SAP Business One as ERP priced for lower mid-market

May 14
12:49

2012

Andrew Karasev

Andrew Karasev

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Sometimes we hear from potential customers that they believe that SAP is targeting its products to large corporations and likely doesn’t have solutions for small businesses. In this small publication we will try to bring over popular questions and answers about Business One ERP and accounting package.

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If you have your questions or concerns we invite you to email them to us and we will try to include them in the future release.  Let’s begin our FAQ session:

Q.  What is the price diapason?  Is it comparable to QuickBooks or rather with Microsoft Dynamics?A.  It begins at several thousand US dollars for couple of named user licenses and up.  Realistically it is possible to get the system at ten key USD for several users in small company.  Plus please expect consulting hours and the cost is comparable with software.  If you are looking for a package for couple of hundred then probably it is better to take a look at QuickBooks or maybe Peach Tree

Q.  Is the system scaled down SAP with partially disabled functionality?  In the past we have seen such attempts in going down to lower midmarket from Great Plains and Oracle sides.  Such ‘select’ releases are probably still too difficult to deploy and maintainA.  Well actual answer is ‘No’.  System was architected and coded from ground up with small company accounting,SAP Business One as ERP priced for lower mid-market Articles ERP and MRP model in focus.  It has different code base.  For SAP this was an acquisition a while ago.  Original design was done in Israel and this is probably why system is friendly to multinational business and popular worldwide

Q.  Low priced software products typically have proprietary technologies in order to avoid solid DB platform licenses from example.  Is it the case here?A.  No because database platform is Microsoft SQL Server.  This fact enables custom reporting as well as integration with other applications in your IT infrastructure

Q.  We have seen in the past when you are acquiring ‘inexpensive’ system later on you have to pay for all kinds of add-ons and annual contracts.  Should we expect similar approach here?A.  First of all we have to note about ‘named user’ licensing model.  So even if add-ons are available via ISV channel they might be optional as named user already have access to core functionality.  And also you can save by picking restricted users.  For example your sales department needs CRM only access.  Second part of the question is about annual contract.  Yes it is required in order for you to get version update.  It is somewhat similar to what you probably seen in the past

Q.  How flexible is application in the sense of customizations and programming in general?A.  User defined tables and fields could be created directly in user interface for the purposes of Crystal Reporting for example.  There is Software Development kit with code snippets in C# and VB and this is why it is friendly to Microsoft Visual Studio developers.  There is generic integration tool – Data Transfer Workbench usually deployed in data conversion phase.  Also there are integration platforms available from ISV channel

Q.  We are small organization by all means.  But we are marketing our products and outsourcing manufacturing internationally.  Some of our overseas partners are contractors but we have several strategic locations where we are using multinational company model and we own these subsidiaries.  Above you already mentioned that SAP B1 is friendly to international business.  Could you work out some details?A.  Sure.  Architecture has language support and easy switch from one language to another.  It also supports Unicode characters and by doing so is open to such alphabet as Chinese for example.  We would like to mention popular languages supported such as Brazilian and European Portuguese, Polish, Russian, Spanish, French and most of the East European.  However it is only part of the requirements.  ERP localization concept includes also compliance to foreign country legislation.  We are inclined to think that Business One is leading in automating small and mid-size facilities of multinational corporations

Q.  Is it available in Cloud model?A.  We would like to say that this model is in progress of being developed.  There are various aspects.  For example Citrix allows you to call ‘fat client’ interface from hosted application server.  Second aspect is subscription pricing (often associated with financing).  At this time of May 2012 we have to note that client interface is not ‘web based’ (compare to Microsoft CRM or NetSuite).  Cloud model is available and coming in more features.  Be sure that it might be complicated to integrate something that is hosted somewhere on one server together with other companies ERP

Q.  We would like to ask about specific country option.  Is it available in Brazil for example where we have facility in Sao Paulo state?A.  Yes it is.  Brazilian Portuguese is supported in core.  However in Brazil there is strong internal regulation.  For example there is SPED Public Digital Bookkeeping requirement for corporations.  SPED and taxation are automated but expect software licensing cost for SPED add-on

Q.  What is the restriction on growth?  For example is there restriction on the number of users?A.  First of all there are concurrent users and there are ‘named users’.  So probably better to think about number of daily transactions.  MS SQL Server platform is solid so we would agree with various opinions that the number of users might be up to two hundred, one hundred or less (but probably not less than fifty even with heavy workload)

Q.  We expect several custom managerial reports to be designed.  For example they are Customer Statement, Sales Commission (where formula is more complex comparing to core report) and probably Bill of Lading.  Please give us your inputA.  SAP acquired Business Objects with Crystal Reports.  So it is natural way of doing the job.  CR is perfect design tool.  But we recommend you considering creating and testing report logic directly in SQL Stored Procedure or View.  Table structure could be reviewed in SDK or in client application (switch on ‘View System Information’)

Q.  Should we expect ‘underwater rocks’?A.  Good due diligence and homework are the ways to be successful and avoid pitfalls.   Consider such factors as your industry specific, custom business processes and reporting.  This packages is backed by SAP and this is the leader in ERP offer in the United States and worldwide

Please call us 1-866-304-3265, 1-269-605-4904, help@efaru.com.  We have local presence in Chicagoland, Southern California, Atlanta Georgia, South West Michigan, Houston and Dallas areas of Texas. We serve customers USA and Canada nationwide and internationally via web sessions and phone conferences (Skype is welcomed).  We are working on Brazilian ERP consulting market in Sao Paulo since 2004