The threat of hard times in the corporate ERP market is forcing vendor giants like Baan to look to volume.
Baan announced last week, that it would offer the full portfolio of Baan software products bundled with Microsoft NT, Exchange, Site Server Commerce Edition, SQL Server 7.0 database for a fixed monthly licence payment of $99 (#58) for deals involving over 5,000 seats (see Analysis, page 14).
The vendor claims it is not turning its back on its Unix partners, but has no intention at present to strike similar deals.
"Microsoft is the prevailing standard," said Andrew Nash, president of Baan corporate office solution. 75% of Baan's midmarket business is on Windows NT and some global clients are considering implementing NT as their backbone infrastructure," he claimed.
Baan's financial results - posted for the first time in 13 quarters - have failed to meet expectations. The company blamed 30 deals that fell through as CEOs got cold feet over recession, year 2000 and EMU issues.
Nash revealed that it is not beyond selling a licence for the Baan Enterprise Software Agreement to three users for $169 (#99) per seat. Niche players like Sieble and Vantive, who compete in the front-office arena, would have trouble competing with Baan, claimed Mark Hamilton, vice president of marketing for Baan Front Office Solutions.
Vantive disagreed. "We do not sell desktop software, nor do we sell sales force automation - that's a losing game," said Phillip Dunkelberger, Vantive's executive vice president for product, technology and marketing.
- Last week midmarket Platinum Software announced a merger with Dataworks.
Bill Pieser, Platinum's executive VP for product operations and marketing said: "Primarily, the merger creates an important critical mass for us in this competitive market and results in increased market share, expanded R&D and pooling of talent and resources. This combination will essentially create the largest ERP vendor focusing exclusively on the midmarket."
- More Enterprise news, page 30
Baan's troubled finances
Baan results for third quarter ending 30 September 1998:
- Expected revenues $190 to $195 million (#111 to #114 million)
- Increase of 30% over third quarter 1997
- Expected loss of $0.13 to $0.16 per share (#0.08 to #0.14)
- To blame: 30 large contracts lost in last three weeks of the quarter as CEOs get cold feet over recession and year 2000.
- Outlook: Uncertain.
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