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Cloud: the Next Generation Winter 2019 Bob Scott’s 2019 VAR STARS Cloud: The Next Generation Sponsored by 2019 VAR Stars 2019 VAR Stars Cloud: The Next Generation Younger Business Leaders Push Cloud Migration he installed base of cloud financial software ing firm Crowe, has also seen the shift in attitudes than 18,000 NetSuite ERP customers when its Tis still low in the mid-market. But the con- about cloud computing. “Two or three years ago, first quarter ended on August 31, up 28 percent versation about moving to the cloud from we had clients who wouldn’t consider it. Now, they from more than 15,000 year earlier. on-premise applications has changed dramati- are going to end there,” Priller says. An impor- cally over the last two years. For most buyers tant part of the change is younger people mov- Organic Growth the question is not if they move to SaaS-based ing into decision-making positions, people for Logan Consulting has experienced growth applications, but when. whom newer technologies, especially the cloud at that fast pace. It grew to $18.5 million in rev- Even markets which have historically lagged and mobile, are part of their life experience. enue for VAR Stars up from $14.1 million, which in technology have accelerated their acceptance “They are used to it. It has been part of their it reported in its submission for Bob Scott’s Top of cloud-based applications. And this is particu- everyday life,” Priller says 100 VARs in the spring of 2018. Logan has not larly true of nonprofit organizations, according Increasing threats to data are probably an acquired any firms in that time.“It’s just organic to Jackie Tiso, CEO of Patterson, N.Y.-based equal motivator, in not more of a factor than the growth,” says CEO Jim Bertler, who leads the JMT Consulting, whose firm sells Sage Intacct generational change Priller says he has had sev- Chicago, Ill.-based firm that resells Acumatica and Abila from Community Brands into the NFP eral clients who suffered ransomware attacks in and Dynamics AX/GP and 365 Business Central. space. the last few months. Bertler says the marketing by companies that “They are really embracing technology and “That’s brutal,” he says. produce cloud-based financial software has fed the move to the cloud,” Tiso says. “Historically Because of these fears, client demand. He says the results stem from they were seven to 10 years behind. That’s not businesses have accepted “more software companies, focusing more on the the case here.” that software and Inter- cloud, and clients then following suit.” Tiso cites two reasons for the shift in the non- net-platform companies A big change has been Acumatica’s gain- profit space. One factor is an influx of people with can provide more security ing name recognition. “A few years ago, it was experience in the cloud. “So many experts and resources than then can. ‘Acu-who?’” Bertler notes. In fact, Logan spent a professionals are coming in from the for-profit “Microsoft is spending bil- few years in which Acumatica “was not gaining environment,” she says. “They expect the same lions of dollars on security. traction.” But that has changed and “they have kind of tools they had in the for-profit world.” Geoff Ashley, How can it be less secure become a significant player,” he notes. The other is the expectations of donors and Acumatica than a company that has Acumatica competes squarely with Dynamics funders to see what they money is getting. The its own servers in a closet GP, Bertler said. That includes in the manufactur- parties want to “more information and disclo- down the hall?” says Jim O’Laughlin, a Crowe ing, distribution, financial and not-for-profits sure. They want to see outcomes not just outputs,” principal who is a leader in the firm’s Enterprise sectors—“The standard businesses, it does really Tiso says. Solutions group. well there. It is a pretty broad product,” Bertler The cloud has been beneficial in helping NFPs Overall, penetration by cloud products into says. become more up-to-date in the use of technology. the midmarket is still considered low. But at all Logan has also seen increasing activity with In the past, “They couldn’t afford to hire the tech levels of business it is changing rapidly. A recent Dynamics NAV and its evolution in the cloud, in people or technology or infrastructure,” she survey by Oracle said 71 percent of utilities use Dynamics 365 Business Central. said. Because the cloud does not require such an cloud software, up from 45 percent three years “We are doing more and more NAV work,” investment in on-premise software and hardware, ago although certainly the numbers quoted for Bertler says, adding “The people who are on NAV, NFPs can be more effective in the use of funds. the midmarket are nowhere