Monday, November 16, 2009

ERP for Services: Integrated Versus Best-of-Breed

Today's ERP for services marketplace has upped the ante in delivering affordable, fully integrated ERP systems. The rising popularity of SaaS as a delivery model has pitted integrated ERP systems against best-of-breed solutions for SMB organizations in the services sector. SaaS has "leveled the playing field" among integrated ERP solutions like NetSuite and niche ERP and professional services automation (PSA) players like Openair and QuickArrow by providing an affordable delivery model and eliminating the complexities of on-site implementations. In light of this, niche ERP and PSA players are faced with the challenge of developing strategies that provide end-to-end solutions for their clients in order to compete with full-blown ERP systems. A number of PSA vendors have developed SaaS partnerships in order to deliver competitive ERP offerings. In fact, PSA vendor OpenAir exemplifies this strategy by delivering a seamless, integrated ERP offering in conjunction with accounting vendor Intacct. Consequently, SaaS has empowered a number of vendors to deliver affordable, integrated ERP solutions through both single and multiple offerings by reducing the risk and cost typically associated with large scale ERP implementations.

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