2012 Bob Scott’s Insights Ranking Company City State Revenue Empl. Product Lines

1 Tectura San Mateo Calif. 285* 1600 Dynamics AX/GP/NAV/SL 2012 BSI TOP 2 Columbus Copenhagen Denmark 145.8 920 Dynamics AX/NAV 3 Tribridge Tampa Fla. 100 450 Dynamics AX/GP/NAV/SL

4 McGladrey Minneapolis Minn. 77.74 325 Deltek Premier, Dynamics AX/GP/ SL, Intacct, NetSuite

100 VARS 5 Professional Advantage Fargo N.D. 42 225 Dynamics AX/GP, Infor SunSystems

For resellers, 2011 was not quite the 6 Crowe Horwath Chicago Ill. 38.1 180 Dynamics AX/GP “Year of the Cloud” But from the Selection of the Top 100 The ranking of the Top 100 midmarket reselling firms is based solely on trends and the talk of the chan- annual revenue. However, where reported revenue of candidates was 7 Wipfli Milwaukee Wis. 35 232 Dynamics AX/GP, Sage Fund Accounting nel, we are not far away. In the equal, then the number of employees was the tie-breaker. The company 2011 listing of the Top 100 VARs, with fewer employees ranked higher since it had higher revenue per 8 Net@Work New York N.Y. 30 145 Sage 100/300/500, Sage Pro, X3 there were 11 that carried Internet- employee. based financial applications; this Few of the companies chosen or considered are public companies 9 Alfapeople Copenhagen Denmark 28.5 260 Dynamics AX year there were 23 and it seems that report results. These are SWK Technologies, through its parent likely more will be coming in next SilverSun Technologies and Columbus, formerly known Columbus year’s list. IT Partner. Other revenue figures were submitted by the companies 10 Armanino McKenna Sunnyvale Calif. 27.92 115 Dynamics AX/GP, Intacct, Sage Fund Accounting themselves. In cases in which resellers declined to provide revenue, estimates were made. Factors utilized in estimating include the One will be Laguna 11 Blytheco Laguna Hills Calif. 24 120 BusinessWorks, Sage 100/300/500, Sage Fund Accounting, Sage Pro, X3 number of employees reported and the typical selling prices of the Hills, Calif.-based products they carry. Other publicly available source of information Blytheco, which is were included and some information provided for Bob Scott’s VAR 12 BKD Technologies Springfield Mo. 23 82 Dynamics AX/GP, Sage 100/500, X3 among the largest Star selection last fell was also used. resellers for Sage 13 Sikich Naperville Ill. 22.6 100 Business ByDesign, Dynamics GP/NAV/SL, Epicor, Sage Fund Accounting North America and a perennial All companies considered carry products other than financial software, and revenue from those products is included the totals reported here. award winner. Like many resellers in both the Sage and Microsoft 14 Western Computer Oxnard Calif. 22* 100 Dynamics AX/NAV channels, owner Steve Blythe re- Guides to products listed cently decided to carry SugarCRM, 15 ADSS Global Miami Fla. 21.7 110 Sage 100/300, Fund Accounting, Sage Pro the open-source cloud-based The chart of products in the Top 100 includes companies that have CRM package. multiple products. Names and any abbreviations used are shown here. 16 FullScope Athens Ala. 20.9* 117 Dynamics AX Single names shown here indicate the company and product name is the same. “It was our first entry into more of 17 Socius Dublin Ohio 19.3 90 Dynamics AX/GP/SL/NAV, Sage 100/500, Syspro a SaaS market,” he said. Blythe Products: believes Sage is moving from a 18 Rand Group Houston Texas 19.2 71 Dynamics AX/GP/NAV, Timberline Office best-of-breed strategy to one of AccountMate: AccountMate LAN, AccountMate SQL integrating SageCRM into an ERP Acumatica: 19 Broadpoint Technologies Bethesda Md. 17.6 90 Dynamics AX/GP suite. He wants to build a practice Cyma Systems: Cyma on a standalone CRM offering and Deltek: Maconomy, Premier, Vision also likes SugarCRM because he 20 Sunrise Technologies Winston-Salem N.C. 17.6 100 Dynamics AX said the company adds new fea- Epicor: Epicor 9 Intacct tures and functionality regularly. Intuit: QuickBooks Enterprise Solutions (QBES) 21 IBIS Norcross Ga. 17.3 80 Dynamics AX/GP Microsoft: Dynamics AX, GP, NAV and SL, RMS With SugarCRM as a first step, the Open Systems: Open Systems Accounting Software, 22 SBS Group Woodbridge N.J. 16 145 Acumatica, Deltek Vision, Dynamics AX/GP/NAV/SL, Sage 500, Sage PFW second step into the cloud is not Traverse far behind. Blythe said he would Sage: Sage’s new product names are used in the chart. The old names followed 23 SCS Dynamics Santa Monica Calif. 16 60 Dynamics AX/NAV probably add two SaaS products by the new ones as follows: MAS 90/200, Sage 100; Accpac, Sage 300; MAS 500, over the next 90 days; one of them Sage 500. Products with unchanged names: BusinessWorks, BusinessVision, 24 Aktion Associates Maumee Ohio 14.1 90 Deltek Vision, Intacct, MasterBuilder, Timberline an accounting package and the Peachtree Master Builder, Quantum, Sage PFW, Sage Pro, X3, Timberline other human resources. SAP: Business One, Business ByDesign 25 Clients First Business Solutions Holmdel N.J. 14.1 76 Dynamics AX/NAV, Epicor, Sage 100 Serenic: Serenic Navigator Syspro But the spread of Internet-based TIW Corp.: Alere *Estimate products was only one trend that

