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March 4, 2009

Agresso claims to be seeing off SAP with mid-tier ERP

Supplier claims total cost of ownership advantage

By CBR Staff Writer

ERP vendor Agresso has revealed it is making headway in its mid-market segment with competitive wins against SAP AG. 

Agresso is a subsidiary of Netherlands-based business software provider Unit 4 Agresso, which last month posted results showing it had managed to increase revenues to €394 million from €309 million the year before, taking profits to €70 million. 

During that period its ERP unit claims to have won nine deals worth a total of €14 million against SAP, bringing the total number of wins against the German giant to 61 over the the past three years. 

The largest was a deal with the defence and aerospace organisation of Saab.

Agresso’s Business World suite has been touted by analysts as offering unusually tight coupling of data management for information warehousing purposes, of business process modelling, and of reporting and analytics.

Its supplier claims that this makes it cost-effective to run, in that “when a change is made in one area, it does not have to be redone and rechecked for accuracy in the other two places.”

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That lower cost of change resonates especially well in a tough buyer’s market, and Agresso has said that independent studies show many more of the software changes needed in ERP deployments can be done via the Business World user interface, than can be achieved by rival systems. This typically involve varying degress of consulting and/or application development resource.

It cites a study from Panorama Consulting Group which estimates that the average cost to implement SAP runs to $16.8 million, compared with the cost of a typical tier 2 alternative of $3.46 million. 

The subsequent business benefits realised post implementation compare favourably, with SAP coming in at 72% and a typical tier 2 at 68%.

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