Why You Should Include Vendor Stability in your ERP Software Selection Criteria

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Waiting and wondering if your ERP vendor will be swallowed up by a larger company is a stressful situation full of uncertainty. It has become so common for ERP systems to change hands or change forms in consolidations that analyst AlbertPang (Tips for riding out ERP vendor consolidation) has even come up with tips you can use to weather the storm and prepare yourself for impending shakeups.

In the worst scenario, the ERP software system you used and loved is “transitioned” or phased out in favor of the system the vendor’s new owner developed and prefers. In that scenario, you are pretty much forced into a corner where you must either adopt their new system, hang on to your old one long past its life expectancy, or begin shopping for a completely new ERP solution.

In less extreme scenarios, you may just have to get acquainted with a new vendor, new customer service reps, and maybe even new branding. Ultimately, in this situation it is possible to survive.

Is there a way to avoid this waiting game in the first place? You should include “vendor stability” as part of your ERP selection process. Look at annual reports, read industry analyst opinions and ask for stats.

When evaluating Microsoft Dynamics GP you can feel confident that Microsoft is a stable vendor you can trust to be around for the long term. My research shows that in 2009 Microsoft spent over $8 billion on R&D (research and development). And in 2010, even in uncertain financial times when others were tightening their belt, Microsoft increased R&D funds to $9.5 billion.

Curious if Microsoft might tire of the ERP business? Check out this article: Microsoft Going to Sell Its Dynamics ERP Business? The answer is NO!

And check out the Microsoft Dynamics GP Statement of Direction Released December 2011. It outlines the product strategy and roadmap for Dynamics GP all the way out to 2016. Dynamics ERP is here to stay.

By CAL Business Solutions, a stable vendor of Microsoft Dynamics GP in Connecticut, Massachusetts and Southern New England

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