While some pundits are predicting the end of the ERP boom, vendor Damgaard is still buoyant about the opportunities in the local market and is continuing to build its channel of reseller partners.
Damgaard's Asia-Pacific director, Paul Betts, said last week that ERP is filtering down into the mid-market driven by the race for e-commerce methodologies which he said `all need to get back into ERP systems'.
Whilst claiming to have been concentrating on mid-markets all along with Damgaard's AXAPTA product, Betts said vendors have virtually bled the high-end market dry and are now turning to the mid and low ends to sustain revenues.
`The heady days are over [for high-end vendors] because there is pretty much saturation.'
Many resellers catering to the mid-market are finding demand there for Damgaard solutions with local players such as Powerlan, Gibson & Beebe and Scalable Data Systems joining the business partner network, he added.
Other resellers to have recently signed up with Damgaard include Globesoftware, National IT Services and IPEX, while Betts said there is still room for more `quality resellers that are expanding'.
While Damgaard runs a skeletal staff in Australia, Betts said it is being built up.
`Our role is to support the business partner and our go-to-market model is through the channel, so our office is thin,' Betts said.
As far as just who it is that is taking up ERP and who should be targeted by resellers, Betts said he estimates there are about 25,000-30,000 mid-range customers looking for ERP solutions. He added that the type of industries that are leading the way are manufacturing, production, warehousing and project management.
As well as the Internet, other factors driving the growth of ERP in the mid-range space include the need to meet Y2K- and GST-compliance standards.
`We are still getting a lot of Y2K latecomers,' Betts said. `But I think that the GST is going to be a much bigger time bomb and that many of the big SAP sites will be impacted much more than mid-range sites.'