Top 3 ERP Software-as-a-Service (SaaS) Leaders
The Customer Relationship Management (CRM) Software-as-a-Service (SaaS) market has revealed the clear and substantial market share leader of Salesforce.com. However, in the ERP SaaS market there are small group of ERP software manufacturers trying to break away from the rest of the pack in order to achieve a decisive leadership position. As reported by analyst firm IDC and ERP Headlines, the top three ERP SaaS solutions are delivered from NetSuite, Intacct and Aplicor.
NetSuite (NYSE: N) has become the first ERP SaaS software company to graduate to the public markets. In December 2007, NetSuite completed its IPO (initial public offering) and while its public market performance and stock valuation since that time has largely been a disappointment and its financial performance continues to show bottom line losses, the company has succeeded in establishing the leading ERP SaaS position. Thanks in part to the deep pockets of its majority owner Larry Ellison (co-founder and CEO or Oracle) and the cash generated in the IPO, NetSuite is clearly out-spending all other SaaS ERP software companies combined when it comes to advertising and marketing.
NetSuite's original company name was NetLedger and its roots clearly stem back to online accounting software. Today the ERP maker delivers complete back office and front office business applications, including accounting software, distribution software, manufacturing software, human resources software CRM software and e-commerce software. NetSuite is regularly challenged by both Intacct and Aplicor and each of the vendors have carved out their winning niches. NetSuite's sweet spot is small businesses that are driven by accounting software and e-commerce requirements. As the target business gets bigger, Intacct or Aplicor become a more likely fit and if CRM is a driver in the decision process, Aplicor is probably a strong contender.
See the NetSuite Software Review for additional information.
Intacct and Aplicor jockey and trade for the second and third place ERP SaaS market share leadership positions. Which software manufacturer actually holds the second place position is debatable as both vendors are fighting for the second place position.
Located a short distance from NetSuite in California's Silicon Valley, and entering the hosted accounting software market at about the same time as NetSuite in 1999, Intacct has become a formidable competitor to its nearby neighbor. However, unlike NetSuite, Intacct has chosen to go deep instead of wide in terms of business application software evolution. Intacct has chosen not to broaden its on-demand accounting software suite with customer relationship management software or manufacturing software and instead maintain focus with core financials and supply chain management software. For customers which need CRM software as part of their enterprise-wide solution, Intacct partners with Salesforce.com as a member of the AppExchange third party directory program.
Intacct's sweet spot is midmarket companies with deep accounting software requirements and without the need for integrated CRM software. For small businesses which need both front-office and back-office applications, NetSuite becomes a strong player and for midmarket companies which seek enterprise-wide back office and front office business applications, Aplicor becomes a strong contender.
See the Intacct Software Review for additional information.
Far from NetSuite and Intacct, both physically and culturally, Aplicor continues to show impressive client acquisition growth rates despite a much smaller advertising and marketing spend. Aplicor has succeeded in showcasing some of the largest customer SaaS installations in the world and currently has several clients with 1,000 or more users and one client with more than 8,000 users.
Aplicor also entered the SaaS market in about 2000, however, not as an online accounting software solution. The Aplicor suite began with CRM software (Sales Force Automation, Marketing, Customer Support and Partner Relationship Management) and then shortly thereafter followed on with the back office applications. Today, the Aplicor suite includes integrated finance & accounting, distribution and supply chain, light manufacturing, human resources and payroll and the CRM software suite.
Thanks in large part to a strong business partner program and excellent customer support, Aplicor's client retention is unmatched by its direct competitors - 98.1% for calendar year 2007. Aplicor finds its stronghold with midmarket customers seeking tightly integrated, enterprise-wide hosted business systems. NetSuite becomes a formidable competitor for small business prospects and Intacct shows strength for companies seeking only deep financial accounting software.
See the Aplicor Software Review for additional information.
SaaS ERP Software Leaders
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