ESTEREL, QUE. – Can cloud-based ERP really cost less than $600 a month? Wayne Dinzey, the President of Winnipeg-based PurpleSoft Mobile ERP, is certainly making it available to channel partners at that price.
Dinzey presented at the ChannelNEXT East Conference and told the audience of solution provider executives the cloud has enabled small-to-mid-size businesses to have a wider range of choice when it comes to software. In the past, SMB customers, especially small businesses, believed ERP was out of their price range.
The other hurdle besides price was that small businesses believed their operation would be too small for an ERP tool. Dinzey admits the title of ERP is intimidating, but it’s another tool just like in Office 365.
PurpleSoft Mobile ERP is a mixed platform/multi-platform, cloud enabled tool that supports CRM and includes artificial intelligence and blockchain technology.
Dinzey told EChannelNews that his company is targeting the small business sector as more than 90 per cent of businesses in North America have 50 users or less, according to research from CompTIA.
Research from MarketsandMarkets found that cloud-based ERP is estimated to grow from a US$18.52 billion market in 2016 to close to US$30 billion by 2021.
Meanwhile, the global ERP market will surpass $41 billion by 2020. Dinzey added that the two biggest markets for cloud ERP is in Canada and the U.S.
Cost is a big factor when it comes to ERP. Current ERP software has yearly maintenance costs for customers, while in a software-as-a-service model that cost would be eliminated. ERP on-premise updates can also be costly.
PurpleSoft Mobile ERP has been built with HansaWorld technology. PurpleSoft Mobile ERP is a member of the HansaWorld partner network. HansaWorld is a software developer based in Sweden that focuses on ERP and Customer Relationship Management software. The company has been in operation for 30 years and has built their ERP and CRM software for smartphones, tablets as well as desktop PCs.
With PurpleSoft Mobile ERP, small business customers have a platform for embedded modules and cloud extensions.
“ERP delivers a platform that puts the control of integrated modules into the hands of the customer, which is not possible in the old add-on-model,” Dinzey said.
Besides the enticing price tag of less than $600 per month, PurpleSoft Mobile ERP offers margins that can reach 50 per cent for channel partners. Dinzey said that after the commissions, solution providers can earn more by doing hardware provisioning, including specialty hardware solutions, RFID, barcoding, data collection, deployment services and consulting.
The company has a three-part channel strategy:
1. Lead Referrer level: provides qualified leads with 25 per cent margin on the software and 20 per cent on professional services.
2. Referrer level: Here solution providers sell and support customers directly and get 30 to 35 per cent margin on the software, while enabling you to charge your own support fees.
3. Value Added Reseller level: At this level the margins go up to 40 to 50 per cent and solution providers need to deliver custom configurations and again they can charge whatever they want for support and services.
“With PurpleSoft Mobile ERP you can add a new revenue stream with zero financial output,” Dinzey said.