Which accounting software company will dominate the mid-market and why?


Best and Microsoft will battle for mid-market majority market share for the next few years. The winner will be the one who best manages two areas. First, pricing and second, the channel. Money alone will not acquire the mid-market; rather, the careful restructuring of the pricing model, coupled with nurturing the VAR channel will determine the winner.
Paul A. Killingsworth

Microsoft will be better positioned to lead and dominate in the mid-market ERP space than any other. Through Microsoft Business Solutions, it already possesses one of the largest installed customer bases in the industry. Additionally, all of the product lines leverage Microsoft SQL Server, an open and highly scalable database platform. Factor in the pending release of Microsoft CRM, a complete EAI solution in BizTalk Server, and a series of .Net servers for Web and Internet solutions, there becomes little doubt as to who the leader in mid-market accounting software is.
Ron Rand
Hein Associates

I believe that the current Solomon product line will eventually dominate the mid-market in some form, that is, if the brains running the division wise up and fully recognize its full potential. You can’t beat the power of the flex account, sub-account structure and that it is just about seamless with hundreds of third party/customization-based solutions. 
Dick Bitner
Management Applications
Raleigh, N.C.

Partner Insights

Best Software, because of the quality of the software, strength of the channel, their “customer for life” positioning, and overall excellence as a software vendor.
Frank LaFauci, CPA, MBA
Positive Impact
Stamford, Conn.

I firmly believe that both Navision and Axapta will dominate the mid-market
for two simple reasons: In the last few years, we have seen companies replacing legacy mainframe systems that have been homegrown and tremendously customized. The only solutions that effectively allow you to tailor the code to meet the customers expectations are these two products. 
Donavan D. Lane
ABC Computers
Waupaca, Wis.

Best Software will dominate for three basic reasons. First, Best already has a captive audience of Peachtree, BusinessWorks, and DacEasy users, as well as lots of CPAs who use a Best product who can move up to their mid-market products, MAS 90 and MAS 200. Secondly, it is the only vendor that has a full range of auxiliary products.  Finally, Best has realized that to sell in the mid-market, you need a dedicated strong reseller channel, and has and is working hard to really assist the reseller in being successful.
John Myers
Marathon Group
Grapevine, Texas

Microsoft is in the best position. 1. Money, as usual; 2. Several years of head start in the application of a “function services” model that will change accounting/ERP software from a user-pull environment to a data-push environment—for example, the ability to have external events generate a chain of functions and reports (invoicing, etc.).
Stan Padgett
GGM Information Technology Group.
North Charleston, S.C.

In general, I see two players meeting these requirements, MBS (Microsoft Business Solutions) and SAP. I see both gaining in momentum and appeal in the mid-market (which to me is roughly $100-$500M give or take a few tens of millions.) MBS appeals to the mid-market because nearly 95 percent already use their products every day. Great Plains is a great brand providing leverage. Navision is great functionality and technology that will help make the product set more complete and current.
Dan Schroeder
Amper Consulting
Edison, N.J.

None will. There are dozens of companies offering hundreds of products in the mid-market, each with different feature sets and price points. With no clearly superior product or company and few barriers to entry, there is no reason to believe any single company will dominate this market any time soon.
Matthew Lefkowitz
Lefkowitz Systems
San Francisco

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