A COMPARISON OF FIVE LEADING SAAS AND CLOUD VENDORS

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2 As has been exhaustively covered in the press, software as a service (SaaS) and cloud ERP technology has changed the game of the enterprise software industry. In Panorama s experience, however, organizations are still somewhat skeptical of the security of this technology and not as familiar with the vendors and their offerings as they are with traditional, on-premise ERP providers. This comparison focuses specifically on five key vendors: NetSuite, Workday, Salesforce, Microsoft Dynamics CRM, Epicor, FinancialForce.com and Intacct and provides information related to vendor revenue, industry focus, global applicability, ease of customization, current client base and the age of the offered product(s). NetSuite Company Revenue Reported 2011 revenue was $236.3M. Industry Focus NetSuite focuses on software, wholesale distribution, manufacturing, e- commerce, services (professional services automation, services resource planning and financials for services), consulting, IT services, digital marketing and advertising agencies, and media and publishing firms. Global Applicability NetSuite has flexible global deployment capabilities for multinational customers seeking to benefit from the cost savings and business efficiencies of the cloud. The software can be deployed in an integrated business management suite or as a standalone financials/erp solution rather than as a business management suite, which allows businesses to use cloud-based financials/erp capabilities within a line of business and integrate it with their existing customer relationship management, professional service automation and / or e- commerce investments immediately or integrate NetSuite offerings over time. Additionally, companies have the option of implementing a cloud-based financials/erp system within a global enterprise through a two-tier deployment model. Under this two-tier approach, a global business retains its existing investment in its on-premise or cloud-based financials/erp applications at corporate headquarters but selects and implements a different solution that is most cost-effective to deploy and manage throughout its subsidiaries. OneWorld SuiteCloud is NetSuite s product offering for this approach to global financials/erp deployment. It provides multi-subsidiary, multi-currency and multi-tax intelligence in real time with local control for in-country operations, while being deployed as a cloud application allowing the organization to standardize its previously heterogeneous on-premise financials/erp investments on a cloud-solution. Ease of Customization NetSuite enables users to customize their application suite to the specific needs of their business. OneWorld SuiteCloud supports application customization and allows each subsidiary to meet specific organizational, industry, and geographic needs. Page 1 of 6

3 The suite can be configured by end-users without significant software programming expertise. In contrast to traditional-premise applications, when new versions of NetSuite are released, a customer s customizations and configurations are maintained and experience little or no additional effort or expense. Current Client Base In 2011, the top ten industries, as measured by revenue, NetSuite served were as follows: Distribution & Wholesale Professional ulting and Other Services Computer Software E-commerce & Retail Manufacturing Computer & IT Services Telecommunication Services Financial Services Healthcare Services Education. In 2011, NetSuite reported it had customers in 80 countries. Currently, there are roughly 11,000 customers. Age of Product OneWorld SuiteCloud was introduced in Workday Company Revenue In Workday s last fiscal year, the company reported $134.4M in revenue. Industry Focus Workday maintains focus on organizations within the financial services, healthcare and life sciences, higher education, manufacturing, retail and hospitality, services, state and local government, and technology industries. Global Applicability Workday s financial and accounting application is built on a global core. Accounting, governance, and reporting capabilities all are available in a united financial solution and localizations are captured in a single, centralized core, ensuring data and process consistency. While the application is a true cloud offering, Workday is not known as having strong global core financials in the industry. Page 2 of 6

