated<br />

functionality suitable to <strong>the</strong> geography- and industry-specific needs of <strong>the</strong>ir<br />

customers through multiple sales channels that drive a high-volume license<br />

business.<br />

Executive<br />

Summary<br />

<strong>ERP</strong> spending was up by 18% in 2006. Globalization and <strong>the</strong><br />

emergence of demand-driven supply networks (DDSNs) require<br />

midmarket organizations to fur<strong>the</strong>r participate in <strong>the</strong> value chains<br />

facilitated by <strong>the</strong> large enterprises atop <strong>the</strong> industries <strong>the</strong>y serve.<br />

Demand-driven transformation has rendered most current business models, not to<br />

mention <strong>the</strong>ir supporting business applications, ineffective and obsolete. The success<br />

of <strong>the</strong> <strong>ERP</strong> providers will be predicated on <strong>the</strong>ir abilities to serve <strong>the</strong> needs of <strong>the</strong><br />

midmarket customer and build a high-volume business with multiple sales channels.<br />

This Report examines how <strong>the</strong> available landscape of providers is prepared to support<br />

<strong>the</strong> evolving requirements of midmarket firms.<br />

Key findings<br />

• <strong>Midmarket</strong> firms have business environments as equally complex as those of large<br />

enterprises.<br />

• Go-to-market strategies must evolve to support <strong>the</strong> new customer demands and<br />

drive volume license sales.<br />

• <strong>ERP</strong> products must deliver integrated industry- and geography-specific functionality<br />

to support customer business.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

The<br />

Bottom<br />

Line<br />

Vendors featured<br />

in this Report:<br />

Activant Solutions<br />

Cincom<br />

CMS Software<br />

Deltek<br />

Epicor<br />

Exact Software<br />

Glovia<br />

Glovia Services<br />

IFS<br />

Infor<br />

IQMS<br />

Lawson<br />

Microsoft Business<br />

Solutions<br />

NetSuite<br />

Oracle<br />

Plexus Systems<br />

QAD<br />

Sage Software<br />

SAP<br />

SoftBrands<br />

SYSPRO<br />

© 2007 AMR Research, Inc.<br />

1


<strong>Midmarket</strong> firms have business environments as<br />

equally complex as those of large enterprises<br />

Globalization has put many organizations on a journey to transform <strong>the</strong>ir traditional,<br />

forecast-based push supply chains into broader, end-to-end DDSNs. Instead of a linear<br />

supply chain, organizations now have complex supply networks of suppliers, co-packers,<br />

outsourced manufacturers, retailers, and distributors that must operate in concert to<br />

profitably respond to customer demand. With this transformation, new pressures have<br />

emerged:<br />

• Increased product variances—This<br />

includes diversified, demand-driven product<br />

configurations personalized by <strong>the</strong> customer.<br />

• Shorter new product development and launch cycles—Innovation<br />

means<br />

companies that get products to market faster receive first-mover advantage. However,<br />

products also have shorter lifecycles once in <strong>the</strong> market.<br />

• Increased regulatory compliance oversight—It’s<br />

not only <strong>the</strong> Sarbanes-Oxley Act<br />

(SOX) with which companies must contend, but also <strong>the</strong> abundance of environmental<br />

and industry-specific requirements, such as TREAD or 21 CFR Part 11, and<br />

emerging global trade compliance initiatives.<br />

• Demand sensing—Large<br />

enterprises invested heavily to understand and get closer to<br />

customer demand to increase <strong>the</strong>ir responsiveness. <strong>Midmarket</strong> companies are often<br />

expected to cope with <strong>the</strong> same product complexity and demand volatility as large<br />

enterprises.<br />

These pressures affect not only manufacturers, distributors, and retailers, but also<br />

internal company functions such as logistics and supply chain, customer management,<br />

product development, and back-office functions. They demand a reshaping of some<br />

business processes and supporting IT applications. The pressures of globalization affect<br />

companies of all sizes, from standalone midmarket organizations to divisions of large<br />

Fortune 2000 firms.<br />

For some large enterprises, <strong>the</strong>re are sites and divisions that were rolled under <strong>the</strong> corporate<br />

umbrella as part of an M&A scenario. Based on some company reporting structures,<br />

those sites and divisions are defined as midsize. These scenarios tend to be reliant<br />

on legacy MRP that is ei<strong>the</strong>r standalone or integrated with best-of-breed investments,<br />

both of which are ei<strong>the</strong>r outdated or simply not feature-rich enough to support <strong>the</strong> new<br />

demands of <strong>the</strong> business.<br />

The new need is for modern <strong>ERP</strong> applications, configured with ei<strong>the</strong>r industry-specific<br />

functionality, localizations, or both, to break down barriers between departments<br />

within a company. The applications should bring various pockets of <strong>the</strong> organization<br />

toge<strong>the</strong>r—front and back office as well as operations functions—with a consistent,<br />

single version of <strong>the</strong> truth that will, in turn, allow <strong>the</strong> company to operate in a more<br />

agile, predictive fashion.<br />

2 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Defining <strong>the</strong> midmarket<br />

AMR Research defines <strong>the</strong> midmarket as companies with less than $1B in annual<br />

revenue. We use <strong>the</strong> following parameters to segment out <strong>the</strong> upper midmarket, lower<br />

midmarket, and small and midsize business (SMB) ranges (see Table 1).<br />

Table 1: <strong>Midmarket</strong> segments<br />

Segment<br />

Annual<br />

Revenue<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

Head<br />

Count<br />

Number of<br />

Companies<br />

Upper midmarket $250M to $1B 500–2,500 60,000<br />

Lower midmarket $50M to $250M 100–500 1,200,000<br />

Small to midsize business $10M to $50M 20–100 55,000,000<br />

Source: AMR Research, 2007<br />

Our 2006 <strong>ERP</strong> spending study shows that midmarket organizations are investing in<br />

<strong>ERP</strong> to support <strong>the</strong>ir globalization efforts.<br />

Figure 1: Most important business issue addressed with <strong>ERP</strong><br />

Globalization<br />

Lean manufacturing<br />

Business intelligence<br />

Visibility and control<br />

E-business<br />

Consolidation<br />

Supplier collaboration<br />

Shared services<br />

Outsourcing<br />

New customer requirements<br />

Regulatory compliance<br />

5%<br />

5%<br />

5%<br />

5%<br />

7%<br />

8%<br />

10%<br />

13%<br />

13%<br />

14%<br />

15%<br />

15%<br />

Source: AMR Research, 2007<br />

© 2007 AMR Research, Inc.<br />

3


<strong>Midmarket</strong> companies, not having large IT budgets, have traditionally lagged large<br />

enterprises in technology adoption. They’re prudent with <strong>the</strong>ir IT expenditures.<br />

Decisions of whe<strong>the</strong>r <strong>the</strong>y will upgrade <strong>the</strong>ir current packages or implement completely<br />

new, modern business systems are not taken lightly.<br />

In <strong>the</strong> SMB and lower midmarket segments, IT resources are not deep. The IT<br />

responsibility might be a secondary role for <strong>the</strong> CFO or office manager, often making<br />

<strong>the</strong> demands on a technology provider strict. Also in <strong>the</strong>se segments, by virtue of <strong>the</strong>ir<br />

size alone, companies are often single sites, small distribution, or manufacturing and<br />

warehousing environments.<br />

The upper midmarket is often spread across a wider set of facilities and geographies.<br />

The IT departments are bigger and possess deeper IT resources, such as developers,<br />

programmers, and consultants, to assist in deploying and managing business<br />

applications across multiple sites or geographies.<br />

<strong>Midmarket</strong> organizations demand <strong>the</strong>ir <strong>ERP</strong> providers deliver <strong>the</strong> following:<br />

• Localized technology that can adapt with <strong>the</strong> business over time as it grows or<br />

expands<br />

• Easy-to-deploy, integrated, industry-specific functionality that can support all facets<br />

of <strong>the</strong> business, not to mention drive organizational buy-in and promote usage<br />

•<br />

A predictably low total cost of ownership<br />

• A clear long-term product strategy, as <strong>ERP</strong> investments are intended to last an<br />

organization 15 to 20 years<br />

4 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Vendor landscape in transition<br />

As opportunities at <strong>the</strong> high end of <strong>the</strong> market decrease, large enterprise vendors eye<br />

<strong>the</strong> midmarket as <strong>the</strong>ir next logical growth segment, making <strong>the</strong> space a hotly contested<br />

battlefield. <strong>ERP</strong> vendors already claim large revenue percentages from different<br />

segments of <strong>the</strong> midmarket (see Table 2).<br />

Table 2: Customer segmentation by midmarket segment<br />

Vendor<br />

Total<br />

Customer<br />

Count<br />

SYSPRO 6,000 33% 33% 33% 0%<br />

* MAS 90/200 and MAS 500 products only<br />

Source: AMR Research, 2007<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

SMB<br />

$10M to<br />

50M<br />

Lower<br />

<strong>Midmarket</strong><br />

$50M to<br />

$250M<br />

$250M<br />

to $1B<br />

Upper<br />

<strong>Midmarket</strong><br />

$1B or<br />

More<br />

Activant Solutions 15,000 15% 23% 33% 29%<br />

Cincom 1,400 5% 10% 30% 55%<br />

CMS Software 570 10% 65% 10% 15%<br />

Deltek 12,500 25% 55% 15% 5%<br />

Epicor 20,000 15% 45% 30% 10%<br />

Exact Software 180,000 15% 23% 33% 29%<br />

Glovia 1,125 7% 34% 40% 19%<br />

Glovia Services n/a 100% 0% 0% 0%<br />

IFS 2,368 1% 33% 46% 20%<br />

Infor 70,000 10% 29% 28% 33%<br />

IQMS 500 7% 41% 42% 10%<br />

Lawson 4,000 0% 17% 75% 8%<br />

Microsoft Business Solutions 250,000 76% 22% 2% 0%<br />

NetSuite 5,300 50% 40% 10% 0%<br />

Oracle 275,000 8% 20% 48% 24%<br />

Plexus Systems 207 27% 38% 28% 7%<br />

QAD 5,500 8% 12% 30% 50%<br />

Sage Software* 55,000 75% 25% 0% n/a<br />

SAP 24,000+ 5% 26% 36% 33%<br />

SoftBrands 4,500 40% 35% 15% 10%<br />

© 2007 AMR Research, Inc.<br />

5


Oracle and SAP continue to dominate <strong>the</strong> <strong>ERP</strong> market among large global companies,<br />

and now <strong>the</strong>ir sights are set on <strong>the</strong> midmarket. They are aggressively attacking perceptions<br />

that <strong>the</strong>ir products are too big or complex, and are making <strong>the</strong>ir inroads through<br />

rapidly expanding partner networks. As <strong>the</strong>y come downmarket, <strong>the</strong>y face formidable<br />

competition for new business from incumbents such as Infor, Lawson, and Microsoft<br />

Business Solutions.<br />

Vendors such as CMS Software, Cincom, Epicor, Sage, and QAD have called <strong>the</strong><br />

midmarket home. They are broadening <strong>the</strong>ir product portfolios through acquisition<br />

or internal product development to cross-sell back into <strong>the</strong>ir installed bases to defend<br />

<strong>the</strong>ir turfs in specific geographies and sub-industry segments against <strong>the</strong> downmarket<br />

advances of larger vendors.<br />

Software-as-a-service (SaaS) vendors such as Glovia Services, NetSuite, and Plexus<br />

are experiencing success. Alternative approaches, such as hosting, subscription-based<br />

pricing, and SaaS, generate interest from midmarket firms with minimal IT budgets<br />

and support staff. They also attract larger companies that need to react quickly to<br />

structural changes, such as acquisitions and divestitures, as well as those looking for<br />

more manageable or cost-effective applications for smaller plants or divisions.<br />