1 | www.bobscottsinsights.com 2012

Ranking Company City State Revenue Empl. Product Lines

1 Tectura San Mateo Calif. 285* 1600 Dynamics AX/GP/NAV/SL

2 Columbus Copenhagen Denmark 145.8 920 Dynamics AX/NAV

3 Tribridge Tampa Fla. 100 450 Dynamics AX/GP/NAV/SL

4 McGladrey Minneapolis Minn. 77.74 325 Deltek Premier, Dynamics AX/GP/ SL, Intacct, NetSuite

5 Professional Advantage Fargo N.D. 42 225 Dynamics AX/GP, Infor SunSystems

6 Crowe Horwath Chicago Ill. 38.1 180 Dynamics AX/GP

7 Wipfli Milwaukee Wis. 35 232 Dynamics AX/GP, Sage Fund Accounting

8 Net@Work New York N.Y. 30 145 Sage 100/300/500, Sage Pro, X3

9 Alfapeople Copenhagen Denmark 28.5 260 Dynamics AX

10 Armanino McKenna Sunnyvale Calif. 27.92 115 Dynamics AX/GP, Intacct, Sage Fund Accounting

11 Blytheco Laguna Hills Calif. 24 120 BusinessWorks, Sage 100/300/500, Sage Fund Accounting, Sage Pro, X3

12 BKD Technologies Springfield Mo. 23 82 Dynamics AX/GP, Sage 100/500, X3

13 Sikich Naperville Ill. 22.6 100 Business ByDesign, Dynamics GP/NAV/SL, Epicor, Sage Fund Accounting

14 Western Computer Oxnard Calif. 22* 100 Dynamics AX/NAV

15 ADSS Global Miami Fla. 21.7 110 Sage 100/300, Fund Accounting, Sage Pro

16 FullScope Athens Ala. 20.9* 117 Dynamics AX

17 Socius Dublin Ohio 19.3 90 Dynamics AX/GP/SL/NAV, Sage 100/500, Syspro

18 Rand Group Houston Texas 19.2 71 Dynamics AX/GP/NAV, Timberline Office

19 Broadpoint Technologies Bethesda Md. 17.6 90 Dynamics AX/GP

20 Sunrise Technologies Winston-Salem N.C. 17.6 100 Dynamics AX

21 IBIS Norcross Ga. 17.3 80 Dynamics AX/GP

22 SBS Group Woodbridge N.J. 16 145 Acumatica, Deltek Vision, Dynamics AX/GP/NAV/SL, Sage 500, Sage PFW

23 SCS Dynamics Santa Monica Calif. 16 60 Dynamics AX/NAV

24 Aktion Associates Maumee Ohio 14.1 90 Deltek Vision, Intacct, MasterBuilder, Timberline

25 Clients First Business Solutions Holmdel N.J. 14.1 76 Dynamics AX/NAV, Epicor, Sage 100

*Estimate

2 | www.bobscottsinsights.com Ranking Company City State Revenue Empl. Product Lines

