Value-added resellers in the accounting software space have found that many of their clients are struggling with outdated ERP systems that lack the capacities of more modern ones, and are turning to their technology partners for help.
Texas-based VAR Argano is one of many on this year's VAR 100 list who observed their clients seeking to modernize their technology infrastructure in general, which includes their ERP systems as well as their customer relationship management and supply chain management platforms, at least partially due to competitive pressures as other companies adopt more sophisticated solutions with greater capacities, especially with artificial intelligence. "In 2025, we are seeing strong momentum across organizations that are looking to modernize aging ERP, CRM and SCM platforms while leveraging AI capabilities to offset labor constraints and drive decision-making. The tone has shifted from 'wait-and-see' to 'must-transform-now,' especially in sectors like manufacturing, life sciences, and high tech, where digital maturity is increasingly tied to competitiveness," said Patricia Summers, Argano's vice president of brand.
What are they looking for in their ERPs now? New York City-based ERP Success Partners, a 2025 VAR to Watch, said that clients want platforms that go beyond the routine operational functions of traditional systems and into solutions that can actually add value to the organization, particularly if they are driven by AI. "ERP Success Partners has seen a clear trend: Clients expect their ERP systems to do more than manage transactions; they want platforms that actively drive productivity and strategic focus. This shift has led to a surge in demand for AI-integrated ERP implementations and support services that go beyond traditional back-office optimization. Our clients are prioritizing agility, automation, and user enablement across their organizations," said Prashaant Teeluckdharry, the company's senior marketing manager.
It is also likely that clients will want an ERP system that supports industry-specific capacities, as several VARs this year reported a desire for verticalized solution sets versus generic implementations. "We've responded by expanding our portfolio of Business Central apps on AppSource — like our intelligent order routing, container handling, and electronic banking apps — and bundling them by industry to offer faster time-to-value," said Natalie Williams, marketing manager at Tennessee-based WebSan Solutions.
Making the old system last
Sometimes, though, getting a new system can be difficult, especially for larger organizations, and so some, such as the technology practice of Top 10 Firm RSM US, say their clients are looking for more of a modernized retrofit of their old infrastructure, hoping to avoid a wholesale replacement. With this in mind, RSM said there has been an emerging strategic focus on modular systems that can scale flexibly.
"We are seeing several key trends shaping the market, including the growing use of AI to reduce the cost of RSM implementation services and accelerate time to value for clients. Composable ERP is emerging as a strategic focus, allowing organizations to build more flexible and scalable systems. Additionally, there is increasing demand for automation solutions that enhance the functionality of aging ERP systems, which are often too costly or complex to replace," said Justina Davy, RSM's consulting communications director.
However, in certain cases this urgency to replace or upgrade legacy systems is motivated more by external circumstances. Namely, for those who use Microsoft products, the anticipated end of support for Dynamics GP has led many this year to begin the process of transitioning to a new platform. Mike McPhilomy, director of sales and marketing for Colorado-based Njevity, said there has been significant anxiety among clients this year over the anticipated change, made worse by what he said was "a wave of aggressive marketing from ERP publishers and partners who are financially incentivized to push GP users toward alternative systems — often without clear functional gains."
"Over the past year, we've seen a sharp increase in anxiety and uncertainty among Dynamics GP customers following Microsoft's announcement that they will stop supporting Dynamics GP in 2029 and stop security updates in 2032. … Njevity is not only an expert on Dynamics GP, but we consider ourselves to be 'Defenders of Dynamics GP.' We have committed to continue to support Dynamics GP past 2035 and to provide support, payroll tax updates, new features and a new community to GP customers after Microsoft stops support and development. Our hope is that this commitment reassures Dynamics GP customers that they do not have to take on costly and disruptive accounting system transitions that leave them with fewer capabilities than they have today."
Massachusetts-based VAR GraVoc has observed a similar scramble among its clients, saying that they are now recognizing the need to make strategic migration plans following Microsoft's end-of-life announcement for GP.
"Historically, our core expertise has been in implementing and supporting Microsoft Dynamics GP. However, as Microsoft's roadmap for GP extends only through 2028, many of our clients are now recognizing the need to proactively evaluate their future systems. They're beginning to assess migration options early to ensure compatibility with third-party ISVs and existing integrations. With the complexity, time and investment required for a successful migration, clients are taking strategic steps now to stay ahead of the curve," said Kristine Casciato, GraVoc's marketing manager.
However Texas-based ACE Micro, which has seen similar activity, noted that many are also running into how complex such a process can be. While there is a rush to address the eventual end of Dynamics GP support, Mark Munson, vice president of business development, said these organizations have a lot to think about. "Key considerations include evaluating whether to move to a modern cloud-based ERP solution like Microsoft Dynamics 365 Business Central, assessing data migration complexity, identifying process customizations that need to be replicated or reimagined, and ensuring minimal disruption to daily operations. Cost, user training, and long-term scalability also weigh heavily in the decision-making process, as companies aim to future-proof their systems and maintain competitive agility," he said.
