Tier I ERP Vendors
The number of ERP vendors classified as Tier I has varied over the years. As a result of industry consolidation, I only see a few vendors that qualify as Tier I vendors today.
Tier I ERP Highlights
Tier I ERP vendors are a select group comprised only of SAP, Oracle and Microsoft Business Solutions / Microsoft Dynamics. These ERP systems are the most complex and robust on the market and typically used by large organizations with a global presence and complicated operational structures.
- Tier I ERP vendors sell complex ERP products that have successfully penetrated the Tier I market, which consists of companies with annual revenues in excess of $250 million and who have global ERP requirements. Companies that require a Tier I ERP vendor have a complex set of requirements. Most significant is the need to manage multiple companies with multiple tax ID’s, multiple business models, and multiple plants with international locations, oftentimes with multiple languages and multiple currencies. Only a few vendors have functionality to meet all of these needs.
- Tier I ERP products have a higher cost of ownership. This is simply because these products are more complex than their Tier II ERP competition and thereby cost more to implement and support.