We include small vendors in our system selection projects but only when we believe that they have a good client base, are really good for a specific industry and are using recent technology. A small company can also be a successful company and there are benefits to being a bigger fish in a smaller pond. You will see lots of small/unknown companies on our ERP portal at http://www.180systems.com/portals/erp/.
But what about the concern that a small vendor will be acquired which is even more likely if the small vendor is facing financial difficulties? Is this enough to rule them out? We don’t think so because the problem may be temporary. For example they might have just rewritten their software to support multi-tenant architecture (which is a prerequisite to compete in the clouds). As a consequence, development costs have gone up and their revenues have gone down as they are recognizing revenue over a longer period of time. However even if the small vendor is ripe for acquisition, it would be a big mistake for the acquiring company to abandon the system when there are many happy clients and the system has a strong/current underling technology.0 Comments