26 BDO Solutions Waterloo Ontario 14 70 Dynamics GP/NAV

27 Aztec Systems Carrollton Texas 13.9 70 Dynamics GP/NAV, Sage 100

28 Archerpoint Atlanta Ga. 12.45 62 Dynamics NAV

29 Interdyn BMI Minneapolis Minn. 12.1 65 Dynamics AX/GP, Intacct, Opens Systems, Traverse

30 Collins Computing Mission Viejo Calif. 11.9* 43 Dynamics AX/GP

31 Interdyn AKA New York City N.Y. 11 45 Dynamics AX/GP

32 NexTec Operating Corp. Seattle Wash. 10.78 45 Dynamics GP/SL, Sage 500, X3

33 LBMC Technologies Nashville Tenn. 10.7 45 Dynamics GP/SL, Intacct

34 SWK Technologies Livingston N.J. 10.5 48 BusinessWorks, Sage 100/500, X3

35 Acumen Advisors Reston Va. 9.8 30 Deltek Premier, Vision

36 BCG Systems Akron Ohio 8.4 38 Dynamics GP, NetSuite, Sage 500

37 BAASS Business Solutions Thornhill Ontario 8.3 44 BusinessVision, Sage 100, X3 ERP

38 Saratoga Technologies Johnson City Tenn. 8.3 64 Dynamics GP

39 Central Consulting Group Minneapolis Minn. 8 30 Deltek Vision, Intacct

40 Omnivue Business Solutions Alpharetta Ga. 8 30 Dynamics AX/GP/NAV

41 SIS Duluth Ga. 8 33 Dynamics SL

42 MIG & Co. New York N.Y. 7.55 35 Dynamics GP/SL, NetSuite

43 FMT Consultants Carlsbad Calif. 7.5 34* Dynamics AX/GP

44 Accordant Whippany N.J. 7.25 29 MasterBuilder, Timberline

45 Navigator Business Solutions Pleasant Grove Utah 7.2 50 SAP All-in-One, Business One, Business ByDesign

46 DSD Business Systems San Diego Calif. 7.12 66 Sage 100/300/500

47 Explore Consulting Bellevue Wash. 7.1 44 NetSuite

48 First Tech Direct Royal Oak Mich. 7 42 Dynamics AX/GP/SL

49 SVA Consulting Madison Wis. 7 28 Acumatica, Dynamics GP/NAV/SL

50 Cargas Systems Lancaster Pa. 6.5 45 Dynamics AX/GP, Intacct

*Estimate 2012

Ranking Company City State Revenue Empl. Product Lines

26 BDO Solutions Waterloo Ontario 14 70 Dynamics GP/NAV

27 Aztec Systems Carrollton Texas 13.9 70 Dynamics GP/NAV, Sage 100

28 Archerpoint Atlanta Ga. 12.45 62 Dynamics NAV

29 Interdyn BMI Minneapolis Minn. 12.1 65 Dynamics AX/GP, Intacct, Opens Systems, Traverse

30 Collins Computing Mission Viejo Calif. 11.9* 43 Dynamics AX/GP

31 Interdyn AKA New York City N.Y. 11 45 Dynamics AX/GP

32 NexTec Operating Corp. Seattle Wash. 10.78 45 Dynamics GP/SL, Sage 500, X3

33 LBMC Technologies Nashville Tenn. 10.7 45 Dynamics GP/SL, Intacct

34 SWK Technologies Livingston N.J. 10.5 48 BusinessWorks, Sage 100/500, X3

35 Acumen Advisors Reston Va. 9.8 30 Deltek Premier, Vision

36 BCG Systems Akron Ohio 8.4 38 Dynamics GP, NetSuite, Sage 500

37 BAASS Business Solutions Thornhill Ontario 8.3 44 BusinessVision, Sage 100, X3 ERP

38 Saratoga Technologies Johnson City Tenn. 8.3 64 Dynamics GP

39 Central Consulting Group Minneapolis Minn. 8 30 Deltek Vision, Intacct

40 Omnivue Business Solutions Alpharetta Ga. 8 30 Dynamics AX/GP/NAV

41 SIS Duluth Ga. 8 33 Dynamics SL

42 MIG & Co. New York N.Y. 7.55 35 Dynamics GP/SL, NetSuite

43 FMT Consultants Carlsbad Calif. 7.5 34* Dynamics AX/GP

44 Accordant Whippany N.J. 7.25 29 MasterBuilder, Timberline

45 Navigator Business Solutions Pleasant Grove Utah 7.2 50 SAP All-in-One, Business One, Business ByDesign

46 DSD Business Systems San Diego Calif. 7.12 66 Sage 100/300/500

47 Explore Consulting Bellevue Wash. 7.1 44 NetSuite

48 First Tech Direct Royal Oak Mich. 7 42 Dynamics AX/GP/SL

49 SVA Consulting Madison Wis. 7 28 Acumatica, Dynamics GP/NAV/SL

50 Cargas Systems Lancaster Pa. 6.5 45 Dynamics AX/GP, Intacct

*Estimate

4 | www.bobscottsinsights.com Ranking Company City State Revenue Empl. Product Lines