“The <strong>ERP</strong> Market Sizing Report, 2006–2011” shows <strong>the</strong> <strong>ERP</strong> market continuing to<br />

grow at 18%. However, <strong>the</strong> growth is largely through add-on functionality and not core<br />

<strong>ERP</strong> functions. Core <strong>ERP</strong> license revenue remains steady as companies continue <strong>the</strong>ir<br />

efforts to broadly deploy core applications and <strong>the</strong>n add complementary functionality<br />

in later phases. Vendors are acquiring supply chain, CRM, and o<strong>the</strong>r peripheral<br />

functionality to bolster <strong>the</strong>se efforts. The goal is to create product portfolios and be a<br />

single source of business applications for <strong>the</strong>ir customers and prospects.<br />

6 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


For example, here’s a list of recent M&As in <strong>the</strong> <strong>ERP</strong> segment:<br />

•<br />

In addition to multiple supply-chain-focused acquisitions, Infor acquired<br />

Datastream for enterprise asset management (EAM), Formation Systems for<br />

product specifications management, Extensity for performance management, and<br />

Workbrain for human capital management.<br />

• Epicor acquired CRS Retail Systems for retail operations.<br />

• Oracle acquired Retek for retail operations and Siebel for CRM.<br />

• QAD acquired Precision Software for global trade management (GTM) and Bisgen<br />

for sales force automation (SFA).<br />

The <strong>ERP</strong> vendors <strong>the</strong>mselves have consolidated as well:<br />

• Chinadotcom (CDC) acquired Ross Systems.<br />

• CMS Software and XKO Software merged.<br />

• Consona (formerly Made2Manage) acquired Axis, Cimnet Systems, and Intuitive.<br />

• Infor acquired MAPICS, Geac, SSA, and most recently Hansen.<br />

• Lawson and Intentia merged.<br />

• Oracle acquired PeopleSoft and JD Edwards.<br />

• Sage acquired Adonix and Best Software.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

7


Go-to-market strategies must evolve with customer<br />

demand<br />

Whe<strong>the</strong>r it’s a portfolio provider, consolidator, or single-product vendor, attracting<br />

new customers is crucial for anyone vying for midmarket dominance. While vendors<br />

boast high revenue from maintenance, surviving on this revenue can only sustain<br />

<strong>the</strong> company for so long. In addition to new customers, application license sales are<br />

important for vendors to be successful and relevant in <strong>the</strong>ir target markets.<br />

When it comes to adding new customers, <strong>the</strong> majority of midmarket <strong>ERP</strong> vendors have<br />

complemented <strong>the</strong>ir direct sales forces with indirect or value-added resellers (VARs) and<br />

partner-driven direct channels for larger and more strategic opportunities to get closer<br />

to <strong>the</strong> customer. For example, Microsoft Business Solutions and SMB specialists Sage<br />

and SYSPRO have long relied on indirect channels to help <strong>the</strong>m extend global reach<br />

and volume sales to businesses that a sales executive doesn’t typically prospect.<br />

Table 3: Breakout of direct versus indirect business<br />

Vendor Direct Indirect<br />

Activant Solutions 98% 2%<br />

Cincom 90% 10%<br />

CMS Software 85% 15%<br />

Deltek 90% 10%<br />

Epicor 75% 25%<br />

Exact Software 42% 58%<br />

Glovia 70% 30%<br />

Glovia Services 100% 0%<br />

IFS 75% 25%<br />

Infor 79% 21%<br />

IQMS 80% 20%<br />

Lawson 85% 15%<br />

Microsoft Business Solutions 0% 100%<br />

NetSuite 80% 20%<br />

Oracle 56% 44%<br />

Plexus Systems 92% 8%<br />

QAD 81% 19%<br />

Sage Software 60% 40%<br />

SAP 68% 32%<br />

SoftBrands 88% 12%<br />

SYSPRO 10% 90%<br />

Source: AMR Research, 2007<br />

8 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Table 3a: Breakout of indirect business type<br />

Vendor<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

VAR/Distributor<br />

Indirect Channel Type<br />

O<strong>the</strong>r<br />

(Integrators, ASPs,<br />

Consultants, etc.)<br />

Activant Solutions 100% 0%<br />

Cincom 100% 0%<br />

CMS Software n/a n/a<br />

Deltek 85% 15%<br />

Epicor 90% 10%<br />

Exact Software 83% 17%<br />

Glovia 100% 0%<br />

Glovia Services n/a n/a<br />

IFS 96% 4%<br />

Infor 80% 20%<br />

IQMS 100% 0%<br />

Lawson 40% 60%<br />

Microsoft Business Solutions 98% 2%<br />

NetSuite 100% 0%<br />

Oracle n/a n/a<br />

Plexus Systems 70% 30%<br />

QAD 100% 0%<br />

Sage Software 97% 3%<br />

SAP 85% 15%<br />

SoftBrands 100% 0%<br />

SYSPRO 100% 0%<br />

Source: AMR Research, 2007<br />

© 2007 AMR Research, Inc.<br />

9


The expectations of midmarket firms are changing. They prefer a single source for<br />

most of <strong>the</strong>ir business system and supporting services—and rightfully so, considering<br />

<strong>the</strong>ir constrained IT budgets and resources. In <strong>the</strong> upper midmarket where firms are<br />

more likely to have multinational or multisite operations, companies will often enlist a<br />

consultant to help with system selection as part of <strong>the</strong> overall services engagement. At<br />

<strong>the</strong> lower end of <strong>the</strong> midmarket and in several small business channels, <strong>the</strong> VAR often<br />

acts as <strong>the</strong> full IT provider, bundling in hardware along with <strong>the</strong> software and services.<br />

While <strong>the</strong> price point will continue to be a competitive differentiator, configuration of<br />

industry and geographical specifications in advance of customer delivery will perhaps<br />

be a greater differentiator going forward, as <strong>ERP</strong> applications must support profitable<br />

growth by <strong>the</strong> companies using <strong>the</strong>m.<br />

Preconfigured products will fit <strong>the</strong> needs of <strong>the</strong> customer<br />

Today’s go-to-market strategies must focus on providing <strong>the</strong> customer with industryspecific<br />

or localized product out of <strong>the</strong> box versus lengthy onsite blueprinting and<br />

implementation efforts that only delay customer value and adoption.<br />

Consider <strong>the</strong> following examples:<br />

• Deltek focuses its products for professional services firms and government contractors<br />

that manage more project-driven environments with different lead times and datacapture<br />

requirements than manufacturing-intensive industries.<br />

• Epicor has created industry templates on top of its Epicor Manufacturing product<br />

(formerly <strong>the</strong> Vantage and Vista products) to apply relevant functionality to general<br />

discrete, automotive, and A&D environments. The company also delivers retailspecific<br />

functionality through its CRS acquisition.<br />

• Within Infor’s massive <strong>ERP</strong> catalog, industry-specific functionality is delivered two<br />

ways. First, <strong>the</strong>re are <strong>the</strong> industry-specific products like Infor <strong>ERP</strong> TRANS4M for<br />

<strong>the</strong> automotive industry and Infor <strong>ERP</strong> Adage for <strong>the</strong> process industries. Second,<br />

Infor provides industry-specific functionality feature packs for mass-market products,<br />

such as Infor <strong>ERP</strong> LN.<br />

• SoftBrands has created industry-specific templates for several SMBs in regulated<br />

industries such as food and beverage, as well as in emerging economies like China.<br />

• In addition to providing support for project-driven environments in discrete<br />

industries, IFS also supplies sophisticated maintenance, repair, and overhaul (MRO)<br />

and aftermarket services capabilities for A&D companies.<br />

10 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


•<br />

Companies like Lawson and Oracle provide functionality for retailers. Lawson’s<br />

S3 product supports specialty retailers with purchase order, financials, and HR<br />

functionality. Oracle’s Standard Edition (SE) comes as a patch for customers of<br />

Oracle Retail version 12. The functional footprint consists of functionality from<br />

Oracle’s merchandising, price management, trade management, sales audit, invoice<br />

matching, allocations, and retail-intelligence applications.<br />

Some vendors have identified <strong>the</strong>ir channels as logical extensions of <strong>the</strong>ir own internal<br />

research and development (R&D) resources to develop preconfigured applications<br />

or application extensions that encompass ei<strong>the</strong>r an industry-specific or localized<br />

requirement, localized functionality, or both. For example, large enterprise providers<br />

Microsoft, Oracle, and SAP have empowered <strong>the</strong>ir channels and indirect partners<br />

through formalized partner programs to develop product configurations. The<br />

companies <strong>the</strong>n certify <strong>the</strong>ir partners to sell into <strong>the</strong> market.<br />

Lawson offers <strong>the</strong> QuickStep applications that are preconfigured and industry focused.<br />

They also contain preconfigured, industry-specific business processes and functionality<br />

as well as detailed documentation. QuickStep uses <strong>the</strong> Intentia StepWise implementation<br />

methodology and is built on <strong>the</strong> standard M3 product (formerly Intentia’s Movex). It’s<br />

currently available for distribution, food and beverage, fashion and apparel, and EAM.<br />

While prepackaged applications carry industry-specific functionality and localizations,<br />

<strong>the</strong>y also bear <strong>the</strong> promise of quick implementations that don’t involve lengthy blueprinting<br />

processes. This addresses <strong>the</strong> potential concerns midmarket executives have to<br />

deploying an <strong>ERP</strong> product from <strong>the</strong> same vendor that sells to <strong>the</strong> leading companies in<br />

<strong>the</strong>ir target industries.<br />

Building partner ecosystems toward volume sales in <strong>the</strong> midmarket<br />

The strength and capability of partner ecosystems to support <strong>the</strong> volume model will be<br />

major competitive differentiations for midmarket <strong>ERP</strong> providers. For <strong>the</strong> <strong>ERP</strong> vendors<br />

that traditionally have one product line with in-depth features and options for <strong>the</strong> markets<br />

where <strong>the</strong>y hoped to compete, often doing <strong>the</strong> localizations and customer-specific<br />

customizations <strong>the</strong>mselves, <strong>the</strong> market transition to portfolio providers and technology<br />

platform consolidation shatters any notion of success predicated on a one-size-fits-all<br />

approach. The diversified industry and sub-industry functional requirements, specific<br />

local requirements, varied customer sizes, and geographic concerns, combined with <strong>the</strong><br />

portfolio-provider nature that <strong>the</strong> vendors <strong>the</strong>mselves have fostered, make <strong>the</strong> partner<br />

channel all <strong>the</strong> more valuable going forward as vendors compete to capture <strong>the</strong> new<br />

business opportunities in <strong>the</strong> midmarket. A volume sales model is needed in order to<br />

effectively capture mindshare, attract new customers, and maintain customer loyalty.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

11


Large enterprise vendors that eye <strong>the</strong> midmarket as <strong>the</strong> next opportunity for volume<br />

growth employ sophisticated multitiered partner programs to help <strong>the</strong>m extend <strong>the</strong>ir<br />

sales and marketing efforts to <strong>the</strong> midsize enterprise. The Microsoft Business Solutions<br />

customer base is predominantly midmarket companies, and Microsoft has always relied<br />

on a mature network of resellers to act as its go to market.<br />

Table 4: Oracle, Microsoft, and SAP partner program breakouts<br />

Components of <strong>the</strong>se programs include <strong>the</strong> following:<br />

