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The Accounting Software marketplace can be classified using three broad criteria: size and complexity of the customer market (Small & Medium Business, Mid-Market, and Enterprise), Sales and Delivery method (channel, direct, or hybrid), and solution deployment method (on-premise, hosted or Software as a Service (Saas)).

Market Tier

Most industry analysts segregate the Accounting Software market into three general tiers based upon the size and complexity of the company using the software. These tiers include Small and Medium-sized Businesses (SMB), Mid-market and Enterprise. SMB’s are usually owner-operated, less than 100 employees and operate with informal or non-dedicated Information Technology (IT) support. Mid-Market businesses are generally privately held, less than 500 employees, with professional, if non-dedicated, IT support. Enterprise customers are usually publicly traded, more than 500 employees, with professionally managed, full time IT budgets and staff.

The major differentiation, aside from the total price of the solutions, is the complexity of business process that the accounting software applications will support. The most complex enterprise financial software solutions have sophisticated (sometimes complex) workflow management requirements, intricate supply chain integrations, and multiple localisation demands across global locations with thousands of users.

Sales and Delivery Method

The next dimension of the accounting software market is the sales and delivery method. Software publishers can sell financial software applications directly to the customer or use a value added reseller (VAR) in an indirect or “channel” model. A VAR is analogous to a local car dealer in that they do not make the accounting software but sell and service it. The implementation services are similarly segmented by customer size. The sales and delivery methods are frequently mixed in a hybrid model where software is sold directly but the implementation services are provided by a VAR (also called a “business partner”). The savvy purchaser needs to clearly understand which model is in play in order to negotiate the best deal and ensure that their needs are addressed.

Deployment Method

The third segmentation of the accounting software market is based upon the deployment method of the application software. The traditional and most prevalent arrangement is the “on premise” approach, where the accounting application is sold as a shrink-wrap product and installed on the customer’s hardware at their location. In this scenario, the customer is responsible for maintaining the hardware, software and all related information system responsibilities.

Sometimes the same software that is sold as an “on-premise” solution is delivered to the customer via a “Hosting” solution. This involves the software running on the technology provider’s central system with the customer accessing the application via remote terminals (Citrix or Terminal Services in a Windows environment). While this approach alleviates some of the IT infrastructure costs and expertise required by an on-premise solution, it places high demands on the hosting provider and is less flexible than an on-premise solution.

Finally, Software as a Service (SaaS) accounting solutions are designed to serve up accounting functions via “thin clients” that are usually viewed with web browsers and delivered on an as-needed, on demand basis. SaaS accounting software solutions are generally sold as a service contract based upon the functionality delivered, the number of users and the length of the agreement.

The major packages in the SMB space are Intuit with Quickbooks, Sage’s Peachtree, and Microsoft’s Office Accounting. The mid-market market share leaders include Microsoft’s Dynamics product family (SL, GP, NAV, and AX), Epicor, Sage’s MAS 90 and MAS 500. The enterprise space is dominated by SAP and Oracle with their e-business suite and previous acquisitions of Peoplesoft and JD Edwards.

In broad terms, software licensing costs for SMB solutions are normally less than $20,000, mid-market software often ranges from $20,000 to $250,000, and Enterprise solutions extend upward from $250,000. As a budgeting rule of thumb, consulting and implementation service costs will be one to four times the software costs. The major factors driving costs will be the functional scope of the solution, the complexity of the business processes, software customization, software integration and the number of users.

Accounting Software  

Asia Accounting Software Market

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Accounting Software Market
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Market Tiers

Sales Model
Delivery Model
On Premise Accounting
Hosted Accounting
Software as a Service



tags Tags:
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asia accounting software market, webbased accounting software, enterprise resource planning software, singapore accounting software, hosted accounting, oracle, sap, asia financial software, on-demand accounting, financial software









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