51 CompuData Philadelphia Pa. 6.4 28 Epicor, QBES, Sage 100/500

52 Mibar.net New York N.Y. 6.4 27 AccountMate SQL, Dynamics GP/RMS

53 TM Group Farmington Hills Mich. 6.4 38 Dynamics GP/NAV/SL

54 WAC Consulting Northborough Mass. 6.4 52 AccountMate, Alere, Business One, Business ByDesign, Dynamics GP,

Peachtree Quantum, Sage 100/300/500, Sage Fund Accounting, Sage Pro

55 Alliance Solutions Group Brandon Fla. 6.3* 39 MasterBuilder, Timberline

56 Vision33 Oxnard Calif. 6.2* 44 Business One, Business ByDesign

57 Symbiant Technologies Maplewood Minn. 6.1 21 Dynamics NAV

58 ISM Phoenix Ariz. 6 35 Sage 100/300/500, X3

59 Interdyn Lanac Chicago Ill. 6 25 Dynamics GP

60 ABC Computers Waupaca Wis. 5.82 35 Dynamics NAV

61 Arxis Technology Simi Valley Calif. 5.7 23 Business ByDesign, Intacct, Sage 100/300/500

62 AVF Consulting Baltimore Md. 5.7 26 Dynamics NAV, Serenic Navigator

63 Encore Business Solutions Winnipeg Manitoba 5.7 32 Dynamics AX/GP

64 Resource Group Renton Wash. 5.66 26 Dynamics GP

65 RKL eSolutions Lancaster Pa. 5.6 28 Sage 100/300/500, X3

66 Southeast Computer Solutions Miami Fla. 5.6 24 Sage 100/300/500, X3

67 Technology Management Concepts Los Angeles Calif. 5.6 21 Dynamics GP/NAV, NetSuite

68 BCS ProSoft San Antonio Texas 5.5 32 Deltek Vision, Sage 100/500

69 Demand Solutions Group Los Gatos Calif. 5.4 35 NetSuite

70 Queue Associates New York N.Y. 5.3 21 Dynamics AX/GP/SL

71 Kerr Consulting & Support The Woodlands Texas 5.2 27 AccountMate, Cyma, Sage 300, Sage Fund Accounting, Sage Pro

72 Dynamic Methods Irvine Calif. 5.1 26 Dynamics GP

73 Interdyn Artis Charlotte N.C. 5 23 Dynamics GP, Intacct

74 SSI Consulting McLean Md. 5 22 Dynamics GP/SL, Serenic Navigator

75 Accountnet New York N.Y. 4.9 26 Acumatica, Dynamics GP/SL *Estimate 2012

Ranking Company City State Revenue Empl. Product Lines

51 CompuData Philadelphia Pa. 6.4 28 Epicor, QBES, Sage 100/500

52 Mibar.net New York N.Y. 6.4 27 AccountMate SQL, Dynamics GP/RMS

53 TM Group Farmington Hills Mich. 6.4 38 Dynamics GP/NAV/SL

54 WAC Consulting Northborough Mass. 6.4 52 AccountMate, Alere, Business One, Business ByDesign, Dynamics GP,

Peachtree Quantum, Sage 100/300/500, Sage Fund Accounting, Sage Pro

55 Alliance Solutions Group Brandon Fla. 6.3* 39 MasterBuilder, Timberline

56 Vision33 Oxnard Calif. 6.2* 44 Business One, Business ByDesign

57 Symbiant Technologies Maplewood Minn. 6.1 21 Dynamics NAV

58 ISM Phoenix Ariz. 6 35 Sage 100/300/500, X3

59 Interdyn Lanac Chicago Ill. 6 25 Dynamics GP

60 ABC Computers Waupaca Wis. 5.82 35 Dynamics NAV

61 Arxis Technology Simi Valley Calif. 5.7 23 Business ByDesign, Intacct, Sage 100/300/500

62 AVF Consulting Baltimore Md. 5.7 26 Dynamics NAV, Serenic Navigator

63 Encore Business Solutions Winnipeg Manitoba 5.7 32 Dynamics AX/GP

64 Resource Group Renton Wash. 5.66 26 Dynamics GP

65 RKL eSolutions Lancaster Pa. 5.6 28 Sage 100/300/500, X3

66 Southeast Computer Solutions Miami Fla. 5.6 24 Sage 100/300/500, X3

67 Technology Management Concepts Los Angeles Calif. 5.6 21 Dynamics GP/NAV, NetSuite

68 BCS ProSoft San Antonio Texas 5.5 32 Deltek Vision, Sage 100/500

69 Demand Solutions Group Los Gatos Calif. 5.4 35 NetSuite

70 Queue Associates New York N.Y. 5.3 21 Dynamics AX/GP/SL

71 Kerr Consulting & Support The Woodlands Texas 5.2 27 AccountMate, Cyma, Sage 300, Sage Fund Accounting, Sage Pro

72 Dynamic Methods Irvine Calif. 5.1 26 Dynamics GP

73 Interdyn Artis Charlotte N.C. 5 23 Dynamics GP, Intacct

74 SSI Consulting McLean Md. 5 22 Dynamics GP/SL, Serenic Navigator

75 Accountnet New York N.Y. 4.9 26 Acumatica, Dynamics GP/SL *Estimate 6 | www.bobscottsinsights.com In the cloud, VARs are strategic.

