The number of ERP vendors classified as Tier I has varied over the years. As a result of industry consolidation, we only see a few vendors that qualify as Tier I vendors today.
Tier I ERP Highlights
- Tier I ERP vendors sell complex ERP products that have successfully penetrated the Tier I market, which consists of companies with annual revenues in excess of $250 million and who have global ERP requirements. Tier I ERP vendors have mid-market pricing and implementation strategies to make them more appealing to the mid-market buyer. Companies that require a Tier I ERP vendor have a complex set of requirements. Most significant is the need to manage multiple companies with multiple tax ID’s, multiple business models, and multiple plants with international locations, oftentimes with multiple languages and multiple currencies. Only a few vendors have functionality to meet all of these needs.
- Tier I ERP products have a higher cost of ownership. This is simply because these products are more complex than their Tier II ERP competition and thereby cost more to implement and support.
Tier I ERP Vendors
The benefit of a Tier I ERP product is that they have more functionality you can grow into, as these companies have the size and resources to keep up with technology.