Obviously, there are many natural advantages in buying a more expensive ERP solution such as those offered by the top players in the ERP industry, for a business that is large or mid size and can therefore afford the associated erp cost. On the other hand, the erp cost risks and the related considerations for any company- whether small medium or large - are significantly reduced should a buyer employ the ERP solutions offered by big mergers and/ or partnerships.

ERP Cost For Buyers

The Value of Mergers in Reducing erp cost for Buyers by Presenting Them with a Wide Variety of Purchasing Options

Examples of important mergers include the ones between SAP/Microsoft and Oracle/PeopleSoft, to name a couple of important models (it is undoubtedly also due to Oracle’s acquisition of PeopleSoft’s ERP-related products, that the popularity of the company’s ERP software products grew over time. This factor also helped to boost the number of reviews of the company’s products by important industry and business publications).

The value of mergers is extremely fundamental to the network of multiple business and industrial interests in the form of associative clusters which compose the ERP system industry and involve the collaboration of many participants from all the diverse industries around the globe which are interested in implementing enterprise resource planning software solutions for internal, external and local or global marketing ventures. The erp cost benefits are enormous and very advantageous for the respective customers of the companies involved in the merger.

As illustrated by the example of the merger between Microsoft and SAP, two of the most important ERP software vendors in the market, the main benefit presented by a merger is that it allows the customer base or clientele to choose from the multiple and diverse variety of products and services that are offered by each vendor company in the merger (or limited partnership).  

This minimizes any customer fears, which may develop due to any eventual erp cost risk factor arising in the equation. Aside from the obvious advantage for the vendors, who double their customer audience (or even triple or quadruple it, depending on the number of vendors and/or providers participating in the merger which already possess an established and loyal customer audience, and also as determined by the size of the companies in the merger), the process provides a greater number of buyer options, including assurance of the vendor’s expertise into industry processes and the evolution of the IT market if it is a big player in the scene and has a long history of development behind it, and especially technical reliability.

This last point is connected to the level of technological development and technical expertise, which can be expected to be significantly higher for medium or large companies in a merger. Considering that a merger (and also a limited partnership, for that matter) consists of two or more participating companies, it is clear that the benefits of having multiple teams of IT experts and consultants from each of the merger companies cater to the other's customers, brings multiple benefits to all the parties involved but especially for the customers.

Written by :

kristine H