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Learn more at www.netsuite.com/SP100 2012 Bob Scott’s Insights was noticeable among the 100 so that they do not bid against firms selected and others that each other in deals, as often hap- There was anecdotal evidence submitted information for consid- pens in the Microsoft channel. “We that there were more resellers eration. Among these were the think we are 60 percent of the way on the show floor at Microsoft following. there,” Macdonald said. Intacct is Convergence that were exhibit- continuing to add about 10 new ing their own software products. *Addition of the higher-priced Dy- VARs a quarter. And whether that conclusion is namics AX and Sage X3 to prod- justified or not, specialization uct lines There is no shortage of candidates. is something major publishers *Blurring of the lines between re- He receives a steady stream of have been urging upon their sellers and ISVs. requests from resellers, including channels. *Escalation in the interest in CRM many too small to handle the by VARs like Blytheco. product. Macdonald said most Before he left Microsoft, former are used to simply paying a fee Great Plains CEO Doug Burgum It’s not just the number of resellers and signing up in a channel pro- advised resellers to develop picking up cloud products that gram. But Intacct is not accepting their own products or increas- shows the trend—it’s the identi- all comers. ingly find themselves compet- ties of those doing so. Intacct has ing with the vendor. done by far the best job in signing The same moti- up numbers. And its ability to pick vation that led And for the largest dealers, up three members of the Inter- Microsoft VARs selling their own software is a dyn Consortium, usually Microsoft to add prod- major part of the business. In loyalists, showed the demand for ucts from other March, Tectura said it would Internet-based financial products. companies in start selling its software through Then there are heavyweight CPA 2011 spurred the Dynamics channel, not just firms like McGladrey which picked Stijn Hendrikse, who had very through the Tectura resellers, up both NetSuite and Intacct. prominent marketing jobs at Mi- starting with its life sciences crosoft, to join Acumatica where products. Columbus has a Intacct has been effective in sign- he was just made chief marketing strong development arm in its ing up CPA firms and their consult- officer. ToIncrease subsidiary. And from ing and reselling affiliates because largest to smallest, the distinc- of its alliance with the American Hendrikse said there have been tion between reseller and in- Institute of CPAs. NetSuite has fewer several barriers preventing the dependent software vendor is VARs in this list, but generally those big vendors from moving to cloud blurring. are larger ones, while Acumatica, computing. “It’s something com- with its Solomon roots, has picked panies like Microsoft don’t have The need to add value to a up many Dynamics SL VARs. SAP the will or bandwidth to focus on,” financial package has not seems to have seen some erosion Hendrikse said. He continued that changed, said Intacct’s Mac- in the Business ByDesign channel, there is an incentive for compa- donald. but appears to be doing well. nies not to be innovative with fi- nancial applications. “It’s a secret a lot of people One reason for have finally figured out,” he said. Intacct’s success “Microsoft suffers from that as well,” Many resellers, he said, started is the efforts of he commented. “It is so easy to selling their own applications channel veteran make money on maintenance because they found their ac- Taylor Macdon- and not change.” counting software package ald, VP of chan- lacked a necessary feature. “For nel sales, and Not only had Acumatica invested most of the people, it was ‘I was through a prod- in new platforms over the last few using Dynamics and I wrote it uct that even re- years, Hendrikse said, but it had so now I resell it,’” he said. sellers who have considered, but focused on a limited number of not picked up it, say is good. verticals, while also staying with Intacct does not distinguish a pure partner model. between resellers and ISVs in Macdonald’s strategy has been to its channel, according to Mac- be selective in recruiting dealers The move to specialization has donald.

