Systems has launched a "One Dollar" ERP program, and is recruiting
new channel partners to bring its enterprise resource planning software to the
small and midsize business space.
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.
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.
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.
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.
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.