Thursday, November 26, 2009

Vendors That Offer ERP for Services in SaaS Business Models

To facilitate the ERP initiatives of SMB organizations in the services sector, there are a number of vendors that have leveraged the SaaS business model. Keep in mind that the majority of organizations benefiting from this model fall within the category of lower midsized and small organizations. Vendors that fit the bill include the following:

* Sage offers a SaaS option in both its Accpac and MAS product lines. Sage Accpac online provides SMB organizations with Sage Accpac 100 ERP for small organizations and Sage Accpac 200 ERP for midsized environments through an on demand model. Both products offer a solid accounting package for both market segments. However, they are not as strong in areas such as CRM and PSA. In addition, Sage MAS 500 delivers a stronger SaaS offering because of its application service provider (ASP) partnership with IBM. Lastly, MAS 500 delivers a more complete PSA offering for project-centric organizations.

* Intuit delivers ERP-like functionality primarily for smaller organizations via its QuickBooks online offering. Through its strategic relationships with salesforce.com and Projector PSA , QuickBooks delivers basic ERP functionality specific to very small professional services organizations over the Internet at an affordable price.

* Intacct offers a SaaS financial package for the SMB marketplace. Through its technology partnership with Openair, one of the leading niche PSA players, Intacct delivers a fully integrated ERP suite. Moreover, Openair's original equipment manufacturer (OEM) relationship with Intacct offers best-of-breed functionality in PSA and accounting, making it an excellent contender to NetSuites ERP solution.

* NetSuite is likely the best example of a fully integrated ERP system offered through a SaaS model for the SMB market. Delivering complete back-office (accounting, human resources [HR], purchasing, financials, etc.) and powerful CRM capabilities, NetSuite offers users a fully integrated, Web-based solution in a single source code. Its capabilities are better suited for the services sector, such as professional services organizations, nonprofits, and advertising, with modules in financials, CRM, purchasing, payroll, and inventory. However, portfolio management and resource management capabilities critical to project-centric organizations are not as strong as those delivered by niche PSA vendors.

* Microsoft offers its range of ERP solutions through its Dynamics product line. Dynamics SL is Microsofts PSA solution that provides complete project accounting capabilities. Dynamics GP offers a light ERP system that delivers mostly back-office functionality. For larger organizations, Dynamics AX offers stronger back-office capabilities with the deeper ERP functionality required for more complex organizations, such as those in the upper mid and enterprise markets. Microsoft delivers its SaaS model for these products through its SPLA partner program, which allows service providers to deliver Microsoft solutions through an online subscription model.

* SAP offers its Business One ERP solution for the SMB market. Although better suited for the distribution and manufacturing industries, Business One delivers strong back-office and CRM functionality to the services sector. As for the companys SaaS offering, SAP provides its partners with the option of holding licenses and having their users pay a subscription fee to access an online, hosted version of Business One.

* Oracle delivers its ERP offering to the SMB market with its Oracle eBusiness Suite Special Edition. Similar to SAP, Oracle's SMB offering is stronger for the distribution and manufacturing sectors. In terms of delivering solid back-office and CRM capabilities, Oracle is worth considering for SMB organizations in the services sector. From a SaaS point of view, Oracle has a well developed on demand program to host its ERP applications. However, Oracle has not yet fully embraced the SaaS model, and the vendors clients are still required to purchase licenses and maintenance for its applications.

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