The sheer number of ERP software solutions out there is daunting. As a result, the task of choosing the right ERP software for your company can be extremely difficult.
ERP systems are not “one size fits all.” What works perfectly for one company may not fit for you, your users, your objectives, or your workflow processes.
Note: Company viability is important because it represents how publishers like Sage and Epicor manage their expenses, the availability and allocation of funding to R&D, and likelihood that the publisher will continue investments that enhance the customer experience.
Sage (The Sage Group, plc) is a publicly-held $2B company currently traded on the FTSE 100 and has posted steady, predictable growth year-after-year since 1989. Sage grew through acquisitions of market leading regional ERP solutions.
In 2005, Sage entered the global ERP market with its acquisition of Sage X3 (then known as Adonix). Sage is a brand that’s recognized worldwide and is an admired company in many countries.
Visit the Sage Investors page for more information about financial and stock performance.
In 2011, Epicor Software (along with Activant) was purchased by Apax Partners (London-based buyout firm) for $1B and is now a private-equity owned company.
In 2012 and 2013 Epicor, according to a recent Wall Street Journal article from May 2014, issued $340 million and $350 million of new debt respectively to fund dividends to its private-equity owner APAX. That same article states the company has $1.3B in debt against revenues of $980 million and that Apax Partners was seeking to sell Epicor for between $2.5 – $3.5 billion.
With so many financial obstacles and seemingly growing debt, many are left wondering what the long-term strategy is for ongoing support and further development of Epicor ERP products.
Note: Each ERP product features core functionality geared specifically to certain industries to separate it from the competition.
Sage ERP X3 is a general ERP solution for Distributors and Manufacturers, but also delivers a specific vertical niche for Process Manufacturing including: Food & Beverage, Chemical and Life Sciences.
Epicor Software is a general ERP solution for Distributors and Manufacturers with differentiating capabilities for companies with Make-to-Order and Engineer-to-Order requirements.
Partner Channel Vs Direct Sales
Sage ERP X3 is delivered to the market through a ‘Global Reach, Local Touch’ strategy employed by Sage and its network of local authorized partners. This model relies heavily on the strength of the individual partners, the level of experience, and a requirement to remain active with ongoing and rigorous product certifications and testing.
Epicor relies heavily on direct selling efforts in conjunction with its partner channel to deliver services. Often times, this causes confusion about ownership of the implementation project deliverables and accountability. When disputes arise, it’s often because of misalignment of expectations during the handoff from sales to consulting among organizations.
Cost: Sage X3 vs Epicor
Both Sage ERP X3 and Epicor are competitively priced for perpetual licenses purchases while Epicor offers a slight savings vs. Sage ERP X3 on subscription licensing. With either product, there are a range of variables to consider when calculating your final cost.
But for purposes of comparison, here’s an example of pricing for a 10-User system:
EpicorCost for 10 users – including base financials, inventory and manufacturing options: $40,000+ a year.
Comparatively, Epicor Express subscription pricing (launched in 2012 with Epicor v9) starts at $21,220 a year (subscription).
Sage X3 Cost for 10 users – including but not limited to, financials, inventory and manufacturing: Around $45,000 a year (perpetual license) or $26,640 a year (subscription pricing)
*Note: cost calculations performed based on information available as of September 2012. Please check with a Sage or Epicor authorized partner for a quote or current pricing.
Who’s the Winner?
You decide! Contact us for an ERP software consultation or to see a demo and you can decide which product delivers the knock out blow for your company.