Agresso scoffs at ‘giant’ threat

Agresso, the Norwegian-based enterprise resource planning specialist, has rebuffed claims of a mid-market squeeze from the high-end giants following year-end results which showed revenues rise by 266%, writes Nick Huber.

Results for the 1998 financial year published earlier this month revealed a #1.95m rise in pre-tax profits on a turnover, of #46m.

Over the past year, ERP giants such as SAP and PeopleSoft have announced their attention to target small to medium-sized companies in addition to their traditional blue-chip client base. Industry analysts have predicted that smaller ERP vendors would probably go to the wall.

Agresso UK managing director John Crooks said the company’s robust results cast doubt on the high-end threat. ‘The mid-market may be under siege but we’re not,’ he said. ‘SAP is moving into the mid-market because the high-end market is dead.’ He argued that the mid-market demand for rapid implementation was alien to the Big Five consultancies on which the ERP giants rely.

‘They have made a lot of money by implementing these products over an extended time,’ he said, omitting to mention that PricewaterhouseCoopers is an Agresso implementation partner.

Rival suppliers of smaller packages such as Sun Systems (Systems Union) and Dynamics (Great Plains) are more of a threat, added Crooks.

Over the past few years, Agresso has bought out companies in the UK, Canada, France and Sweden. The vast majority of its revenue, however – 90% – came from organic growth. In January, it released Agresso 5.21, and will support Microsoft’s SQL Server 7 database pending trials.

Related reading