•<br />

•<br />

•<br />

•<br />

•<br />

Vendor Product Partners<br />

Partner-certified applications, with ei<strong>the</strong>r specific localizations or industry-specific<br />

product configurations, on top of core product offerings<br />

Discounting and special pricing considerations<br />

Committed co-marketing resources from <strong>the</strong> vendor<br />

E-learning and o<strong>the</strong>r training resources<br />

<strong>Midmarket</strong><br />

Customers<br />

Microsoft Business Solutions Dynamics AX 2,000 10,000<br />

Oracle JD Edwards<br />

Dynamics NAV 2,900 55,000<br />

Dynamics GP 2,200 (400 ISVs) 40,000<br />

PeopleSoft<br />

E-Business Suite<br />

n/a 19,000+<br />

SAP All-in-One 1,046 10,223<br />

Business One 1,316 14,667<br />

Source: AMR Research, 2007<br />

Access to online communities to network with o<strong>the</strong>r partners to share best practices<br />

While <strong>the</strong>se programs share some high-level characteristics, <strong>the</strong> following explains how<br />

<strong>the</strong>y differentiate from one ano<strong>the</strong>r.<br />

12 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Oracle<br />

Oracle’s SMB scope is typically firms with less than $500M in revenue—an area where<br />

<strong>the</strong> company already has over 19,000 customers (50% of which have less than $100M<br />

in annual revenue). For firms with annual revenue between $500M and $1B, Oracle<br />

promotes a hybrid strategy of direct and partner sales and services.<br />

Earlier this year, <strong>the</strong> company announced Accelerate as a midmarket-focused branding<br />

initiative. However, <strong>the</strong> Accelerators <strong>the</strong>mselves are not new, but based on business<br />

flows Oracle <strong>Consulting</strong> has employed for some time as a method to speed customer<br />

implementations. Specifically, Oracle prepackages <strong>the</strong> business flows and designs<br />

preconfigured business processes to fit a customer’s business directly, ranging from<br />

off <strong>the</strong> shelf or prepackaged, for processes such as order to cash, to partner tailored.<br />

The latter includes partner-designed customizations, enhancements, modifications,<br />

localizations, and integration points for a specific industry or localization.<br />

Oracle already has over 1,230 established business process accelerators and over<br />

80 specific localizations. Accelerate Solutions are positioned as a tailored product<br />

combining Oracle applications, business flows, and partner intellectual property<br />

(IP) to apply to <strong>the</strong> midmarket product portfolio: E-Business Suite, JD Edwards<br />

EnterpriseOne, Siebel, and <strong>the</strong> PeopleSoft Enterprise products. Oracle has wisely<br />

arranged <strong>the</strong> program to avoid product overlap in target industries and sub-segments,<br />

so Siebel and PeopleSoft products, for example, won’t compete against each o<strong>the</strong>r in<br />

sub-industry segments.<br />

The Accelerate program has <strong>the</strong> potential to act as a strong recruitment engine. It<br />

can reengage and reattract consulting and services firms that had strong practices in<br />

PeopleSoft, JD Edwards, and <strong>the</strong> o<strong>the</strong>r acquired products—practices that have perhaps<br />

waned in recent years. It can also reengage current Oracle customers running ei<strong>the</strong>r<br />

legacy or heavily customized versions of <strong>the</strong> applications. This has <strong>the</strong> potential to<br />

drive upgrades to ei<strong>the</strong>r a partner-driven Accelerate application with standardized or<br />

industry-specific business processes or to license a more current version of an Oracle<br />

application (see “Oracle’s New Branding Accelerates <strong>Midmarket</strong> Battle”).<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

13


SAP<br />

To support <strong>the</strong> company’s indirect efforts for its midmarket All-in-One and Business<br />

One products, SAP launched a formal partner program called PartnerEdge in mid-<br />

2005. The program is predicated on building integrated applications and extensions on<br />

SAP’s core <strong>ERP</strong> offering. It provides partners with incentives not just for sales, but also<br />

for measurements such as customer satisfaction, customer referenceability, and training.<br />

Here are some notable statistics since <strong>the</strong> program launched:<br />

• For All-in-One, <strong>the</strong>re are currently 660 partner-developed and certified applications<br />

that are localized for just over 50 countries. All-in-One is based on SAP <strong>ERP</strong> and<br />

includes SAP Best Practices, which are preconfigured business scenarios. Partners can<br />

<strong>the</strong>n use <strong>the</strong>se best practices as a starting point to configure specific customer applications<br />

or to build ones for specific micro verticals. They are packaged this way to reduce<br />

<strong>the</strong> overall efforts and costs of implementing an SAP <strong>ERP</strong> product. Although each<br />

company is different and unique in <strong>the</strong>ir processes, <strong>the</strong> goal of <strong>the</strong> partner-driven applications<br />

is to fit about 75% of customer requirements with <strong>the</strong> preconfigured template.<br />

• SAP provides a software developer kit for partners to use for its Business One product,<br />

which resides on a different code set than All-in-One. The company currently has<br />

over 350 partner-developed applications.<br />

Microsoft<br />

Microsoft’s partner program is mature, since <strong>the</strong> firm has always enlisted an indirect<br />

partner model for <strong>the</strong> Microsoft Business Solutions group. Partners are tiered and<br />

rewarded with commensurate resources from Microsoft accordingly. In addition to<br />

<strong>the</strong> new certification program for independent software vendors (ISVs), Certified for<br />

Microsoft Dynamics, Microsoft also grants Microsoft Gold Certified Partner and<br />

Microsoft Certified Partner status. The company seeks to build horizontal functionality<br />

that can be consumed across industries into its core products. It will <strong>the</strong>n rely on<br />

partners to develop any industry-specific or localized functionality on top of <strong>the</strong> core<br />

product. Across <strong>the</strong> Dynamics Axapta (AX), Navision (NAV), and Great Plains (GP)<br />

lines, <strong>the</strong>re are over 6,000 partners worldwide providing over 90 specific localizations.<br />

In 2005, <strong>the</strong> company launched its Industry Builder Initiative (IBI) to enlist Dynamics<br />

AX partners to help construct integrated systems tailored to <strong>the</strong> upper end of <strong>the</strong><br />

midmarket. These partners focus on vertical investments in five key industry areas:<br />

manufacturing, distribution, retail, professional services, and public sector. The IBI is<br />

also mainstreamed into <strong>the</strong> Dynamics price list. At this year’s Convergence user conference,<br />

Microsoft Business Solutions unveiled Sure Step, a common implementation<br />

framework. Sure Step not only replaces <strong>the</strong> individual, product-focused, rapid implementation<br />

tools, but also integrates with <strong>the</strong> products <strong>the</strong>mselves to drive a structured<br />

method of increasing <strong>the</strong> repeatable processes that drive productivity. Sure Step can<br />

14 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


also provide Microsoft Business Solutions’ product development teams with ongoing<br />

feedback on implementation time frames, product adoption, and benefits so <strong>the</strong>y can<br />

continue to drive continuous improvements into <strong>the</strong> R&D process. Since Convergence,<br />

major Microsoft Business Solutions partners, such as Columbus IT and Tectura, have<br />

applied <strong>the</strong> Sure Step methodology into <strong>the</strong>ir customer engagements.<br />

Challenges of partner programs<br />

While <strong>the</strong> partner programs bear tremendous fruits, especially for driving volume<br />

license sales, <strong>the</strong>re are still challenges:<br />

• Convincing VARs and distributors to migrate from selling one or two licenses with<br />

multiple services engagements on top to a volume model is a challenge that, in some<br />

cases, forces <strong>the</strong> partner to shift its business model.<br />

• Ensuring VARs don’t compete with one ano<strong>the</strong>r in flooded markets and geographies<br />

is a concern.<br />

• Establishing long-term reseller viability and localized support capabilities is essential.<br />

Several local VARs and distributors have small staffs or are lifestyle companies that<br />

might not share <strong>the</strong> same growth plans as <strong>the</strong> vendors <strong>the</strong>y support.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

15


Technological and functional (r)evolutions: products<br />

must support <strong>the</strong> entire business<br />

The midmarket <strong>ERP</strong> providers are mature vendors, <strong>the</strong> majority of which in business for<br />

over 20 years. Several of <strong>the</strong>m have roots in manufacturing operations, and <strong>the</strong>ir abilities<br />

to support a single manufacturing or distribution site have never been challenged. The<br />

question, however, is whe<strong>the</strong>r or not <strong>the</strong>y have evolved to cater to today’s customer needs<br />

in order to truly thrive in <strong>the</strong> midmarket.<br />

The adoption of service-oriented architectures (SOAs) and continued migration toward<br />

modernized user interfaces (UIs) have made <strong>the</strong>ir way to <strong>the</strong> midmarket, and <strong>the</strong><br />

vendors are indeed responding.<br />

The impact of SOA<br />

For midmarket companies, <strong>the</strong> promise of SOA is that it makes it quicker and cheaper<br />

to assemble, deploy, and sustain technology that not only catapults <strong>the</strong>m from being<br />

technology laggards, but also provides a competitive advantage. SOA is an engine for<br />

rapid, less-expensive methods for maintaining software investments, reconfiguring new<br />

business processes, or upgrading entirely. By service-enabling <strong>the</strong>ir architectures, users<br />

are in a better position to support <strong>the</strong>ir evolving business processes by taking advantage<br />

of broader functionality that might not be available in <strong>the</strong>ir current configurations.<br />

<strong>ERP</strong> vendors as a whole have shifted from a message about <strong>the</strong> revolutionary new<br />

capabilities of SOA to one that emphasizes an evolutionary and nondisruptive approach<br />

to introducing new technologies. Applying this to <strong>the</strong> midmarket can help convince<br />

risk-averse buyers that were wary about new architectures to move forward, especially<br />

now that <strong>the</strong>y demand <strong>the</strong>ir <strong>ERP</strong> systems support most of <strong>the</strong> critical business<br />

processes and key company data.<br />

Vendors with <strong>the</strong> biggest challenge and opportunity to use SOA are <strong>the</strong> ones that ei<strong>the</strong>r<br />

carry large product portfolios or large amounts of customers that maintain legacy<br />

applications. SOA can provide <strong>the</strong>se vendors with <strong>the</strong> best of both worlds:<br />

• Customers that are happy paying maintenance, with increased opportunities for<br />

upselling and cross-selling new licenses<br />

• Customers that can configure new business processes on top of current configurations<br />

and legacy data sources<br />

Vendors continue to build and acquire products for specific target markets. In many<br />

cases, <strong>the</strong>ir acquisitions have also given <strong>the</strong>m redundant and overlapping product<br />

lines, which can present a major marketing and messaging challenge. In <strong>the</strong> long term,<br />

however, <strong>the</strong> increased product volume bodes well for SOA as a catalyst to provide<br />

customers with <strong>the</strong> best-in-class functions from multiple products (see “<strong>Midmarket</strong><br />

<strong>ERP</strong> <strong>Providers</strong> Must Accelerate SOA Adoption, Part 1: Educate <strong>the</strong> Masses”).<br />

16 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


The opportunity for SOA in <strong>the</strong> midmarket has not gone unnoticed by application infrastructure<br />

providers like IBM and Progress Software. IBM has a sizeable installed base of<br />

technology in <strong>the</strong> midmarket, with vendors using <strong>the</strong>ir WebSphere middleware. Lawson<br />

and Infor both have large numbers of customers that run applications on <strong>the</strong> AS/400<br />

and iSeries platforms, and have aligned with IBM to help <strong>the</strong>se customers evolve <strong>the</strong>ir<br />

IT infrastructures. Lawson uses <strong>the</strong> entire IBM stack on all client platforms. Progress<br />

Software, meanwhile, provides vendors <strong>the</strong> full technology stack to promote <strong>the</strong>ir SOAs,<br />

with customers of Infor, Epicor, and QAD using <strong>the</strong>ir OpenEdge product to do so.<br />

