Archive for September, 2010

Switching SaaS ERP Software Providers

Wednesday, September 22nd, 2010
cloud_switchMany SaaS providers are announcing customer wins. In many cases, these wins are from companies upgrading from QuickBooks or a legacy on-premise solution. However, a new trend is beginning to surface … SaaS ERP customers switching from one SaaS provider to another. It is not likely that switching SaaS ERP companies will become like switching long distance companies in the 1990’s, but there are some trends beginning to appear.

Epicor Customer Announcements

Epicor Software Corporation (EPIC) today announced that two customers switched to Epicor Express, the on-demand version of Epicor 9. One of these customers switched from an existing ERP SaaS solution. Dayson Polymers, LLC, a full line distributor specializing in engineering plastic resins, is currently a three-person company that operates out of remote offices throughout the U.S., requiring them to implement a Web-based system to easily access and manage their business. Having previously invested in a SaaS ERP solution, Dayson switched to Epicor Express as a result of poor customer service and escalating subscription fees. “With our previous SaaS ERP provider it took up to six months to resolve an issue, forcing us to carry on business with workarounds until the problem was fixed. Exceptional customer service and a regional support team were among the main factors that led us to choose Epicor,” said Chris Schmeltzer, manager, Dayson Polymers. “We also experienced increasing yearly subscription fees and finally had to seek a more cost-effective solution.”

Other Announcements

Intacct recently announced a customer win that involved a customer switching from NetSuite. In the press release it says that Matrix Absence Management switched in order to lower their total cost of ownership and improve the flexibility offered. Acumatica recently announced a customer win that involved a customer switching from an existing SaaS ERP solution to Acumatica’s Cloud ERP software. The Quantum Group switched for many of the same reasons suggested above: control over costs, support, and user licensing. Following the launch of SAP’s Business ByDesign in August, it will be interesting to see what the first customer announcements are. Will they be existing SAP clients, wins from other client-server solutions, or wins from other SaaS products.

ERP Cloud News Commentary

It is not likely that switching SaaS ERP companies will become like switching long distance companies in the 1990’s. Switching your ERP solution involves more than just placing a service order – there are hours of data migration and training which need to occur before you are fully operational on a new system. Nevertheless, the evidence above suggests that some companies have experienced problems that make a switch worth the effort.

Why Switch ERP

The top reason cited for switching was “lack of pricing flexiblity,” but the lack of stellar customer support, and lack of system flexibility were also cited.

SaaS Vendor Lock-In

The recent switching suggests that vendor lock-in may not be a significant phenomenon in the SaaS ERP space. However, all of the recent switching announcements involve companies that have unique configurations, but do not have any significant customizations or add-on solutions. For this reason, price was more critical than functionality and the barrier to switch was lower. As companies interface their SaaS solutions with on-premise systems, the ability to switch providers may become more complicated. So, although lock-in was not a significant issue in these announcements (most were migrated in 30-60 days), it may be a bigger issue with larger customers with customized solutions.

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Small Business Technology!

Tuesday, September 21st, 2010

Technological advances have greatly increased the ease with which you can run and grow a small business. If only technology weren’t so complicated.


These days, it’s tough for any entrepreneur to make it—let alone succeed—without a heavy dose of tech. You need a well-designed and easy-to-use website (that’s a no-brainer), plus you might benefit greatly from software, Web applications and equipment that allow you to manage inventory, track customers’ purchases, process invoices, manage payroll and communicate with staff. Read more…

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Quickbooks 2011!

Tuesday, September 21st, 2010

I’m very pleased to share that Intuit has announced the release of QuickBooks 2011! In QuickBooks 2011, Intuit zeroed in on helping you save time in the back office. We know you didn’t start your business to do your books, so we want QuickBooks to help you get back to doing what you love. Sporting features that give you faster access to insights and make everyday tasks more efficient. Read more…

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Sage ACT! 2011

Tuesday, September 21st, 2010

Sage North America today announced the new Sage ACT! 2011 contact and customer manager featuring new smart task automation for frequent activities such as sales opportunity and contact follow up. Sage ACT! 2011 includes numerous ease of use improvements and full synchronization with Microsoft® Outlook® contacts and calendar items. Sage Business Info Services for ACT!, a list-building subscription service powered by Hoover’s, also debuts as the latest Sage Connected Services offering for small and midsized businesses. Read more…

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Back to School With Peachtree’s Educational Tools!

Tuesday, September 21st, 2010

The kids are back in school, reviewing old material and learning new content. It’s the perfect time to assess your own knowledge of Peachtree’s accounting tools. Are you wasting time trying to puzzle out features on your own? Read more…

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Confusion between Cloud ERP and SaaS ERP software

Monday, September 20th, 2010
cloud-enables-saasIn a recent post, we provided definitions of cloud computing, SaaS, and web-based software. The definitions provided were compiled from several popular web sources as well as through interviews with cloud ERP vendors, resellers, analysts, and customers.

Recent news article with cloud and SaaS ERP terms

The Economic Times posted an article, Ramco launches new software for cloud computing platform, where the term “cloud computing” was incorrectly equated to a pay-per-use model. The quote from the article is:
Cloud computing refers to a pay-per-use model, where applications and software are available over the internet and one pays as per the usage without owning them.
This quote confuses cloud computing and how in enables but does not equal software as a service.

