September 24, 2013Doug Hadden
Doug Hadden, VP Products
Once again there is an executive from a major Enterprise Software firm blaming emerging economies for lack of growth. The two major ERP vendors have blamed Asia, BRICs and developing countries for missing quarterly targets.
It’s not like there isn’t growth in developing countries. Growth is high but volatile. it’s that the major vendors can’t seem to tap into this growth.
Is there something wrong with decision-makers in developing countries? That seems to be the implication of the rhetoric.
The reality is far different – decision-makers realize the pitfalls of acquiring “top tier” enterprise software:
- Feature-laden software bloat requires far too much equipment to operate, uses too much electricity and requires significant levels of technical expertise to operate
- High maintenance costs including the burden of forced upgrades adds to the TCO problem
- Customization is required to meet the unique needs in developing countries and there is significant problems in countries that have distinct national languages
- Although there are many large businesses, that majority of growth is in smaller businesses – something that large enterprise software firms have trouble selling to in developed countries
- Use of channels mean that these software manufacturers remain, for the most part, blissfully unaware of customer needs
- The market has alternatives including lightweight low-cost alternatives, open source and local technology firms
Of course executives in large EnSw firms know these causes. That’s why they are investing in public private partnerships, ‘innovation hubs’ and university labs in emerging economies. They need to create an ecosystem that is dependent on their software. Legacy software.
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