Additionally, <strong>the</strong> midmarket <strong>ERP</strong> providers <strong>the</strong>mselves are starting to get <strong>the</strong>ir stories<br />

heard in <strong>the</strong> market:<br />

• In late 2006, SAP unveiled its business process platform, <strong>the</strong> end result of its journey<br />

from client-server to an SOA. It’s basing a majority of future product releases on this<br />

platform.<br />

• Oracle’s Application Integration Architecture satisfies <strong>the</strong> growing midmarket demand<br />

for integration of its acquired applications, such as G-Log and Demantra, with <strong>ERP</strong><br />

products from JD Edwards and PeopleSoft as well as E-Business Suite. It also creates<br />

a roadmap to future Fusion Applications. The Process Integration Packs and business<br />

process management (BPM) tools provide companies an opportunity to implement<br />

cross-functional business processes on top of standard enterprise applications.<br />

• Microsoft-based vendors Epicor and SYSPRO have been down <strong>the</strong> SOA path for<br />

quite some time. SYSPRO componentized its product so functionality can be<br />

consumed on any device or in tandem with a development language as a way to add<br />

functionality and extend its product into its customers’ supply networks without<br />

<strong>the</strong> need for extensive programming or alterations to <strong>the</strong> core system. Epicor has<br />

anchored its SOA strategy on Microsoft .NET and Progress Software’s OpenEdge<br />

platforms to expose <strong>the</strong> functionality in its existing products through web services.<br />

This creates opportunities and provides broader capabilities to manufacturers,<br />

professional services firms, distributors, and financial service organizations.<br />

• Exact’s Macola ES product is anchored by its e-Synergy BPM product that, while<br />

sold as an add-on to Exact’s <strong>ERP</strong> products, is done so in a bundled fashion. It shares<br />

<strong>the</strong> same database structure as Exact’s <strong>ERP</strong> products, making it easy to orchestrate<br />

and monitor new business processes.<br />

• IFS provided SOA long before it became a mainstream term. The company<br />

componentized <strong>the</strong> architecture of <strong>the</strong> IFS Applications product through web services<br />

to foster interoperability between its multiple modules, allowing customers to add on<br />

functionality without having to worry about costly coding or services arrangements.<br />

• Lawson’s System Foundation project syn<strong>the</strong>sizes <strong>the</strong> core technology foundations<br />

between S3 and M3 products to provide a common technology base. Lawson’s<br />

Landmark is a development tool that provides a capability to create applications<br />

without coding. The company is using Landmark to build new application modules<br />

that can integrate with both <strong>the</strong> M3 and S3 products.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

17


•<br />

Infor’s Open SOA is a unique approach. Instead of providing an event-enabled bus<br />

or hub to foster application interoperability, <strong>the</strong> company is seeking to enable events<br />

within <strong>the</strong> application and deliver a true building-block way of tying toge<strong>the</strong>r a<br />

heterogeneous IT architecture. This approach should work well for its customer base,<br />

which is at diversified stages of <strong>the</strong>ir application lifecycles.<br />

Empowering employee productivity with new user interfaces<br />

The concept of extending SOA to create new UIs that can ultimately support individual<br />

roles and increased end-user personalization has not been fully embraced by <strong>the</strong><br />

majority of midmarket <strong>ERP</strong> vendors. It is, however, a burning need for midmarket<br />

companies. While <strong>the</strong> movement from green screens is complete for <strong>the</strong> most part,<br />

many of <strong>the</strong> UIs still support single-direction data capture through cumbersome forms<br />

and multiple screens. While this might be suitable for some accounting and back-office<br />

functions, front-office and operational functions require relevant, role-based access to<br />

company data to foster efficient decision making. Customers also have interest in a<br />

web-based UI or a familiar Microsoft-Office-like interface.<br />

Consider <strong>the</strong> following examples:<br />

• QAD entered a relationship with Microsoft in 2006 to use .NET as <strong>the</strong> technological<br />

underpinning of its new UI. The company’s initial push was to deliver stronger analysis<br />

and reporting. In <strong>the</strong> past, its bidirectional integration hasn’t been strong, but using<br />

.NET as a common standard UI for its existing products, as well as some of its recent<br />

acquisitions, is a sound strategy. The .NET UI also promotes end-user customization.<br />

It’s also a potential kernel to drive upgrades from green screens, which many headsdown<br />

transactional users still see, to QAD Enterprise Applications 2007, <strong>the</strong> firm’s<br />

most current software version.<br />

• SAP’s newest version of its All-in-One product is built atop SAP <strong>ERP</strong> 6.0, which<br />

leverages <strong>the</strong> NetWeaver business client to help drive more simplistic, role-based UIs.<br />

The new UI features power lists of commonly consumed tasks in which users might<br />

engage. It also offers precanned business processes, such as order to cash, that will<br />

ultimately limit <strong>the</strong> amount of screens a user goes through to complete a task, thus<br />

streamlining <strong>the</strong> business process.<br />

• Microsoft Business Solutions developed a plethora of role-based interfaces for SMBs<br />

to help provide role-specific content and data for individual roles, such as production<br />

planners and sales representatives. At this year’s Convergence conference, Microsoft<br />

Business Solutions unveiled <strong>the</strong> new Microsoft Dynamics Client for Office and<br />

SharePoint, which provides a single portal framework to perform all <strong>the</strong> integrations<br />

to Office applications.<br />

18 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


• Lawson, with help from design partner frog design, has created a new Smart Client<br />

UI available with version 7.1 of its M3 product. The UI uses Microsoft .NET 3.0<br />

featuring <strong>the</strong> Windows Presentation Framework, which is a universal framework for<br />

creating UIs across desktops, web pages, operating systems, and mobile devices. The<br />

Smart Client desktop provides a configurable canvas where users can access transaction<br />

panels or functionality from <strong>the</strong> M3 product through portlets (or, as Lawson<br />

calls <strong>the</strong>m, iBrixes) that is driven through IBM’s WebSphere middleware. In addition,<br />

users may place widgets on <strong>the</strong> desktop to provide access to searches, user help,<br />

RSS feeds, and world clocks.<br />

• SaaS provider NetSuite uses a role-driven dashboard as its standard UI, and Plexus<br />

built arguably one of <strong>the</strong> cleanest UIs for shop-floor data entry. This makes <strong>the</strong>m<br />

a formidable competitor against not just <strong>ERP</strong> providers vying for ownership of <strong>the</strong><br />

shop floor, but also incumbent MES and quality management providers as well.<br />

SaaS and alternative pricing models to hit mainstream<br />

Several midmarket <strong>ERP</strong> vendors offer hosted and managed services options for <strong>the</strong>ir<br />

products. The emergence of pure SaaS and <strong>the</strong> unique pricing scenarios that accompany<br />

it will appeal to midmarket companies such as professional services organizations and<br />

o<strong>the</strong>r project-oriented businesses, in addition to manufacturers and distributors. While<br />

firms might grapple with <strong>the</strong> data <strong>the</strong>y are comfortable letting reside beyond <strong>the</strong>ir<br />

firewalls, especially financial data where any manipulation or adjustment can carry painful<br />

ramifications, <strong>the</strong> fact that entry has no real barrier and vendors are creatively pricing <strong>the</strong>ir<br />

products makes SaaS intriguing for <strong>the</strong> midmarket as well as divisions of large enterprises.<br />

As <strong>ERP</strong> vendors begin to alter <strong>the</strong>ir business models to offer SaaS-based products, some of<br />

<strong>the</strong> larger companies may find it useful for fast-track deployments, smaller or very autonomous<br />

business units, or even as a helpful option when <strong>the</strong> business has a strong sense of<br />

urgency, but a limited appetite for capital expenditure. SAP’s not-yet-released SaaS offering,<br />

code-named A1S, has already sparked a flurry of inquiry about SaaS. It helped elevate<br />

vendors like Plexus and NetSuite, which have been offering <strong>the</strong>ir products through a SaaS<br />

model for some time, as well as new SaaS market entrant GSInnovate from Glovia Services.<br />

As vendors increasingly start to embrace pure SaaS approaches where <strong>the</strong> vendor hosts<br />

and manages <strong>the</strong> software itself, potential threats to <strong>the</strong> indirect channel loom. For<br />

partners with low license transactions but high volumes of services engagements, <strong>the</strong> low<br />

upfront license costs and fixed implementation time frames SaaS carries could threaten<br />

business models. Additionally, a vendor that offers hosting and application management<br />

services could also pressure channel partners, especially ones that have built <strong>the</strong>ir models<br />

on an application service provider (ASP) or hosting service. But for low-cost markets like<br />

Eastern Europe and Asia where <strong>the</strong> vendor might not have feet on <strong>the</strong> ground, it’s still a<br />

strong approach.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

19


The functional evolution from MRP purveyor to <strong>ERP</strong> provider<br />

Today’s <strong>ERP</strong> offerings are far more functionally rich and arguably easier to use than<br />

<strong>the</strong>ir MRP and MRP II predecessors, both of which are rigid and designed with<br />

single manufacturing or distribution sites in mind. They support just discrete or<br />

processes at a high level, with base financials, order management, and manufacturing<br />

functionality. There was little out-of-<strong>the</strong>-box support for <strong>the</strong> plethora of manufacturing<br />

styles—engineer to order (ETO), repetitive, assemble to order, configure to order, flow<br />

environments, make to stock (MTS), or contract manufacturing—let alone industryspecific<br />

or localized functionality.<br />

Enter <strong>ERP</strong>, a business management system that integrates multiple sites and facets of<br />

<strong>the</strong> business, including planning, manufacturing, and sales and marketing, through<br />

a common corporate database. It automates a huge range of business processes, such<br />

as order management, inventory policy and material flows, logistics, budgeting, and<br />

enterprise-wide revenue management.<br />

The growing needs of midmarket businesses demand that <strong>ERP</strong> expands from <strong>the</strong> back<br />

office to <strong>the</strong> front lines and provides integrated functionality to support <strong>the</strong> following:<br />

•<br />

•<br />

•<br />

•<br />

•<br />

•<br />

Financials and revenue management<br />

Business intelligence (BI) and performance management<br />

Lean manufacturing<br />

Supply chain management (SCM)<br />

Customer management<br />

Manufacturing operations<br />

Financials and revenue management<br />

Core financials and revenue management functions, such as general ledger, accounts<br />

receivable, and accounts payable, are capabilities that <strong>the</strong> majority of offerings we<br />

profiled feature as core. The majority of vendors provides localizations and support for<br />

major currencies and geographies native to <strong>the</strong>ir products. However, for geographies<br />

with complex tax and accounting rules, such as Latin America, partners still have<br />

a role for <strong>the</strong> localizations and currency support. Since core financials are nearly<br />

commoditized, how vendors provide financial capabilities for supporting business<br />

processes is <strong>the</strong> next evolution.<br />

20 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Consider <strong>the</strong> following:<br />

•<br />

For companies looking to incorporate EAM into <strong>the</strong>ir overall fixed-asset strategy,<br />

vendors such as IFS, Infor, Lawson, Oracle, and SAP have created integrations with<br />

<strong>the</strong>ir <strong>ERP</strong> modules.<br />

• Support for industry-specific accounting practices and processes is readily available.<br />

Epicor, Infor, QAD, and Plexus all have integrated automotive release accounting.<br />

Activant has integrated several transactions specific to <strong>the</strong> wholesale distribution<br />

industry. IFS, Deltek, and Oracle provide capabilities for earned-value management<br />