Cloud Computing Enables SaaS

Confusion around cloud computing is understandable. Many marketers and sales folks have used the cloud as a way to freshen up their message. Frequently these messages confuse Cloud (a type of technology to run applications) with SaaS (a type of delivery mechanism for applications). As you can see from the diagram, you can have cloud without SaaS, SaaS without Cloud, or SaaS enabled by cloud. There are several different pricing models and deployment models for cloud technology. As pointed out in a Wikipedia cloud computing article, there is the idea of private clouds and public clouds.
  • Public Clouds. Cloud technology deployed in a way where computing resources become available to anybody who wants to purchase resources on a self-service basis. Public clouds are key components of software as a service offerings.
  • Private Clouds. Cloud technology deployed inside a company owned datacenter. This use of cloud technology is not necessarily used to deliver software as a service.
Cloud technology is a technology that helps reduce hardware costs and improve scalability. But, the way that cloud technology is deployed and sold influences whether you pay for what you use, whether you conserve capital, and whether you reduce IT expenses. Using internally deployed cloud technology provides control, but not the financial benefit of reduced capital expenses. External clouds that are delivered as a service (SaaS) on a subscription basis can reduce capital expense and IT requirements.

Over-Simplifying Cloud and SaaS

In paradise, cloud technology would be referred to as an infrastructure tool that can be used to reduce hardware and IT costs while SaaS would be referred to as a deployment and business model that provides customers with a new way to purchase software.

Cloud ERP versus SaaS ERP Diligence

We will continue to look for press releases and articles that are not consistent with our understanding of Cloud Computing and Software as a Service. If you see any articles that fall into this category, please bring them to our attention!

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ISVs can use the Cloud to reach businesses needing Web-based and SaaS solutions

Friday, September 17th, 2010
In a recent online survey conducted by Acumatica, 40% of the IT and business professionals who responded stated that they are considering moving their business applications to the cloud. In helping mid-sized businesses to make this jump, software vendors such as Acumatica are working more closely with their ISV and VAR partners to develop and deliver fully functional, on-demand ERP capabilities in a streamlined way. These integrations make available to companies, a host of applications ranging from financial forecasting and budgeting, tax calculation and filing, sales and invoicing, and EDI for distribution and shipping. Further, businesses can effectively utilize the cloud to manage their operations more efficiently without being locked-in to a single SaaS vendor.
Cloud Application Poll

Cloud Application Poll

Acumatica’s latest ISV partnerships with Adaptive Planning, Avalara, Pacejet and SIPD, among others underscore the opportunity to reach a global audience of companies seeking web-based and SaaS business solutions. While ERP vendors can provide basic functionality for processes like shipping, tax and budgeting, many mid-sized businesses need best-of-breed applications that are integrated with their financials. ISVs can leverage development tools like Acumatica’s to move their applications to the cloud and deliver SaaS solutions which integrate with Acumatica’s advanced financial applications. Industry Analyst Laurie McCabe of the SMB Group reinforces the importance of vendors collaborating and integrating their SaaS solutions on the cloud. She points out that today’s SaaS platforms simplify integration by providing centralized management control and web-based interfaces that can help save customers money and avoid complexity.

Cloud Software Poll Results

The market is currently split on the need to adopt cloud technologies. Independent software vendors need to create applications that can run BOTH in the cloud and on-premise. Most importantly, vendors need to ensure that customers can switch between deployments without the hassle of doing a full system migration.

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Expense Reporting gets a boost from Cloud ERP

Thursday, September 9th, 2010
logo_travel_procurementAs reported in Travel Procurement, the competition in the automated expense reporting space has increased dramatically over the past few years. According to author Mary Ann McNulty:
While some products are still delivered as software, most are software-as-a-service, cloud-based or, increasingly, mobile apps.
This should come as no surprise because expense reporting is an ideal application for the cloud.

Expense Reports are an Ideal Cloud ERP Application

The cloud supports expense reporting by providing access from anywhere. Access from anywhere allows on-the-fly entry to reduce the time between when expenses are incurred and when they are reported. Reporting accuracy improves significantly when the time to entry is reduced. The cloud supports expense reporting by providing scalable computing power. In large organizations, many people wait until the end of the week to enter time sheets and expense reports. By using a cloud application, the additional traffic and processing can be easily accommodated to avoid delays. The cloud enables centralized, real-time processing so accountants, budget personnel, and approvers to spot and correct problems quickly. In addition, policy and procedure changes can be instantly implemented when using a web-based cloud system.

Software Implementation Statistics

In the article Expense Reporting Solutions Multiply: Cloud, ERP, Mobile, Procurement Suites Among Options, author Mary Ann McNulty also points out some interesting facts about the automated expense reporting industry:
  • A Cost of Control 2010 survey of 550 financial directors and CFOs reports that 72 percent claimed to increase automation or plan to do so in the next 12 months.
  • Aberdeen Group published a survey of 175 companies in February 2010 where 52 percent of enterprises were focused on increasing visibility of their T&E spending, 40 percent on improved compliance, 38 percent on reduced processing time and costs, and 36 percent on managing travel budget restrictions.
  • The same Aberdeen study said that 20 percent of enterprise customers still process expenses manually, 30 percent are partially automated, 45 percent are fully automated, and 5 percent outsource their expense reporting. Although not part of this statistic, the percentage of manually processes expenses for mid-sized business is probably even higher.
The fact that 50% of firms are manual or partially automated provides a large opportunity for companies to do it right the first time by implementing a web-based or cloud-based expense reporting solution. Companies with older automation systems facing maintenance payments should consider upgrading to a web-based or cloud-based system. The savings in time, accuracy, policy-making, and reporting may easily pay for the cost of the upgrade.

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