Gartner releases latest mid-market manufacturing ERP vendor Magic Quadrant; Axapta rated as “Visionary”

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Summary: At the end of June, Gartner released their first mid-market ERP vendor “Magic Quadrant” (a quadrant based on a vendor’s current market execution and articulated product vision) in over two years. As with the previous two mid-market manufacturing magic quadrants, Microsoft Axapta was included in the ratings. While Axapta has previously been allocated into the “niche player” quadrant (the lowest of the four possible quadrants), the latest ratings have put Axapta firmly into the “Visionary” quadrant. This implies that Axapta has a strong future vision but needs to execute more efficiently in order to be considered a leader in this market.

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Gartner’s comments on Microsoft Axapta:

Microsoft Axapta: This vendor is growing worldwide, primarily because of its association with the Microsoft brand, its discrete manufacturing capabilities and its strong customization capabilities. Axapta's current challenge is to rapidly develop a competent and experienced implementation channel in North America. Its out-of-the-box functionality is suitable for industrial-based, plant-level manufacturers. Independent software vendors (ISVs) and resellers address specific vertical business requirements and horizontal gaps by extending the product.

When considering Axapta, users must evaluate the Axapta solution, ISV extensions and the viability of the SI partners, because critical functionality may be developed by the partner. Many partners are smaller organizations, so they may struggle with viability issues, ultimately creating a risk for midmarket ERP buyers that become dependent on code developed by the partner. Many channel partners are local to a specific geographic region; therefore, the execution of deals that include a global rollout are a challenge. Microsoft, however, does have some partnerships with organizations that are capable of global, multi-site deployments. (Note: Gartner made a similar point concerning SAP All-in-One)

Multisite or single-site companies with complex manufacturing requirements should evaluate Axapta. Global companies seeking midmarket solutions should evaluate Axapta, but place emphasis on the SI's ability to execute and accept management of multiple SIs across geographical boundaries.