(EVM) calculations in A&D environments.<br />

• <strong>Midmarket</strong> <strong>ERP</strong> providers that have embraced lean manufacturing have developed<br />

tighter integration with financial functions to support accelerated backflushing<br />

capabilities.<br />

BI and performance management<br />

SOX and an abundance of industry-specific compliance initiatives have driven <strong>the</strong> need<br />

for better BI and performance management capabilities. Until now, <strong>the</strong> approach from<br />

vendors serving <strong>the</strong> midmarket has been to rely on a third-party BI specialist to provide<br />

ei<strong>the</strong>r <strong>the</strong> full analytics capability or presentation technology that is <strong>the</strong>n embedded and<br />

resold with <strong>the</strong> <strong>ERP</strong> product. This approach has not changed. The majority of vendors we<br />

examined embed or resell analytical technologies from standalone BI vendors like Cognos<br />

into <strong>the</strong>ir products. They are now designing industry-specific and role-based templates on<br />

top of <strong>the</strong> partner technology to better suit <strong>the</strong> needs of clients and prospects.<br />

Here are some examples:<br />

• In addition to using Cognos, Deltek has embedded technology from Actuate to<br />

create specific reports for government contractors and o<strong>the</strong>r project-driven firms that<br />

have different BI requirements than manufacturing-centric organizations.<br />

• Ra<strong>the</strong>r than partner, Lawson has chosen to develop its own capabilities. The<br />

company has developed its own BI tool, Lawson Business Intelligence (LBI), which it<br />

is actively reselling into <strong>the</strong> M3 customer base and its traditional S3 customer base,<br />

as well as being sold with new Lawson licenses.<br />

• Microsoft Business Solutions’ Dynamics family of products—AX, NAV, and<br />

GP—provide diverse options for performance management. For Microsoft Dynamics<br />

AX, <strong>the</strong>re is native integration to Microsoft’s Business Analysis Services, SQL<br />

Reporting Services, and PerformancePoint Server. The next version of Microsoft<br />

Dynamics AX will include role-tailored home pages or role centers and also a native<br />

report-writing tool.<br />

• Infor is one of <strong>the</strong> largest Cognos resellers, but it also has a series of performance<br />

management technologies acquired in both <strong>the</strong> Extensity and SSA acquisitions.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

21


Lean manufacturing<br />

The concepts of lean manufacturing are not new to midmarket organizations, but<br />

<strong>the</strong> demands and complexities of today’s DDSNs are. These demands have moved<br />

lean from just its manufacturing-centric focus to more outside-in-facing constructs,<br />

such as demand shaping for promotions and pricing strategies and demand sensing<br />

for forecasting. Regardless of <strong>the</strong> manufacturing methods used by companies, <strong>the</strong>re<br />

is <strong>the</strong> need to expand lean thinking to support better short-term demand visibility<br />

and planning, tighter sales and operations planning (S&OP) processes, better supplier<br />

collaboration (scheduling, management, and communication), and overall performance<br />

management measurements for regulatory compliance and financial management (see<br />

“East Meets West—Lean Manufacturing and <strong>ERP</strong> Are a Better Fit Than You Think”).<br />

Several <strong>ERP</strong> vendors have evolved <strong>the</strong>ir lean thinking to support <strong>the</strong> ongoing focus of<br />

lean:<br />

• Cincom links lean execution to <strong>the</strong> ordering and configuration process beyond pure<br />

lean manufacturing operations support. This is accomplished through a guided<br />

selling front end with its Quote-to-Order product, which contributes efficient<br />

demand shaping and sequencing into <strong>the</strong> actual production environment. Within<br />

production, Cincom’s Demand Suite uses visibility into constraints to produce levelloaded<br />

production plans and sequences to manage material flows and production<br />

execution. Additionally, <strong>the</strong> Demand Suite is event enabled through Cincom’s .NETbased<br />

Environ middleware. This pegs line and order updates to <strong>the</strong> central planning<br />

mechanism to synchronize changes in production to any order changes, eliminating<br />

intermediaries in connecting individual manufacturing orders to sales orders.<br />

• IQMS relies on a central scheduling mechanism to drive <strong>the</strong> majority of activities<br />

its application EnterpriseIQ supports for small-to-midsize discrete manufacturers.<br />

Specifically, <strong>the</strong> scheduling mechanism is centered on a calculator that, upon order<br />

receipt, takes into effect current constraints for labor, raw materials, and work centers<br />

to identify if a manufacturer can deliver as promised to <strong>the</strong> customer demand. It also<br />

te<strong>the</strong>rs <strong>the</strong> output directly to <strong>the</strong> production schedule.<br />

• Oracle’s lean support is in <strong>the</strong> E-Business Suite and JD Edwards EnterpriseOne<br />

products, which are capable of supporting multiple manufacturing styles on a single<br />

instance.<br />

• Microsoft Business Solutions and SAP have acquired <strong>the</strong>ir lean support: eBECS and<br />

Factory Logic, respectively.<br />

For a more comprehensive overview of how <strong>ERP</strong> providers support lean manufacturing,<br />

please see “Lean Planning and Execution Software: Extending Lean Thinking Across<br />

<strong>the</strong> Enterprise.”<br />

22 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Supply chain management<br />

The supply chain arena is where <strong>the</strong> largest deltas of integrated versus add-on<br />

capabilities exist. The demands of <strong>the</strong> global value chain necessitate that companies<br />

migrate from intracompany processes, such as core MRP, warehouse management,<br />

and distribution support, to focus on intercompany processes, such as sourcing and<br />

procurement, global trade, and transportation management. The following are some<br />

success stories:<br />

• Infor has arguably assembled through acquisition a massive arsenal of supply chain<br />

functionality with which to complement its existing <strong>ERP</strong> products. For example,<br />

<strong>ERP</strong> products such as Infor <strong>ERP</strong> LN, Infor <strong>ERP</strong> LX, and Infor <strong>ERP</strong> SyteLine<br />

provide basic warehouse management functionality integrated with <strong>the</strong> base product.<br />

If customers seek more automated functionality to support complex warehousing<br />

scenarios as well as yard management or automated pick-pack-ship pieces, Infor offers<br />

a series of warehouse management system and transportation management system<br />

add-ons, such as <strong>the</strong> EXE and Provia products from <strong>the</strong> SSA acquisition.<br />

• Oracle’s JD Edwards EnterpriseOne product provides sophisticated supply chain<br />

planning capabilities, with roots dating back to <strong>the</strong> Numetrix product, and<br />

PeopleSoft 9 has role-based RFI and RFQ functionality. Additionally, as transport<br />

costs continue to fluctuate and increased emphasis on inbound and outbound<br />

distribution and replenishment continue, we expect <strong>the</strong> interest in Oracle’s<br />

Applications Unlimited will pay <strong>the</strong> dividends. As interest mounts in <strong>the</strong> midmarket,<br />

Oracle’s acquired supply chain assets will grow, like Oracle Transportation<br />

Management (formerly G-Log) and Demantra. In fact, <strong>the</strong> majority of JD Edwards<br />

customers were already using Demantra’s assets prior to Oracle’s acquisition.<br />

• QAD’s acquisition of Precision Software provides companies with GTM<br />

functionality (multimodal shipping, trade compliance, and international trade<br />

management) to complement its demand management and distributed order<br />

management modules for inventory optimization and sourcing.<br />

• SAP has an extensive library of preconfigured best practices for SCM. It has also<br />

enhanced <strong>the</strong> sourcing and procurement capabilities in <strong>the</strong> All-in-One product to<br />

support scenarios such as commodity parts and mass RFQs. The company also<br />

provides capabilities to sort by best price and delivery time. However, more complex<br />

processes and functions are needed, such as automatic bidding, optioning, and<br />

e-RFQ integration with <strong>the</strong> SAP supplier relationship management module.<br />

• SoftBrands’ FourthShift Edition for SAP Business One te<strong>the</strong>rs sourcing and<br />

procurement capabilities directly to its MRP engine for blanket orders.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

23


Within <strong>the</strong> SCM arena, wholesale distribution has become an intriguing growth area<br />

for several midmarket <strong>ERP</strong> providers. Distributors are in a unique spot to position<br />

<strong>the</strong>mselves as providers that small and midsize retailers can work with to take<br />

advantage of a highly competitive supply chain. Specifically, distributors can reduce<br />

costs through volume purchasing, aggregate supply bases for easier replenishment,<br />

increase supply visibility, shorten cycle times and increase turns, execute vendormanaged<br />

inventory (VMI) or distributor-managed inventory programs, synchronize<br />

replenishment with demand pull signals, and help manage effective new product<br />

introductions and promotion execution. However, to truly reinforce a position of value,<br />

distributors need to upgrade <strong>the</strong>ir systems. Gaining better visibility through an upgrade<br />

will allow <strong>the</strong>m to better manage inventory replenishments across <strong>the</strong>ir whole networks<br />

while communicating effectively with <strong>the</strong> manufacturer and retailers.<br />

Consider <strong>the</strong> following:<br />

• CMS Software merged with XKO Software Ltd in order to link XKO’s wholesale<br />

distribution capabilities with CMS’s manufacturing capabilities in both <strong>the</strong> CMSi5<br />

and CMSm5 products.<br />

• Infor’s acquisitions of daly.commerce, NxTrend, and Aperum gave <strong>the</strong> firm <strong>the</strong><br />

opportunity to create an entire unit focused solely on <strong>the</strong> distribution industry. It<br />

also created significant cross-selling capabilities for Infor customers in <strong>the</strong> consumer<br />

products (CP) industries that have private-labeling operations, as well as several<br />

automotive tier suppliers that also have large aftermarket channels.<br />

• Activant’s entire product portfolio focuses exclusively on wholesale distributors and<br />

retailers in <strong>the</strong> lumber, HVAC, automotive aftermarket parts supplier, and industrial<br />

equipment industries. Activant’s laser focus on specific industry sub-segments is one<br />

of its major differentiators and a major driver of its customer loyalty. For example,<br />

its Falcon product is targeted specifically at wholesale and professional lumberyards,<br />

and its Vision product is focused on <strong>the</strong> warehouse-to-store models for retailers in <strong>the</strong><br />

automotive spare parts aftermarket supply chain.<br />

• Microsoft Business Solutions’ Dynamics NAV product provides distributors with<br />

integrated financials, inventory management, and customer service functions. It also<br />

has a broad channel network behind <strong>the</strong> product to provide localizations and specific<br />

industry functionality.<br />

24 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Customer management<br />

For several <strong>ERP</strong> vendors, customer management represents a significant growth<br />

opportunity. Historically, midmarket firms have not made sizeable investments in<br />

<strong>the</strong>se capabilities. However, as business models change and companies move from not<br />

just making and selling products but also servicing <strong>the</strong>m, <strong>the</strong>re is a need to connect<br />

front-end, order, and customer information capture, with back-end processes for order<br />

fulfillment and execution. For several vendors, providing customers a unified view<br />

of business-critical information across all organizational functions, including sales<br />

and marketing, operations, and production, while maintaining stable management of<br />

revenue and costs upon order intake is important.<br />

Here are some examples:<br />

• Oracle is providing integrations for JD Edwards customers to Siebel on demand,<br />

in addition to having already extended <strong>the</strong> core CRM functionality in <strong>the</strong><br />

EnterpriseOne product to support warranty management and customer service case<br />

support.<br />

• Microsoft Business Solutions’ Dynamics CRM package is offered alongside <strong>the</strong><br />

Dynamics <strong>ERP</strong> packages. It’s integrated with Microsoft Office, which, for many<br />

small companies, provides a familiar UI. The Dynamics AX <strong>ERP</strong> product also has a<br />

specific field-services offering that uses Microsoft’s mobile technologies.<br />

• SAP is packaging industry-specific CRM functionality as part of <strong>the</strong> overall best<br />

practices offerings used to bring its All-in-One product to market. For example,<br />

midmarket firms in <strong>the</strong> industrial machinery and component industries will receive<br />

