SaaS ERP: Glovia Services Sees Software-as-a-Service ERP Market Heating Up As More Small To Midsize Businesses Begin To Realize Its Speed To Value
Glovia Services Inc., a subsidiary of Glovia International Inc. and Fujitsu, believed to be the world's third largest IT services provider, reports that the company has experienced a steady rise i n acce ptance of the concept of Software-as-a-Service (SaaS) Enterprise Resource Planning (ERP). This increasing popularity of SaaS ERP is especially prevalent among smaller, growth-oriented manufacturing companies. With the launch of its GSInnovate Solution six months ago, Glovia Services was an early-market innovator, with its completely web-based ERP application suite designed specifically for small to midsize businesses (SMBs). Until then, the SaaS delivery model had been limited mainly to sales force automation (SFA) and customer relationship management (CRM) applications.
According to Randy Ehler, Glovia Services' president, "What we found is that there is a tremendous need in the SMB market sector that has long been unfulfilled. Start-ups and growth-oriented smaller companies recognize the value that a fully integrated ERP system can provide in terms of competitive edge, but few SMBs have the financial resources and technological expertise to implement a system that will serve their current needs, and be capable of scaling with the business as it grows.
"The emergence of SaaS ERP has dramatically changed this picture," continues Ehler. "With SaaS, a manufacturer can reap all the business benefits of a full-featured ERP system while eliminating the traditional entry barriers, such as technology infrastructure expense, high licensing and maintenance fees, lengthy implementations - and the need to invest in and manage an IT department to run the network and software system."
GSInnovate Clients Speak Out About SaaS
Two SMB manufacturers that enthusiastically endorse Glovia Services' Software-as-a-Service delivery approach are SA Baxter of Chester, N.Y., and Prime Finish of Paris, Ky.
SA Baxter: SaaS is the next 'killer app'
SA Baxter www.sabaxter.com is a build-to-order manufacturer of architectural hardware for high-end residences and business facilities.
Situated in the Hudson River Valley about 70 miles north of New York City, the company makes custom designed metal-worked door, window and cabinet hardware in a wide variety of finishes. The firm, which was recently featured in Forbes Life magazine, has experienced rapid growth since its founding 18 months ago, and has aggressive growth plans for its future.
SA Baxter founder and CEO Scott Baxter sought to replace a rigid legacy enterprise system with a fully scalable ERP suite that would provide deeper financial management and accounting capabilities, as well as greater flexibility in adapting to the company's business processes, one of which is contract-driven progressive customer billing.
"Before selecting GSInnovate, we weighed the licensed software approach against the SaaS approach relative to cost, time, maintenance and total cost of ownership. SaaS emerged as the clear winner," says Baxter. "With GSInnovate, we are getting a 'big company' ERP system and secure technology infrastructure at a small company price, with the confidence that the system will scale with us on Glovia Services' pay-as-you-grow basis. In my opinion, from both a business and technology point of view, SaaS is the next 'killer app.'"
Prime Finish: TCO was the key decision factor
Prime Finish www.PrimeFinish.com manufactures and finishes a diverse array of products and components for customers in the Automotive OEM, Consumer Electronics and Medical industries. The firm supports a large manufacturing facility in Paris, Ky., complete with state-of-the-art robotic painting, water-transfer printing and drying equipment.
Prime Finish's evolution from process manufacturing to include make-to-order discrete manufacturing drove the one-year-long search for a new ERP system. According to company president Tim Stout, "The biggest factor in our selection of GSInnovate was total cost of ownership. When we compared the upfront cost of a traditional ERP system, combined with hardware, installation, annual maintenance and product updates, the decision for SaaS ERP was easy. In addition, the fact that our data is stored in a secure data center was an important factor for auditing purposes. We are a small business with no IT department. We wanted a solution that allows us to streamline our business processes from end to end and GSInnovate does just that."
Glovia Services, Inc.
Glovia Services Inc. is a subsidiary of Glovia International Inc. and Fujitsu, the world's third largest IT services provider. GSInnovate from Glovia Services is the market's first Web-based ERP solution designed specifically for small to midsize manufacturers. Its integrated set of applications addresses key areas to improve overall business operations. GSInnovate puts ERP within reach, offering quick value with no upfront investment and predictable, affordable costs going forward. GSInnovate is differentiated from c ommodi ty solutions by Glovia Services' 30-year heritage in manufacturing and technology. Its highly skilled team understands the manufacturing market and the specific challenges faced by small businesses-ensuring the solution delivers the expected business performance. For more information please visit www.gsinnovate.com, or call 310-563-8700 or 877-474-8896 (toll free).
SOURCE: Glovia Services, Inc.