FinancialForce.com scales new heights in Cloud financials with bold acquisition strategy

19th November 2013

The news today that FinancialForce.com has acquired Less Software including the firm’s Supply Chain Management (SCM) solutions and Vana Software a global human capital software provider and maker of a HR applications on the Salesforce Platform has set the market buzzing.  The acquisitions are set to round out FinancialForce’s offerings in financial management, the so called ‘Back Office’ and put clear space between the rapidly growing organization and its close competitors in the Cloud.

 

 

 

Gary Simon, FSN’s managing editor says, “This deal is highly significant.  FinancialForce.com is already a differentiated business with a formidable pedigree in financial management having been established by UNIT4 (the owners of Coda and Agresso) as well as being part owned by SalesForce.com.  But in today’s rapidly growing Cloud market customers are looking for broad solutions which provide a common user experience and leverage the power of a shared platform. “

The addition of Supply Chain Management capability and Human Capital Management together is a masterly stroke which will allows FinancialForce to own the ‘back office’ space just as the economy starts to show signs of recovery.  The HCM capability nicely complements FinancialForce’s PSA (Professional Services Automation) capability as well as its mainstream billing and accounting applications.  On the other hand the addition of fully fledged sales order processing, purchase order processing and inventory management, extends FinancialForce’s reach into new markets.”

“I expect the new offerings to greatly underpin FinancialForce’s ambitions to travel upstream into larger enterprises. These companies are looking towards the Cloud to give them increased business agility and rapid methods of deployment, in for example business restructuring, re-organizations and acquisitions but there has been a very limited choice of solutions to date. FinancialForce has extended its appeal in this space at a stroke through these acquisitions and I would expect it to run head–to-head with NetSuite, Infor and Oracle in the enterprise space.”

“It wouldn’t surprise me if FinancialForce makes more acquisitions, for example around manufacturing which would be a logical extension after adding SCM capability,” added FSN’s Simon. 

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