For the past few years, both companies had professed a strong desire to a viable solution for the manufacturing company in the SMB space. The problem has always been the cost of implementation and total cost of ownership. Tier II ERP vendors were more attractive because they were easier to implement and easier to maintain. In 2007, both companies attacked that issue by delivering pre configured solutions for vertical industries. The preset configuration reduces the design and setup time that used to be a major effort in a Tier implementation. Many templates are now in place and both companies are rolling out new vertical industry templates in 2008. The Tier I ERP vendors are partnering with their Tier II re-seller network to accelerate the roll out of new solutions.
The question is: “is it working”? Both SAP and Oracle are now referencing new success stories for ERP implementation in companies in the SMB space with some companies below $1 M in revenue.
To hit this market hard in 2007, Oracle has put in place a significant increase of new sales managers to mange the sales activities in the SMB space through their re-seller network.