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EPICOR SEEING SAAS NIBBLES

While Epicor recently introduced a SaaS version of Epicor 9, there is no danger of seeing sales explode, the company admits. However, interest is starting to develop, according to CFO Michael Pietrini. In remarks made this week at the Cowen & Co. Technology & Telecom Conference, Pietrini said the company sees little interest from the manufacturing and distribution markets, from which his company derives about 60 percent of revenue. There is more movement in the retail space.
“We have seen some small trickle of demand, especially at the low end of the market,” he said. Pietrini said the manufacturing and distribution users are “still sorting out their comfort level” in having financial information stored on a remote server. Retailers, which are more likely to have multiple locations, see more immediate benefit in using SaaS to curtail the size of the IT staff. One comment that Pietrini made shows another barrier to customers switching to SaaS. Although the standard thought is that customers stick with a financial package for seven to 10 years, Epicor has found the range to be more like 13 to 15 years. However, since the Epicor Manufacturing Express Edition  of Epicor 9 will run in both an on-premise and SaaS model, the product will be ready when users make the move online.
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