Estimated reading time: 1 minute, 14 seconds

THE WAR TO GO UPMARKET

George KlausERP vendors that have good high-end packages are increasingly moving into the Tier 1 space, at least into the divisions and department of companies that use an enterprise-level application to run their financial operations.  The signs are abundant. NetSuite this month signed an agreement with Informatica which will integrate NetSuite and Tier 1 products. Also this month, Epicor CEO George Klaus stated, “We are going upmarket” and noted that Epicor 9, which is making the effort possible, can handle about 3,000 concurrent users.

Klaus noted that “The Tier 2 solution” offers the same feature functionality of Tier 1 products, but at a third or quarter of the price. Epicor puts some numbers behind the potential with a survey that received 1,600 responses from a variety of companies worldwide. One third of those said they were considering a two-tier implementation. An interview conducted by Software Advice with Guy Weismantel, Microsoft’s director of ERP marketing, addressed the place Microsoft Dynamics fits in two-tier deployments. In the interview, posted on YouTube, Weismantel said SAP and Oracle had “focused” the opportunity for Microsoft. The increasing autonomy of divisions and subsidiaries “has opened the floodgates” of interest in the mid-market products, he said. And similarly, he cited the increasingly functionality of products from this segment of the software business at a much lower price. That’s probably one reason for SAP’s push with midmarket products, such as Business One and Business By Design. It wants to do the same thing and keep such organizations in its camp.
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