Look Out China Manufacturers - An ERP War is Coming Your Way
I love a good catfight. This time, Kingdee is willing to take on SAP and Oracle in its own backyard of China (see InfoWorld's "China's Kingdee wants to take on SAP, Oracle"). As the previous post indicated, SAP intends for Tata to be its second in China as the dueling heats up.
Years ago, SSA worked the China marketplace heavily and had some success there. They may have been a bit early though as the market for ERP solutions is beginning a real growth spurt there now.
This market is not without its challenges, though. Incumbent vendors may have a market and marketing advantage. US and European software firms may be too pricey.
Sales of ERP software to Chinese affliates of foreign companies would be my first sales targets were I driving ERP sales there.
What I foresee is:
- competition will be good for software buyers in China. It will keep pricing low and vendors hungry to do deals
- US software buyers will start asking ERP vendors for their China price. If Wal-Mart can do it to its suppliers, why shouldn't other companies in other countries do this to ERP providers?
- The cash flow from these deals could be interesting. It remains to be seen if these new software buyers will a) pay maintenance b) prefer a hosted solution instead; or, c) use a BPO provider. The proof of this huge market's importance to the software industry is still years out.
I've got my ringside seats. Do you have yours?