Logility, IBM to Offer Mid Market Solutions on AS/400

  • Written By: Steve McVey
  • Published: April 14 2000

Logility, IBM to Offer Mid Market Solutions on AS/400
S. McVey - April 14th, 2000

Event Summary

Logility has announced a global relationship with IBM to deploy its supply chain management solutions on the AS/400e server platform. The two partners will jointly offer Logility Voyager Solutions for B2B collaborative commerce, business process consulting and implementation services for users who run their enterprises on AS/400e.

Most of the development work on the AS/400e deployment will be conducted by IBM and does not entail a code rewrite. Under a separate agreement, IBM Global Financing will provide financing to companies for IBM hardware, software, and services components as well as Logility's Voyager application software. Logility products are currently available for the IBM Netfinity and RS/6000 servers.

Market Impact

The move is a good one for Atlanta-based Logility, which derives the vast majority of its revenues from NT-based solutions. Though Logility still offers its applications for Unix, it concedes that very little demand exists for Unix among its chiefly mid-market customers. The deal should give Logility a foothold within IBM's substantial mid-market AS/400 customer base.

Of course, IBM seems to be helping just about everyone in the supply chain management space. It recently announced a similar AS/400 partnership with i2 Technologies, Logility's main rival. i2 offers a broad slate of supply chain management products, but primarily targets large Fortune 500 clients that have proportionally large IT budgets.

Logility is more popular among mid-market companies due to its more structured, out-of-the-box functionality that can be implemented faster than i2's more flexible suite. IBM may also have been attracted to Logility's vision for CPFR (Collaborative Planning Forecasting and Replenishment), one that i2 has yet to support. CPFR is just beginning to build momentum among retailers but is expected to expand into other segments as more software vendors begin to support it (ERP giant SAP now offers CPFR-compliant software as part of mySAP.com collaborative applications).

i2 prefers instead to focus on its growing portfolio of vertical B2B marketplaces, through which it will offer planning and optimization capabilities. In addition to CPFR, Logility brings to IBM a mature distribution requirements planning (DRP) product for the consumer packaged goods industry.

User Recommendations

The Logility solution for the AS/400e server is expected to be available during the fall of 2000. Mid-market companies should benefit from the IBM financing option as it can streamline the acquisition of Logility by allowing them to avoid a lengthy capital approval process. Users should inquire about what parts of the acquisition are included by the financing.

For the mid-market, Voyager solution licenses usually run between $200,000 to $300,000 (USD) and implementation services offered by Logility are normally one-fifth of the license cost. Typically, services of a systems integration firm will be required for larger implementations and its fees will not be covered by IBM financing.

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