8 | www.bobscottsinsights.com 2012 Bob Scott’s Insights Ranking Company City State Revenue Empl. Product Lines also been a force among resellers. March, Doug Ken- One development that did not 76 e2b Technologies Chardon Ohio 4.82 31 Epicor, Intacct, Sage 500 And in many ways, the traditional nedy , VP of Dynam- impact this year’s list was the Mi- VARs are moving towards a model ics partners, out- crosoft Master VAR program. Under 77 Practical Software Solutions Concord N.C. 4.8 22 Master Builder, Sage 100/500, X3, Timberline Office that CPA firms understand, industry lined the reasons for that program, three Master VARs focus. program changes. have been authorized to recruit 78 Altico Advisors Marlborough Mass. 4.75 25 Dynamics GP While he said that sales affiliates that are resellers that “The real core of added value is wholesale cuts of maintain their independence, but 79 L. Kianoff & Associates Birmingham Ala. 4.65 21 Dynamics GP, Intacct, Sage 100/500 the vertical knowledge,” said Hen- dealers were not the goal, chang- sell under the larger company’s drikse. “It’s not the installation of es were necessary. “We needed brand. At the same time, Microsoft 80 NexVue Information Systems Stamford Conn. 4.6 15 Acumatica, Dynamics GP/SL servers.” to adjust the ecosystem,” said began cracking down on buying Kennedy. “Microsoft loved all the groups, organizations that banded While SAP seems partners all the same. Everybody together simply to get better pric- 81 Rose Business Solutions San Diego Calif. 4.5 18 Dynamics GP to have stalled in got paid the same regardless of ing on product purchases recruitment ef- performance.” 82 Third Wave Business Systems, Wayne N.J. 4.49* 36 Business One, Dynamics GP forts for its cloud Microsoft spent much of last year product, Business As Kennedy described it, Dy- discussing how it would try to keep 83 JMT Consulting Group Patterson N.Y. 4.48 22 Intacct, Sage Fund Accounting ByDesign, it still namics resellers had received smaller resellers operating. It toyed has a strong ad- roughly the same discounts and with implementing a franchise pro- 84 Brittenford Systems Reston Va. 4.4 20 Dynamics GP/SL, Intacct vocate in David margins regardless of whether gram and seemed likely to imple- ment that. In fact, there were VARs Cieslak , a principal of Simi Valley, they increased license revenue. 85 Sererra Consulting Group Irvine Calif. 4.2 35 Business ByDesign, Intacct, NetSuite Calif.-based Arxis Technology. The Certifications were handed out who invested thousands into that firm recently took on Intacct and like candy until nearly 70 percent effort only to see Microsoft decide 86 Martin & Associates Cincinnati Ohio 4.1 20 Business Works, Dynamic GP, Intacct, QBES, Sage 100/500 Cieslak said there is good activity of VARs had achieved Gold-level franchising would not be adopted. in the pipeline for both products. status. That is now down to about 20 percent. “It [Gold certifica- After months of discussion, Micro- 87 Applied Business Services Gaithersburg Md. 4 16 Open Systems, Sage Fund Accounting, Traverse “We are still positioning ByDesign tion] means something again,” soft rolled out the new program in as the higher-end solution with he