NDS Launches $1 ERP for SMBs

The new pricing structure provides an unlimited site license for NDS' Oracle-based ERP software suite for only one dollar, bringing enterprise-class software into reach for SMBs, said Don Voelkert, CEO of NDS. Voelkert said SMBs need the same ERP functionality as larger enterprises, but often don't have the budget for the software.

"We're trying to eliminate the site licensing price issue as a detriment to SMB ERP adoption," Voelkert said. The $1 site license is for an unlimited number of users and unlimited processors, he said, adding that NDS channel partners can create and generate revenue through the software's implementation, integration and support.

The business model, he said, is similar to that of many open-source software products, in that consultants and partners can make money implementing and supporting the systems rather than on the sale of a piece of software. In addition to the $1 fee, NDS charges support fees. 

Another obstacle to ERP adoption for SMBs is lack of IT staff to implement and maintain an ERP system. That offers great opportunities for NDS' channel partners, since they can fill that IT services gap for customers at a much lower price, Voelkert said.

 
Graeme Nichol, principal at Arcturus Advisors, a VAR, said the One Dollar ERP program will open up great opportunities for his company. Nichol said many of his SMB customers need more than a simple accounting system, but that SMB-focused ERP software from Oracle and SAP is too pricey.

"In the SMB market, there's never really been something affordable for SMBs, but the $1 fee takes away the obstacle of the money and the huge expense objection from my customers," Nichol said. NDS also provides an extensive partner portal with sales and marketing collateral and sales and technical support, he said.

"Most of the business owners don't come from a tech background, and don't really understand that the right ERP tools could improve their business," making sales a challenge, Nichol said. But using NDS' marketing and sales support and collateral has allowed him to generate leads and demand for his services among his customers.

"NDS understands customers' fears, they understand the trepidation, and the One Dollar program takes away their major objection," Nichol said.

Though Nichol's company has only been an NDS consultant partner for about a month, he said he's planning to add three to six customers by the end of the year. Nichol added that his SMB clients range anywhere from $1 million companies to as high as $350 million.

Voelkert said NDS' channel partner program currently boasts about 12 channel partners, and is actively recruiting more partners across the United States. He said NDS' goal was to have between 50 and 100 partners by the end of 2008 and 200 by the end of 2009.

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