4 Ease of Customization Because all customers operate on the same version of the software, Workday s applications eliminate customized code. Thus, regular updates to the software are supported with minimal disruption. In an effort to eliminate costs associated with supporting code changes made by their customers, Workday has built tools that allow non-code-based configuration known as metadata definitions. Workday supports metadata-based configurability over all components of the core applications. Workday s business solutions consist of metadata definitions and the tools to configure these definitions. This allows organizations to be more aggressive about changing their applications without worrying about the high cost of code-based customizations or breaking" the upgrade. Current Client Base Workday has approximately 325 customers; about ten-percent of its customers are utilizing a financial application. Age of Product Workday launched HCM, its first offering, in It launched its financial offering in Salesforce Company Revenue In Salesforce s last fiscal year, the company reported $2.26B in revenue. Industry Focus Salesforce maintains focus on organizations in the social enterprise, communications, financial services, government, healthcare and life sciences, high tech, manufacturing, media, non-profit and higher education, and retail industries. Global Applicability Salesforce is available in all major international markets. Ease of Customization For most customizations, clients can utilize point-and-click configuration tools that require no programming. For more advanced work, Salesforce now has its own native programming language, Apex, which is available to developers. Customizations with Apex run natively on the Force.com platform. Current Client Base Salesforce s client base spans most industries and business sizes from one to tens of thousands. Age of Product Salesforce.com was founded in Its first product, CRM, was introduced in Page 3 of 6

5 Microsoft Dynamics CRM Company Revenue Microsoft Business Division revenue was reported as $22.2B in Industry Focus Dynamics CRM maintains focus on organizations in the government, financial services, manufacturing, professional services, healthcare providers, health and social services, retail, hospitality and entertainment, education and media. Global Applicability Dynamics CRM online is available in all major international markets. Depending on the level of customization and configuration necessary, companies have the option of moving between a SaaS and an on-premise solution. Ease of Customization The Microsoft CRM Online (cloud) architecture provides customers with complete autonomy over how they operate, manage and configure the solution. Microsoft offers a set of standard online services that are supplied to all customers but doesn t accommodate change requests or customization that deviates from its standard service definition. Current Client Base Microsoft Dynamics has more than 22,000 customers. Age of Product Microsoft Dynamics CRM was launched in Epicor Company Revenue Epicor had revenue of roughly $834 Million in Industry Focus - Epicor s focus maintains focus on organizations in distribution, manufacturing, retail and services (e.g., architecture, audit and accountancy, management consultancy, engineering and construction, marketing, advertising and communications, research and development, and computer software services). In the service sector they focus on the following professional services: Architecture, Engineering, and Global Applicability Epicor financial management software offers multi-company, multi-plant or multi-warehouse operations, and inter-company transaction processing. Ease of Customization Within Epicor s Enterprise Workbench, modification to core applications is relatively easy. Companies can utilize the customization workbench to manage functionality during installation, configuration and execution. Page 4 of 6

6 Current Client Base The current client base consists of midmarket manufacturing, distribution, and service organizations. Age of Product Epicor s SaaS solution was introduced in Vendor Summary Strong global financials offering Single platform Offers global core financials Metadata based configurability NetSuite Relatively new product Historically focused on smaller businesses Workday Not known for having strong global financials Relatively new product Salesforce Industry leader in quality of offering Inherent need for integration Established company with impressive customer success track record Has its own programming language, Apex, integrated with force.com application platform Large current client base Mature, proven product Ease of configuration Microsoft Dynamics CRM Relatively new to the SaaS market Does not have the 3 rd party application platform integration network Ease of customization Global core financials offering Customization workbench makes for efficient customization Epicor SaaS offering is relatively new with questionable success Page 5 of 6

7 About Panorama ulting Solutions Panorama ulting Solutions is an IT consulting firm specializing in the enterprise resource planning (ERP) market for mid- to large-sized organizations around the world. Independent of affiliation, Panorama facilitates the evaluation and selection of ERP software, manages ERP implementation, and expedites all related organizational change to ensure that each of its clients realize the full business benefits of their ERP systems. Clients include many of the leading organizations in the world, including Samsonite, Nufarm, Starz Entertainment, Kodak, Coldwater Creek and Pirate s Booty. More information can be found on its website, Panorama-ulting.com and Twitter feed, Twitter.com/PanoramaERP. Page 6 of 6