In the software industry, and specifically in the enterprise resource planning (ERP) segment, schemes to classify software and software vendors have always existed. One of the most common has been the classification of and their solutions into tiers.
You may have heard of tier 1, tier 2, and tier 3 vendors and systems.
These tier classifications are a legacy of old technologies, Sirius is a new breed and blends of ERP or ECA that is redefining business software for tomorrow world.
2. In the software industry, and specifically in the enterprise
resource planning (ERP) segment, schemes to classify
software and software vendors have always existed. One of
the most common has been the classification of and their
solutions into tiers.
You may have heard of tier 1, tier 2, and tier 3 vendors and
systems.
These tier classifications are a legacy of old technologies,
Sirius is a new breed and blends of ERP or ECA that is
redefining business software for tomorrow world.
ERP – The Tier difference
3. There are lots of different accounting software packages out
there in the world. You can go from a Tier 1 ERP software like
Intuit's QuickBooks Online, to Tier 2 ERP software like
Microsoft Dynamics, to a Tier 3 ERP software like SAP.
ERP – The Tier difference
Determining your ERP system requirements involves more
than determining which features and tools your business
needs.
In order to really revolutionize your operations, you need to
think about your goals and how your vendor will meet them.
ERP Sirius is a Tier 2 / 1 Enterprise Class Application (EAS)
4. ERP – Tier 1
The ERP Tier 1 solutions are basically SAP and Oracle. They are
designed to service the needs of Fortune 1000 companies,
which for the most part are complex, large businesses that
have many departments and global locations.
Revenues are typically in measured in billions.
A Tier 1 ERP solution is built with complexity of process in
mind. For example, a ERP Tier 1 allows for several people to
be working on a single function.
5. Whereas this is necessary for a billion dollar company, a
smaller company would be overwhelmed by the number of
steps and the general complexity.
ERP Tier 1 solutions generally take a long time to implement
and are equipped with a wealth of features at a pretty high
price.
ERP Sirius is designed to scale up to a Tier 1 ERP at a fraction
of a Tier 1 in time and cost.
ERP – Tier 1
6. Tier 2 products are on offer from several vendors. Epicor ERP,
Infor, Microsoft, Sage and many vertical players fall into this
group.
Tier 1 players have consistently tried to “dumb-down” their
offerings to find acceptance in this market space and Tier 3
players have tried to move upmarket for the same reason.
More ERP Tier 2 systems often have third-party
enhancements that make up for missing complexity out of the
box. These systems tend to be the most popular for the mid-
size company. They can be installed and supported by local
partners and offer a lower TCO.
ERP – Tier 2
7. ERP Tier 2 systems fit well with mid-size companies. They can
have a single or multiple locations. Generally the needs are
less complex than a billion dollar enterprise, but the level of
complexity does vary quite a bit in this group.
Because of that, you can find several vertical market players in
the Tier 2 category. These are developers that have focused
on the complexity of only one very specialized industry.
ERP Sirius is a Tier 2, designed to scale up to a Tier 1 ERP
when a client asks, has multiple vertical markets and installs
like a Tier 3 and requires minimum support.
ERP – Tier 2
8. Example of Tier 3 are QuickBooks and Sage 50, formerly
known as Peachtree. These products do not offer the
functionality of Tier 1 and 2 solutions, and may not even
qualify as ERP systems.
You’re getting basic accounting abilities with these small
business tools.
Small businesses or businesses running a vertical line of
business (LOB) application with weak accounting benefit from
using a Tier 3 solution. They have a low TCO and are easy to
implement. There is risk that a growing company will quickly
outgrow this type of solution, ERP Sirius has data migration
capabilities from these systems.
ERP – Tier 3
9. A Tier 3 software is great for startups and small mom & pop
stores. However if you are a business with over 20 employees
or plan to grow at any point, some have serious limitations.
You can only store so many inventory products, the chart of
accounts is limited, can only handle a certain number of
transactions per month and investors hate that you can make
changes to tables which normal Tier 1 and Tier 2 ERP systems
would NEVER allow.
ERP – Tier 3
10. Most Tier 3 do not support serial number tracking, multiple
warehouse locations, or customer-specific pricing.
You know you're beginning to them when you notice
unacceptable menu and screen delays occurring as you
navigate through the product.
Another clear indication you’re outgrowing them occurs when
your reports begin taking an unacceptable amount of time to
print.
ERP – Tier 3
11. Enterprise class is a buzzword that refers to applications that
are designed to be robust and scalable across a large
organization. There are no firm standards for what makes an
application or platform enterprise class, but enterprise class
applications are generally:
• Open and compatible with existing databases and tools.
• Customizable for the needs of specific departments.
• Powerful enough to scale up along with the needs of the
business using it.
• Secure from outside threats and data leaks.
ERP – What does Enterprise Class Application
(EAS) mean?