commented.” January. Of the three Master VARs 88 Synergy Business Systems Portland Ore. 4 21 Dynamics SL, Intacct Intacct as the logical product for chosen, Miami-based Tribridge has those migrating from QuickBooks,” A major problem was some signed one affiliate and Columbus, 89 Isis Richmond Va. 3.85 25 Dynamics GP/SL he said. Microsoft VARs lived off mainte- Ohio-based Interdyn Socius has nance revenue. “They got very signed none. Only the third, the 90 SGS Technology Group Ogden Utah 3.85 17 Business ByDesign, Sage 100/500 That stream of candidates seen poor at selling; very poor at SBS Group, headquartered in Edi- by Macdonald is being driven by implementing,” Kennedy con- son, N.J., has picked several and 91 Interdyn CFO Consulting Orlando Fla. 3.8 15 Dynamics GP/NAV, Intacct, Serenic Navigator developments in the channels of tinued. However, the new require- it was on the acquisition path for the two companies that have the ments do not simply take away similar kinds of resellers in 2011. The largest number of resellers: Micro- margin from the channel. There result was SBS grew to $16 million 92 Cornerstone Consulting Tampa Fla. 3.75 21 Business One, Sage Pro soft and Sage. Microsoft has spent is opportunity, according to Ken- in 2011, compared to $10 million much of the last two years telling nedy. “If they are driving growth in 2010 without the benefit of the 93 Raffa Washington D.C. 3.7 22 Dynamics GP/SL, Intacct its channel that it was increasing they can actually make more new program requirements and that many VARs money,” he said. “We separated 94 Merit Solutions Wheaton Ill. 3.6 26 Dynamics AX/GP would not make the cut. license performance from main- CONSOLIDATION tenance.” There was not much significant 95 MicroAccounting Solutions Dallas Texas 3.5 17 BusinessWorks, Sage 100/500 While Microsoft seems to have re- consolidation among the Top 100 firms during much of last year. treated from a statement at Con- Kennedy said some organiza- 96 Stanley Stuart Yoffee & Hendrix Orlando Fla. 3.5 15 Acumatica, Dynamics GP/NAV/SL vergence 2010 by Jeff Edwards, tions decided not to meet re- There continued to be consider- director of channel strategy, that quirements and that many of able activity in larger firms buying 97 Tamlin Software Consultants Dallas Texas 3.4* 15 AccountMate it would de-authorize as many as those were operating part-time small ones. 650 resellers from its North Ameri- businesses.“We have seen a shift can channel, the prospect of downward in the total number The one exception was when 98 Boyer & Associates Minneapolis Minn. 3.2 14 Dynamics AX/SP/SL new mandates from its program of partners,” he said, although Grace-Hunt, a Massachusetts pushed many resellers from the he did not provide numbers. The reseller with about $6.7 million in 99 Paradigm Technology Consulting Allentown N.J. 3.2 18 Dynamics GP market. economy drove some consoli- revenue joined the SBS Network dation while the new program last year. Grace-Hunt had been 100 Equation Technologies Richmond Hill Ontario 3.1 16 Deltek Vision, Intacct, Sage 300 In an interview at the company’s convinced others to exit. No. 48 on the 2011 Top VAR list. Convergence conference in *Estimate

