Dynamics GP is Not For The Midmarket? That’s News To Me!

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There seems to be a rash of articles lately implying that Microsoft is a new comer to the midmarket ERP space. One article in particular really caught my eye – Information Weeks’ Microsoft Acquires Midmarket ERP Products, which framed Microsoft’s recent acquisition of Fullscope and LS Retail as an attempt to buy its way into the midmarket, and thus compete with SAP and Oracle. The writer opined that Microsoft Dynamics GP was only used by “small companies and the lower end of the midmarket” – hence the need to buy a company already established.

Excuse me, but…..Dynamics GP is for small companies? At the lower end of the midmarket? Most people define the midmarket as businesses greater than $10 Million in revenue, which is more or less the starting point for Dynamics GP. According to DirectoriesUSA, 97% of businesses are below $10 million in revenue. One can quibble about what constitutes small, but logic will tell you that if you are in the 97^thpercentile, you are a pretty good sized company! As for the comment that Dynamics GP is for the “lower end of the midmarket,” once again, the numbers tell a different story. There are 374,000 businesses between $10 million and $200 million in revenue, just 40,000 from $200 million to $1 billion. I will concede that a business approaching a billion in revenue may not be a good fit for Dynamics GP, but that’s a very small minority of the midmarket.

My point is this: you may read articles such as the one in Information Week and conclude that either A) Dynamics GP is too small for you, or B) you should be on Oracle or SAP. The reality is, if you have two million dollars lying around and can spend two years implementing an ERP solution, then purchase SAP or Oracle. If you need an affordable, flexible solution that can meet your needs and has a low total cost of ownership, Dynamics GP is the right fit for you.

by Intellitec Solutions, Microsoft Dynamics GP Partner serving Pennsylvania