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Enterprise Software: Does Top Brand = Best Solution?
It’s less risky to choose a Tier 1 vendor when choosing Enterprise Software, but often Tier II vendor software is cheaper and provides a better fit with requirements. That’s the conclusion of a study by Panorama Consulting. Specifically the survey looked at ERP implementations.
The study found that 77 percent of companies favored Tier I ERP solutions from vendors like SAP, Oracle and Microsoft, but Tier II solutions took less time to implement, were significantly cheaper and generally produced a higher satisfaction rating.
The gap between Tier I and Tier II capabilities has shrunk considerably. On average Tier II solutions are implemented in 17.8 months, while Tier I solution implementation time averaged 20 months. Average implementation costs for SAP and Oracle came in at $16.8 million and $12.6 million, compared to only $3.5 million for Tier II, and $2.6 million for Microsoft solutions.
As for most Enterprise solutions, selecting the best match for an organization is hard: one size does not fit all. Many organizations would do well to find a consultant or analyst that can help them compare and evaluate the risk and rewards of various software solutions.
