InformationWeek
Defining The Business Value Of Technology
November 10, 1997
Platinum Software Bolsters Customer-Service, ERP Apps
Company takes steps toward becoming an enterprise applications vendorB y Tom Stein
Platinum says it's adding sales-force automation software to its Clientele suite of customer-service and support applications. In addition, it has announced plans to acquire FocusSoft Inc., a provider
of manufacturing and distribution software. Platinum is offering
stock worth about $27 million for FocusSoft.
Platinum is already known in the midmarket for its financial accounting software package. But with last week's announcements, the company takes a step closer to becoming a full-fledged enterprise applications vendor.
Platinum CEO Geo
rge Klaus says that to complete its business applications suite, the company soon will add a human resources software module via another acquisition. "That will be a complete solution. We want to be the PeopleSoft or SAP of the midmarket," he says.
The opportunity is there. "There is no single dominant player in midmarket like there is at high end with SAP," says Jennifer Bourgoin, director of strategic alliances at Platinum, in Irvine, Calif. "Our goal is to differentiate ourselves with an integrated suite of horizontal applications." Other companies gunning for the midmarket customer include Great Plains Software, Masterpack International, and PowerCerv.
Platinum and FocusSoft say their products will become more tightly integrated in the coming year.
Users approve of the deal. "At first we had to build our hooks between FocusSoft and Platinum, but as the companies begin to work together, the integration should become more efficient," says Gene Matthews, chief financial officer at furniture maker
Harden Manufacturing Corp. in Haleyville, Ala.
Harry Tse, an analyst with the Yankee Group in Boston, says Platinum's new-found strength should help it fend off attacks from SAP, Oracle, and Baan as they prepare to enter the midmarket.
latinum Software Corp. is putting plans in place to capture a bigger portion of the enterprise software market for small to medium-sized companies-an industry segment where upper-market players like SAP and Baan are trolling for new business.
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