<strong>the</strong> Variant Configurator as part of <strong>the</strong>ir best practices configuration, while CP<br />

companies will see more trade promotions and warranty management capabilities in<br />

<strong>the</strong>ir best practices bundles.<br />

• In addition to SAP, vendors such as Cincom and IFS offer product configurators<br />

for highly engineered and complex discrete environments. In a few industrial<br />

environments, Cincom’s Sales Configurator, which has a rules-based guided selling<br />

engine, is used to augment SAP’s Variant Configurator to handle complex sales,<br />

product configurations, and high order volumes.<br />

• For Infor <strong>ERP</strong> customers, <strong>the</strong> company offers add-on CRM capabilities, including<br />

inbound and outbound marketing. It also offers sales and service through <strong>the</strong><br />

Ironside and Epiphany products acquired from SSA, as well as <strong>the</strong> <strong>ERP</strong> packagespecific<br />

CRM functionality.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

25


For SMBs, te<strong>the</strong>ring CRM to e-commerce capabilities is important to help firms reach<br />

new customers through <strong>the</strong> Internet. Consider <strong>the</strong> following examples:<br />

• Sage is integrating its MAS 90/200 and 500 <strong>ERP</strong> product lines with <strong>the</strong> entire<br />

portfolio of Sage CRM products (ACT!, SageCRM.com, and Sage SalesLogix) to<br />

assist SMBs in driving customer service, SFA, and order-processing efficiency.<br />

• SaaS provider NetSuite has combined its strengths in customer management with<br />

e-commerce and order management to provide firms with a full view of <strong>the</strong>ir<br />

customers.<br />

• SAP acquired Praxis Software Solutions to extend Business One’s CRM capabilities<br />

for providing integrated web storefront, e-commerce, and online customer service<br />

and sales functionality.<br />

• SYSPRO’s latest CRM package provides dashboards for companies to track <strong>the</strong><br />

performance of <strong>the</strong>ir marketing and customer support functions.<br />

Manufacturing operations<br />

Manufacturing is not a new domain for midmarket <strong>ERP</strong> providers. Several firms grew<br />

up in manufacturing environments, with deep roots as MRP and plant-centric <strong>ERP</strong><br />

providers. A majority of manufacturing organizations are starting to consider overdue<br />

investments in manufacturing operations to cope with <strong>the</strong> new demands on <strong>the</strong>ir<br />

capacity from diversified product portfolios, regulatory and quality requirements, and<br />

shorter lead times. To protect <strong>the</strong>mselves from best-of-breed ISV competition, vendors<br />

must focus on operational excellence and look beyond basic MES functions, like<br />

collecting production data against a bill of materials (BOM), to include and integrate<br />

functions such as quality management, operations intelligence, and EAM.<br />

Consider <strong>the</strong> following examples:<br />

• Plexus Systems provides integrated MES and quality management functionality that<br />

several automotive tier suppliers have used to support traceability reporting, closedloop<br />

quality management functions, as well as part and process traceability efforts.<br />

• QAD developed a just-in-time-sequencing module for its automotive customers in<br />

addition to acquiring long-time partner FBO Systems for EAM functionality.<br />

• Several vendors are incorporating deeper quality management functionality into <strong>the</strong>ir<br />

offerings. IQMS offers integrated quality management capabilities for medical device<br />

manufacturers. Cincom is using its long-time partnership with quality management<br />

vendor Pilgrim Software and reselling its SmartSolve quality suite into highly<br />

complex discrete manufacturing scenarios. Epicor and QAD have partnered with<br />

IQS, ano<strong>the</strong>r pure-play quality management vendor, to bring quality management<br />

functionality to its medical device, automotive, and A&D clients.<br />

26 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


•<br />

Infor has good momentum in cross-selling <strong>the</strong> Datastream EAM product. Its Open<br />

SOA strategy will allow for more discrete industry customers to take advantage of<br />

its Visual Quality Management product and process industry customers to use <strong>the</strong><br />

Fygir production scheduling product. It will also allow for using newly developed<br />

capabilities in <strong>the</strong> future.<br />

• IFS provides functionality for supporting MRO and aftermarket depots in <strong>the</strong> A&D<br />

industry and o<strong>the</strong>r complex discrete manufacturing environments.<br />

• CDC Software’s recent CDC Factory release offers integrated MES, quality, and<br />

operations intelligence capabilities for process manufacturers.<br />

• Oracle’s JD Edwards EnterpriseOne version 8.12 incorporates specific traceability<br />

constructs for food and beverage manufacturers and Plant Manager’s Dashboard for<br />

operations intelligence.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

27


Conclusion and recommendations<br />

The <strong>ERP</strong> market is growing with a renewed focus on <strong>the</strong> midmarket that will impact<br />

<strong>the</strong> vendor landscape going forward. Oracle and SAP will continue to build market<br />

share through multichannel approaches that involve agile partner ecosystems predicated<br />

on driving volume license sales. Microsoft is gaining momentum with its indirect<br />

channel, and as Microsoft Business Solutions is absorbed into <strong>the</strong> Office applications<br />

group, users will continue to be comfortable purchasing <strong>the</strong> company’s products.<br />

Vendors with architectures based on Microsoft technologies that have been winning<br />

business under <strong>the</strong> auspices of being “more Microsoft than Microsoft” should take note<br />

that, in <strong>the</strong> past two years, Microsoft Business Solutions has been silently assembling all<br />

<strong>the</strong> components of <strong>the</strong> Microsoft portfolio. It will be able to offer completely integrated<br />

IT offerings and applications to <strong>the</strong> midmarket, and could potentially leap-frog its<br />

competition.<br />

Incumbent vendors that call <strong>the</strong> midmarket home must retool and innovate <strong>the</strong>ir<br />

business models to defend <strong>the</strong>ir turf and drive volume models to respond to <strong>the</strong> new<br />

competitive pressures. Companies with high revenue from maintenance from <strong>the</strong>ir<br />

installed bases must drive new license sales ei<strong>the</strong>r through upgrading customers on<br />

legacy configurations, cross-selling acquired functionality back into <strong>the</strong> installed base,<br />

or new logo acquisition. Not doing so will turn <strong>the</strong>m into ripe acquisition targets.<br />

While consolidation is inevitable, acquirers still have <strong>the</strong>ir challenges:<br />

• The acquiring company must communicate that product ownership has changed<br />

hands to <strong>the</strong> acquired customer base.<br />

• Communicating product roadmaps and answering all questions from customers<br />

regarding <strong>the</strong> destiny of acquired products specifically calls for unveiling and<br />

discussing any and all plans to develop, upgrade, and add new functionality that will<br />

continue to suit customer demand.<br />

• Multiple acquisitions require integrating acquired products toge<strong>the</strong>r or rationalizing<br />

stockpiles of applications.<br />

28 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Recommendations for users<br />

It’s a buyer’s market, so take advantage! Vendors want your business and, for <strong>the</strong> most<br />

part, have evolved <strong>the</strong>ir offerings to provide a broad range of functionality and flexible<br />

pricing options to support your company. Users should do <strong>the</strong> following:<br />

• Examine <strong>the</strong> stream of maintenance revenue of your current or prospective<br />

providers and be sure to understand <strong>the</strong> <strong>the</strong>ir overall growth. Firms running legacy<br />

applications or products with frequently changing ownership should also understand<br />

<strong>the</strong> detailed product roadmaps and support plans from <strong>the</strong> current owners.<br />

• Understand <strong>the</strong> health and dynamics of your vendor’s channel and partner strategy.<br />

This includes understanding <strong>the</strong> qualification processes for partner-driven application<br />

configurations as well as support plans if partners are acquired or go out of business,<br />

especially in distributed locales.<br />

• Beware of MRP providers in <strong>ERP</strong> clothing. Seek vendors that offer integrated<br />

functionality supporting industry best practices and localized configurations that<br />

best scale with your business for <strong>the</strong> long term.<br />

Recommendations for providers<br />

Regardless of being a consolidating force or not, midmarket <strong>ERP</strong> providers must offer<br />

<strong>the</strong> necessary integrated functionality suitable to <strong>the</strong> geography- and industry-specific<br />

needs of <strong>the</strong>ir customers in order to thrive. This involves <strong>the</strong> following:<br />

• For vendors with single product lines that appeal to multiple industries, focus on <strong>the</strong><br />

industries and market sub-segments with your highest concentration of customers.<br />

To remain relevant, evolve your products with as much integrated out-of-<strong>the</strong>-box<br />

functionality for <strong>the</strong>ir specific needs.<br />

• For companies managing multiple products and sizeable installed bases, be proactive<br />

in your communications of product roadmaps, enhancements, and support plans.<br />

Involve customers in feedback sessions to share best practices, desired functionality<br />

upgrades, and understand usage patterns that can help drive upgrades and migrations<br />

to newer product versions with <strong>the</strong> specific features customers want.<br />

• A volume license business will be <strong>the</strong> ultimate success factor and drive <strong>the</strong> highest<br />

volumes of new customers. However, this is not a change that happens overnight.<br />

For several VARs and distributors, this shift represents a dramatic adjustment<br />

to some business models, especially for partners that sell low volumes of licenses<br />

followed by multiple, higher margin service engagements. Structure your indirect<br />

efforts to support a volume business model by creating incentive programs for<br />

VARs and resellers that create templates atop your core product and use fixed-bid<br />

implementations.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

29


Appendices<br />

Appendix A: Vendor product matrix<br />

AMR Research examined <strong>the</strong> following vendor product offerings. Vendors declining<br />

participation were CDC Software and Consona.<br />

30 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Table 5: Product offerings examined for this research<br />

Vendor and Products Current Version<br />

Activant Solutions<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

Target Market<br />

(No. of Employees)<br />

Eagle v16 √ √<br />

0–50 50–249 250–1,000<br />

Falcon v5.07 √ √ √<br />

Vision v7 √<br />

Prophet 21 v11 √ √ √<br />

Cincom<br />

CONTROL Control 2007 √ √<br />

CMS Software<br />

CMS i5 5.2 √ √<br />

CMS m5 2.1 √ √<br />

Deltek<br />

Costpoint CostPoint 6 √ √<br />

Vision Vision 5 √ √<br />

Epicor<br />

Manufacturing (formerly Vantage and Vista) v8.03 √ √ √<br />

iScala v2.3 √ √ √<br />

Enterprise v7.3.6 √ √ √<br />

Exact Software<br />

Macola ES Version 372 √ √<br />

Glovia<br />

glovia.com v9.1.1 √ √<br />

Glovia Services<br />

GSInnovate √<br />

IFS<br />

IFS Applications v7.5 √ √<br />

Infor<br />

Infor <strong>ERP</strong> Adage v5.2 √ √<br />

Infor <strong>ERP</strong> LN v6.1 √ √<br />

Infor <strong>ERP</strong> LX v8.3.1 √ √<br />

Infor <strong>ERP</strong> SyteLine 7.5 √ √<br />

Infor <strong>ERP</strong> Visual 6.5.2 √<br />

Infor <strong>ERP</strong> XA 7.7 √ √<br />

Source: AMR Research, 2007<br />

© 2007 AMR Research, Inc.<br />

31


Table 5: Product offerings examined for this research (continued)<br />

Vendor and Products Current Version<br />

IQMS<br />

Target Market<br />

(No. of Employees)<br />

EnterpriseIQ 7.0.13 √ √<br />

Lawson<br />

0–50 50–249 250–1,000<br />

M3 v7.1 √ √<br />

S3 v9 √ √<br />

Microsoft Business Solutions<br />

Dynamics AX v4 √ √ √<br />

Dynamics NAV v5.2 √ √ √<br />

Dynamics GP v10 √ √<br />

NetSuite<br />

NetSuite NetSuite 2007.0 √ √<br />

Oracle<br />

JD Edwards EnterpriseOne 8.12 √ √<br />

E-Business Suite 12 √ √<br />

PeopleSoft 9 √ √<br />

Plexus Systems<br />

Plexus Online √ √ √<br />

QAD<br />

QAD Enterprise Applications 2007 eB3 √ √<br />

Sage Software<br />

MAS 90 <strong>ERP</strong> 4.2 √<br />

MAS 200 <strong>ERP</strong> 4.2 √<br />

MAS 500 <strong>ERP</strong> 7.05 √<br />

SAP<br />

SAP Business One SAP Business One<br />

2005<br />

SAP <strong>ERP</strong> 6.0 All-in-One mySAP <strong>ERP</strong> 2006<br />

All-in-One<br />

SoftBrands<br />

√ √<br />

FourthShift Edition for SAP Business One 8.5 √ √<br />

SYSPRO<br />

SYSPRO <strong>ERP</strong> 6 √<br />

√ √<br />

Source: AMR Research, 2007<br />

32 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Appendix B: Vendor profiles<br />