near that number. whether they like it or not they are going to BC in Cloud systems “are the great equalizers,” Tiso For the moment, there is simply a lot of demand three or four years or to another solution.” says. for all of major cloud products being sold into the Business Central, Bertler says, “is great for Increased concerns over security are also a mid-market—among them Oracle NetSuite, Sage someone with mid-market, standardized busi- factor. Where many businesses once thought Intacct, Acumatica and Dynamics 365 Business ness processes but isn’t interested in customizing Internet-based applications were less secure Central and 365 Finance and Operations. the heck out of the system. The system can do 85 than desktop software, most now see the web- The boom is shown by the percentage growth percent of that; we will go build the rest.” as a more secure place. Oracle has reported for its NetSuite business over Marty Priller, managing director for account- the last two years. Oracle said there were more continued on page 10 2 | www.erpglobalinsights.com Acumatica provides the best business management solution for transforming your company to thrive in the new digital economy. Connected Business. Delivered. Acumatica wins multiple awards from G2, the review website specializing in real-time, unbiased user reviews of business technology solutions. 2019 VAR Stars Company Headquarters Product Line Employees Revenue $M 360 Cloud Solutions Raleigh, N.C. NetSuite 35 6.5 Accordant Co. Morristown, N.J. Acumatica Sage 100, Contractor/300 CRE, Intacct 30 11.2 AccountNet New York, N.Y. Dynamics GP/SL, 365 BC 19 6.4 AcctTwo Shared Services Houston, Texas Sage Intacct 99 25 Ace Microtechnology Atlanta, Ga. Dynamics GP, 365 BC/FO 33 7.1 Acumen Information Systems Orlando, Fla. Sage 300, Intacct 15 4.2 ADSS Global Exton, Pa.; Miami, Fla. Sage 100c/300c, Intacct 158 33.8 AKA Enterprise Solutions New York, N.Y. Dynamics 365 FO 127 30 Alta Vista Technology Royal Oak, Mich. Dynamics GP, 365 BC, Sage Intacct 24 6.1 AMR Group Toronto, Ont. Deltek Vantagepoint, Vision 9 3.3 C Answer Company New Westminster, B.C. Acumatica, Sage Intacct, 100/300/500, X3 92 15 C Archerpoint Atlanta, Ga. Dynamics NAV, 365 BC 100 24 Armanino San Ramon, Calif. Dynamics AX/GP/ 365 FO, Sage Intacct 362 96.8 BAASS Business Solutions Toronto, Ont. Sage Intacct, 300, X3 155 30 BCS/ProSoft San Antonio, Texas Deltek VantagePoint, Vision, NetSuite, Sage 100c/500 45 10 Bennett Porter & Associates Tigard, Ore. Acumatica, Sage 100 19 4.1 BDO Solutions Toronto, Ont. Dynamics AX/GP/NAV, 365 BC /FO, NetSuite 200 40 Big Bang ERP Montreal, Que. FinancialForce, NetSuite, Rootstock 75 8 C Blytheco Laguna Hills, Calif. Acumatica, Sage 100/500, X3, NetSuite 100 28.3 Boyer & Associates Minneapolis, Minn. Dynamics GP/ SL, 365 BC 19 5.2 Brainsell Technologies Topsfield, Mass. Sage Intacct, 50c/100c/300c/500, X3, QBES 56 8.5 Broadpoint Bethesda, Md. Dynamics GP/NAV, 365 BC, Serenic Navigator 88 18.2 Business Technology Partners Deerfield, Ill. Sage Intacct. Syspro 46 9.9 CAL Business Solutions Harwinton, Conn. Acumatica, Dynamics GP 28 6.1 Cargas Systems Lancaster, Pa. Dynamics GP, 365 BC, Sage Intacct 135 19.8 Central Consulting Group St. Paul, Minn. Deltek Vision, Sage Intacct 48 17.5 4 | www.erpglobalinsights.com FLEXIBLE SOLUTIONS FOR YOUR CUSTOMERS Sage Business Cloud helps you build powerful solutions for your customers, while our partner program supports you in optimizing business performance and growth. The result? More predictable revenue, increased upsell opportunities, and the flexibility you and your customers need to drive business growth. Powerful solutions. Powerful outcomes. Learn more at Sage.com 2019 VAR Stars Company Headquarters Product Line Employees Revenue $M Central Data Farmington Hills, Mich. Infor Distribution (CloudSuite Distribution, SX.e and FACTS) 42 6 CliftonLarsonAllen Minneapolis, Minn. Intacct 80 39 Collins Computing Mission Viejo, Calif. Acumatica, Dynamics GP 40 14.1 E CompuData Philadelphia, Pa. Epicor, Sage Intacct, 100/500 47 10.7 Cornerstone Solutions Chicago, Ill. Acumatica, Sage 100 Contractor, 300CRE 15 3.1 Copley Consulting Group Woburn, Mass. Infor CloudSuite Industrial 65 19 Cre8tive Technology and Design San Diego, Calif. Epicor 75 12.5 Crestwood Associates Mount Prospect, Ill. Acumatica, Dynamics GP/SL, 365 BC, Greentree 54 16.1 Crowe Chicago, Ill. Dynamics AX, 365 FO, NetSuite 750 138.3 CS3 Technology Tulsa, Okla. Acumatica, Sage 100 12 2.5 Dean Dorton Allen Ford Lexington, Ky. Dynamics GP, Sage Intacct 12 4.2 DeRosa Mangold Consulting Waco, Texas Sage 100c, Intacct 10 1.2 DSD Business Systems San Diego, Calif. Acumatica, Dynamics 365, Sage Intacct, 100/300/500 150 12 DWD Technology Group Fort Wayne, Ind.
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