Enterprise Software Churn: UNIT4 in UK local government

The general presumption in the enterprise software marketplace is customers stay loyal for lifetimes – the more realistic thinking, of course, is they stay loyal for long periods, but not that long.

When I was researching SAP Nation, I was impressed with how many customers are swapping out software, moving to third party maintenance, “ring fencing” the core solution with specialist tools, and implementing two and three tier strategies – different solutions for headquarters, large and small subsidiaries.  I presented a sample of case studies in the book. While those were in SAP settings, similar moves are happening around other solutions.

Over the next few weeks I plan to showcase more examples of the churn that is happening in enterprise software. Let’s start with something I learned while spending time with UNIT4 execs in Europe last month. They showcased a nice run where UK local governments are swapping out SAP and Oracle with their Agresso product.

Most of these customers are doing it for fiscal reasons. Steven Fletcher, Corporate Program Manager of Middlesbrough Council, profiled in SAP Nation, said it was part of an initiative to reduce IT spend by £75 million over five years. Coventry City council reports £3 million savings over 2 years as they move away from the Oracle suite.

Beyond the savings, the customers also report improved process workflows, better financial transparency,  and in many cases much happier end-users.  Fletcher is quoted in the book

Many processes for calculating sickness and leave entitlement, or filing for mileage were complex or not customized for us. Probably unfair to SAP, but what Middlesbrough saw of it has led to a fairly intense dislike for the application.

Here are some (of a longer list) of UK government customers UNIT4 shared with me

Bristol City Council

•Finance & Procurement

•In house replacement

London Borough of Tower Hamlets

•Finance & Procurement

•JD Edwards replacement

Lincolnshire County Council

•Through SERCO, an outsourcer

•Full ERP

•SAP replacement

Wolverhampton City Council

•Full ERP

Individually, you could dismiss them as small cracks in the frozen tundra, but there are many such cracks if you use a wide angle lens. Over the next few weeks I will profile other such “snapshots” and show why I believe they are an indication of  coming significant churn in the enterprise software market.