Pratima H

MUMBAI, INDIA: No body suspects a butterfly. If it's a field abuzz with bees chasing the elusive nectar of leadership, stinging each other once in a while, no one notices a silent winged-species. No one hears its soft flutter in a meadow where even insignificant drones are trying their fate to rip out a piece of the noise.

Can you name one around you? Right here in the ERP orchards.

Hints?

Well, it's not chasing SAP or Oracle but it's already the third largest ERP company after the two biggies with a lead in many verticals. A $2.8 billion posture in the ERP pecking order in just a couple of years is remarkable indeed. It is closing the gap steadily even as this greenhorn trails SAP and Oracle in ERP revenues.

In a tempting market (about worth about $120 billion in 2012 only as Gartner pegs the worldwide enterprise application software market) wherein ERP software slice is nearly $25 billion and office suites fall in the range of $16 to 17 billion, this ERP vendor has chosen some niches.

This dark horse does not acknowledge any big name as its competition, not even the likes of Oracle, but is confident that it is giving them a run for their money. Vertical-focus is the slot where it prefers to sketch its presence as a distinctive vendor in a space dominantly flanked by Microsoft or SAP etc. From aerospace to hospitality, it boasts of really fast and customized industry suites. It has converted four competition-covered systems in the last few months and has a heady license renewal rate of over 75 per cent. The name is Infor, if you haven't guessed the mystery-contender's name by now.

You may not be the one to be blamed, for this company that is going from niche toeholds to AMC-driven footholds prefers to keep a low profile. It might be digging its heels in many tough spots and making long strides in an erstwhile A vs. B market, but it is rather soft-stepped on the media pages. Almost conspicuous by its absence in a space that is dotted with exciting announcements and competitive counter-blows every now and then, Infor, only a decade young and about E40 acquisitions old (with Lawson under its belt recently) is different. For most of its part, it stays the mysterious bespectacled kid who doesn't talk much, but who, for the very reason may be, is having a lot brewing in his head.

With over 700 customers in India in a short span of stepping on the subcontinent's shores, Infor seems to be gunning for more than the usual chequered flag. So what is its finishing line after all? And how does it intend to swim ahead in a marshland fettered with planktons like heavy maintenance rates, third-party options and customer-disillusionment (even court cases) over license audits?

We finally get Souma Das, MD India for Infor Global to hit the defrost button.

Infor's posture in the ERP ring has always been intriguing (with speciality-suites, vertical-tailored applications, niche acquisitions etc.). Now when the current wave is about infrastructure stacks, PaaS components, in-memory elements etc from the trailblazers, would you tow the track or would you prefer the last mile zone?

Enterprise market in almost every country has a different strategy. SAP is strong when it comes to big shares. But things are really growing in the mid market segment. We have built i ON, a loosely couple middleware as a platform that provides SI parts and connectivity to third-party applications with business vault and in-memory concept. As to the last mile, a cloud like this helps specially when it's a space for open network. How to capture information is itself a big challenge for many in the manufacturing industry. We have always maintained a unique vertical-focus when compared to other ERP Majors. Our applications are faster and understand indigenous needs of a variety of industries. We are not just ERP makers but also makers of robust, on-the-fly, productivity-building systems. We were number one in warehouse management in APAC. We have seen five straight quarters of double-digit license growth. Infor is distinctly strong into unheard areas like aerospace or Food & Beverage or Hospitality with powerful suites.

Help us understand your AMC rates and how does the range fit the Indian market where ERPs are still shrugged off by many as high-maintenance marriages? Do you go for long-haul deals instead?

AMCs and more

Large enterprise deals happen but they are few. AMC contracts work good for customers also as cash workflows are better managed. Standard AMC are about 20 per cent. The market also has a higher-end space of elite rates like 24 per cent for premium versions. If someone has not renewed, then reconnect programmes are available. As to the very intent of AMCs, one has to understand that technology changes at a very fast pace today and things like localization or back-to-back support or investing in continuous development are possible with AMC money. We added 600 engines last year for instance.

What is leading to disappointed and even some angry customers when it comes to software license-audits?

Some customers have been found with some issues. They bought a software license about ten years back. When we acquired Baan, there were some changes that had to be reckoned properly. The benefits of using the software in the right way without any internal issues become possible with audits. Customers, in general, are very co-operative. Few concerns come up though and we are trying the best way to sort and allay them.

Your inorganic strategy will continue? How does it explain ex-Oracle honcho Charles Philip's formula as a leader?

The inorganic strategy has continued. But for the last two years we have grown more organically in comparison. About 30 to 40 acquisitions in first seven or eight years drove us the inorganic way. But organic route is in stark focus now. After Charles joined, we have invested in development efforts while we inked a huge tie-up with Salesforce and also acquired Lawson.

For example?

About 102 new products, 219 new initiatives and some 5293 new factors in 2012 speak a lot. Last twelve months have seen us spending significant money in innovation.

What's your plan for India ahead? Pitting against the big ones?

In India, we are adopting two segments. One of them is the mid-market where suites from Microsoft or Epicor are present. We are launching M3 next month to merge Fashion and F&B verticals etc. EAM, enterprise asset management is another big pie for us. We are not competing much with majors like Oracle etc but we are giving them a run for their money in many ways nevertheless.