FSN: Infor takes a swipe at SAP as CODA announces scheme to wrestle away Infor's SunSystems user base

Infor takes a swipe at SAP as CODA announces scheme to wrestle away Infor's SunSystems user base

12th February 2007
Infor's CEO, Jim Schaper launched a blistering attack on SAP last week just as CODA plc, a rival to Systems Union, announced it is to compete in Infor's backyard by offering SunSystems users a smooth migration path to its “similar” unified ledger system. CODA's global marketing director, Dave Turner told FSN, “We have spoken to a number of Systems Union Group customers who are now reviewing their options following the acquisition by Infor last year.” But speaking exclusively to FSN, Schaper sought to reassure users, saying, “SunSystems is not being replaced.”

Turner told FSN, “We believe there are a large number of ex-Systems Union Group customers on earlier versions of the software who were considering an upgrade from versions 4.0 and 5.0 but following the Infor acquisition believe they are facing an uncertain future. We can offer a similar unified ledger but all the advantages of a modern web-based application and innovative workflow.”

CODA says that since the Infor acquisition it has been approached by many ex-Systems Union staff looking for positions. It has successfully recruited ex-Systems Union staff in the UK , as well as other countries in Europe , as part of its investment in services, skills and migration tools targeting the Systems Union base. Turner told FSN that, “At least six skilled product consultants have recently joined CODA and were trained on our products very quickly demonstrating the similarity with SunSystems and the ease with which customers could migrate.”

Meanwhile, Infor's CEO, Jim Schaper, has taken a swipe at SAP following the recent announcement of SAP's 2006 results and its plans to introduce a new product for the mid-market. Schaper, told FSN last week, “They have done a 360 degree turn. What is going to happen to all of their ‘All-in One' customers? It's a brand new platform that they are talking about. They have bifurcated the market and one has to wonder if SAP truly understands the mid-market.”

He continued, “Medium-sized customers do not want all-in-one products that need massive customization efforts to address their line of business. That approach is a relic of the past, when ERP implementations were akin to corporate open heart surgery. The bottom line is that customers want more functionality, less complexity and the lowest total cost of ownership. That is not the plan we see from SAP.”

However, SAP's Eric Duffaut, pointed out that far from ditching ‘All-in-One' the company has recently announced significant enhancements for its 9,500 customers globally using the product. Duffaut told FSN, “The new solution is in addition to our established mid-market offering which will help us tap into an as yet untapped mid-market segment of companies currently underserved by existing business applications.”

Duffaut continued, “Once we make details available later in 2007, we believe the market will better understand the full potential of the new offering.”

Infor claims 70,000 enterprise software customers which it says is much bigger than SAP's customer base. But CODA's Dave Turner , commenting on the claim told FSN, “It's an interesting use of statistics. What Infor omits to say is that these 70,000 customers are spread across all of the very many acquisitions that Infor has made in the last few years, whereas SAP's user base is mostly organically grown from SAP's own solution set. It's hardly comparing apples with apples. Infor's figures for example probably include Systems Union, Pegasus software and MIS. Systems Union Group is a microcosm of Infor, comprising lots of different companies and products. Infor is trying to present a single face to the public but in reality it is a mass of different products and companies.”

But Schaper was unapologetic about Infor's business model. He told FSN, “We might have a different business model from SAP and yes, we have acquired a lot of product and companies but we would never abandon our customers like SAP is doing in the mid-market. SAP has done a complete about face. We don't obsolete products - we simply don't do that.”

Schaper also took the opportunity to scotch rumours that Infor is to replace SunSystems Talking to FSN he said, “I'm aware of the rumours that have been circulating the UK and have to say that we are not replacing SunSystems with a French or a German product. We have set out a roadmap for SunSystems.”

The war of words between SAP and Infor reflects the high stakes that the companies are playing for as they seek to take a greater share of the rapidly growing mid-market. Both companies can point to success. At the lower end of the mid-market SAP is exhibiting storming growth. SAP told FSN that at the end of 2006 it had 12,800 customers for its SAP Business One software (aimed at organisations with 10 to 100 users) representing growth of 41 percent over 2005.

But Infor is also showing green shoots. Schaper told FSN, that the group had successfully signed up 500 brand new customers in its second quarter ending November 2006, the first full trading quarter after the acquisition of the Systems Union Group. “These are new logos, i.e. companies that have never done business with any of the group before and we expect the following quarter to be significantly higher,” he remarked.

There are also signs that Infor's strategy of cross-selling between group companies is beginning to bear fruit. “In the same quarter, we have identified 153 separate cross-selling transactions amounting to around $10m,” says Schaper.

Meanwhile, CODA is determined to get a slice of the action building on recent high profile successes such as Catepillar Inc with CODA e-Finance, CODA's web-browser based international accounting system. In addition to specific incentives available to Systems Union customers considering a move, CODA is also offering SunSystems customers a Systems Upgrade Diagnostic. This is a detailed report compiled jointly by experienced SunSystems and CODA consultants, outlining the functionality benefits, efficiency gains, timeline and costing of a migration.

Steve Dashwood, managing director of CODA GB, added, “Our customers have always been impressed in the past when they have replaced SunSystems and they often choose CODA over Systems Union in competitive pitches, with recent examples including Manheim and Inspace. We are a stable UK company, continue to invest strongly in product development, and can support clients anywhere in the world, making us the obvious choice for anyone wishing to change.”

Other FSN articles:

Interview with Jim Schaper, CEO and Chairman of Infor
FSN White Paper, CODA Process automation for cost savings, efficiency and compliance

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