Activant Solutions<br />

Activant brings four <strong>ERP</strong> products to <strong>the</strong> market: Eagle, Falcon, Prophet 21, and<br />

Vision. The common thread throughout its product line is that each has an eye toward<br />

wholesale distribution environments with specific sub-industry focuses. Falcon is<br />

targeted at wholesale and professional lumber distributors, while Eagle is targeted<br />

at hardware and home centers. Vision is designed to support <strong>the</strong> warehouse-to-store<br />

models that <strong>the</strong> automotive parts aftermarket demands. Prophet 21 has arguably <strong>the</strong><br />

broadest reach of <strong>the</strong> four products, aimed at <strong>the</strong> broader wholesale distribution market<br />

for industrial goods, including plumbing and HVAC equipment as well as lumber and<br />

auto parts.<br />

Since 1973, Activant has provided tailored functionality specifically for wholesale<br />

distribution environments. The company’s products offer fully-integrated accounting<br />

packages that are te<strong>the</strong>red to both inventory and order management functions to help<br />

firms track <strong>the</strong>ir inventories and associated replenishments with efficiency. The majority<br />

of Activant’s customers tend to do minimal customizations to <strong>the</strong> product, making<br />

upgrades a simplistic task that doesn’t cause disruption to <strong>the</strong> business.<br />

Cincom<br />

For over 35 years, Cincom has provided <strong>ERP</strong> software and solutions for complex,<br />

highly engineered discrete environments, such as A&D, trucks and heavy equipment,<br />

and industrial products. In addition to <strong>the</strong> core CONTROL <strong>ERP</strong> product, Cincom<br />

offers Environ, a Microsoft .NET-based technology platform to help clients orchestrate<br />

and manage business processes as <strong>the</strong>y build out <strong>the</strong>ir SOAs. It also offers <strong>the</strong> Quoteto-Order<br />

application that includes sales configuration, product configuration, and<br />

quotation and proposal management.<br />

Cincom also provides quality and compliance management functionality from<br />

partner Pilgrim Software. It also provides specific capabilities focused on complex<br />

lean environments through its Demand Suite application, which uses visibility into<br />

constraints to produce level-loaded production plans and sequences to manage material<br />

flow and production execution.<br />

Headquartered in Cincinnati, <strong>the</strong> company has offices worldwide that serve customers<br />

in North America, Europe, Australia, and Asia.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

Appendices<br />

© 2007 AMR Research, Inc.<br />

33


CMS Software<br />

CMS Software (formerly CMS Manufacturing Systems) provides two products to<br />

market: CMSi5, an IBM iSeries-based product, and CMSm5, a .NET-based product.<br />

The company’s sweet spots are <strong>the</strong> lower midmarket and SMB segment, as both<br />

products support manufacturers seeking a single system without a big internal support<br />

capability.<br />

The firm recently merged with XKO Systems Ltd, a UK-based software provider for<br />

wholesale distribution environments. The merger will bode well for CMS Software<br />

customers in <strong>the</strong> automotive and CP industries looking to manage both production and<br />

distribution in a single system.<br />

Headquartered in Toronto, <strong>the</strong> company has customers in North America, Europe, and<br />

Asia. It has offices in several North American cities, as well as Brussels and Shanghai.<br />

Deltek<br />

Deltek has a unique position in <strong>the</strong> market. The company focuses on providing<br />

software for project-focused businesses that generate revenue from defined, discrete,<br />

customer-specific engagements ra<strong>the</strong>r than from high-volume, mass-production, or<br />

distribution businesses.<br />

Deltek’s products, Costpoint and Vision, provide project and financial accounting<br />

functionality for professional services, A&D, government contractors, professional<br />

services firms, and project manufacturers. In addition, Deltek also offers CRM timeand-attendance<br />

collection, expense reporting, business performance management,<br />

materials management, and human capital management capabilities. The company<br />

continues to add new capabilities to support <strong>the</strong> needs of its clients. In 2006, Deltek<br />

acquired Welcom for project portfolio management (PPM) and EVM, as well as C/S<br />

Solutions for EVM-specific BI capabilities.<br />

Deltek has over 12,000 customers and continues to scale profitably year over year. The<br />

firm brought in senior management with enterprise software experience and filed an<br />

S-1 in May 2007. Almost all of Deltek’s revenue comes from North America, primarily<br />

from its direct sales force. Headquartered in Herndon, Virginia, <strong>the</strong> company has<br />

customers worldwide and offices in Portland, Oregon; St. Petersburg, Florida; Fort<br />

Collins, Colorado; Houston, Texas; Cambridge, Massachusetts; Toronto; London; and<br />

Makati City, Philippines.<br />

34 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Epicor<br />

Epicor is a midmarket veteran with multiple targeted applications. To start, <strong>the</strong>re’s<br />

Epicor Vantage and Vista, which focus on manufacturers and distributors. Epicor<br />

iScala is ideal for multinationals requiring a comprehensive global footprint within<br />

manufacturing, distribution, and hospitality environments. Epicor Enterprise<br />

focuses on <strong>the</strong> business services sector, including financial and professional services,<br />

with Epicor CRS focusing on retail. All products make use of <strong>the</strong> Microsoft .NET<br />

framework, but Epicor also supports Progress, which provides additional flexibility for<br />

customers, allowing <strong>the</strong>m to make SOA a reality. Also, <strong>the</strong> products feature multisite,<br />

multilanguage, and multicurrency support.<br />

Within manufacturing, Epicor targets discrete manufacturers in industries such as<br />

A&D, industrial machinery, and metal fabrication. On <strong>the</strong> distribution side, Epicor<br />

targets CP, industrial equipment, pharmaceutical, and automotive parts supplier<br />

environments.<br />

Epicor has sold applications since 1984 to a loyal customer base of over 20,000<br />

companies. It’s headquartered in Irvine, California.<br />

Exact Software<br />

Exact’s Macola ES, a Microsoft-based product, targets small discrete manufacturers up<br />

to divisions of multinational companies. Macola ES and <strong>the</strong> company’s BPM offering,<br />

e-Synergy, work off <strong>the</strong> same database, offering discrete manufacturers <strong>the</strong> opportunity<br />

to orchestrate and manage workflows for <strong>the</strong>ir finance and manufacturing operations.<br />

Exact Software, founded in 1984, has 180,000 clients in 120 countries. The majority<br />

of its customers are discrete manufacturers. About half of <strong>the</strong> software sales are direct,<br />

with <strong>the</strong> balance coming from a 2,000-member VAR channel that helps <strong>the</strong> firm reach<br />

over 110 countries worldwide. Headquartered in Delft, <strong>the</strong> Ne<strong>the</strong>rlands, <strong>the</strong> U.S.<br />

headquarters is in Andover, Massachusetts.<br />

Glovia<br />

With just over 1,400 customers, Glovia, a division of Fujitsu, has sold applications<br />

to <strong>the</strong> discrete manufacturing industry for over 30 years. The glovia.com product<br />

targets such industries as A&D, electronics, capital equipment, and automotive.<br />

Focused on manufacturing, glovia.com is a multimode product designed to scale from<br />

supporting a single plant, to multisite needs for high-volume repetitive manufacturing,<br />

to complex ETO with project tracking, production scheduling and management, and<br />

cost capability for long, complex, discrete manufacturing environments. Sales are split<br />

between <strong>the</strong> Fujitsu VAR sales team in Asia and <strong>the</strong> Glovia International direct sales<br />

teams in North America and Europe.<br />

Headquartered in El Segundo, California, <strong>the</strong> company has customers worldwide.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

35


Glovia Services<br />

Launched in 2006, Glovia created a separate business unit, Glovia Services, to<br />

capitalize on <strong>the</strong> emerging opportunity in SaaS. It transforms <strong>the</strong> current glovia.com<br />

product to a SaaS system, branded as GSInnovate, and targets manufacturers with<br />

less than $50M in annual revenue. GSInnovate offers a low cost of entry for enterprise<br />

technology to manage processes such as core MRP, order management, sourcing and<br />

procurement functions, and core financials. The ultimate success metric for Glovia<br />

Services is ultimately going to be adoption by SMBs. However, for manufacturers<br />

tasked with updating <strong>the</strong>ir existing systems to handle comprehensive traceability and<br />

genealogy requirements, <strong>the</strong> shorter implementation time frames that a SaaS delivery<br />

model promises might be intriguing.<br />

IFS<br />

IFS offered a component-based architecture for its IFS Applications product before<br />

SOA became an everyday term. IFS’s differentiators are full product lifecycle<br />

management (PLM), including MRO and field service, lean manufacturing, and<br />

project management. The firm has created a unique niche in <strong>the</strong> A&D environment,<br />

offering integrated EAM and MRO capabilities for repair depots and military projectbased<br />

environments.<br />

IFS has approximately 2,400 global customers in Latin America, Asia-Pacific, EMEA,<br />

and North America. The company is headquartered in Linköping, Sweden, with North<br />

American headquarters in Chicago.<br />

Infor<br />

Infor has over 25 <strong>ERP</strong> products in its portfolio, over $2.1B in annual revenue, and a<br />

customer base of over 70,000 customers. It has acquired many of its customers through<br />

acquisitions of o<strong>the</strong>r <strong>ERP</strong> vendors, including SSA (which had products such as Baan,<br />

ManMan, Marcam, HK Systems, Infinium, and BPCS under its umbrella), MAPICS,<br />

Lilly Software, Epiphany, and Geac. Infor also has industry-specific offerings such as<br />

COM, TRANS4M, and XPPS, which are all targeted at automotive tier suppliers.<br />

About half of Infor’s revenue today comes from maintenance, with professional services<br />

and licenses at about 25% each. Infor’s customers are in a diverse set of markets,<br />

including <strong>the</strong> automotive, high-tech, industrial products, CP, and process industries.<br />

Infor has several customers on IBM’s iSeries and Progress Software platforms, and <strong>the</strong><br />

firm is committed to both partners. The company’s event-driven Open SOA strategy<br />

focuses on enabling <strong>the</strong> applications <strong>the</strong>mselves, instead of relying on a specific bus<br />

layer that eases interoperability and carries <strong>the</strong> promise of easier upgrades and access to<br />

best-in-class functionality at a low cost and within <strong>the</strong> project time frame.<br />

Infor is headquartered in Alpharetta, Georgia, and has offices worldwide.<br />

36 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


IQMS<br />

IQMS’s main product, EnterpriseIQ, provides SMBs and companies in <strong>the</strong> lower midmarket<br />

an integrated system for managing manufacturing (including integrated quality<br />

management), financials, customer management, and SCM capabilities, such as a sophisticated<br />

production scheduler, and workforce management. Target companies include operating<br />

repetitive and flow-based environments to highly engineered product manufacturing<br />

scenarios in <strong>the</strong> automotive, general discrete, plastics, and medical device industries.<br />

