Sifting Through All the ERP Solutions

The Enterprise Resource Planning (ERP) software industry has evolved and diversified over the last 20 years. Today, there are solutions available in a wide range of functionality, features, and price points. Companies can choose solutions based on those features, their industry, budgets, and whether they want to host the application on premises or not.

In this article, we will review differentiate ERP solutions in three categories: client server, open source, and hosted ERP services. Each category has pros and cons that make them better suited for particular types of companies. A single vendor may provide solutions in multiple categories.

While we’ve chosen leading products that offer very good performance, some solutions definitely offer more functionality and greater reliability than others, and there is usually a cost associated with. Companies should select an ERP solution based on their unique requirements, and after a thorough investigation of the various products and vendors.

Leading Client/Server ERP Solutions

Client/Server ERP solutions utilize a multi-tiered architecture comprising data storage residing on a database server running a relational database, application code running on a set of application servers, and user workstations attached to a network. Client/Server solutions are more often chosen by the largest enterprises that require greater system performance and security. The leading vendors include SAP, Oracle, Epicor, and Infor.

In order to determine which system best fits the needs of your company, consider factors such as the cost, functionality, configuration complexity, technical support, and product roadmap. Potential deficiencies should be identified and quantified. SAP and Oracle are definitely the big names and literally own the Tier 1 market. Epicor and Infor are well-rounded ERP solutions that are more moderately priced, but still boast of a huge list of satisfied clients. While the more comprehensive programs are better suited for Tier 1 companies, their higher license fees and implementation costs limit their appeal to mid-sized firms.

Leading Open Source ERP Solutions

Several vendors have chosen the open source business model for their ERP solutions, and their success is understandable. That model provides a free license for the software to customers in the hope that they will hire the vendors’ professional services to assist in the implementation and configuration of the system. The vendors also establish a community in which their clients’ developers collaborate to create new functionality and establish implementation best practices, which is then distributed freely to the community.

Leading open source ERP providers include ERP5, OpenMFG, OpenPro, and Compiere. Open source solutions vary significantly in features and support offered by the vendor and should be carefully researched by any prospective customer before committing their company’s resources.

Leading Hosted ERP Solutions

ERP vendors that provide hosted systems eliminate almost all upfront costs for their customers. Although they may offer an on-premises solution as well, their hosted service is available on demand without license fees or costs for installation, configuration, and ongoing support. The solutions are very popular with small-to-medium sized businesses that lack the budget or resources required by client/server and open source solutions.