Estimated reading time: 1 minute, 40 seconds

THE SEARCH FOR NEW SALES

Jim McGeeverAccountMate's New Client promotion, detailed in a newsletter to its channel this week, underscores the importance of vendors getting their software into the hands of new customers. It's always difficult for source-code companies whose VARs can make a living as essentially consultants to the installed base to keep up the rate of new customer acquisition.


In the AccountMate offer, those placing orders for a system manager and a combination of four other modules (source or compiled), along with Lifecycle Maintenance get a fifth module free at the time of purchase. Finding new customers is always important. But in this market, given the economy and the maturity of the ERP software market, it's a pretty intense hunt. Many vendors have been surviving on installed base sales and maintenance revenue. Sage's new pricing structure has also upped emphasis on new sales. With Sage sales VP Paul Johnson acknowledging that in channel terms "Most people are feeling some pain", he continued that the new margins are designed to incent dealers for bringing in new business. That push comes at a time when companies are hanging onto the accounting systems more than ever. Members of a panel at the Janney Montgomery Scott Software & Services Conference held Wednesday in New York, agreed on that point. The panelists were NetSuite CFO Jim McGeever, Epicor CFO Michael Pietrini and Consona's CEO Jeff Tognoni. All three companies addess the midmarket. Tognoni said the replacement cycle for ERP software was about five years when he started in the business in the 1980s and is now about 15 years, although that sounds more like enterprise-level companies, rather than much of the midmarket. McGeever said that's why NetSuite goes after divisions, not the enterprises that have Tier 1 products. As for the big companies, "They are not going to rip that stuff out. It’s going to be like watching icebergs melt," he said. Still, that's got to apply to at least some of the midmarket and underscores just how part of the market is closed off.
Read 2309 times
Rate this item
(0 votes)

Visit other PMG Sites:

PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.