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American Pet Goods Industry Suddenly Moves to Cloud?

Written By: Aleksey Osintsev
Published On: July 24 2013

I'm not sure what happened in the US animal goods industry yesterday, but a bunch of the industry players have simultaneously announced newly selected ERP packages. NetSuite seems to occupy the majority of yesterday's announcements: five companies have decided to switch to NetSuite's cloud-based ERP package and get rid of existing legacy applications. However it's not 100% clear from the press release if those five companies just selected NetSuite as their new ERP or had already implemented the ERP package: the vendor says "new customer wins" while the next phrase says "these companies have replaced disparate and outdated on-premise systems". Hopefully NetSuite realizes the difference between making a decision to implement ERP and having already successfully implemented a new system, and this is just an unfortunate misprint.

At the same time, another pet goods manufacturer, TDBBS, has also announced its new ERP selection results—this time it's Acumatica, one of NetSuite's competitors in the cloud-based ERP realm. This vendor seems to be quite active on the market too, and during last several months I can't remember a single day passing without seeing the Acumatica name mentioned on the Web for one reason or another. Interestingly enough, Acumatica has won thanks to its flexibility in deployment while NetSuite offers a strictly multitenant cloud solution. According to Justin Morris, TDBBS' Director of Ecommerce and CTO, “We wanted a flexible solution that could grow with our company and didn’t have any of the strings normally found with traditional license-based ERP solutions. We own it, have the flexibility to host in-house, in the cloud, or use a SaaS service.”

Cloud deployment, whether it's a multitenant, single tenant, or hosted option, is obviously becoming more and more attractive for manufacturers, especially small and medium sizes. It's certainly not a quick shift, but the usual worries of cloud ERP clients seem to be slowly being overcome as this deployment option has its own advantages. However, it's still quite early to say that multitenant cloud deployment is the only choice of the future—Acumatica's new client win is a clear example.
 
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