9 | www.bobscottsinsights.com 2012

Ranking Company City State Revenue Empl. Product Lines

76 e2b Technologies Chardon Ohio 4.82 31 Epicor, Intacct, Sage 500

77 Practical Software Solutions Concord N.C. 4.8 22 Master Builder, Sage 100/500, X3, Timberline Office

78 Altico Advisors Marlborough Mass. 4.75 25 Dynamics GP

79 L. Kianoff & Associates Birmingham Ala. 4.65 21 Dynamics GP, Intacct, Sage 100/500

80 NexVue Information Systems Stamford Conn. 4.6 15 Acumatica, Dynamics GP/SL

81 Rose Business Solutions San Diego Calif. 4.5 18 Dynamics GP

82 Third Wave Business Systems, Wayne N.J. 4.49* 36 Business One, Dynamics GP

83 JMT Consulting Group Patterson N.Y. 4.48 22 Intacct, Sage Fund Accounting

84 Brittenford Systems Reston Va. 4.4 20 Dynamics GP/SL, Intacct

85 Sererra Consulting Group Irvine Calif. 4.2 35 Business ByDesign, Intacct, NetSuite

86 Martin & Associates Cincinnati Ohio 4.1 20 Business Works, Dynamic GP, Intacct, QBES, Sage 100/500

87 Applied Business Services Gaithersburg Md. 4 16 Open Systems, Sage Fund Accounting, Traverse

88 Synergy Business Systems Portland Ore. 4 21 Dynamics SL, Intacct

89 Isis Richmond Va. 3.85 25 Dynamics GP/SL

90 SGS Technology Group Ogden Utah 3.85 17 Business ByDesign, Sage 100/500

91 Interdyn CFO Consulting Orlando Fla. 3.8 15 Dynamics GP/NAV, Intacct, Serenic Navigator

92 Cornerstone Consulting Tampa Fla. 3.75 21 Business One, Sage Pro

93 Raffa Washington D.C. 3.7 22 Dynamics GP/SL, Intacct

94 Merit Solutions Wheaton Ill. 3.6 26 Dynamics AX/GP

95 MicroAccounting Solutions Dallas Texas 3.5 17 BusinessWorks, Sage 100/500

96 Stanley Stuart Yoffee & Hendrix Orlando Fla. 3.5 15 Acumatica, Dynamics GP/NAV/SL

97 Tamlin Software Consultants Dallas Texas 3.4* 15 AccountMate

98 Boyer & Associates Minneapolis Minn. 3.2 14 Dynamics AX/SP/SL

99 Paradigm Technology Consulting Allentown N.J. 3.2 18 Dynamics GP

100 Equation Technologies Richmond Hill Ontario 3.1 16 Deltek Vision, Intacct, Sage 300

*Estimate

10 | www.bobscottsinsights.com 2012 Bob Scott’s Insights

But the pace appeared to pick Growth contin- up in December when Tribridge ues strong this acquired ePartners, which had year, according been the first reselling organiza- to Chris Moore tion to attempt large-scale con- , the partner in solidation of the channel. Both charge of the were Top 100 firms. The deal, Dynamics prac- apparently funded by millions tice. He said first in venture capital raised by Trib- quarter revenue was probably ridge, pushed Tribridge up the list 70-percent higher than the year significantly as it had about $60 earlier quarter and the consult- million in 2010 revenue and eP- ing group expects to end 2012 artners was at roughly $36 million. with 25 percent more income Bob Scott has been informing The organization topped $100 and entertaining the mid- than in 2011. million last year. market financial software company with his email “It’s a combination of doing the Another large combination hap- newsletters for 13 years. And right things,” Moore said. “On pened in January when Copen- he has been covering this the systems side, we have seen hagen-based Columbus (former- market through print and pent-up demand for systems in- ly known as Columbus IT Partner), Internet-based publications tegration and customization for acquired the Detroit area’s First for more than 20 years, our customers.” Meanwhile, the Tech Direct, a $7 million-dollar first as technology editor release of Dynamics AX 2012 and business. Columbus described of Accounting Today and a new version of Dynamics CRM the purchase as helping it grow in then for 12 years as the editor is fueling interest. the manufacturing market. A less of the former Accounting planned consolidation occurred Technology. He has been The new version of AX means “we this year as SWK Technologies ac- executive editor of The are now competing toe-to-toe quired Hightower, a Chicago-area Progressive Accountant and with Oracle and SAP,” he said. Sage dealer that had closed its Bob Scott’s Insights since The company won 10 new deals doors because of financial woes. August 2009 during the quarter. Out of the 115 people in the consulting or- It seems probable that growth in ganization, 90 of them are in the the top tier of resellers will spur Top 100 in 2011, then Armanino Dynamics practice. competitors to work to gain scale. McKenna Consulting of Sunny- And the deal has SWK posed to vale, Calif., was the biggest gain- Armanino has also taken on In- move up in the Sage channel er. The accounting firm arm saw tacct and much of that effort for 2012. its revenue jump to just under $28 goes into providing outsourced million for 2011, a 62-percent in- accounting services to nonprofits. SWK had jumped to $10.5 million crease from $17.2 million for 2010. But is also being positioned as a in revenue for 2011, compared to package for companies that are $7.5 million for 2010 as it benefit- There was a lot more going on too small for Dynamics GP. ted from sales of X3 software, the at Armanino than accounting highest-priced ERP package in software last year. It expanded its “As they grow, we might sell them the Sage lineup. SWK stands to QlikView practice with the acqui- GP. If they get larger, we might sell add another $3 million from the sition of Factory Information Man- them AX,” Moore said. Hightower assets if it can hang agement Solutions and hired a on to those customers. If it can new head of the Dynamics CRM Strong, although not as dramatic, achieve the same revenue level business. That part of the opera- has been the growth of Sage for each of the quarters as it did tion expanded in February with reseller DSD Business Systems of in the last quarter of 2011, the the acquisition of Portland, Ore.- San Diego. It has grown by accu- company could approach $15 based Gateway Solutions, a CRM mulating several small Sage VARs million for 2012. reseller. In 2011, it also became to form a national operation. Its a Certified Partner for Axonom, $7.12 million reported for 2011 If Hightower suffered the biggest enabling it to sell that company’s was up from an estimated $5.9 fall of an organization from the CRM enhancement, PowerTrak. million for 2010.

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