Founded in 1989, <strong>the</strong> majority of IQMS’s customers are in North America. However,<br />

<strong>the</strong> firm has installations in both Europe and Asia-Pacific.<br />

Lawson<br />

In 2005, Lawson and Intentia merged, and <strong>the</strong> complementing synergies both companies<br />

brought to <strong>the</strong> merger are now starting to show in global markets and broader<br />

vertical industry segments. Intentia’s Movex product (now termed M3 for make, move,<br />

maintain) provided Lawson a sought-after manufacturing story for <strong>the</strong> North American<br />

market and <strong>the</strong> opportunity to extend its S3 (for staff, source, serve) product to support<br />

healthcare, financial services, and retail operations in Europe. Both products use<br />

a core technology foundation called Lawson System Foundation, which is built on<br />

IBM’s WebSphere to help drive common component usage across <strong>the</strong> applications.<br />

The products also use Lawson’s own Business Intelligence (LBI) and Business Process<br />

Management functionality. Key differentiators of <strong>the</strong> M3 product are its ability to support<br />

mixed-mode manufacturing and supply chain planning, including <strong>the</strong> integration<br />

of production planning with plant asset maintenance requirements, aftermarket service<br />

capabilities, and attribute management. This functionality is specifically important to<br />

asset-intensive industries as well as <strong>the</strong> food and beverage and fashion industries, with<br />

<strong>the</strong>ir multiple variations of products and need for flexibility.<br />

Lawson is headquartered in St. Paul, Minnesota, and has over 4,000 customers worldwide.<br />

Microsoft Business Solutions<br />

The Microsoft Dynamics family of applications—Microsoft Dynamics AX, Microsoft<br />

Dynamics NAV, and Microsoft Dynamics GP (Microsoft Dynamics SL is also a part of<br />

this product line, but was not evaluated in this Report)—are all targeted at midmarket<br />

companies. Microsoft Dynamics AX is designed for midmarket multinational companies<br />

of usually 50 to 500 users in ETO, MTO, or MTS environments. Microsoft Dynamics<br />

NAV has a large European installed base of manufacturers and distributors in CP, automotive<br />

parts, and industrial equipment industries. Several companies using AX and NAV<br />

are smaller divisions and sites of multinationals, with SAP deployed at <strong>the</strong> enterprise level.<br />

Microsoft Dynamics GP customers are usually 25 to 500 users in professional services,<br />

discrete manufacturing, public sector, and wholesale distribution.<br />

Microsoft is based in Redmond, Washington. It has offices and customers worldwide.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

37


NetSuite<br />

NetSuite provides pure business management applications through a SaaS model<br />

to SMBs and offers integrated <strong>ERP</strong>, CRM, and e-commerce functionality. Target<br />

industries include wholesale distribution and light manufacturing, services firms,<br />

software companies, and online retailers with less than 1,000 employees. It brings<br />

<strong>the</strong>se companies back-office, front-office, and web operations in a single application.<br />

NetSuite’s full product line includes BI and performance management software, <strong>the</strong><br />

SuiteFlex platform tools for customization and software extension, and add-on software<br />

modules such as advanced financials, employee self-service, incentive compensation,<br />

and eBay integration support.<br />

Headquartered in San Mateo, California, NetSuite recently filed its S-1 for an IPO.<br />

Oracle<br />

Oracle brings three core <strong>ERP</strong> product lines to <strong>the</strong> midmarket: JD Edwards<br />

EnterpriseOne, PeopleSoft, and E-Business Suite. The EnterpriseOne product appeals<br />

to <strong>the</strong> industrial manufacturing, CP, automotive, high-tech, and medical device<br />

industries, and differentiates itself from o<strong>the</strong>r products with advanced planning and<br />

scheduling functions like demand forecasting, S&OP support, and lean execution.<br />

PeopleSoft 12 appeals to several midmarket firms with light manufacturing and<br />

complex sourcing needs. E-Business Suite is offered direct to <strong>the</strong> midmarket through<br />

Oracle’s sales organization.<br />

Oracle divides <strong>the</strong> midmarket into three tiers: lower tier (companies with less than<br />

$100M in annual revenue), midtier (companies with $100M to $500M in annual<br />

revenue), and upper tier (companies with more than $500M in revenue). The company<br />

announced its Oracle Accelerate branding initiative earlier this year to target SMBs<br />

with less <strong>the</strong>n $500M in revenue, where Oracle already has 19,000 customers (50%<br />

of which have less than $100M in annual revenue). For firms with annual revenue<br />

between $500M and $1B, Oracle will continue promoting a hybrid strategy of direct<br />

and partner sales and services. The Application Integration Architecture proposed<br />

as part of <strong>the</strong> Fusion Middleware provides customers <strong>the</strong> opportunity to leverage<br />

functionality from <strong>the</strong> firm’s many acquisitions, including G-Log, Demantra, and<br />

Hyperion.<br />

Oracle is headquartered in Redwood Shores, California, and has offices worldwide.<br />

38 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


Plexus Systems<br />

Plexus Systems has been providing its on-demand product, Plexus Online, since 2001.<br />

Plexus Online is designed for discrete manufacturers in automotive, A&D, and medical<br />

devices. It’s delivered to customers through a pure SaaS model that integrates MES and<br />

<strong>ERP</strong> functionality, including workforce management, support for product traceability<br />

initiatives, and several forms of production scheduling and supplier management, such<br />

as electronic kanban and heijunka. Plexus Online also offers specific functions for<br />

certain industries, such as broadcast sequencing capabilities for automotive. It utilizes<br />

a very simple and intuitive UI that is well received by shop-floor personnel. Plexus also<br />

provides a SQL Query Writer and visual composer that allows users to access any table<br />

in Plexus Online to write SQL queries and build and customize screens and reports.<br />

Plexus Systems is headquartered in Auburn Hills, Michigan.<br />

QAD<br />

QAD Enterprise Applications 2007 targets companies manufacturing products in <strong>the</strong><br />

automotive, industrial equipment, CP, electronics, and medical devices industries.<br />

Within its customer base are many large global companies that have ei<strong>the</strong>r SAP or<br />

Oracle deployed at <strong>the</strong> corporate level and use QAD’s products in <strong>the</strong>ir plants and<br />

divisions because of strong vertical industry functionality.<br />

QAD has made several investments to bring productivity options and increased value to<br />

its customers in <strong>the</strong> past:<br />

•<br />

Acquiring EAM, CRM, and transportation management<br />

• Developing add-on modules to support distributed order management, supplier<br />

collaboration, and lean execution<br />

•<br />

Providing a .NET UI<br />

The company also has a .NET-based financials package expected in late 2007.<br />

Headquartered in Santa Barbara, California, <strong>the</strong> company has offices in 27 countries to<br />

support its predominantly direct sales efforts, but it also relies on a network of over 40<br />

reseller partners worldwide.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

39


Sage Software<br />

Sage Software, part of The Sage Group, has an estimated 2.5 million SMBs using<br />

its products in North America, including Sage MAS 90 <strong>ERP</strong>, Sage MAS 200 <strong>ERP</strong>,<br />

and Sage MAS 500 <strong>ERP</strong>. It primarily targets firms with more than $25M in annual<br />

revenue or 100 to 1,000 employees. The majority of Sage’s deployments are at <strong>the</strong> 250employees-or-less<br />

level. The MAS 500 product itself is built on <strong>the</strong> Microsoft SQL<br />

Server and platform, and <strong>the</strong> latest version has a portal that can be driven off Visual<br />

Studio or SharePoint. Sage also provides MAS 90 and MAS 200 customers with data<br />

conversion tools to help upgrades, but <strong>the</strong>y’re mainly used for migrating historical<br />

financial data, customer records, and basic product-related data. Sage also offers built-in<br />

inquiry and analysis tools Business Insights Analyzer and Business Insights Explorer.<br />

The company targets manufacturers, services firms, and distributors.<br />

Sage’s North American headquarters are located in Irvine, California.<br />

SAP<br />

SAP has sold applications to a variety of industries for over 30 years. The company has<br />

a total client base of over 41,000 customers of which approximately 26,000 are small<br />

to midsize businesses. Its two midmarket offerings, All-in-One and Business One, are<br />

sold through resellers. The All-in-One applications are actually owned by <strong>the</strong> partners<br />

that take <strong>the</strong> broad product footprint and apply vertical functionality as well as local<br />

and global capability. While SAP sales representatives cannot sell <strong>the</strong> products directly,<br />

<strong>the</strong>y sometimes enlist a partner in hybrid deal situations, but <strong>the</strong> partner does <strong>the</strong><br />

implementation. Business One is sold indirect.<br />

At <strong>the</strong> SAPPHIRE customer conference earlier this year, <strong>the</strong> company unveiled SAP<br />

A1S, its hosted product, which is targeted to <strong>the</strong> 50-to-500-employees level. While<br />

<strong>the</strong> ideal is to acquire new customers that are not typical <strong>ERP</strong> buyers through a see-it,<br />

buy-it, try-it strategy, <strong>the</strong> product can potentially attract companies running hub-andspoke<br />

deployments of SAP at <strong>the</strong> enterprise level that seek to replace legacy systems at<br />

some of <strong>the</strong>ir distributed midmarket sites.<br />

Headquartered in Walldorf, Germany, <strong>the</strong> company has customers and offices<br />

worldwide.<br />

40 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series


SoftBrands<br />

SoftBrands’ FourthShift Edition for SAP Business One provides sophisticated<br />

manufacturing capabilities atop SAP’s Business One product. It’s sold into companies<br />

that manufacture products in <strong>the</strong> CP, chemicals, medical devices, pharmaceuticals,<br />

electronics, fabricated metals, and industrial machinery and equipment industries.<br />

A major differentiator for SoftBrands against o<strong>the</strong>r vendors is its leveraging of <strong>the</strong><br />

SAP Business One platform to provide customers with an SAP-based manufacturing<br />

application that can be implemented quickly and is easy to use.<br />

SoftBrands has sold applications to <strong>the</strong> discrete and process manufacturing industries<br />

since 1984, and has more than 4,000 clients. With <strong>the</strong> exception of scenarios where<br />

large enterprises are seeking to deploy an SAP-based application at a small subsidiary or<br />

site, SoftBrands sells predominantly through a VAR channel.<br />

Headquartered in Minneapolis, <strong>the</strong> company has customers in North America, EMEA,<br />

and Asia-Pacific, with offices in Mexico, Europe, China, and India.<br />

SYSPRO<br />

SYSPRO 6.0, a Microsoft-based product, targets midmarket companies that<br />

manufacture products in discrete industries such as food, medical equipment, industrial<br />

fabrication and assembly, electronics, automotive, and heavy machinery, as well as<br />

packaging environments for CP firms. With its construction on Microsoft .NET<br />

technology and use of XML, SYSPRO is a strong advocate of SOA for SMBs, and<br />

provides <strong>the</strong>m a means to interface with complementary, legacy, and disparate customer<br />

systems.<br />

SYSPRO has sold applications to <strong>the</strong> discrete manufacturing industry since 1978,<br />

and has over 12,000 manufacturing and distribution customers. The company sells<br />

primarily through its sizeable network of VAR partners, with roughly 10% of sales<br />

being direct.<br />

U.S. headquarters is in Costa Mesa, California, and <strong>the</strong> majority of its customers in<br />

North America and Europe.<br />

<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />

© 2007 AMR Research, Inc.<br />

41


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