QADI » Topics » COMPETITION

This excerpt taken from the QADI 10-K filed Apr 16, 2007.
COMPETITION
 
QAD delivers products and services in various product spaces and geographies, and confronts differing competition in each market. The key markets in which we operate are Global Enterprise Resource Planning, Local Enterprise Resource Planning, Global Trade and Transportation Management, Enterprise Asset Management, Collaborative Supply Chain Applications, and Managed and Professional Services. The market definitions and competition are detailed below.
 
Global Enterprise Resource Planning
 
QAD offers an Enterprise Applications suite that addresses the needs of global manufacturers. This suite consists of QAD’s Enterprise Resource Planning (ERP) applications and extended enterprise applications, including products to support Customer Relationship Management, Transportation Management, Global Trade Management, Enterprise Asset Management, Business Analytics and Application Integration. Global ERP for manufacturers is the principal market for QAD. In this marketplace QAD competes against several large global competitors as well as a number of smaller, local companies providing a variety of offerings. The global competitors are SAP AG, Oracle Corporation, Infor (who acquired SSA Global Technologies Inc. in calendar 2006) and to a limited extent, Microsoft Dynamics, a division of Microsoft Inc. QAD differentiates itself in this market by focusing on manufacturing capabilities and by further focusing on sub-segments of the markets we serve. On the opposite side of the spectrum, SAP and Oracle have indiscriminate market footprints developing applications suited for many industries rather than specifically for manufacturing.
 
Local Enterprise Resource Planning
 
QAD Enterprise Applications are scalable by design so that the same applications can be deployed by global multinational companies as well as by local companies that may operate in a single country and even in a single location. The competition in this market varies by geography. QAD competes against SAP with its Business One offering, which it markets through partners and Microsoft Dynamics. In its regional businesses, QAD experiences competition from many other vendors, including SAP, Epicor, Microsoft Dynamics, Pronto Software, Lawson, IFS and USF. QAD differentiates itself in this space by delivering robust manufacturing-focused capability with a roadmap to the future that we believe will meet the needs of our customers as they grow. QAD also has a broad global channel to sell into and support many local territories.
 
Global Trade and Transportation Management
 
QAD continued to expand its product suite in fiscal 2007 to include Transportation Management and Global Trade Management. These applications are marketed both as part of the QAD Enterprise Applications suite and as discrete applications to customers who do not use QAD applications. In this stand-alone market QAD competes with functionality delivered by major ERP vendors, including SAP and Oracle, as well as by dedicated vendors, including Kewill, Red Prairie and Manhattan Associates. There are also a number of small point solution vendors that QAD competes against in the Global Trade Management area only, including Sepesi. QAD differentiates itself in this market through this comprehensive breadth of products.


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Enterprise Asset Management
 
QAD also extended its product suite in fiscal 2007 to include Enterprise Asset Management and is marketed as part of the QAD Enterprise Applications suite. In the market QAD competes with functionality delivered by major ERP vendors including SAP AG, Oracle and Infor, as well as many smaller Plant Maintenance Solutions. QAD’s offering is developed principally for integration into QAD Enterprise Applications and it is this close integration that is a key differentiator in this market.
 
Collaborative Supply Chain Applications
 
QAD delivers a supply chain collaboration tool, QAD Supply Visualization, in an on-demand model. The tool boasts integration to many mainstream ERP offerings. In this market, QAD competes with offerings from SAP and TradeBeam. QAD’s close support of contemporary visual manufacturing controls, such as Kanban, is the main differentiator in this market.
 
Managed and Professional Services
 
QAD provides customized managed enterprise services to support customers using QAD Enterprise Applications. The QAD Application Management Services offering is configurable to meet customers’ needs, but principally consists of a range of services to support the deployment and ongoing delivery of QAD Enterprise Applications to customers. Given the depth and breadth of our industry and enterprise application expertise, we are uniquely positioned to support our offerings, although periodically QAD may compete for elements of these services against other providers, including Tata Consulting Services, Hewlett Packard and IBM Global Services, as well as smaller ‘boutique’ providers. QAD differentiates itself in this space through its expertise and demonstrable knowledge of QAD Enterprise Applications and the vertical markets of its customers. The QAD Global Services organization as well as QAD’s authorized partners are trained and often certified in services delivery to support these activities.
 
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