And, of course, AI
VARs also continue to observe elevated demand for AI-based solutions, particularly for semiautonomous AI agents. However, Ann Blakley, digital solutions practice lead for Top 25 Firm Baker Tilly, said organizations have moved beyond simple curiosity and are now actively looking for ways to work AI into their core business processes, especially if it can go beyond the traditional automation functions we've become familiar with and into more complex, judgment-based tasks that are generally associated with agentic AI.
"Clients [are] now asking for adaptive, agentic AI systems that can make decisions, learn from data in real time, and operate autonomously within complex environments. This evolution reflects a broader trend: Businesses are becoming more agile, data-driven, and digitally mature," she said.
Chris Milan, CEO of New Jersey-based Third Wave Business Systems, has seen similar demand, which he attributed to broader economic pressures and digital transformation needs. Overall, clients are no longer just looking for ERP tools, he said, but for strategic technology partners who can help them adapt to change, which is part of why there is so much interest in agentic AI, which is in turn driving investments and priorities at his own company as well.
"These intelligent systems are being deployed to automate decision-making, predict demand, optimize inventory, and streamline workflows in ways that traditional ERP functionality alone cannot achieve. At Third Wave, we recognize the potential of this technology to fundamentally reshape how our clients run their businesses. In response, we are actively investing in and developing proof of concepts for AI agents integrated with both our core ERP platforms and our proprietary IP solutions. … This strategic focus ensures that as the technology matures, our clients will be well-positioned to adopt scalable, intelligent systems that align with their growth objectives," he said.
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With this rising demand for AI solutions has also come a recognition of the need for training and support on using them. Leah Baker, senior marketing manager for North Dakota-based Stoneridge Software, noted that while clients want to embrace AI tools, they don't always have the strategic guidance on how to actually apply them to their regular business processes. This is why, she said, Stoneridge is focusing not only on core technology offerings but also dedicated education and assistance on AI strategy overall.
"We have developed a 'Copilot Flight School,' which is an offering to help clients work on AI strategy, what it looks like to securely start with the setup, and training some internal champions to begin to use it within each company. A strong foundation and realistic expectations is what will allow them to successfully embrace and benefit from it and not get disenchanted and frustrated," she said.
Closer partnerships
This speaks to an overall shift in demand away from one-off purchases and implementations and into deeper, longer-term relationships between vendor and client. California-based Western Computer noted that this has led to more focus on managed support services.
"Over the past year, we've seen a significant rise in the demand for long-term, consultative partnerships. Clients are no longer just seeking project-based implementation services — they're looking for strategic advisors who can provide ongoing guidance, optimization, and support across the life cycle of their Microsoft solutions. This shift has fueled the rapid growth of our managed support services, as organizations prioritize predictable costs, proactive system improvements, and dedicated partnership beyond go-live," said Amanda Sherry, Western Computer's vice president of marketing.
Texas-based Fourlane reported a similar need, spurred by the continued momentum of M&A activity across industries, combined with general economic volatility. These factors place unique pressures on clients, especially in the midmarket, who must quickly adapt their operational and financial strategies, and who value whatever assistance they can get.
"To meet this need, we've taken a proactive advisory role, often stepping in to facilitate leadership team meetings or function as an integrator. In doing so, we help clients align their teams, refine their financial processes, and develop strategies to handle rising operational costs. This strategic partnership has become a key differentiator for us," said Ann Stein, director of marketing for Fourlane.
Many VARs have also observed an increased demand for clients to not just have their vendors work more closely with them but with each other as well, with many this year—such as Top 50 Firm LBMC — mentioning a great need for interoperability and integration in their tech stack.
"In addition, clients are placing even more emphasis on integration across the Microsoft ecosystem. A strong desire is to unify ERP, CRM, Microsoft 365, and Power Platform environments to create more connected, efficient and insight-driven operations. As these organizations grow and evolve, they want a partner who understands their business and can continuously guide them through digital transformation, not just today, but for years to come," said Nicole Brison, LBMC's marketing director.
This is part of a wider push among clients to centralize their disparate data silos and standardize their information across the organization, often to prepare for major digital transformation initiatives that usually rely on large stores of data to succeed. "Digital fragmentation, where organizations encounter disjointed or disconnected experiences across platforms, can be reduced through assessments and future state strategy ideation and a road map design exercise. Standardizing protocols and safety guidelines while ensuring data accessibility can also help to integrate solutions to ensure that more work is happening in the systems versus outside of them. … These measures collectively reduce frustration and inefficiency, resulting in enhanced productivity and stronger outcomes," said Baker Tilly's Blakley.
Overall it seems that, despite (or perhaps because of) an uncertain economy, many organizations are still planning to make major tech investments over the next year, whether that be due to competitive pressures, adverse market conditions, or to capitalize on new opportunities. However, it appears they are being smart about this, no longer breathlessly looking to tech up for whatever reason but, rather, for specific use cases that deliver clear ROI.
